What Is a Chatbot and How Is It Changing Customer Experience?

What Is a Chatbot and How Is It Changing Customer Experience?

Today, Chatbots [artificial intelligence (AI) software] are changing the ways by which businesses from a brick-and-mortar store to a huge multinational company is interacting with their customers. A chatbot can help businesses save a lot of money and other resources by helping them scale and support business teams in their relations with customers. They are helping organizations understand complex requests, improve reactions, personalize responses, and avoid mundane activities.


There is no denying the fact that the chatbot technology is still in its infancy but it is also not wrong or early to say that chatbots are here to stay and the future of our times. In fact, a Ubisent study found that 35 percent of today’s tech-savvy consumers want to see more organizations making the use of chatbots while a survey by Oracle found that as much as 80 percent of brands today are planning to use this technology by the end of the year 2020. 


Chatbot Technologies In Use

There are two categories of chatbots:


  1. Command based chatbots
  2. AI-based chatbots


  • Command based chatbots, which use dynamic or template search to understand and answer questions, rely primarily on a databank of heuristics and replies. These chatbots provide a reply by choosing an answer that corresponds with the context of a query. It is worthwhile to remember here that the biggest weakness of Command-based chatbots is that they are unable to create new texts. They are capable of providing answers to only a limited set of predefined questions and manual assistance is required to answer atypical questions. This is simply because the chatbots are unable to perform their functions outside their code.
  • AI-based or Machine Learning Chatbots are “smarter” chatbots when compared to their Command based counterparts. In other words, these chatbots are capable of answering ambiguous questions and users don’t have to be specific with their questions to get the right answers from them. The best thing about AI based chatbots is that they learn from questions and answers from the past and thus get smarter with time.


Let’s understand this with the help of an example.


User: Hey, what is the closing time of your store in Rochester, New York today?

Command based chatbot: Hi, we are open until 9 pm today.

AI-based chatbot: Hi Jake, our store is open until 9 pm today. It’s snowing in Rochester right now, so dress warm!


Both Command based and AI-based chatbots have their sets of advantages and disadvantages. Command based chatbots are best suited for providing precise, reliable, and grammatically correct answers but they fail to provide replies to questions outside their scope of the knowledge base. Conversely, AI-based chatbots can prove useful to answer even questions that are beyond their knowledge base but they may falter to form longer sentences and require an astonishingly amount of learning data.


Things to remember while building a business chatbot

  • The primary reason behind getting a business chatbot is personalization and to give greater value to the consumer. The welcome screen of your chatbot should communicate about the features of bot clearly and precisely. Remember, a user is more likely to engage with your chatbot services if the bot is using his name to greet and interact.
  • In chatbot replies, proper-text formatting, high-resolution pictures, and high-quality links should always be used.
  • Users are more likely to trust and engage with a well-designed, professional bot.
  • You may consider linking the chatbot of your business with a Neuro-linguistic programming (NLP) library to minimize or avoid grammatical errors.


Let us now read about the advantages of chatbots that are driving businesses toward them.


Let’s begin, shall we? Hold on tight there!

Advantages of Chatbots-How Chatbots are changing the customer experience


To scale up the operations of your business

Unlike humans, chatbots don’t suffer from the usual limitations of a human agent. A chatbot doesn’t take leave and can work for 24/7/365 without taking any break. Human agents can handle only 2 to 3 client conversations at a time while a chatbot is competent enough to operate without an upper limit. Chatbots can complement your human task force so that your business gets the boost it requires to explore previously-hidden or unexplored markets, opportunities, and customers.


To handle lots of customer queries

If your business gets a lot of inquiries from existing as well as potential customers, chatbots are the way to go! A chatbot can act as the first point of contact for your customers and thus takes the load off the customer support team of your business. Chatbots can screen calls from business customers and redirect (only when required) to human agents.


To sell to the millennials

Millennials tend to inquire and compare products before they make a purchase decision. In short, they are not impulsive buyers. This buying population prefers live chats over mundane phone calls. Therefore, the introduction of chatbots can very easily prove out to be a prudent investment if your product lines are heavily aimed at Millennials.


To actively market content through online channels

It is a given that the more you interact with the customers of your business, the more sales and profits you get from them. Chatbots can demonstrate unmatched efficiency to simplify a wide range of tasks for you if you make good and extensive use of online channels for communicating with your customers.


To provide an interactive platform

Chatbots, unlike websites and apps, don’t provide a passive user experience. A chatbot can be used for highly-engaging and interactive marketing campaigns. If this is not all, you can use the chatbot to extend the reach of your business to more customers at once.


To improve operational efficiency

Chatbots can be your perfect assistant and associate to handle complex things if too many resources are getting burnt in backend support. You can simply opt for the installation of a chatbox business solution and go for automation of your business instead of hiring more people for repetitive activities.




Be it the development of smart cities or digital personal assistants, automation technologies are all over us. Chatbots have already taken over the customer service industry primarily because they help keep customers engaged in meaningful and relevant business-to-business interactions.


Remember, the ideal chatbot should harness the micro-decisions experienced by consumers on a day-to-day basis and view them as opportunities to help. Whether it is providing medical advice or adjusting a reservation, bots offer a solution when people need it the most.

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