Chatbots

Chatbots - what to expect?

Chatbot-what-to-expect

Have you ever wondered why so many websites have a red blinking dot at the bottom right corner? The waving hand saying: Hi! How can I help you? The answer is simple – because they convert.

Before we lose ourselves in the numbers, fun facts and case studies let’s take a step back and look at the bigger picture. Even though we witness rapid technological changes and development, chatbot still cannot replace a human. Now that we have agreed on that, here are some interesting facts waiting for us! 

 

The truth about the chatbots

Chatbots can help businesses save on customer service costs by answering up to 80% of routine questions. - IBM

Wow. Imagine waking up one day with a big amount of your work simply gone. But there is more to it. Instant answering frequently asked questions at any time of the day and night seems like the biggest advantage of a chatbot. No wonder people love them. Or do they? Let’s examine.   

69% of consumers prefer chatbots because of their ability to provide quick replies to simple questions. - Chatbot Magazine

Looks like consumers do appreciate them. Of course, chatbots may have revolutionized customer communications, but they aren’t yet advanced enough to handle all messages. We still need human skills and intelligence to do so.

90% of businesses report faster complaint resolution with bots. - MIT Technology Review

Even though there are both drawbacks and benefits of chatbots in customer support, experts believe that AI will be a major investment in customer experience in just a few years. The AI-powered chatbot understands a text using natural language processing, detects the keywords, and searches through their knowledge base to provide a corresponding answer. 

What about the real use cases of a chatbot? Here are some great examples. 

 

The best of them

No.1 on our list is Gwyn from 1 800 Flowers. Gwyn is a virtual shopping assistant that helps the retailer’s customers find the perfect gift to send to loved ones. The fact that 70% of customers ordering through the chatbot were new customers who were younger than the company’s typical customer, demonstrates how small adjustments to customers' lifestyle and needs can show great results.  

Gwyn-1800-flowers bonsai tech

Julie is a customer support chatbot at Amtrak. Julie saved $1 million in customer service expenses in a single year, by answering 5 000 000 questions. Through automated booking, this chatbot brought a 30% revenue growth and has increased rail travel bookings by 25%. The return on investment was a whopping 800%.

Amtrak-Julie

Chatbot working at Charter Communication is also worth mentioning. It started its job by helping the customers with forgotten usernames and passwords, which would go up to 38% of all support tickets. The chatbot managed to decrease the amount of time necessary to reset their passwords by nearly 50% and the ROI was 500% over 6 months. Nowadays, chatbot handles 83% of all chat communications which makes 166 000 chat requests per month

 

Before you go

Considering everything mentioned, hiring a chatbot seems to bring valuable benefits to businesses and teams. 87% efficiency gain. 92% faster response time. 95% more time for complex cases. 87 – 92 – 95, let the numbers sink in.