What is a Chatbot? Benefits, Examples & Use Cases

Aside from customer service and hiring employees, chatbots are also being used to accept student applications. The University of Adelaide in Australia is using a chatbot to help international students send in their university applications.

With so many uses, you can find a place for it in your own business. And before you know it, it will be helping you grow your business as well.

1. What is a chatbot?

A chatbot uses artificial intelligence software that mimics human conversation. Its main purpose is to offer customer support, to assist customers with their needs.

It is typically used to conduct conversations through websites, mobile apps, or even through telephones. Additionally, chatbots can break down requests from users and provide answers accordingly.

The program mainly talks to your customers for you. One way to use chatbots is to incorporate them through a messaging application. Getting a chatbot for your social media accounts, along with a social media monitoring program, can help you manage all accounts from all platforms a lot easier.

Over the past few years, you can see a steady increase in messenger users. WhatsApp continues to be a popular app, boasting 1.6 billion users, followed by Facebook Messenger with 1.3 billion users as of July 2019. To capitalize on this, you can use the application to help get in touch with your customers. 

A standalone version of a chatbot also exists. You can use these for websites and customized applications. That way, you can assist your customers as needed at any given moment of the day. 

This Freshdesk Messaging bot allows you to engage customers every minute.

2. Types of chatbots

Depending on what you want the bot to do, there are three different types of chatbots that you can choose from. It all depends on what you want it to do, and how much you want it to do.

Each one of these chatbots can do an action that will prove beneficial to your business. Using chatbots together with top help desk solutions can increase customer satisfaction. 

Because it can immediately answer questions, users may have and raise tickets as needed. But before you get a chatbot for your business, here are the different types and their capabilities. 

Menu/Button-based chatbots 

Probably the most basic of all the chatbots, these rely mainly on the user interacting with the bot and selecting from the menu to get the desired results. 

These chatbots are ideal for simple queries like finding certain parts of an FAQ, but not much else. Not to mention, it takes a bit of time before users get the answer they need.

Keyword recognition-based chatbots

These chatbots interact with the user a little differently. It goes through the user’s input command, selects keywords, and answer questions. 

Keyword recognition is useful for answering basic questions. But businesses enhance these chatbots by combining them with the menu chatbot. 

Together, they offer a more comprehensive way to answer queries. Users can directly type in their request or choose a button from the menu.

Contextual chatbots

Among the three chatbots, contextual chatbots are the most advanced. From these chatbot study results, you can see that chatbots incorporate machine learning along with artificial intelligence. With these two technologies, the chatbot “remembers” previous conversations with users to learn and grow over time. 

Keyword recognition chatbots only recognize keywords and respond accordingly. Contextual chatbots improve and adapt according to how users ask their questions. 

A good use of this type of chatbot is for restaurant websites. When users order through the chatbot, it will store the conversation history and reuse it when the user comes back in case they want to repeat their order. 

3. Examples of chatbots

Getting to know what a chatbot is and what it does for your business is the easy part. After you decide that it is indeed something that you can use to increase user satisfaction, and help customers find answers to their questions, it’s now time to determine what chatbot is best for you. 

Through this list of chatbots, you will find the different chatbots available in the market. Here are the top five live chat support programs you should consider for your company. 

Freshdesk Messaging

Freshdesk messaging, previously known as Freshchat, is an advanced messaging and engagement application. It aims to streamline customer service operations for the sales teams of large and small businesses alike. With this, you can create an on-demand and personalized chat messaging experience for your customers. 

The system is equipped with a unified team inbox as well as campaign automation options which make it easy to engage with customers through websites, mobile, and social channels 24/7.

Another feature is the built-in bot builder. With this, you can use best-in-class AI chatbots for common customer service workflows. Moreover, its messaging functions can support images, videos, and similar files to make it easier to assist customers and engage with them. 

Through this, customer experience does not suffer and is improved across all platforms.

Zendesk

Zendesk is a messaging and chat support program that aims to help your business provide the best customer support. It also offers a chatbot feature. 

Its chatbot feature is scalable, so you can start with essential functions and upgrade as your business grows. Zendesk chatbots can also be integrated into your programs or a third-party provider. 

Program the chatbot to answer common questions quickly. That way, users get an answer at any time of the day. For more complicated issues and inquiries, the chatbot can get the customer’s information and have a live agent get back to them as soon as possible. 

If an agent is already available, it can transfer the customer directly to the agent. The bot saves time and makes sure that the issue is addressed right away 

Salesforce Live Agent

Salesforce Live Agent is real-time live chat support. It integrates with websites and apps of your choice. It also comes with a chatbot feature for your convenience. 

They are called Einstein Agent chatbots. The chatbots are built through the Salesforce Platform and operate with the use of Einstein AI Technology. 

These bots are customizable for your business and easily integrates into the Service Cloud Live Agent chat channel. 

LiveAgent

LiveAgent’s Quirobot allows businesses to entertain customer queries 24/7. You can design Quirobot to provide good answers to your customers. If and when it encounters trouble with queries, it can easily transfer the customer to an agent when needed. 

With Quirobot handling your website’s chatbox, no lead will go unanswered. You can even expect to see a 28% increase in conversion with Quirobot around. Quirobot is best used for lead generation, customer support, and feedback. 

Zoho 

Zoho’s chatbot is called Zobot. Zobot is an easy to design chatbot that offers 15+ templates to choose from. 

Customize your Zobot easily through Zoho’s drag and drop system. Once you’re satisfied with the added features, integrate Zobot into your CRM.

Some of the things Zobot can do include lead generation, visitor engagement, and customer support, among others.

4. Chatbot benefits

To bring in more customers, businesses need to be able to nurture leads. Website visitors or potential customers getting in touch with your business’ social media accounts are good sources of leads. But to nurture these leads, you need to communicate with your customers.

Aside from leads, you need to take care of the customers you already have. They may have questions or issues with the product they purchased from you.

Now, it’s impossible to man your website and social media accounts 24/7. This is where chatbots come in. A good chatbot can help answer basic questions for your customers. But they can assist your business in more ways than one. Here are some key benefits of having a chatbot:

Better customer satisfaction

Customers typically visit your website when they have concerns. Users who can’t get an answer to their question within the first five minutes will leave your website, and your business, possibly forever.

With a chatbot, customers will always get an answer to most questions and concerns. And because they don’t require rest, they’re always up and running all throughout the day. So, if a customer decides to message your website in the middle of the night, the chatbot will be there to assist.

However, if the chatbot can’t answer a problem or resolve an issue, then you can program it to redirect the customer to a live agent. That way, the conversation doesn’t stop, and the customer’s needs are met.

Chatbots save time

Before, customers had to wait at least 24 hours for a representative to respond to an email. With chatbots, they can get the answers in real-time.

Since chatbots are automated, they can cater to several customers at once. That means more customers will get the assistance they need without waiting. The more people served, the better the service. And chatbots can help your business increase productivity and the number of happy customers.

Lowers chances of errors

Even the best-trained agents can have slip-ups, and mistakes can cost your business money. You will never worry about a chatbot making errors. It will always remember the answers to most customer concerns.

Additionally, you will always be sure that your chatbots are pleasant to your customers. They will greet them and address them respectfully. This makes sure that users will have a pleasant time throughout the transaction.

It can entertain your customers

A bit of humor can go a long way. To make your chatbots seem more humanlike, you can program them to have a bit of humor.

Doing so will help put your customers at ease, and offer the experience of talking to an actual human. This makes customers more likely to keep talking to the chatbot until their needs are met.

Using chatbots will allow you to entertain and provide service to your customers at any time of the day.

5. Chatbot use cases

Businesses of all sizes can find a use for a chatbot. Partnering it with other programs like a preferred marketing software will help yield leads. 

However, if you’re on the fence about putting investments into a chatbot for your business, then check out these cases where a chatbot can help save the day. See how these companies managed to use chatbots for their business and how it helped them grow it over time. 

Expensify

This business streamlines and automates expense reports, along with travel arrangements for companies from different industries. Their chatbot is named ‘Concierge.’

How Concierge is utilized: 

• Concierge assists new users by taking them through a step-by-step process of setting up an account. 
• Provides troubleshooting assistance for customers
• Interacts with customers via website, mobile, or even Slack.  

1-800 Flowers

One of the first companies to use telephone and internet for direct sales, 1-800 Flowers, distributes flowers, and gourmet food. Their chatbot is named ‘GWYN.’

How GWYN is utilized:

• Assists customers in placing orders through the website. For customers looking for specific flowers, GWYN can help them find it as well. 
• GWYN is a type of contextual chatbot. It collects data from users to create a customized buying experience. 
• Asks follow up questions like who the flowers are for, occasions, and sentiments. This allows customers to get the best value for their money.

Amtrak

Provides rail passenger service to customers in 48 out of 50 US States. The chatbot is named ‘Julie’.

How Julie is utilized:

• Guides users through the Amtrak website with the use of natural language and the knowledge-base of the website. 
• Responds through text inquiries and vocalizes answers alongside its written response for users who have difficulty reading.
• Assists customers looking to book seats, stations, and route information, among others.

Through these chatbot use cases, you can see how improving user experience can help generate the desired revenues over time. 

6. Chatbot user experience

Chatbots are designed to make life easier for businesses. But what about the user experience? What is the chatbot user experience like? Is it easy for users to interact with a bot? Does it make it harder for them to find answers to their questions? 

For first-time chatbot implementers, you will want to make it as easy to use as possible for your users. So, here are some chatbot design must-haves: 

Rating buttons

Once the user is finished using the chatbot, give them a chance to rate the experience. It can be as simple as a thumbs up and down button, or something similar. 

Allowing users to provide feedback will let your chatbot know how it’s doing. It will also let you make the necessary improvements to help make the chatbot better for future users. 

Just remember to make this feature passive, and never interrupt the normal flow of the conversation between the user and the chatbot.

You can place the rating button either at the end of the conversation or with a failure message for better results.

image source: chatbotsmagazine.com

Welcome message

Designing a friendly greeting can set the tone for a conversation. With it, you can greet users and let them know what they can expect from the chatbot. 

The welcome message can also provide some useful tips and instructions that can help first-time visitors to your website to find their way around it. 

If all goes well, the user might even become a repeat customer as time passes. But it all depends on how the first interaction with the chatbot goes. So, make sure to make it as welcoming as possible. 

Image source: chatbotsmagazine.com

Response buttons

Clickable response buttons offer a better way for users to get the information they are looking for. Button clicking is a faster way to interact rather than have the user spell out their request.

Sometimes, chatbots have a hard time figuring out what the user is looking for. The buttons let them understand the request better, allowing for a faster interaction, thus gaining faster results.

Response buttons can be added to failure messages. That way, the user is encouraged to keep trying to find an answer to their query.

image source: goboomtown.com

Typing indicators

A typing indicator is a little icon that tells you that the person on the other end is composing a message. When users see the icon, they can then wait for the response.

For chatbots, it gives the conversation a more natural flow. Rather than posting multiple answers all at once, it can then take a few seconds in between each message. The icon also lets the user know that the chatbot is coming up with more answers and that they should wait. 

With this feature, it will be like you’re talking to another person on the other end.

image source: chatbotsmagazine.com

Avatars

Nobody likes to talk to robots. The typing indicators give them a human touch, but an avatar will give your chatbot a face. 

An avatar also gives your chatbot a persona. It can be your company mascot or something similar. Aside from a face, giving your chatbot a bit of humor will help ease tension, and give users something to smile about. 

image source: uxplanet.org

Failure Message

One thing your chatbot must never do is leave an inquiry unanswered. In case this happens, make sure to have a failure message ready. 

The message essentially apologizes to the user on the chatbot’s failure in an attempt to move forward with the conversation. You can also ask the user for some feedback about the experience so you can address the issue and not let it happen again. 

image source: chatbotsmagazine.com

Getting a chatbot for yourself

A chatbot is a great investment for your business. Using it will help you nurture leads, assist customers, and raise overall customer satisfaction.

Chatbots were able to assist the companies mentioned to increase their profits, and it can do the same for you. So, customize your very own chatbot and get it up and running for your website as soon as possible. To get started, a good software to consider would be Freshdesk Messaging. It is easy to use and offers all essential chatbot and live chat functionalities. The vendor also offers a free trial plan so you can try its features at no cost.

Aside from chatbots, having a comprehensive CRM for your business can also help give your website the boost it needs to get ahead of the competition.