The chatbot is no longer a new term, which presents in different Web and Mobile App Development over the past few years to interact with customers via text or address a huge number of queries without the need of real people. Do you know that 55% of enterprises make use of Chatbot Development to produce more high-quality leads? Juniper Research has claimed that Chatbots are predicted to save businesses 2.5 billion hours by 2023. Moreover, in the context of the COVID-19 pandemic, many businesses and corporations are struggling to offer timely services to their customers due to the remote working and shortage of staff. Therefore, Chatbot Development is becoming indispensable and has constantly transformed innovatively to serve the ever-growing needs of businesses and their customers as well. To have a deeper understanding of this AI-driven technology, let’s keep reading!
1. What Is Chatbot Development? Different Types Of Chatbot
Chatbot, which combines between 2 words “chat” and “robots”, is a computerized program that generates human-like text and voice conversations using predefined rules, triggers, and events. We now easily come across Chatbot Development in different platforms, such as Websites, Mobile Apps, emails, etc. Depending on the inputs, Chatbot can provide many services, including replying to the customers, addressing their problems, or assisting them to complete the tasks without human intervention. For instance, a Chatbot in a MedTech application can automatically add up calories, track steps, and remind the users to get out and walk.
Normally, there are 3 main types of Chatbot Development, which are Rule-Based Chatbots, AI-Powered Chatbots, and Hybrid Chatbots.
Rule-based Chatbots (or Task-oriented Chatbots): This type is developed using pre-defined rules, Natural Language Processing (NLP), and very little Machine Learning (ML). It can't function properly outside of the rules, and it can't learn from previous interactions, either. It can, on the other hand, only help if you have fixed expected responses to the defined questions your customers may ask.
AI-Powered Chatbots: Using NLP and ML to understand the human language, process, and handle it, the AI-based chatbots are more contextually aware. In addition, AI-powered bots are integrated with APIs that provide the necessary resources, allowing them to deliver users with the right information and solutions. AI Chatbots can also become smarter by the day as they can make connections between questions, comprehend them, and provide appropriate answers to the users after learning a large number of words and phrases. This is referred to as Conversational AI.
Hybrid Chatbots: As the name suggests, a hybrid chatbot is a combination of task-oriented and AI chatbots. It allows for human intervention when a critical problem cannot be resolved by automated bots.
2. Why Is Chatbot Development Significant In Software?
a. Available 24/7
Chatbots are always available at any time, meaning that customers can submit questions and get the answers immediately even when most other helplines and agents aren’t available, such as nights, weekends, and holidays. This can enhance the customers' experience, making them satisfied with your service and prompting them to come back again.
b. Communication In Multiple Languages
While hiring an employee fluent in many languages can be a challenging and expensive task, chatbot development can be a more potential answer. Just by programming with the needed languages, Chatbots can easily interact with customers all over the world. This would help your enterprises to reach your target customers regardless of their destinations, resulting in improved business and revenue generation.
c. Tracking Data And Metrics
Customer insights are critical for businesses because they allow understanding the customers' needs and preferences. Luckily, chatbots can measure consumer data and information, such as browsing history or purchasing patterns, to assist businesses in learning more about their customers. Furthermore, based on these data, these AI bots can provide personalized recommendations, allowing them to make targeted offers that customers are likely to respond to.
d. Increase Efficiency And Reduce Cost
By automating simple customer interactions to allow humans to turn to other challenging tasks, Chatbot is considered an efficient and productive tool. Also, because fewer employees and equipment are needed, Chatbot can save businesses’ costs. Furthermore, chatbots will help to lower operating costs because they involve very little maintenance or upkeep because they are powered by AI technology that is coded for specific functions. As per the Oracle survey, chatbots could save $174 Billion across Insurance, Financial Services, Sales, and Customer Service.
3. The Dominance Of Chatbot In Almost Sector
According to Salesforce's State of Service report, 83% of customers expect a response immediately after contacting a company. In addition, in 2021, 60% of their interactions with the company were conducted online. Therefore, it is not surprising that many businesses hire Chatbot developers to leverage this technology in their sectors to serve customers better. Here are some outstanding industries:
- The Insurance Industry is using AI chatbots to make insurance claims, making nearly a half of customers satisfied while 43% are comfortable using them to buy insurance policies. To optimize insurance-related processes and improve customer service, chatbots can handle claims instantly and tailor quotes.
- The complicated world of Finance is also integrated into intelligent Chatbot in their FinTech apps to answer questions, keep track of your expenditures, and offer timely advice, which makes that app desirable indeed.
- eCommerce sector can be an area that is by far the most popular for using Chatbot, which helps a lot in increasing sales and improving customer retention, with better product guidance and pre as well as post-sales support. Eg. Nike’s AI-powered chatbot allows users to find shoes based on their preferences through product recommendations.
- Education also adopts Chatbot Development, with the example of Duolingo - a famous learning language mobile app. It has extremely advanced chatbots that simulate conversation, which is the most effective way to acquire a new language. The same is true for study guide apps for students that include chatbots that administer pop quizzes.
4. Final Thought: Chatbot Development Is Never Going To End
It can’t be denied that Chabot is really a cutting-edge customer interaction program. It can offer many advantages, such as customer service representatives, information about your company and products, answers to questions about services, and even promotions. Therefore, if you have a soon-to-be-developed app, don’t forget to adopt this innovation.
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