Conversational AI, in the form of intelligent chatbot solutions, is changing the way customers are interacting with businesses. These humanized digital assistants provide 24/7 customer service, quick and accurate responses, and improve sales. This leads to an increase in revenue.
If you are still stuck wondering “What is a chatbot?” you and your business are missing out big time. Estimates show that around 15% of total customer interactions will be handled by AI. However, even though customer service has seen many benefits of chatbots, this is only where the story begins.
The success of the best AI chatbots lies in the fact that they can capture and understand conversational data. Through this, they can uncover the customer’s voice and understand what they are thinking and what they need. Understanding customers is essential in modern business and it’s become the key for staying ahead of the competition.
Chatbots with the best AI remove friction
In modern business, one of the key strategic goals for every organization is to make the customer’s journey frictionless. However, most digital channels have a lot of irritations that disrupt potential customers. As devices are getting smaller and smaller, there is less space for some form of navigational menus.
At the same time, those same menus are becoming more complex as companies are trying to provide more content to consumers. Every single hiccup like this decreases the quality of the customer experience and most customers will simply leave.
The best use of AI with chatbots is exactly here as they provide a single channel where customers can ask for whatever they want with their own words. However, it doesn’t end there. AI chatbots can be designed to provide forms, upsell, help book appointments, provide recommendations, and so on. Not only does this reduce friction, but it also upgrades the customer experience.
How important has customer engagement become?
Customer engagement is at the center of success for any organization. With engaged customers, the level of customer loyalty grows which leads to increased revenue and profitability. Roughly put, increasing customer retention by around 2% will affect the bottom line the same way as a 10% cost decrease.
Customer engagement represents a ¼ premium in customer relationship growth, revenue, and overall profitability. However, customers are becoming more tech-savvy. They are bombarded with tons of information on a daily basis and have hundreds of businesses to choose from when looking for products or services.
They won’t give you a like on Facebook, join your loyalty program, or respond to your email because they can. Modem consumers want convenience and speed. They want to make a quick purchase smoothly. Branding and pricing simply don’t carry that much importance.
AI systems are all about speed and convenience while giving consumers the opportunity to use modern technology they like.
How conversational chatbots drive engagement
Modern customers want convenience and speed in their experience every day throughout the whole year. A typical consumer will message a company while traveling to work on a bus. Customers want to speak freely with their own voice and be able to interact with a business through different devices seamlessly.
These communication and request challenges can be easily surpassed with conversational AI chatbots due to several reasons:
- They are effortless to use. Any customer can contact an enterprise through any device and not have to worry about their jargon to get quality feedback.
- Relevance and personalization. All of the information and answers chatbots give are based on ongoing conversations and details provided by customers. Additionally, they can be fed information about customers to gain a better understanding of their preferences, to give even more relevant information.
- Access to a large amount of information. A typical chatbot interface has human-like capabilities in conversation. They can react to interruptions, give context, and recognize key issues. Based on these things, AI chatbots can access a large database through which they can search for the exact information customers need.
AI is becoming a standard in the business world in many different ways. Chatbots are just a single example of how this technology can be utilized to improve competitiveness. What’s even better is the fact that these programs are only going to get better in the future and take over more essential tasks.