The ChatBot Economy

By Annie Bustos

ChatBot-TechBlocks-

Chatbots, a popular subject of discussion back in 2016, are still growing in popularity with 2017 showing further developments that secure their longevity and proven benefits offered to businesses. Many reports talk about the importance of an improved customer experience, with the chatbot apps contributing to direct benefits for users. In fact, 86% of respondents of the “Customer Experience Impact” Report by Oracle said that they would be prepared to pay a higher price for a high-quality customer service. Consumers are already accustomed to having interactions via chat. The purpose of this new technology is to improve this experience in aspects such as the quality and speed of responses, 24/7 support and lower costs incurred by the company. The fact is that businesses are nowhere near towards reaching the full potential of chatbots, particularly the multiple applications of them, across many contexts. The main focus of this article is the growing adoption of chatbot app development in a business context. It serves as an introduction to chatbots: to understand what they are and what benefits they offer, how they can help CXOs with their challenging goals of improving the customer experience and how chatbots can help them to improve KPIs such as the acquisition and retention of customers. It also mentions some key considerations when deciding to develop one.

THE TECHNOLOGY BEHIND CHATBOTS

A chatbot is a computer program that is engineered to carry out real conversations with users. Trends talk about the growing popularity of chatbots with 60% of consumers stating that they are a ‘technology of the future’. On top of that, almost 50% of consumers state that if implemented correctly, they would prefer to deal with all their customer service communications through content exchange such as online chat or texts. The technology behind the development of these programs is primarily based on Artificial Intelligence (AI). The most basic version of chatbots is built using Natural Language Processing, where keywords from the user input are being mapped to replies provided by the chatbot. The drawback of this approach is that it cannot understand the human intention behind the customer input. On the other hand, bots with AI capabilities added on top can increase the accuracy of correct responses and interpretation of the requests up to 90%. These bots can also understand things like emotions and user behaviours, and can constantly improve their responses through machine learning over time. Furthermore, AI capabilities provide bots with an optimal path in order to produce the best-fit results; taking into consideration the short and long-term goals of the business.

THE BENEFITS OF INTRODUCING A CHATBOT IN YOUR BUSINESS

Although it’s a relatively new trend, many businesses’ have taken advantage of chatbot benefits to create unique and improved customer experiences. Chatbots can bring value by both cutting down on the costs of traditional customer service departments and driving up sales. Taking the retail industry as a tangible example, a benefit would be to summarise similar responses received by customers and create a chatbot as an improved Go to the full article.

Source:: Business 2 Community

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