What is a chatbot and what does it bring to companies


The presence of chatbots on websites and on social media is growing rapidly as more companies use artificial intelligence (AI) to improve customer service and brand loyalty.

What is a chatbot?

Essentially, a chatbot is an assistant that communicates with us through voice commands or text chats. It’s a virtual companion that helps brands get closer to customers by being integrated into:

  • Websites
  • Applications
  • Messenger

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Chatbots are computer applications that mimic conversations with people using AI. Chatbots are used in various industries to provide information or perform tasks such as:

  • Answer inquiries
  • make a flight reservation
  • Buy products
  • Reserve tables

The user can ask a question and the chatbot will respond with the requested information. Many chatbots can learn from what a customer says in order to personalize user interaction and build on previous interactions. If a request is too complex, it can then be forwarded to a person.

Chatbots have the ability to filter large amounts of data in order to provide a customer with precise and tailored information, be it a problem solution or a recommendation for a new product.

One reason chatbots are difficult to define is that they can be used in many different ways. It’s possible to create chatbots for almost any business or industry, much like any business can use a website or app.

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Where can you integrate and use chatbots?

Chatbots work within chat platforms such as Facebook Messenger, Slack or SMS or through custom solutions that are integrated into a company’s own website or app. Chatbots can even be programmed to mimic a brand’s communication style.

Depending on the platform, companies are limited by the communication methods that the chatbot can use. Some platforms only allow chatbots to use text and attach SMS or emails. Facebook Messenger or Telegram bots also give the user access to additional content. Depending on the desired use of the chatbot, companies should use chatbot platforms that suit their needs.

How can I use chatbots?

Chatbots are currently used by many companies. Some examples:

  • Lidl’s Margot chatbot enables customers to find the perfect wine.
  • The Sparkasse developed the “messenger”, which helps to collect debts from friends.
  • Louis Vuitton’s chatbot helps customers discover the brand’s full range of products.

Chatbots are not only limited to big brands, but are also increasingly being adopted by small and medium-sized companies.

Chatbots are especially useful for companies that receive a lot of similar inquiries or are in a highly competitive niche market.

Improve customer satisfaction

Chatbots can create a better customer experience by offering product recommendations and targeting customers through marketing campaigns. Many customers actually prefer to use chatbots rather than calling customer service as they typically:

  • are associated with less expenditure of time,
  • are easy to use and
  • generally deliver faster results.

Chatbots can also be used to give customers a new way of shopping.

The term conversational commerce refers to the purchase of an item during a conversation with a chatbot.

The chatbot can learn and store information that enables a customer to place orders easily and quickly. This changes a customer’s experience, moving them from complex websites and apps to a simplified user interface.

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Chatbots for Business: Numerous Possibilities

Chatbots also have advantages regardless of the customers. They can be used as personal assistants for companies and their employees. For example, through the SMS feature of the AI ​​Assistant, users can:

  • Make hotel reservations
  • Make appointments
  • Order office supplies

This eliminates the need for numerous different apps for secretarial tasks.

In addition, chatbots are ideal for task and project management. Many of the most popular team messaging platforms have chatbots that automate team communication and time and expense tracking. You can be asked questions such as which tasks are assigned, to whom and at what times.

After all, they are particularly useful for data acquisition and data analysis. While chatbots are often intended for customer interaction, they can also analyze the data collected, which enables companies to tailor their products and services to the needs of the customer.

Pamela Kokoszka has no position in any of the stocks mentioned. We have translated it for you so that we can exchange ideas with our readers on relevant topics!

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