The main element that contributes to an increase in sales and customer loyalty is primarily based on improving the experience of your customers. Customers are smarter today than they have ever been. They expect the companies to be experts at communication with them. Chatbots are changing the way brands interact with their customers.

What is a Chatbot?

A chatbot is a software that communicates with users via a conversational interface, be it textual or voice-based. This can happen on a brand’s website or app or through other platforms like Alexa, Skype, Facebook Messenger amongst others.  Simple chatbots scan keywords in a customer enquiry to deliver pre-packaged answers while the more advanced chatbots powered by Artificial Intelligence and Machine Learning can use natural language processing to create responses and conversations that are more complex. AI-based chatbots are more flexible as they actively learn from the conversations, they have to help the customer reach their goals.

A survey conducted by Oracle found that 80% of the brands plan to use chatbots by 2020 and a study by Ubisent shows that 35% of consumers want to see more companies using chatbots.

How can chatbots improve customer service?

1. Facilitates a smoother customer journey- customer experience is all about improving the interaction of the customer at various touchpoints across his journey. Chatbots help in easing the purchase process during two touchpoints mainly at the awareness and the evaluation stage. During the awareness stage, the customer is looking for information to get to know your brand better. At this stage, the customer may have some questions that need to be answered. Instead of looking for the FAQ section, a bot can act as a friendly search bar. It can provide basic information about the brand, articles, product suggestions, etc. At the evaluation stage, what matters most is the personalisation and the quality of experience rather than the price.
2. Seamless live chat- customers can engage with a chatbot in the same way as they would with an online conversation with live customer support employees. Since many chatbots use natural language processing methods, they can analyze the customer’s question and deliver the response accordingly.
3. Round the clock customer service- chatbots can work round the clock, unlike live chat customer support. Today, the customers want immediate response and many queries and transactions take place outside of business hours. A chatbot can provide a certain level of support 24/7. Even when the bot is not able to resolve an issue it can

• Identify the type and urgency of the issue
• Send the ticket to the right department
• Push it to the top based on the level of urgency
• Help schedule a call/chat during business hours to eliminate the element of uncertainty.

1. More convenience, less friction- customers dread contacting customer support and are more open to use chatbots as long as they can cater to specific needs. Chatbots not only enable customers to get answers to their queries but can classify queries that they are unable to address and forward them to the appropriate department for resolution. This helps in eliminating a lot of needless interaction and avoid inefficiency which can lead to a customer feeling frustrated.
2. Personify the brand- the flexibility that a chatbot provides allows them to engage with customers at different levels. Bots can convey the tone, mood, and personality of the brand apart from providing technical support, resolve queries, or guide sales. Creating a chatbot persona that represents the brand values, tells the story, and reflects the language of the target audience, not only helps in humanizing the brand but also make it look more authentic. The right personality can engage with the audience at a more personal level.
3. Gather actionable feedback- a collection of feedback is an integral part of any business. Getting to know how the customers feel about the products and services being offered and the customer support you offer is essential to success. Chatbots can eliminate the process of filling out surveys and questionnaires. They can collect feedback throughout their interaction with the customer while they are shopping. Chatbots can also personalize the survey as they go along, adjusting to the responses received by the user and getting more information on areas of friction.
4. Saves Money- using chatbots facilities saving money over customer service operations. Chatbots can respond to questions and are capable of reducing response time leading to higher customer satisfaction.

Chatbots have been gaining more and more traction. They are the “here and now” allowing brands more opportunities to engage with customers and fulfill their goals. If done in the right way chatbots have a tremendous positive impact on the quality of customer experience and the bottom line.