Chatbots & AI have been a fast-growing piece of technology in recent years. Businesses in various industries are now experiencing the value of using them. This tech is becoming popular every day thanks to its intuitive nature, fast speeds, and convenience.
For businesses, chatbots are easing customer engagements. They help in the delivery of vital customer information in a personalized and engaging manner. However, there are more benefits that businesses are drawing from using chatbots in different business areas.
It is vital to understand the impact that chatbots are having on businesses in different industries. This article clarifies the value that companies get from chatbots. These insights will help you understand why chatbots are the future for businesses.
Here are some business aspects that companies are winning with chatbots and AI.
1. E-commerce and Online Marketing
E-commerce has received a massive boost since chatbots became widely used. For instance, Nitro Café improved its sales by 20% after starting to use chatbots. This piece of tech helped the company ease two-way communication. It also simplified the ordering process and enhanced direct payments.
Asos is another brand that has experienced the benefits of using chatbots and AI. The company’s orders increased by 300% when it infused this technology into its strategy.
Furthermore, it reached 3.5 times more people and got a 250% return on its investment.
There are several ways that marketers and e-commerce managers are using chatbots.
According to research, messenger chatbots have a 70-80% open rate and 15-60% click rate. That has made marketers use them as an email substitute to boost engagement.
Marketers are also considering chatbots for relationship marketing. More sophisticated advancements are making chatbots express feelings like humans. That has made them great marketing assistants. They have content gamification capabilities that build audiences, segment them, and sell products.
A good chatbot implements smart messaging with valuable messages. It should be good at up and down selling, increasing lead generation, and personalizing communication. It should also increase customer retention on a website and help businesses recover lost business in abandoned carts.
2. Customer Service
The traditional roles customer support staff played in the past have changed a lot. Now, chatbots have taken over the customer service space and are providing solutions in real-time.
One of the reasons why businesses are investing more in customer service chatbots is because they help in cost saving.
According to Invespcro, chatbots can help businesses lower customer service costs by 30%. Well, that is something every company in today’s world desires as it helps boost revenues. It allows companies to channel the resources they’d have used on support staff elsewhere.
Another big reason why businesses are benefiting from customer service chatbots is the change of preferences. Research by IBM showed that 65% of millennials in the US prefer chatbots for support rather than human beings helping them on the other end.
As businesses focus more on customer satisfaction, chatbots have become essential. A real-life example is Globe Telecom, a telecommunications company that cut its call volume by 50% by introducing chatbots. Its employee productivity and customer satisfaction improved by 50% by 22%, respectively.
Companies have infused chatbots in customer service in different ways. Customer support with intelligent handoff has become popular today. Automation of FAQs and chatbot usage both by internal and external customer service teams is also growing. There’s no doubt that businesses are deriving value.
3. HR & Recruitment
Chatbots are touching on every aspect of business today, including the employee lifecycle. It is the most exciting yet least discussed value that companies are drawing from chatbots. There hasn’t been a buzz in this business aspect like many other chatbots have touched on in various industries.
Expert research has shown that only 3% of applicants reach out to recruiters using chatbots today. There are many reasons why this trend exists even as chatbots become popular. HR managers attributed this to the fact that maintaining employee engagement at high levels has been difficult.
But then, the functionality of chatbots keeps improving as tech advances. People learn that efficient communication doesn’t have to be with a live human on the other end. Chatbots are also integrating with existing systems better today, making communication seamless.
Many companies are now using chatbots to save time for HR teams. An excellent example of a company that’s gaining massively from using a chatbot for HR is Maya. Chatbots help its HR team to automate various processes from sourcing to scheduling. That has helped it save a lot of time in the end.
HR teams in different industries use chatbots for various purposes. Automation of recruitment is one of the biggest benefits businesses enjoy. Prescreening, which helps filter out a massive percentage of unqualified applicants in different posts, has also become easy.
Businesses also understand that employees need to grow continually. They are investing a lot in employee training and development, which can be costly and time-consuming. Thankfully, chatbots are coming through for HR departments that would like to keep developing their employees.
HR resources have also become available on chatbots. Today, employees can find any information they need on a chatbot. They can also update personal data to be entered into HR systems through a chatbot. Feedback and reviews can also reach HR teams privately through chatbots.
4. Personal Assistants
Companies are using AI chatbots as personal assistants to help reach their goals. But then, the use of chatbots as personal assistants has also not been so widespread. The poor adoption rates have been due to many reasons, such as their limited benefits to companies.
The truth is, you can never replace a human with a chatbot. These futuristic pieces of technology fall short on the fundamental aspects of a personal assistant. They lack common sense, the ability to learn certain things, and human-level memory.
These limitations make chatbots challenging to take up as personal assistants fully. No one wants a personal assistant who cannot remember a thing about what they did together with their superior yesterday.
But then, chatbots keep rising against all odds, albeit slowly. They are changing business for companies that have already implemented them. One of the beneficiaries of this technology has been Ross Intelligence. This company has reduced research time by 30% with an AI personal assistant.
Most of the beneficiaries have been companies in the B2B industry. For instance, legal companies make an attorney’s work easier by deploying a bot as an assistant. Many tasks are becoming automated and effortless. You can only expect things to get better with AI personal assistants in the future.
5. Banking and Other Financial Services
Chatbots are also becoming popular in the banking industry every day. Businesses in this sector are using chatbots to give customers better experiences. Customers can now manage a considerable chunk of transactions with banks using chatbots. In the end, they save valuable time as banks save money.
Sweed Bank is one of the biggest brands in the banking sector that has benefitted from chatbots. The bank has deployed a chatbot known as Nina to enhance the bank’s associations with customers. In a month, Nina handles over 40,000 conversations. It is also able to resolve 81% of issues raised monthly.
There are also different ways in which businesses in this sector are using bots. Most notable is smart messaging that helps unlock massive potential for companies. Chatbots can issue customers and other users with warnings in case there is an imminent threat.
They also provide customers with insightful suggestions. Financial advice isn’t easy to come by, and thus, getting it free of charge from a bot is fantastic. Bots use actual figures from your accounts, including your expenditure, to give you helpful financial tips.
Another great benefit that the banking sector has had from bots is efficient customer service. Bots help lower customer support costs and help businesses save valuable time. Internal processes and tasks get automated with bots making them an excellent investment for such companies.
Many other problems, such as resetting user passwords, are easy to solve with chatbots. That improves efficiency and provides customers and employees with better experiences. Thus, chatbots are a no-brainer for businesses looking to grow in the banking sector.
Chatbots and AI are now widely accepted by many businesses across various industries. Internet users, like businesses, now value AI chatbots more than ever. Research shows 75% of customers expect a response within five minutes of inquiring online.
Chatbots can deliver responses within seconds, making them a perfect solution. Besides, they are now advanced and can read more than what someone types. They can understand user patterns, customize messages and even recommend products or services. More businesses are looking to deploy intelligent assistants in different business aspects. That’s because customers keep demanding round-the-clock service in various business areas. We have mentioned some of the business aspects in which companies investing in chatbots and AI will benefit.
An author of Namaste UI, published several articles focused on blogging, business, web design & development, e-commerce, finance, health, lifestyle, marketing, social media, SEO, travel.
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