5 Ways Conversational AI Chatbots Can Help Your Business

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Conversational AI Chatbot

AI chatbots have become a term that does not need much introduction. Whether you are shopping online, using financial services, or ordering food, you must have seen a small bubble in a corner that pops up, ready to assist you with your needs.  

Most of us have interacted with a chatbot at some point in our lives. They are becoming vividly popular amongst users, replacing the traditional mediums of customer interactions and touchpoints. According to a report by Zendesk, 64% of customer experience leaders are increasing their investment in conversational AI chatbots.  

But what’s all the buzz about AI chatbots? And how they are different from the traditional chatbots?  

In this blog, we will take a deep dive into conversational AI chatbots and how they can help businesses.  

Table of Content

Evolution of Chatbots 

Chatbots have become increasingly sophisticated over time. What started as rule-based response generators has now transformed into customer assistants with natural language processing capabilities.  

Chatbots can be divided into three major categories: Rule-based chatbots, AI chatbots, and Hybrid chatbots.  

1. Rule-based Chatbots:  

Rule-based chatbots were the prototype that became widely popular. Rule-based chatbots give users the choice of answers to any specific query. For any query, the user can choose one of the options provided by the chatbot and proceed with that. The scope of rule-based chatbots is limited as they only answer a pre-defined set of questions. 

2. Conversational AI Chatbots:  

These chatbots have taken the world of customer experience by storm. With its natural language processing and machine learning capabilities, these chatbots understand user queries and give accurate responses. They utilize the input data to train over time and gradually become more and more sophisticated.  

3. Hybrid Chatbots:  

Hybrid chatbots are a blend of rule-based and AI chatbots. While they perform rule-based tasks and conversations, they are also to some extent capable of understanding user intent and processing it.  

These are the three major categories of chatbots. Let’s move on to their benefit for businesses.  

Benefits of AI Chatbots for Businesses  

In 2021, a report by Gartner suggested that more than 50% of businesses will spend more annually on building chatbots rather than building traditional mobile apps. The basis of this claim can be derived from the plethora of benefits conversational AI chatbots offer to businesses.  

Some of the worth-mentioning benefits are the following:  

1. Cost Saving  

Cost saving is one of the primary benefits of adding a conversational AI chatbot. Let’s not shy away from the fact that building a customer support team can be expensive and not every business owner can afford it. The overhead costs are a major concern for many businesses today.  

While having an AI chatbot does not guarantee 100% cost savings, it does slash your customer support costs significantly. A real-world example was revealed in a report by Juniper Research, suggesting a $7.3 billion operational cost reduction in the banking industry.  

Chatbots can work wonders, especially for boutique businesses having limited funds for customer support.  

2. Increase in Sales 

Chatbots can amp up your sales by showcasing product information, offers, and discounts, and assisting first-time website visitors in their buying journey. Apart from this, AI chatbots are great lead conversion experts. According to a study by Tidio, the conversation rate of chatbots in some industries has been observed to reach up to 70%.  

Many businesses have backed these statistics. Round-the-clock availability and instant responses can lead to a higher likelihood of converting leads into actual sales, especially when users receive timely and relevant information during their decision-making process. 

3. Round-the-clock Assistance 

AI chatbots provide round-the-clock assistance to your customers. Your website visitors and potential leads can ask questions at any point in the day and the AI chatbot will promptly reply to them. According to Outgrow, 64% of consumers think the best part about chatbots is their 24/7 availability.  

They can engage with users anytime, ensuring that inquiries are addressed promptly, even outside regular business hours. Additionally, chatbots can provide information specific to user queries, making the buying experience friction-free.  

This constant availability enhances customer satisfaction and meets the expectations of a global and diverse customer base. 

4. Lead Generation 

Generating inbound leads is the biggest challenge for any business and your sales team will agree! However, with AI chatbots, businesses can easily collect inbound leads without spending limitless time and money.  

During conversations, chatbots effectively collect user information (without pestering visitors) systematically that your sales team can use later. By understanding user preferences, needs, and budget constraints, chatbots can segment leads based on their likelihood to convert. 

According to Dashly, chatbot makes lead qualification results 20% better than the traditional measures. This targeted lead qualification process enables sales teams to focus their efforts on high-potential prospects, increasing the chances of conversion.   

5. Reduced Dependency on Human Agents 

Your human agents can often get overburdened with all the questions website visitors come up with daily. Also, it’s almost impossible for a human agent to answer questions after working hours.  

Thankfully, that’s not the case with AI chatbots. Chatbots are pro at handling high-volume, low-complexity queries, freeing up human agents to focus on more intricate and strategic aspects of customer service. This not only improves the overall efficiency of operations but also saves human agents from a lot of stress that comes with handling user queries.  

These are the top benefits of conversational AI chatbots that businesses can leverage to stay at the top of their game!  

Role of Chatbots in Customer Experience  

Customer experience is the fundamental backbone of most businesses. In the current dynamic market, it’s difficult for owners to make their business stand out exclusively based on the merits of their products and services.  

Customer experience plays a key role in forming a sustainable, successful business. Conversational AI chatbots reduce friction and bridge the gap between a business and its customers. The ability of chatbots to understand user queries and provide relevant solutions contributes to enhanced customer satisfaction. 

By personalizing interactions and remembering past conversations, chatbots create a sense of continuity and familiarity, fostering a stronger connection between the brand and the customer. 

For businesses struggling with providing excellent customer experience due to a lack of budget and resources, chatbots can be a blessing in disguise.  

How to Build a Custom Chatbot for Your Business  

Building a custom chatbot for your business comes with many technical complexities such as choosing the right tech stack, including NLP capabilities, training the model, etc. But the good news is that you don’t need to worry about any of this stuff because, at Mindpath, we will do it for you!  

With a proven track record in creating intelligent and tailored chatbots, we harness the latest advancements in artificial intelligence and machine learning to deliver seamless and personalized user experiences.  

Whether you aim to enhance customer support, drive sales, or streamline operations, our expert team at Mindpath is committed to crafting bespoke chatbot solutions that align with your business goals. 

So are you ready to build a bespoke conversational AI chatbot for your business? Let’s talk

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