Chatbots, those AI-powered virtual assistants that mimic user interaction, are quickly being used by businesses for multiple reasons. One of the areas in business where chatbots impress is in customer services, where customers get to "converse" with an AI instead of a human agent. What's more impressive is that customers are responding to this shift positively.
According to one study
, humans love AI and chatbots. It found that almost 70% of respondents said that they have used chatbots already, and of those who have not, 60% said that they would feel comfortable doing so. The reason for this is the need for convenience. While human interaction is preferable in most circumstances, customers would settle with a chatbot if it means saving time, and in many cases, a chatbot can indeed resolve simple customer service needs quickly.
One company, Intercom, reported that their custom AI, which they call Resolution Bot, was able to automatically resolve 33% of common support questions
, at scale. It added that they are deeply embracing automation and bots to enhance customer experience and achieve faster growth. We think that you should do likewise.
Why else are AI chatbots being the preferred choice in customer services? Let's take a look.
Chatbots Are Always On
Chatbots have one clear advantage over their human counterparts: they are available 24-7. In one Survey Monkey report, 78% of respondents said that expect to get a response from a chatbot within five minutes. The same survey found that respondents expect chatbots to be almost as responsive as a human service representative. If you've used chatbots before, you know that they respond to queries almost always immediately. So if you're in the business where response speed is paramount, a customer service chatbot would give your customer service team a much-needed boost.
Chatbots Can Free You from Repetitive Customer Service Tasks
The same Survey Monkey survey identified the top pain point today with regard to dealing with companies online: 34% said they are unable to get answers to simple questions. Simple questions are where chatbots shine. While some are worried that chatbots might replace their customer service jobs, this is simply not the case. In reality, chatbots can free you up from repeatedly answering FAQs.
According to IBM, chatbots can answer up to 80% of queries which takes the load of your agents. This hybrid setup, where routine queries are handled by chatbots, allows your customer service team to focus on more important and complex questions about your business.
Chatbots Can Reduce Customer Service Cost
Customers do not always articulate their dissatisfaction. According to a report by 1st Financial Training Services, 91% of customers who don't complain simply leave and never come back. That's not the worst scenario though. If an unhappy customer starts sharing negative word of mouth, you'll be entering a crisis scenario that could hit your reputation hard.
It has been widely reported that chatbots can save you about 30% of customer service costs today. Chatbots can save companies thousands—or even millions—in operational costs and labor expenses by reducing the number of incoming queries to live agents. This will allow agents to deliver better customer experiences, which in turn could translate to more return customers. Chatbot-delivered savings are anticipated to rise in the next couple of years. Juniper Research expects chatbots to reduce business costs by more than $8 billion per year by 2022.
What We Can Do For You
Don't get left behind. Chatbots are the next big thing in the highly competitive online industry of customer services. The sooner you launch your chatbot, the sooner you can experience their advantages in providing a stellar customer service experience.
Let's start building your customer service chatbot today.