Note: This is a guest post from Anastasia Stefanuk. The author’s views are entirely his own and may not reflect the views of Deepanshu Gahlaut’s Blog.
Artificial Intelligence based chatbots have changed the landscapes of some of the most basic business processes such as customer service and digital marketing in the modern business ecosystem. This huge popularity of chatbots increased the demand for software developers through direct hiring as well as through recruitment process outsourcing companies.
According to the Mordor Intelligence market research report, the total market size of chatbot business was about $864.9 million in 2017. And, it is expected to reach $3.14 billion by 2023 with a gigantic growth rate of over 24.1% CAGR.
Let’s have a look at the major reasons of chatbot popularity, how it works, and what the best examples of chatbots in the marketplace are.
How Chatbots for Business Simplify the Work?
A complete business operation consists of different types of businesses processes. Those business processes include sales, marketing, shipping, order processing, customer support, and others. All those business processes require people or programs interfacing with the clients.
A chatbot is a software program that is powered by artificial intelligence, machine learning, and data analytics. It faces the clients smartly and responds effectively without any intervention of a human.
Chatbot reduces the workload of customer support representatives, or in certain cases, it eliminates the role of human customer support representatives. Thus, the huge cost is saved. The entire process is automated so there is no chance of any human error. Thus, the process becomes efficient.
The chatbot is a software program; so it does not take rest or tires at all. It can work round the clock without any deterioration in performance. So, it is highly productive for businesses. When a customer gets a measured and proper response of his/her query, it feels a good experience with the business; so a chatbot creates great value for the customer as well as for the businesses.
For a small business, there is no need to maintain a team of human resources for customer support, marketing, and other departments. You can simply implement an online chatbot and get the work done!
Business Chatbots Examples
Almost all large organizations use chatbots for their business processes. They get software developed for their customized use, which is costly and not affordable by small businesses. There are many other online chatbot solutions for small businesses. A few examples of business chatbots are listed below.
- Facebook Messenger
- Hipmunk Hello Bot
- Drift ChatBots
Top 5 Reasons for Using AI Chatbots for Business
According to Business Insider research, more than 80% of the businesses want to start using chatbots in their online business processes by 2020. There are many great reasons behind this huge thirst of enterprises to use chatbots in their businesses as early as possible. A few of those major reasons are mentioned below.
1. Reduced Operational Cost
According to the CNBC report, the use of chatbots is expected to save as much as $8 billion to the business world globally by 2022. That is a big amount for businesses to save. This is the reason number one for all types of businesses of choosing the chatbots so aggressively.
The chatbots save cost in multiple ways. It increases the efficiency of the response to the customers and thus improves the user experience. The total cost of having customer representatives is much higher than the building a chatbot software and implement it.
You need multiple representatives for accomplishing the operations of the business processes, but chatbot does not work in shifts. You need just one software program and related infrastructure to run your business process smoothly and cost efficiently.
2. 24×7 Availability Without Any Break
Another major reason for the enterprises to choose for chatbots is that it is always at service without taking a tea break or anything else. Thus, makes your business response open 24×7 and round the year. This improves the availability of customer support, marketing support, advertisement, branding, and other processes for the whole day and night for the entire year.
Chatbots improve the footprints of your businesses across the globe because you can effectively communicate with the customers from all around the world without irrespective of their time-zones.
Thus, your business gets a huge push by tapping the customer base across the globe in all time-zones. Your clients feel connected all the time across the globe.
3. Great User Experience
Chatbots are machine based software programs so the chances of human errors are nil. The response from the chatbots is already measured and automated based on the conditions on which the chatbot has been developed; therefore, no human psychology of human representative dictates the communication.
The customer gets the most desirable communication, the best solution he/she should have and the best way to get that solution. Owing to all these features in automated communication, great user experience is created. That user experienced translates into the business bottom lines at the end of the day.
4. Better Business Branding
The business world we are living in is fiercely competitive and fully governed by a business or product branding. Developing a positive business image is a multi-prong business strategy that requires the right data to target the focused market segment with the best solution that can create a great value for the end user.
This all can happen when data-driven decisions powered by the accurate business intelligence are made. Chatbots can play a vital role in developing a positive image of your business and a great brand value in the marketplace.
Chatbots can leave a desirable impact on building good brand value through different business processes where they are commonly used.
5. Faster Business Processes
Machines are much faster than a human being. Chatbots are like machines and they are faster than the human response. A human can handle one task at a time, but machines can handle multiple tasks like the chatbots do. They are also able to handle multiple queries of the customers and offer numerous solutions that are a good fit for the customer needs.
How Do Chatbots Work?
Chatbots are software programs powered by data analytics and artificial intelligence. These programs interact with the conversation, behavior, and other imputs of the clients and respond accordingly by inferring the data patterns, customer behavior, and present data of client communication.
Creating chatbots is a human intervention free automated software program development to offer smart responses to the queries generated by the clients.
When any person lands on a web page, the chatbot gets activated to respond to him/her automatically based on the certain response-algorithms, past information, and the present data. If anybody wants to chat with it, it will understand the communication input and will respond accordingly.
The chatbot industry is growing very fast and it is expected to become a multi-billion market in coming few years. The cost saving, faster business processes, effective marketing, better business branding, and virtually unlimited availability of services are the major reasons for the enterprises to choose for the chatbots.
Enterprises have options to either use commercial chatbots or develop one for their custom business use. Many online commercial chatbot options are also available in the marketplace.