A chatbot is an artificial intelligence program that interacts with people through text or voice. Chatbots can be used for a variety of purposes, such as customer service, marketing, and automation.
How do chatbots work?
Chatbots are computer programs designed to simulate human conversations in messaging apps and messenger platforms. They use machine learning and advanced natural language processing to understand and respond to messages in real time. An AI bot is a computer program which performs a task that a person would do. It is typically not intelligent enough to independently make decisions or plan, but it can follow instructions given by humans or interact with people in natural languages.
There are two types of chatbots – rule based and model based.
Rule-based bots use simple instructions to respond to user input, while model-based bots use more sophisticated algorithms to analyze users’ intent and guide the conversation. Popular chatbot types include:
Language bots – These bots are designed to understand and speak one language fluently using natural-language processing technology, for example Facebook’s M assistant and Amazon’s Alexa.
Utility bots – These bots can complete tasks on behalf of a user. For example, they can help with shopping, travel bookings, and more.
Customer Service bots – These bots can provide customer support around the clock by answering customer queries through text or voice.
Sales bots – These bots can automatically follow up with customers after their initial inquiry to help close deals.
Examples of chatbots in action
A lot of companies are already leveraging the power of chatbots to provide better customer service and increase sales. Here are just a few examples
- Pizza Hut launched its virtual robot Dom to help provide customer support and take orders through its mobile app.
- Spotify uses Botsify to power its personalized radio bots that play user-curated music based on their favorite artists and genres.
- Sephora uses bots to provide customers with quick information about products, including usage instructions, comparisons with similar products, and even customer reviews
- MagicJack uses bots in its live chat software to help resolve customer issues quickly and easily.
Benefits of using chatbots for your business
Since the emergence of chatbots, there has been a growing interest among business to integrate them into their digital strategy. Here are some of the benefits of using a chatbot for your business.
- Increased customer satisfaction and loyalty – Chatbots offer consistent, personal, and intuitive support to your customers and help to build meaningful relationships with them. As a result, your customers will be more likely to return to your business in the future and share their positive experiences with others.
- Reduced operating costs- By automating repetitive tasks and eliminating unnecessary processes, you can significantly reduce the cost of running your business.
- Improved productivity – Chatbots free up your employees’ time so they can focus on more important projects. As a result, your business will be able to produce better results with fewer resources.
