Are chatbots hot air or the next big thing?
“A 10 billion dollar industry the next 10 year”. “The next big deal”. Every conference Ydigital has attended in 2017 across Jakarta, Singapore, Kuala Lumpur and Hong Kong has zoomed in on chatbots and AI.
Despite the massive hype, few brands have introduced bots with success. In my opinion the biggest mistake companies make is that they don't have a clear strategy for why they build a bot and what they want it to accomplish. Far too often, it becomes a technology game that leaves out the customer experience. The benefits of bots are many and the market seems ready.
When we talk to our customers we make clear that launching a chatbot must serve a specific purpose that fits into the overall digital business strategy. Bots can be transactional and focus on moving data from one platform to another (robotic business process automation) or informational and communicate directly with consumers for support or general information, using machine learning.
Why bots will work
- The market is there: 1.4 billion people already use messaging apps, projected to raise to 1.75 billion by 2019 (emarketer).
- Positive sentiment: A study found that 38% of consumers globally rated their overall perception of chatbots as positive. Only 11% of those surveyed globally reported a negative perception, while the remaining 51% had a neutral stance.
- People are ready to talk to bots: 63% of people would consider messaging an online chatbot to communicate with a business and brand (Mindshare)
Why bots won’t work
- Bad UX and real value: If bots are not designed with the user experience at the heart, they will fail. The adoption depends on UX and the real value the bot provides.
- Attempting to fake it: My advice if you plan to launch a bot is to be honest to consumers when they talk to a bot. A simple intro as “hey I am a bot” will make a big difference and 75% of users want to know if it’s a bot or a human they interact with. Don’t fake it.
- Wrong usage: Globally 48% of people prefer a bot that solves problems rather than one with personality. If you plan to introduce a bot that helps users with questions about your company it’s more important that the bots knows as much as possible rather than trying to make it act as a human. Consumers are busy and want instant gratification.
- Unforgiving consumers: Not only are users impatient, they are also unforgiving. Expectations show that 73% of Americans wouldn’t use a brand’s chatbot again after a bad experience and 61% reportedly would be more frustrated with a bot that couldn’t solve a problem vs a human. This stresses the need for strategy and execution excellence, so do the homework first.
No matter what your purpose is for introducing bots, the pros and cons above hopefully helps you decide if it’s time for you or not to get on the bot train.
Head to Ydigital Asia for more digital opinions and insights.
Sources:
https://www.businessinsider.com/chatbots-are-gaining-traction-2017-5?IR=T&r=US&IR=T
https://botnerds.com/types-of-bots/