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Posted On: June 12, 2020 |  7 mins read 496 Views

artificial intelligence chatbot

Companies across industries are adopting a more customer-centric posture, resulting in a re-evaluation of their customer care strategies. While care has traditionally been viewed purely as a cost centre with a focus on executing efficiently, executives are increasingly aware that customer interactions and associated experiences are key in shaping customer impressions of the company and its products or services. Today’s customers are omnichannel, and they want seamless transitions and a consistent experience from one channel to the next. Customer-care functions like artificial intelligence chatbot that can excel at personalization, sincerity, empathy and quick resolution of requests, can be the differentiator for their company from the competition. Customers now have an unprecedented number of ways to engage with companies, from traditional channels to an ever-growing array of digital modes.

Many organizations have invested in digital channels, frequently in an effort to replace traditional modes of engagement. The thinking is that as customers become more technologically savvy, they favour digital channels, significantly reducing the need for live agents and thus saving significant costs. Many companies have expected to save more than 40 per cent by reducing live contacts.

Yet companies that take this approach often see their customer interactions increase rather than decline, despite significant efforts and resources. The Reinforcement of the importance of omnichannel & digital and the key role that artificial intelligence chatbots play in creating an excellent experience.
Organisations invest heavily in customer service,  be it banks, insurance companies, fund managers, financial advisors, or any other business in the sector.

What benefits does artificial intelligence chatbot bring to customers and companies?

Benefits to Customers

24-hour availability

Waiting for the next available operator for minutes is not a solved problem yet, but chatbots are the closest candidates to ending this problem. Maintaining a 24/7 response system brings continuous communication between the seller and the customer. Of course, this benefit is proportional to how well the bots are. Bots that are unable to serve simple customer queries fail to add value even if they are 24/7 available. The main issue at this point is how well the chatbots can understand and solve customer problems. Finally, highlighting 24/7 availability can create backlash when bots are down due to security issues or maintenance.

Instant answers

An operator can concentrate on one customer at a time and answer one question. However, a chatbot can answer thousands of questions at the same time. Thanks to the speed of cloud, internet, and software mechanisms, responses can be provided instantly.

Instant transactions

Actions like changing or querying records are almost instantaneous for bots which can significantly improve customer satisfaction.

Endless patience

While customer reps and customers sometimes lose their patience, that’s something bots are yet incapable of. The impatience of the representative and the consumer during the solution of a problem is one of the human-related failures. The representative is expected to be more patient as much as possible so that the company can keep consumer satisfaction high. Artificial Intelligence Chatbots can show the patience that no human can provide. At this point, a human-sourced consumer service problem can be resolved directly.

Programmability

Since bots are on digital platforms where people spend the majority of their waking hours working, bots can be used to automate common tasks such as arranging meetings, providing advanced search functionality.

Benefits to Companies

Cost savings

Companies’ need for growing the customer service department can be managed by rolling out capable bots handling more and more complex queries. The implementation of chatbots will create a certain amount of investment costs. However, this cost can be lower compared to consumer service salary, infrastructure, and education. Except for the implementation of investment costs, the extra costs of chatbots are quite low.

These items can be topics such as ensuring chatbot security and improving it. But it is not optimistic to think that the costs will decrease considering the long term. Juniper research claimed that the cost savings from using chatbots in the Banking Industry is estimated at $209 M in 2019 and it will reach $7.3 B globally by 2023.

Increased customer interaction and sales

Bots provide another channel to reach out to your customers. Bots can be leveraged to increase customer engagement with timely tips and offers. Real-time customer communication of chatbots helps the customer find what he is looking for and also evaluates different suggestions. A case study indicates that Zurich Insurance UK recorded 765 customer interactions (which is recorded as a 20 per cent increase) within 6 weeks with the chatbot Zara (Zurich Automated Response Agent).

Reaching new customers with artificial intelligence chatbot

Bot platforms help companies reach new customers who may otherwise not want to reach out to the company with an email or call. In a survey by Telus International, it was stated that 38 percent of millennials give feedback once a week via social media. It was noted that the number of feedback has increased in the last 12 months.

Gaining a deeper understanding of customers

Your customers rarely talk to your business. Chatbots provide your business with detailed, actionable records of your customers’ greatest pain points, helping your company improve its products and services. The chance of selling is proportional to the data provided by the consumer and chatbots can improve the rate of customer data. Chatbots are optimal tools for organizations to learn customer expectations. In light of the data provided by the chatbot-customer interaction, customer-specific targets can be planned. Thanks to chatbots, the organization can be given feedback, and improvements can be planned by making some inferences from the data.

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