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Did you know that 69% of the consumers prefer to communicate with chatbots for effective, and quick interaction with brands? This indicates how popular chatbots, and their popularity will continue to increase.
The reason behind this is the tremendous growth and development of machine learning. AI chatbots are responsible for significant structural changes in many organizations. It’s enabling businesses to provide excellent customer services without increasing the number of employees.
There are some amazing benefits of using AI chatbots in business. Such as 24/7 services and improved customer satisfaction. Having said that, there are some challenges of Artificial Intelligence (AI) chatbots, such as it’s not easy to design an effective chatbot.
Before we talk about the benefits and challenges of chatbots in detail, let’s take a closer look at the different types of chatbots. So, let’s dive in.
Types of Chatbots
Basically, there are two types of chatbots – Fixed Chatbots and AI Chatbots.
- Fixed Chatbots – As you can guess by the name itself, the information in these type of chatbots is fixed. As a result, they offer limited assistance. Fixed chatbots are usually used to solve repetitive questions or for customers who have limited access to customer services. The major downside of Fixed Chatbot is that they cannot understand human emotions and behavior. Hence, they are not as popular as AI Chatbots.
- AI Chatbots – Thanks to machine learning technology, these chatbots are able to learn and improve. Also, they are constantly improved and updated based on interactions and communication with customers. When compared to Fixed Chatbots, AI Chatbots are intelligent. That’s because they are designed based on advanced technology and offer a positive UX.
Benefits of AI Chatbots
The following are some of the vital benefits of chatbots which businesses can leverage.
1. Available 24/7
It’s irritating when you are kept on hold for a long time by a customer care agent and forced to listen to the annoying music. Usually, people don’t like to spend a long time on the phone before they can talk with a customer care agent.
Now, with the introduction of AI chatbots, customers don’t have to wait for so long to get answers or clarification from you. You can design an AI chatbot and replace customer care agents (not totally) with customer care services or emails.
AI chatbots are virtual robots, so they never run out of energy to communicate with your customers. Hence, they can operate 24/7, follow your commands, and help you improve customer satisfaction.
2. AI Chatbots Can Handle More Customers
Humans are capable of doing multiple things. However, the number of things we can do at the same time is limited. Even if we push ourselves hard and try to manage more tasks, often we end up making errors.
But that’s not the case with AI chatbots. AI chatbots are designed to handle multiple conversations and thousands of customers at the same time without any errors. Chatbots enable you to answer your customers immediately, regardless of the time of the day or the number of customers contacting you.
3. Helps You Save Operational Costs
To run a business successfully, you need to hire efficient employees and obviously, pay them. As your business expands and grows, you need to hire more people to run it, thus increasing your overhead expenses.
In the beginning, chatbots may look like a huge investment, but in the long-run, they can help you save money. That’s because you don’t have to keep on hiring new people to handle customer service.
All you need to do is integrate an AI chatbot based customer care service into your business. This will help you take queries from customers and solve them quickly and effectively.
However, if the chatbot encounters any complicated questions, then you can instantly transfer it to a live customer care agent for better service.
4. Helps You Improve Customer Satisfaction
It’s important for agents to have a positive attitude while speaking to your customers. However, they are humans and also have good and bad days; which directly affects their attitude while conversing with customers, and that can impact customer satisfaction.
On the other hand, AI chatbots are virtual robots; hence, they don’t have emotions. They are programmed to follow orders and are bound by rules which are created by you. Chatbots always converse with the customer perfectly and politely, regardless of how rude the customer is.
This way, you can enhance and achieve higher customer satisfaction levels.
Challenges of AI Chatbots
Now that you have understood the benefits of leveraging AI chatbots, you can harness the power of chatbots to achieve better customer satisfaction. However, there are some significant challenges when implementing AI chatbots in your business.
1. Chatbot Security
In recent months, a lot has happened regarding data privacy and security. Customers are sensitive and protective when it comes to their personal data. Hence, it’s crucial that you create chatbots which can assure data privacy for your customers.
Your AI chatbots need to collect information and data which are relevant and need to transmit it over the internet securely. If you are going to use chatbots for customer service, then you need to absolutely make sure that it’s safe to share information with the chatbots.
Additionally, you need to make sure that the chatbot is hack-proof and that no hacker can get access to your chats. That’s because customer’s data is sensitive and can be easily misused or mishandled, and it can destroy your company’s reputation.
2. Understanding the Emotions and Sentiments of Your Customers
You can also design VoiceBots which can recognize human emotions and sentiments. If they misinterpret human emotions and sentiments, it can have a huge negative impact on your business.
Having said that, it’s challenging to identify the emotion from the user’s voice and respond to it accordingly. You need to put in a lot of effort into training the VoiceBot so that it can easily identify the correct sentiments and emotions of a human voice and respond in the right tone.
It’s true that chatbots are more effective when it comes to interacting and communicating with your customers effectively. However, if you overcome the challenges mentioned above, you can not only save operational costs but also improve customer satisfaction.
Did you face any challenges when implementing AI chatbots in your business? Share your experience in the comments and check out the infographic for more information.
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