Chatbots are the buzzword of the year.
For many brands and businesses, they are changing the way they talk to their customers. According to a recent survey by Mindbowser, 75% of businesses are looking to build a chatbot solution within the next year.
Chatbots have been applied to almost all industries from e-Commerce to HR and Insurance and Finance. From a consumer’s point of view, chatbots remove the time it takes to contact a customer service rep and improves their overall experience. But can we really trust bots?
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How Chatbots Are Changing Customer Service
Chatbots and Intelligent Assistants are very different from each other. While they both provide convenience, chatbots are most effective when automating customer service solutions.
A recent survey of over 2000 consumers by Ubisend found that nearly 70% used chatbot communications for instant answers rather than calling up and waiting on the phone. In many instances, customer can’t tell if they are chatting to a human or a robot, aslong as they get their questions answered.
Businesses and brands are using chatbot technology to close sales and engage directly with their customers. For marketing and sales teams, implementing a chatbot messaging app offers new ways to personalise communications with their audience. For example, retailers are using chatbots within messaging apps such as Facebook Messenger, Kik and What’s App to talk directly with customers and provide personal shopping experiences.
Automating Employee Communications & HR
It’s not just customer service and sales staff who can benefit from chatbots, the technology has been leveraged by HR departments in the workplace. An estimated 30% – 50% of a HR’s time is spent answering repetitive questions and in putting the same data i.e. holiday leave. By using a chatbot, HR staff are able to automate these menial tasks and focus on ways to improve internal communications and company culture.
How Banks Are Leveraging Chatbots
In the financial sector, banks are using chatbots to provide financial advice and the top 5 banks that have adopted chatbots. New mobile apps such as Cleo AI, Tide, Plum and Monzo, are also changing the way consumers interact with their personal financial data and provide more control over their spending habits.
The consumerization of financial services technology shows that almost 80% of consumers are open to receive computer-generated advice from chatbot, whether around investment advice, bank accounts or retirement planning.
But Can Really We Trust Bots?
While chatbots are being used in everyday life, the question remains as to whether brands can trust automated bots to represent their company. Especially after Facebook recently shut down their AI-bots after the bots started talking to each other in their own language. Similarly, a firm in China closed down their bots when they started opposing communism.
According to research from Statista, 80% of consumers would rather speak to person than a robot. While advances in artificial intelligence, machine learning, and natural language processing means that bots may mimic a human response, it appears that most consumers would rather chat to a human rather than a bot.
This Week’s Top 5 Insights Curated By Catalyst
1. How Brands Are Using Chatbots
10 great examples of chatbots in action… (The Mission)
2. Why This Startup Is Teaching Chatbots To Have Manners’
Bots, are still “dumb,” “rudimentary” and “frustrating,” … (CNBC)
3. The Next Addition to Your Marketing Team Should Be a Chatbot
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4. 6 Design Questions To Ask Of Intelligent Chatbots
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5. How To Create A Talking Watson Chatbot (VIDEO)
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