Multiple big brands have started using chatbots to offer prompt and dedicated customer service. Chatbots interact the same way with customers as a human would, and make their processes seem like a normal conversation. Although they will never be able to replace a human customer service agent, chatbots can solve repetitive and simple questions, so that service agents are able to completely focus on complex queries.
Having a customer support service available has a positive effect on customer satisfaction. Since chatbots do not have time zones and do not need sleep, they are able to provide their services 24/7. As there are no opening hours, global customers can receive assistance with their less complex queries. Chatbots reduce waiting time as well, which is a time-consuming issue for many customers. Companies can clearly benefit from chatbots in this area, however, the risk of an adverse reaction when chatbots are down due to security problems is present.
By constantly being active on multiple platforms, such as Facebook Messenger, companies are able to attain new customers who might not have contacted the company if they’d had to send an email or make a phone call. Potential customers can easily choose to contact the competitor if the company is not available for contact in their desired moment in time. Companies may be able to gain attention for their brand by designing your chatbot to be a form of entertainment next to assisting customers with queries. The bot can therefore be used to increase brand awareness, brand loyalty and likeability as well. Examples of entertainment are jokes, useful tips, facts, news, and guides. According to Chatbot News Daily, bots that tell jokes do not present a high risk to the customer, whereas the risk perception for bots that give investment tips is way higher.
Customer service spendings are currently up to 1.3 trillion USD. Chatbots can reduce a company’s operational costs, as they increase the productivity of customer service agents. According to Chatbots Magazine, they can help businesses cut costs up to 30%. This is mainly due to the fact that chatbots automate 30% of the tasks that are currently performed by customer service agents. Instead of having to outsource customer service to a different country due to a language barrier, a bot programmed in multiple different languages could take over that process.
Bots are not only useful to boost sales or answer questions, they can simplify international payment processes as well. Invoices being sent via e-mail are often slow and problematic for small businesses, for example in China. Chatbots can assist this process by initiating requests, preparing invoices and even transferring money. For example, SendWyre uses a bot that enables cross-border payments by making same-day transfers at competitive exchange rates.
Shopping cart abandonment
According to Barilliance, 75% of an e-commerce store’s sales are lost to shopping cart abandonment. Research shows that chatbots are able to reduce the abandonment rate by a striking 70%. As soon as a customer adds a product to their shopping cart, the chatbot will start to track them. If it turns out that the customer does not complete their order, the chatbot will automatically send them a notification concerning the incomplete purchase. The chance that a customer decides to complete the order after all increases, and therefore the conversions and sales increase.