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February 23, 2022

How can a chatbot help save your business money

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According to Juniper Research, we can expect $8 billion business cost savings from chatbots by the end of 20221. Indeed, when it comes to chatbots, one of their greatest advantages is that they can save a lot of money and time. And that’s what we want to talk about today. Let’s find out how these intelligent assistants can help you boost your business and generate some substantial savings.

online_chatbot_noa

Today, chatbots are almost everywhere. They are especially popular in the e-commerce business, but they find applications in customer service departments of many companies, e.g., banks and telecoms. Before we get down to business, let’s focus for a few moments on the chatbots themselves. What are they, and what are their major advantages?

What is a chatbot?

Generally speaking, a chatbot is a smart assistant based on a chatbox. However, instead of the human consultant or employee on the other side, there is an AI-powered algorithm that, thanks to such technologies as machine learning and NLP (natural language processing), understands what the customer asks about and can respond understandably. So yes, we might say that talking to a chatbot means talking to a computer. Today, they are responsible primarily for simple and repetitive tasks, but as the technology develops, chatbots will be more natural, accurate and effective.

Even today, many experts predict the advent of so-called super-smart chatbots. Thanks to deep learning, they will be soon possible – a more advanced and comprehensive version of machine learning. Such super-smart chatbots will quickly understand what customers are saying and generate coherent, natural responses to them. They will also help humans execute more advanced and complicated tasks.

CHATBOTS’ APPLICATIONS

And speaking of tasks – what can chatbots be used for? According to data from 2018, chatbots come in handy, especially in the following situations:

chatbot_statistics image source: https://www.statista.com/statistics/1025267/ai-chatbots-usage-in-customer-service-organizations/

Today, the situation is similar. Chatbots are especially efficient concerning:

  • Scheduling and rescheduling appointments
  • Answering frequently asked questions
  • Distributing vouchers and promo codes
  • Informing about new arrivals and promotions
  • Onboarding new employees
  • Providing assistance in simple rule-based scenarios

In 2021, Gladly.com conducted their annual customer expectations report. In their last year’s edition, respondents said that chatbots are useful primarily when they don’t want to wait for the customer service consultant or then need an answer to a simple question:

gladly_1

Also, take a look at another question Gladly asked their respondents:

gladly2

Clearly, these answers indicate rather simple conversations that a well-trained algorithm can easily handle. That's why chatbots are more and more popular, and people get used to them quickly. Because they do their job well and customers don't have to wait in line to ask a simple question. On the contrary, they get immediate responses.

One last thing to mention is that chatbots are always chat-based, and they understand written text only. If you want to communicate via voice, you need voicebots. And while they may seem similar, the fact is they work differently. For starters, they need different technologies to operate (e.g., TTS – text to speech), but that's a story for another article.

Chatbots’ advantages

We’ve already mentioned some of the essential advantages of chatbots, but let’s be more specific. The first thing that comes to mind is that chatbots can generate substantial money and time savings. How is that possible? For starters, with chatbots, you can lower the waiting time (chatbots can provide service to tens of customers simultaneously) without the need to hire new customer service consultants. Moreover, you can offer 24/7 service also without the need to invest considerable financial resources.

The second important element is that chatbots help you organise work and take less important, mundane tasks off your consultant’s shoulders. As a result, your employees can focus exclusively on the most complicated and strategic matters while the chatbot answers questions about opening hours and the delivery status.

The third advantage we want to mention is related to their versatility. You can use chatbots for different purposes and alter their “job descriptions” as the needs in your company change. As we mentioned earlier, chatbots can schedule appointments, provide product recommendations, answer frequent questions and execute tons of other simple tasks. It’s just a matter of the right training.

*Chatbots are always on standby; they are never on vacation or sick leave. They operate non-stop, are never tired or annoyed. *

Chatbots for different industries

Because of their versatility, chatbots can be exploited in diverse industries. They are particularly popular in2:

  • BFSI (banking, financial services and insurance)
  • Healthcare
  • IT and telecommunication
  • Retail and e-commerce
  • Travel and accommodation
  • Marketing
  • HR

As you can see, chatbots come in handy in many industries. Now, let’s see how they can be used in three of these market sectors:

E-COMMERCE CHATBOTS

E-commerce is one of these sectors that can easily make the most of chatbots. In e-commerce, chatbots can:

  • Rescue abandoned baskets
  • Inform about new products in the inventory
  • Distribute promo codes
  • Provide personalised product recommendations
  • Execute advanced selling techniques like upselling and cross-selling
  • Answer questions concerning payment, delivery and product specifications

MARKETING CHATBOTS

What about marketing? Chatbots can help you execute your marketing strategy by automating communication with current and potential customers. That’s why chatbots are willingly used in email marketing and affiliate marketing. Through chatbots in marketing, you can:

  • Conduct customer surveys
  • Inform about new services
  • Invite customers to download a mobile app or to join the VIP club
  • Communicate with your affiliates and more!

CHATBOTS IN HR

Gathering resumes, candidate selection, scheduling interviews – these are just three of many applications of chatbots in modern HR departments. The fact is, a lot of work in HR is mundane and repetitive. Screening resumes can take a lot of time and is prone to human error. Bots can analyse thousands of CVs within minutes and provide recruiters with a ready-made list of worthy candidates.

Finally, chatbots come in handy concerning onboarding processes. Educating every new employee about the company they've just started working in can be time-consuming. Chatbots can easily guide every new employee through this process so that HR managers can focus on more urgent issues.

If you’d like to see some examples of diverse chatbots in action, take a look at our selection:

CHATBOTS: EXAMPLES FROM DIFFERENT INDUSTRIES

Food/education: MatPrat

We've made a chatbot (and a voicebot, for that matter) for a Norwegian organisation called MatPrat. They promote Norwegian farmers and their products. A big part of their mission is to help schools educate their pupils about cooking and related topics through their websites. The chatbot answers food-related questions like, "what you can make for dinner based on your ingredients in the fridge".

matprat_chatbot

If you want to read more about this project, take a look at our chatbot case study.

Travel: WizzAir

It’s a Hungarian ultra-low-cost airline operating in Europe. In April 2021, they announced the introduction of their new smart assistant, Amelia. Their chatbot enables customers to acquire information related to their flights as well as provide general information on travelling. You can see Amelia in action on their Facebook profile. And if you want to try talking to Amelia yourself, just use this link.

Healthcare: WHO

In late 20213, WHO published information about their new chatbot talking about women’s health. The first set of messages to be included relates to breast cancer, but this project will surely be extended with other diseases. They’ve also built another chatbot that will combat covid-related misinformation. The service is available in several languages and can be accessed via their Facebook page.

How exactly is chatbot saving your company money?

According to Grand View Research, the chatbot market is anticipated to expand at a CAGR of almost 25% and will reach $2,485.7 million by 20284. That’s because this technology is simply effective and helps companies save a lot of time and money.

Even today, according to HR Reporter, 83% of IT, business and financial professionals use AI-based technologies daily, and that's including chatbots. Respondents (69%) say that their productivity increased substantially with the use of these tools.

We could say that chatbots save money because, with them, there is no need to:

  • Hire more people to do excessive work
  • Spend time on mundane and repetitive tasks
  • Invest significant resources to introduce new services (e.g., 24/7 operation)

Moreover, your employees work more effectively and can focus only on the most pressing and important issues and matters. As a result, they can do more during the working day because they don’t waste time on unproductive activities.

*According to the already cited report, chatbots can save up to $0.70 per customer interaction. In many companies, this means thousands of dollars saved each month. *

If you’d like to find out more about chatbots – we are at your service. Book a free consultation and tell us something more about your idea. Perhaps we will be able to help you implement a chatbot or a voicebot that will automate customer service in your company.

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