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7 Benefits Of Using Chatbots For Your Business


More and more businesses are beginning to appreciate chatbots. The ability of AI chatbots to mimic human conversations and provide instant digital connection has paved their way to success. Modern chatbots handle online requests 24/7, create brand engagement, reduce human errors, and save costs of customer service. Apart from that, chatbots particularly appeal to “speedy” Millennials by keeping them constantly “updated.”

Even business giants such as Sephora and Marriott already see the benefits of chatbots for business process automation (BPA). At the same time, chatbots are also available to start-ups as they can be easily integrated into websites and messengers, including Slack and Telegram. Obviously, self-help services, including chatbots, will make up the future of customer service.

An Oracle survey is the one that shows us the emerging demand of AI chatbots for business — it predicts that 80% of companies will use chatbots by 2020. According to Gartner, 85% of customers will bypass human interaction in business transactions roughly at the same time.

Are you a startup owner without a proper budget for online customer support? Then implementing a chatbot into your business might become a good solution.

First, a chatbot might save your budget on customer support agents. McKinsey estimates that companies already save up to 29% on customer services’ salaries by employing chatbots instead. The research “Chatbots: Retail, eCommerce, Banking, and Healthcare 2017–2022” even predicts that by 2022, chatbots will save up to $8bn per year for business — a tremendous increase from just $20m per year in 2017.

Apart from that, chatbots for small business websites can simultaneously engage in instant conversations with thousands of clients. No matter what time of the day, each customer will receive an immediate reply from a friendly chatbot.

Second, a single chatbot can increase your customers’ satisfaction. Chatbots efficiently reply to customers’ simple queries in the politest way, no matter how roughly a customer behaves. Chatbots also create a unique perception of 24/7 engagement with customers, which is particularly relevant to the behavioral traits of “I want it now” Millennials.

Using AI-based chatbots for business and interaction with Millennials remains especially beneficial as 65% of US millennials prefer getting online support instead of calling, reports an IBM survey.

Third, chatbots reduce the risk of human errors by performing the most boring, automatic repetitive tasks. While Slack bots engage with mundane operations, such as confirming orders in online stores, your customer support agents will save their work time for more important tasks. Furthermore, chatbots never catch a cold or require a coffee break — they tirelessly perform their automatic functions without any kind of procrastination.

For example, Globe Telecom has increased its employees’ productivity by 350% after the launch of a Facebook Messenger Chatbot. Moreover, the chatbot helped the company to decrease call volume by 50% and simultaneously increase customer satisfaction by 22%.

Undoubtedly, chatbots cannot fully replace customer support agents at this point. At the same time, however, they provide numerous advantages to start-ups: reduce costs of hiring customer support staff, increase customers’ satisfaction, and improve productivity.

Do you still doubt the pros of using messenger or voice chatbots? Let’s get to the arguments and cases.

According to SocialMediaToday, messenger chatbots show higher open and click-through rates in comparison with regular emails. In particular, chatbots have CTRs ranging from 15% to 60%, while an average email marketing CTR is only about 4%. Consequently, a range of online marketers uses chatbots for delivering information to their websites’ visitors via pop-ups. Some analysts already predict that the clash between chatbots versus email marketing may become the biggest digital battle of the century.

Interactive chatbots create personalized content and efficient storytelling. Several popular brands, from Call of Duty to Starbucks and National Geographic, have used “friendly” bots to engage with fans and build communities. For example, the National Geographic’s bot Genius (looked like a little Albert Einstein) answered tough questions about physics and philosophy. Call of Duty used a range of bots to make a personalized gaming quest with fans. As a result, such “friendly” chatbots have created personal stories for each customer and thus increased brand loyalty.

Thanks to artificial intelligence and automation, chatbots provide a tremendous personal appeal by using customers’ names in conversations or advising products based on past purchases. Taken into account a rather stagnant atmosphere of the whole Internet, users pay close attention only to special stuff, for example, something tailor-made to their specific needs.

Accenture’s report confirms that consumers will 91% more likely buy from an e-store that calls them by name or provides personalized recommendations based on past purchases. For example, 35% of Amazon’s consumer purchases result from tailor-made product recommendations such as “products related to this item,” reports McKinsey.

This is particularly relevant to the fin-tech and hospitality industries. Due to chatbots’ instant messaging feature, banks and travel companies might quickly warn their customers about dangers or force majeure situations. For example, in the case of unauthorized transactions on a bank account coming from London, an AI chatbot sends an instant message to find out whether a customer is indeed in London. Travel companies’ chatbots might warn their customers about hazards and weather changes.

Some fin-tech bots go even further. The Bank of America chatbot “Erica” suggests for customers what to do with their money, while HiCharlie bot warns about the upcoming banking charges. At the same time, customers always have an option to turn off a chatbot in case they find it annoying.

As recruiting experts observe, as many as 75% of job applications come from underqualified jobseekers. Can you imagine poor HR officers wasting their time on screening thousands of irrelevant applications? Nevertheless, AI bots have already simplified the work of many recruiters across the United States by doing various pre-screening, training, and recruiting tasks.

For example, the US Army uses the SGT STAR chatbot to recruit soldiers. SGT Star answers questions about Army careers, education, and training. Another remarkable AI chatbot Mya automates outreach and communication across the end-to-end candidate lifecycle and increases HR departments’ productivity up to 144%.

Numerous law firms, B2B giants, and public services companies already make huge savings on lawyers by using AI chatbots. For example, with DoNotPay chatbot one can challenge parking tickets from around the United States, Lexi creates non-disclosure agreements, and Parker answers questions about data breaches and privacy law.

A Berlin-based start-up company Bonaverde has an IoT chatbot that can make a cup of coffee via text. The Bonaverde Berlin smart coffee maker roasts, grinds, and brews coffee from a smartphone command. Users can schedule coffee as well as select roast profiles and grind settings through the chatbot. At this time, the service remains available only in Berlin.

In conclusion, chatbots appear to be conquering the world at tremendous speeds. Messenger chatbots are successfully applied in e-commerce, online marketing, customer service, the fin-tech industry, the hospitality industry, recruiting, as well as in legal services. Voice-activated chatbots are also quite popular and used in many devices, for instance, in Apple’s AirPods and Amazon Echo. Chatbots for businesses efficiently serve both small and large companies, as well as B2B and B2C.

The key benefits of chatbots include:

  • increase in customers
  • budget’s reduction of staff
  • a rise in customers’ loyalty
  • automation of routine tasks

Apart from that, the use of chatbots in business provides high open and click-through rates, create brand stories, rise personalization levels, and guarantee instant communication. At the same time, it is too early to talk about chatbots replacing humans. So far, chatbots only remain efficient and speedy support tools.

We hope you liked this post. If you are interested in learning more about how you can benefit from implementing chatbots into your business call us or drop a line. We’d love to help you!

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