Years ago, infographics and video content were the new trends in online marketing. However, recently, a new player has entered the market: chatbots. What exactly are they? Why do people interact with them, and what benefits can be derived from implementing them in business? You'll learn in this article.
Chatbot – what is it?
One definition is: A computer program designed to simulate a conversation with human users, often over the internet. Chatbots have actually been around for many years. The first one was created in 1966, called ELIZA. It was intended to parody the behavior of a psychoanalyst who mocked a patient, often repeating their statements in the form of questions. However, only recently have companies begun to pay attention to the business benefits of their use. The real credit for popularizing chatbots, however, belongs to Facebook , which allowed them to be integrated with its Messenger. Depending on how individual chatbots were programmed, they can be divided into two main groups:
Simple chatbots
They operate based on a pre-defined set of keywords that they can understand. Each chatbot response to a specific query must be individually designed by the developer. If a user asks a question without using one of the known keywords, the robot will not understand the query and will typically respond with a message like "sorry, I don't understand."
Advanced chatbots
Self-learning algorithms were used in their design. Instead of using pre-prepared responses, the chatbot generates them on the fly, based on flexible rules and its own knowledge. All queries entered by customers are saved for later processing. However, in this case, artificial intelligence isn't perfect, and developing such a chatbot requires a significant amount of work. It must be admitted, however, that enormous progress has been made in this field. Proof is the now-famous voice conversation between Google's machine and people who wanted to book a hairdresser's appointment. It perfectly imitated even a momentary pause like "mmmmm" or "eeee." People were convinced they were talking to another human being. It definitely passed the Turing Test.
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What encourages users to interact with chatbots?
According to one study, the main factors are:
- Productivity – chatbots provide quick and effective assistance and access to information.
- Entertainment – chatbots entertain people by giving them funny tips, they also help kill time when users have nothing to do.
- Social and relational factors – Talking to bots gives some people the chance to talk without being judged and helps them work on their conversational skills.
- Curiosity – many people are interested in the very idea of “talking programs”, which encourages them to interact with them.
So let's discuss how chatbots can help your business grow:
Answering Questions: The simplest and most popular use of a chatbot is to turn it into an interactive FAQ. A chatbot filled with answers to individual questions will be especially useful in situations where customers use specific jargon. It will be able to answer the most common questions, leaving human support for truly demanding cases.
Implementing a chatbot will also help improve your social media presence . It's difficult to ensure your customer service team can respond to every query on the platforms you're present on. Even if you could, it would be time-consuming and therefore expensive. A chatbot, on the other hand, can be active 24/7. This not only saves your employees time but also improves communication with customers and improves your response rate.
Reducing operational costs. Serving and engaging with customers (current and potential) takes time and generates costs. However, according to Chatbot Magazine, implementing virtual advisors or chatbots can reduce customer service costs by up to 30%.
Of course, such solutions won't completely replace humans. Chatbots will, however, successfully handle simple and repetitive tasks, allowing employees to be assigned to more complex tasks.
Collecting and analyzing customer data. Your chatbot is a great tool for gathering customer information. If someone doesn't have a genuine reason to do so, they'll be less likely to complete a survey. A chatbot takes a more gentle and natural approach to collecting feedback, introducing relevant questions during the conversation.
Additionally, by using machine learning algorithms, your chatbot can analyze reviews and other information it collects from users. This will give you greater insight into what they really want. It will also help you refine your marketing strategy to focus more on customer needs.
Personalized Customer Contact. Customers don't always know how to find the information they're interested in. In fact, they may not even know what they're interested in. Maybe they've simply heard about your brand and decided to take a closer look.
Chatbots are therefore integrating with social media , collecting data about each person they interact with. When a user enters a specific query, the chatbot can respond, offering personalized advice based on the customer's purchase history and preferences.
Even if the chatbot does not use this solution, it can get to know the potential customer better through a series of questions.
Streamlining the Payment Process: Advanced chatbots utilize features that allow them to process payments. Customers can pay for their products without leaving the chat interface. Bots that store payment details for regular customers significantly streamline the ordering process.
Summary
Chatbots are undoubtedly a useful tool in business, and their popularity will only grow. They help understand audiences, tailor marketing efforts, reach new consumers, and save employees time. It's definitely worth taking advantage of their capabilities as early as possible. Chatbots currently support businesses, but in the near future, they may turn out to be businesses themselves.
An example is the movie "Her," where the protagonist enters into a conversation and relationship with an advanced algorithm (a woman's voice) managed by a company founded to provide satisfying, platonic relationships in a world where interpersonal relationships were already declining in quality. Sound familiar? Ha! Maybe the demand for such a service is just around the corner.
Summary
The above article covers the following topics:
- definition of chatbot and its development over the years,
- division into simple bots based on keywords and advanced solutions using self-learning algorithms,
- user motivations to talk to chatbots and the practical use of bots in the company,
- the growing role of chatbots in business.
