AI Chatbot applications are increasingly becoming the go-to messaging tool for businesses across various industries – from e-commerce to traditional industries like banking – to interact frequently with customers. According to a report made by ChatInsight in 2023, Chatbots are expected to save businesses 2.5 billion hours by handling consumer interactions and automating 70% of the interactions.
The stats above clearly show how businesses embrace chatbot tools daily to improve customer engagement and interaction. However, it’s essential to understand the transformative potential they offer businesses. But before we dive deep into the 5 big reasons your business needs a chatbot, let’s explore a little chatbot backstory.
Evolution of Chatbot
The evolution of chatbots over the last 5 decades has been nothing short of transformational. From the first ever chatbot (ELIZA), created in 1966, to the rule-based conversational chatbots and now AI-driven chatbot which is powered by Natural Language Processing (the same technology behind generative AI platforms like ChatGPT and Gemini), the journey has indeed been evolutionary for organizations across different industries.
Currently, 8 in 10 businesses have adopted the use of chatbots to communicate faster and seamlessly with their customers. By 2025, it is projected that AI Chatbots will power 95% of all customer service interactions across all notable industries. No industry is this disruption felt more than healthcare where AI chatbot is expected to potentially handle 75% of all human healthcare inquiries by year-end.
Chabot vs AI Chatbot
All chatbots are equal, but only one remains more equal than the rest. A chatbot is more structured adhering strictly to predefined rules. In contrast, an AI chatbot is more dynamic using the Natural Language Processing model (the same model that powers AI platforms like Chatgpt and Copilot) to update and understand conversations.
Chatbots are only capable of catering to the basic needs (providing simple answers to inquiries) of customers while AI chatbots are capable of solving complex tasks like payment requests and multi-language interactions.
Typical Features of an AI Chatbot
A typical AI chatbot should come with the following capabilities:
- Seamless Integration with messaging apps and websites
- Analytics for tracking performance and optimizing interactions
- Multi-channel support for reaching customers on their preferred platforms
- Natural language processing (NLP) for understanding and responding to user queries.
These features collectively empower businesses to deliver efficient, personalized, and engaging customer service around the clock.
Here are the 5 most important reasons you need to adopt an AI chatbot if you haven’t done so yet:
24/7 Availability
The availability of a business throughout the day is the most important factor for customers. In a report by Outgrow, 64% of customers claim that the best feature of chatbots is their availability 24/7. This not only demonstrates the convenience for customers but also reassures business owners about the effectiveness of chatbots in addressing customer inquiries promptly, whether it’s on a company’s website or its messaging channel.
It’s not just a matter of choice, but a necessity for any customer-facing business to thrive without incorporating chatbot tools that can quickly answer questions and solve basic issues. This urgency is particularly true for businesses in industries like financial services, healthcare, as mentioned earlier, and travel that constantly deal with a barrage of inquiries from their customers.
The consequences of delayed customer responses can be severe, potentially leading to a high customer churn rate. This, in turn, would significantly impact any business’s bottom line. As they say, this is not just bad, but detrimental for business, emphasizing the need for immediate attention to customer inquiries.
Imagine a bank customer with a pressing banking issue at 9 p.m. on a Saturday without speaking to the bank representative until Monday morning or a food delivery company leaving customers stranded with delivery issues outside business hours. In both cases, the inability to access assistance outside of traditional business hours isn’t as frustrating as your favorite football club losing a game but can also lead to customer churn.
Thankfully, eBanqo’s engagement AI chatbot is available for businesses across varying industries 24/7 and is very easy to integrate.
Improve Customer Service
Customers are constantly seeking businesses that can effectively meet their needs. According to a recent report by Salesforce, 88% of customers are more likely to make repeat purchases with companies that provide excellent customer service. Conversely, a single bad customer service experience can lead 1 in 6 shoppers to abandon a purchase.
AI chatbots can greatly improve customer service by taking over the repetitive workload – answering basic questions quickly, solving customer issues faster, and responding timely – from your customer support team. They are also equipped to handle complex customer queries, using advanced algorithms to understand and respond to a wide range of customer needs.
Cost Savings
Statistics have shown that one of the biggest benefits of businesses adopting chatbots for customer interactions is cost savings. According to one stat from Chatbot Magazine, businesses can reduce customer support costs by up to 30% by implementing a chatbot solution. That translates to approximately $23 billion in savings.
This cost-saving approach will help your business concentrate more funds on critical needs.
This is not to say that companies should do away entirely with their customer support workforce, as research has shown that human interaction is still necessary
Enhanced Efficiency
Ever wonder why customers are quick to dump businesses for their competitors with the snap of a finger? As earlier stated, customers dislike being ‘kept waiting’. They would readily be snapped up by businesses that have perfected the art of listening and interacting, i.e. businesses that have integrated AI chatbots within their systems to interact with customers by performing simple and even complex tasks faster and more efficiently.
Research carried out by Saleforces in 2022 shows that companies using AI chatbots are 2x more likely to perform better than companies that do not use AI chatbots. The same study shows a 14% increase (64% vs. 50%) in agents addressing complex problems when supported by AI chatbots.
By leveraging AI chatbots, your business can concentrate on the work that matters, while the bot can handle thousands of requests and conversations from customers, saving you endless hours.
Personalized Experiences
The beauty of AI chatbots lies in their ability to personalize the customer experience. For example, the NLP feature allows a chatbot to recommend products or services by analyzing customer data and purchase history relevant to their needs and interests.
It also helps improve communication tone and style based on customer’s sentiments.
This personalized approach enhances customer satisfaction and ensures more positive and engaging interactions, fostering brand loyalty for your business.
Conclusion
The benefits of AI chatbots are undeniable. From providing 24/7 customer support and saving costs to personalizing interactions, chatbots empower businesses to thrive in today’s competitive landscape.
That’s where eBanqo comes in. Our advanced AI chatbot platform is designed to deliver all the advantages discussed above, and much more. eBanqo seamlessly integrates with your existing systems, effortlessly handles routine inquiries, and personalizes the customer journey at every touchpoint.
Ready to transform your customer service and unlock the power of AI chatbots? Visit our website today and explore our comprehensive solutions. Request a Demo and experience the future of customer engagement firsthand.
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