What are the biggest benefits of chatbot automation?

It seems to be speed and convenience.

In a recent study, 60% of customers said that chatbots significantly saved their time, while the other 45% said that they appreciated immediate answers provided by chatbots.

But there's so much more.

For example, advanced personalization, data-driven approach and other ways AI chatbots outperform human agents.

In this article, we'll explain how does chatbot automation work, what are its benefits and how it can be applied in different industries. Keep reading to discover more.

What is chatbot automation and how does it work

Chatbot automation refers to creating and training AI chatbots that are able to answer a variety of questions and queries.

You can embed them on your website, add them to your mobile apps, or use them on other social media platforms such as WhatsApp.

Chatbots are often based on conversational AI, machine learning and natural language processing (NLP) that allows them to stimulate human conversations.

Therefore, chatbots aren't a collection of pre-written answers that you have to input. They're much more than that. They're able to interact with customers, understand what a customer wants, and provide real-time responses based on customer queries.

Chatbot automation is often used to provide customer support and answer questions 24/7. But chatbots can also be trained to perform more complex tasks, such as scheduling appointments and handling payments.

Here's how chatbot automation works, in four simple steps:

1. User input – It starts with a customer entering their question or request in a chatbot
2. Analyzing intent – The chatbot uses natural language processing algorithms to analyze the input and figure out what the customer wants
3. Data retrieval – Once the chatbot has identified the customer's intent, it begins browsing your database or external sources looking for the right information
4. Response/Output – The chatbot responds to the question using human-like language, or it might ask some follow-up questions to clarify the query, if necessary

Of course, this happens much faster than it sounds, as most chatbots are trained to give almost immediate responses to user queries.

To learn more about automation, check out our article on the A to Z of automated customer support.

Benefits from utilizing the chatbot automation

Here are the key benefits of chatbot automation:

Around-the-clock availability

Customers want to find information when they want, whether it's 10 PM on a Friday night or Christmas Day. That level of customer support would be almost impossible to achieve with human agents, not to mention the related costs.

The biggest benefit of chatbot automation services is that they're available 24/7/365, regardless of your business hours or time zone.

Instant responses

There's nothing worse than calling customer service and being put on hold and waiting for an agent to answer. AI customer service solves this issue by being able to handle multiple client inquiries at the same time and providing immediate responses to everyone.

It not only reduces wait time, but it's also much more efficient than humans in browsing large databases and finding a correct answer quickly, in a matter of seconds.

For more tips on productivity, check out the top 9 AI strategies for elevating customer service productivity.

Cost efficiency

Conversational AI chatbots allow you to grow and scale your business without having to hire dozens of new employees for customer service and similar departments. They handle a large volume of repetitive tasks, minimizing the workload of your human agents.

As mentioned, they work 24/7, without you having to pay overtime. What a dream!

Customer engagmement

Some people claim nothing can replace human interaction, but they probably haven't tried the best conversational AI platforms yet. They adjust their tone to each customer, based on sentiment analysis and NLP, and are able to hold a two-way conversation, just like real humans.

Also, they have more time to interact with customers than an average human agent who has to move on to the next client and their urgent issue. Unlike the agent, a chatbot has all the time in the world to ask follow-up questions to ensure customer satisfaction and keep the conversation going, and even suggest additional recommendations that could eventually boost sales.

Data collection and insights

Chatbots are excellent tools for collecting and analyzing large volumes of customer data. They automatically record and organize data from conversations with customers, reducing the need for manual data entry and making sure that information is captured accurately.

Using this data, chatbots can analyze customer behavior, identify patterns and user preferences. This helps them to understand customers even better, provide more accurate responses and offer personalized recommendations.

They can also segment your customers based on their demographics, preferences and behaviors. Over time, chatbots can identify trends in customer queries, complaints, or requests, so you can proactively address them and prevent potential issues.

For more details, check out 11 ways AI can help you identify and fix your customers' pain points.

Industries that can make the most out of chatbot automation

Automated chatbots are used across different industries, from banking to the healthcare industry. Here are some of the most common use cases.

Retail and e-commerce

Many e-commerce stores rely on chatbots to provide personalized shopping recommendations, based on customer's preferences and purchasing history. They can also craft customized messages that resonate with a particular customer, boosting customer interactions.

You can also train a chatbot to act as a virtual shopping assistant and help customers find specific products or compare different items. Virtual assistants can also offer styling tips and product recommendations.

They can also engage with customers who have abandoned their shopping carts and provide discounts to encourage them to complete the purchase.

After purchasing, customers can use chatbots to track their orders in real time and receive updates on shipping status and estimated delivery time.

Hospitality and travel

The most popular way to use chatbot automation in hospitality and travel is to provide 24/7 customer support. Chatbot can answer frequently asked questions about booking, location, check-in/check-out times and other things.

They can also guide guests through the booking process for hotels, flights, car rentals and even handle payments on their own.

Chatbots support multiple languages and can offer guidance to foreign tourists in their native language. They can also provide personalized travel recommendations based on client's preferences.

After a guest's stay, your chatbot can follow up with surveys, request feedback, or offer special promotions for future bookings, boosting customer loyalty.

If you're looking to automate communication with your customers in all touchpoints, check out the best omnichannel software for customer service.

Higher education

Chatbots can significantly reduce the workload of administration staff by guiding students through the application process and making sure that they've completed their submissions correctly.

Once the students have enrolled, they can use chatbots to quickly find information about courses, campus facilities, schedules and everything else that might interest them.

Chatbots can help students locate books, articles, and other resources, speeding up the process of research and writing papers. Finally, students can also use them as personalized tutors who can answer their questions or help them revise a lesson.

Government and citizen service

Chatbots have the potential to simplify access to government services, making them accessible to everyone, even older and non-tech-savvy people.

They can break down complex processes into steps that are easy to follow and guide citizens through each step, making them less overwhelming. Some of the examples are applying for permits or renewing licenses.

Governments can also use chatbots to guide citizens through the tax filing process, answering questions about deductions, filing deadlines, and payment options.

Finally, a chatbot platform can be helpful during emergencies as it can provide real-time information on safety protocols, evacuation routes and shelter locations. In moments like this when every second matters, chatbots eliminate the need to wait for a human agent to respond.

Automotive and car rental

Chatbots can handle common customer inquiries related to car rentals, such as pricing, insurance options, fuel policies, and rental terms.

They can also be used for scheduling test drives, service appointments and making reservations.

More advanced chatbots can guide customers through virtual showroom tours, offering an immersive shopping experience and personalized recommendations from the comfort of your home.

They can present different car models, highlight key features, and answer questions about specifications and pricing.

Insurance and financial services

Chatbots can guide new clients through the onboarding process, helping them set up accounts and understand the terms of their insurance policies.

After that, clients can rely on chatbots to quickly access information about their financial accounts, without having to speak to a representative. For example, they can check policy details, account balances, recent transactions and coverage limits.

In the insurance industry, chatbots can provide instant quotes for various insurance products and help customers compare different policies in real time.

Telecommunications

Chatbots can be used to provide instant support for common technical issues and troubleshooting. They're able to handle many repetitive tasks such as setting up devices and figuring out connectivity problems.

They can also process various service requests such as changing plans or adding new devices and can successfully replace human agents in many cases.

If you want to go the extra mile, you can create device-specific chatbots that answer questions related to a specific device, whether it's a router, modem or smartphone.

We haven't mentioned your industry? Maybe you're a startup founder working in the SaaS industry? We've got you covered. Check out the best customer support software for startups.

Essential features of chatbots

Building your chatbot will depend on your needs and how you plan to use it, but here are the key features that every chatbot should have:

Omnichannel support

You should use chatbots to automate customer communications on all channels they might be using. Thankfully, the new generation of omnichannel customer support software offers multiple formats such as:

• Website chatbot
• Live chat
• Social media platforms
• Email
• SMS
• WhatsApp and other messaging apps

Make sure that the customer experience is consistent throughout all the channels. Customer data should be available at every touchpoint and every part of their customer journey.

Your chatbot should be able to continue the conversation on a different channel by accessing historical data. For example, it should be able to switch the conversation from your website to WhatsApp smoothly.

For more details, check out this omnichannel chatbots guide and our strategies for omnichannel customer support.

Integration

When choosing a chatbot or AI customer service software make sure that it integrates with platforms and apps you're already using. Here are the three most important integrations to consider:

1. Your CRM – Your chatbot should be able to seamlessly integrate with your CRM so that it can access customer data and personalize interactions
2. Ticketing system – As the majority of companies use chatbots for customer support, make sure that they integrate with your ticketing software so they can collaborate with your agents
3. Messaging platforms – Choose a chatbot that integrates with the messaging platform you are using, whether it's WhatsApp, Telegram, SMS or Apple iMessage

Customer experience analysis

Your chatbot should be able to understand the emotions of the customers it interacts with in order to gauge their level of satisfaction and figure out whether it should offer additional support or ask more questions.

For example, if the customer sounds worried or angry, your chatbot should show empathy and try to de-escalate the situation. This analysis is based on natural language processing and sentiment analysis.

Machine learning

To put it simply, machine learning means that your chatbot should be able to learn from its own interactions with customers and get smarter and more accurate over time.

Unlike rule-based chatbots that rely on pre-programmed scripts, machine-learning chatbots learn from every interaction and are able to adapt to new and unexpected queries that they haven't been explicitly trained on.

Over time, they start recognizing patterns in user interactions, which helps to predict user needs and questions more accurately. For example, they can learn to anticipate follow-up questions based on the initial query and provide proactive assistance beforehand.

Machine learning is also often combined with artificial intelligence.

Start with chatbot automation for your business

By now, you probably have some ideas on how you can benefit from using chatbot technology in your business. The only question is where to start and how to build your first AI chatbot.

We've got good news! With Glassix, creating chatbot automations has never been easier. You can use our pre-made templates or create your own conversation flow using our drag-and-drop builder, without any coding. After that, deploy your chatbot to multiple platforms with only one click. That's it, you're all set!

Sign up and let's create your first chatbot together.

FAQs

What is chat bot automation?

Chatbot automation refers to building AI-powered chatbots that are trained to handle repetitive tasks and customer interactions without human intervention. It's used in various industries and across different platforms and touchpoints, from websites to messaging apps.

How do you make an automated chatbot?

To create your own chatbot, you'll need chatbot automation tools such as Glassix, but the good news is that our chatbot software doesn't require any technical expertise. Start by defining the purpose of your chatbot and its target audience. Then, design conversation flows and integrate AI for natural language processing. Finally, integrate your chatbots on the channels you want to automate.

How much does an automated chatbot cost?

The price depends on many factors such as the features you need, the platform you want to use and whether you want to use a pre-existing flow or build your own chatbot from scratch. With Glassix, you can start using our automated chatbots for as little as $49 per month.

What is a bot in automation?

A bot is a computer program designed to perform tasks automatically, without human assistance, but by mimicking human actions and thought process. It can perform repetitive tasks, respond to user interactions and process data. There are different types of bots, but modern ones are based on conversational AI and machine learning.