How do Chatbots Influence the Customer Experience?
Mohammad Mazen
Customer Experience Manager at Dubai Police | Customer Experience Expert | Helping Companies, Governments and CX Practitioners to Increase Revenue and Word-of-Mouth by Enhancing Customer-Centric Operational Excellence
Why were Chatbots Created?
Digitization is changing society into a "mobile-first" population. As messaging apps gain popularity, chatbots play an increasingly crucial role in this mobility-driven revolution. Intelligent conversational chatbots are frequently used as mobile application interfaces, and they are transforming how organizations and customers communicate.
At its simplest, a chatbot is computer software that simulates and processes human interaction (written or spoken), allowing humans to communicate with digital devices as if they were speaking with a real person. Chatbots can range from simple programs that respond to a single-line question to complex digital assistants that learn and adapt to provide greater degrees of customization as they collect and analyze information.
How do chatbots work?
There are two primary forms of chatbots:
1. Task-oriented (declarative) chatbots are systems that are designed to fulfill a single function. They respond to user requests in an automated yet conversational manner using rules, NLP, and very little machine learning (ML). Interactions with these chatbots are extremely detailed and organized, and are best suited for support and service functions—think comprehensive, interactive FAQs. Task-oriented chatbots can handle typical questions like company hours or basic transactions with few variables. They employ NLP to provide end customers with a conversational experience, although their skills are pretty limited. These are currently the most popular chatbots.
2. Data-driven and predictive (conversational) chatbots, often known as virtual assistants or digital assistants, are far more complex, interactive, and customized than task-oriented chatbots. These chatbots are contextually aware and use NLU, NLP, and ML to learn as they go. They employ predictive intelligence and analytics to provide personalization based on user profiles and previous activity. Digital assistants may learn a user's preferences over time, making recommendations and even anticipating requirements. In addition to monitoring data and intent, they may start discussions. customer-oriented, data-driven, and predictive chatbots
The Value Chatbots bring to Businesses and Customers
1- 24/7 customer service operations
One of the benefits of AI chatbots for customer service is that they never sleep; they can give assistance at any time of day or night, without the need for human interaction. For example, eBay's chatbot allows for round-the-clock order tracking, resolution of frequent concerns, and even the initiation of returns and refunds.
2- Data Collection and Analysis
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During interactions, AI chatbots can collect vital shopper information, including preferences, purchase history, and feedback. These knowledge details may be used to acquire insight into shopper behavior, discover patterns, and make sound business decisions.
For example, Amazon’s chatbot keeps track of user preferences and purchase history in order to provide personalized product recommendations.
3. Freed-up customer service employees
AI chatbots reduce wait times by managing simple customer-support contacts and answering frequently asked questions, freeing up customer-service agents to focus on matters that require the human touch of a live agent. This improves efficiency and provides greater support for difficult consumer inquiries. Target's chatbot, for example, answers regularly asked queries while the customer-support crew addresses specific circumstances and difficulties.
The Future of Chatbots
Where does the evolution of chatbots lead?
Chatbots, like other AI technologies, will be used to improve human capabilities and allow humans to be more creative and imaginative, devoting more time to strategic rather than tactical work.
When AI is paired with the advancement of 5G technology, companies, employees, and customers are expected to benefit from increased chatbot capabilities such as speedier suggestions and predictions, as well as easier access to high-definition video conferencing from inside a discussion. These and additional possibilities are being investigated and will expand rapidly as internet connectivity, AI, NLP, and ML progress. Eventually, everyone will be able to carry a fully capable personal assistant in their pocket, making the world a more efficient and connected place to live and work.