Why Your Business Needs A Chatbot: Classic Use Cases of Chatbots
As a business owner, you are always looking for ways to optimize your processes and cut costs. Many businesses are now turning to chatbots as a way to automate customer service and support.
AI Chatbots help improve customer engagement for companies by providing instant responses to queries. This helps companies create a top-notch consumer experience, boosting sales and revenue.
This article explores some classic chatbot examples used by top businesses. It shows how chatbots help improve customer satisfaction and user experience. We also give you some tips to help you create an excellent chatbot for your business.
The Different Types of Chatbots
Here are the different types of chatbots you can consider employing in your business:
1. Simple or Rule-based Chatbots
Simple chatbots, also known as rule-based or decision tree-based chatbots, have limited functionality. They work via a predetermined set of rules, which guide their responses. The chatbot creator anticipates FAQs and creates a defined flowchart for each one. Each option leads to a predetermined response or series of responses. Usually, they work by using menus to present a series of options to customers or users.
Rule-based chatbots do not learn from previous interactions. They simply retrieve responses from a database. Also, they do not respond to queries outside the rules. Therefore, they may have to redirect customers to a human respondent when such questions are asked.
Rule-based chatbots are easy to build, making them popular among businesses. They are also relatively easy to troubleshoot.
One example of where a rule-based chatbot would serve nicely is a website for ordering phones online. The chatbot would follow a logical process, starting by asking the user what phone brand they’d like to buy. This would lead to offerings of available products and specifications and then a request for payment details. Rule-based chatbots tend to thrive with logical flow charts like these.
2. Smart or AI-based Chatbots
Smart chatbots use Artificial Intelligence and other technologies like Natural Language Processing (NLP) to achieve more complex interactions. They can understand intent, context, and language and have the ability to simulate normal human conversation. AI-based chatbots perform better in difficult situations and can learn from previous conversations. With more conversations, they learn to give better responses that suit the customer.
Because of this adaptability, AI chatbots require less human intervention. They need more programming to develop due to their complexity. Large corporations with the resources typically use them. Apple’s Siri is an excellent example of AI-based chatbots, giving relevant responses based on recognized patterns and user history.
3. Hybrid Chatbots
Hybrid chatbots merge the best features of simple and AI-based chatbots to create a balanced middle ground. Hybrid chatbots provide rule-based algorithms to help users find what they are looking for quickly. At the same time, their AI and NLP-based functionalities allow them to address more challenging cases.
Because of this balanced approach, hybrid chatbots are often the choice chatbot type for businesses. As industry favorites, they allow customers to receive quick responses, with options for interactivity.
For example, suppose your business is an online store. In that case, your hybrid chatbot could provide automated options for customers to select, preview, and order a product online. It could also provide options for customers to ask further questions in a less structured manner.
A Few Chatbot Use Cases Used by Businesses
Here are a few areas where chatbots may help you improve business performance:
A. Customer Service and Support
Chatbots can provide instant responses, allowing customers to learn about your products and services. Customer service chatbot are also excellent at answering repetitive questions, taking the burden off your support staff. You can also program your chatbot to help customers navigate your site, place orders, and make payments.
B. Customer Engagement
Chatbots can have excellent conversations with customers, providing a memorable personalized experience. Additionally, chatbots are efficient at providing relevant responses, compelling customers to engage with the company.
By analyzing user behaviors, chatbots can provide personalized recommendations for customers, improving the chances of making a purchase. They also facilitate marketing campaigns such as email collection and social media campaigns. For example, they can collect emails, contact details, and other contact info.
Chatbots can also subscribe customers to newsletters and share information about webinars and product releases. Additionally, they provide guides to relevant content to help build trust and brand loyalty.
Chatbots can reach out to customers first, eliminating the need for customers to be the first to contact the business. For example, they can hold conversations to help customers find what they need.
Chatbots can also serve as guides to help customers explore, place, review, and receive orders. They can also make alternative recommendations if a product is unavailable or new offers based on purchase history.
Things to Keep in Mind When Creating a Chatbot for Your Business
Chatbots can help you improve customer support significantly, allowing your business to witness massive engagement and improved productivity. However, different chatbot types cater to different uses. To maximize the use of your chatbot, it would need to meet some essential criteria. Here are a few things to keep in mind when creating a chatbot:
1. What Your Chatbot Will Be Used For?
How your chatbot will operate will depend on how your customers need to interact with your business. A simple, rule-based chatbot would probably do if your customers mostly have task-specific needs. This would not apply if your customers mostly have open-ended questions. In that case, a hybrid or AI-based chatbot would be your go-to, allowing your chatbot to adjust to customer needs.
2. Your Target Audience
Your target audience – the customer – is the priority when building a chatbot. After all, the goal is to satisfy the customer! When developing your chatbot, a great idea is to survey customer needs and common questions. Research FAQs and try to understand the standard hitches they face. This is particularly important when developing algorithms for a rule-based chatbot.
Essentially, there are two ways to create a chatbot: buy one or build one. Your choice will depend not just on the company’s needs but also on the available resources. If you choose to build a chatbot, you will be committing a lot of money, client data, and technical talent.
If you want to buy one, it would have fewer bespoke functions, but you’d spend less on technical talent. Instead, your team could focus on adapting the product to your company’s needs, saving you thousands of dollars in fees. Several software help you develop AI chatbots without any coding experience, such as Chatfuel and BotUp.
The best chatbots make it easier for customers to send their queries and receive answers easily. Extremely complex interfaces can be challenging to navigate, leading to negative user experience. To avoid this, make your chatbot simple, user-friendly, and intuitive. This way, the consumer can maximize the service and user experience.
Integrations That Make Your Chatbot Unique
Upon creating your chatbot, it’s crucial to add integrations that make it stand out. Having the right integrations can improve the impact and functionality of your chatbot. Some of these include:
If your business has one, this is probably one of the first places that you should integrate your chatbot. Chatbots for website help customers navigate your site, allowing them to find products and content easily.
With over 1.3 billion active users every month, Facebook Messenger is one of the best ways to improve the reach of your chatbot. Many of your customers will have a Facebook account, so Messenger chatbot integration will help you take your business to their (online) doorstep.
Email marketing is recognized as one of industry experts' top-converting marketing strategies. So why not take advantage by integrating Gmail, one of the most popular emailing platforms? You also get the chance to grow a community, allowing you to target your customers with new products and build a more intimate relationship with your customers.
Processing over 100 billion messages daily, WhatsApp is the biggest direct messaging platform globally. Due to its convenient interface and popularity, having a WhatsApp chatbot can help you reach your customers even better. This is mainly for large businesses, which the WhatsApp API caters to. Although API access is limited to large and medium-sized companies in specific industries, you can still take advantage of the platform using WhatsApp Business, which also supports automated responses.
Although chatbots perform a myriad of functions, they are not yet equipped to perform certain levels of complex processes. Livechat makes it easier for customers to switch from communicating with a bot to chatting with a human respondent. This helps your customer get needed responses when facing more nuanced challenges.
Chatbots help businesses create and maintain excellent customer relationships intuitively, improving the user experience. If you’re looking to do the same with your business, consider adding chatbots to your customer support system.