If you have ever used live customer support service, you’ve probably spent moments wondering what that “interactive agent” you’re conversing with is.
In an era where the gap between humans and machines is constantly bridging, it could be hard to tell for sure.
According to a report by Markets Insider, the global chatbot market is expected to reach $1.25 billion by 2025. Statistics like these point to just one question: is the future here already and does your company need chatbots?
Here are some brief insights to help you decide whether you should start using chatbots for your business.
Why are Chatbots the New Trend?
Let’s cut to the chase: What is it that these bots are doing – that humans can’t?
With an AI system increasingly used for customer communication, these chatbots work without human intervention. Furthermore, they need no office space, vacations, incentives, and other perks.
A 2019 study reveals that chatbots will outrun mobile applications in the next 5 years according to 67% of businesses. Oddly, that figure is not that alarming when you think of a bot’s potential.
Can Chatbots Boost Conversions?
No matter which strategies a business implements, increasing sales is always an overriding goal, right?
AI-powered conversational bots can help you keep your potential customers engaged and gradually push them down the sales funnel. They can make this possible with personalized messaging, product recommendations, and offers.
A good example is H&M’s chatbot that is designed to give clothing recommendations to their customers.
But are Chatbots Cost-Efficient?
While free bots are taking the world by storm, they can hurt customer experience by not being “human enough.” Depending on the scale and requirements, building intelligent bots can largely vary.
Truth is, customer service has always been an expensive affair. When it comes to chatbots, you can cut down on recurring costs incurred in the case of employing human labor.
And, they can help you bring in new and repeat purchases as well as improve customer satisfaction and increase retention. So, it’s a win-win situation for businesses.
Do Chatbots Aid Data Collection?
These interactive agents operate by interacting with customers on the internet and recording data. By means of accumulating crucial user information, chatbots make it easier to detect trends and sentiments.
In 2020, we’re dealing with huge amounts of big data. However, the real value of this data can only be unlocked after intensive analysis. Business intelligence chatbots allow you to get analysis reports within applications like Skype, Slack, etc.
But are Chatbots Really That Intelligent?
Today, chatbots are attempting to imitate human interactions, but can they? Consumer complaints reveal that bots sometimes lack natural language processing capabilities. They miss solving complex problems as they lack “human touch,” which leads to a lack of user engagement.
While these agents are supposed to ease consumer experiences, some problems are quite commonly-faced. In case of spelling errors or language differences that chatbots aren’t programmed for, bots can often fail.
Are Chatbots Secure Enough?
When consumer data is involved, security concerns come to the fore. Cybercriminals are always on the lookout for new opportunities and chatbots can just be the next big target.
One of the major reasons why bots are highly vulnerable is because users tend to trust them, irrespective of who’s on the other side. When they say “follow this link and log in…,” it doesn’t come across as suspicious.
While chatbots can prove to be a huge asset, it is necessary to gauge if your business is ready for it. Half-baked plans or investments in bots will only sabotage your company’s well-being.
For more details on deploying AI-powered chatbots and benefitting from them, you should check out this insightful infographic by Shane Barker.
Shane Barker is a digital marketing consultant who specializes in influencer marketing, content marketing, and SEO. He is the co-founder of Attrock, a digital marketing agency. He has consulted with Fortune 500 companies, influencers with digital products, and a number of A-List celebrities.