Why You Should Consider Conversational AI Chatbots [2024]

Customer engagement with your brand has become more important than ever before! Now, your customers expect smooth customer service and prompt solutions for their issues. In this instance, conversational AI chatbots assist businesses by creating personalized customer experiences that can engage their customers in conversions and convert them into paying customers. According to a recent […]

Customer engagement with your brand has become more important than ever before! Now, your customers expect smooth customer service and prompt solutions for their issues. In this instance, conversational AI chatbots assist businesses by creating personalized customer experiences that can engage their customers in conversions and convert them into paying customers.

According to a recent survey, chatbots can resolve around 69% of customer queries. This leads to a 30% reduction in customer service costs. Not only that, but chatbots can also boost sales by a whopping 67%!

Let’s first get a brief and clear understanding of conversational AI.

  • What is Conversational AI?

Conversational AI is the subset of artificial intelligencethat can recognize and process human language to give suitable responses in a way that sounds natural, stimulating human conversation.

This exciting technology has become popular in customer service, especially within the e-commerce, utilities, and automotive sectors. Including chatbots, voice-based assistants, virtual agents, and messaging apps are some common examples of conversational AI tools.

  • How Does Conversational AI Work?

The cutting-edge technology translates human interactions into a language that a machine can understand using natural language processing (NLP) and machine learning (ML). Based on the data it collects from a user database, conversational AI then generates a response. In addition to this, a chatbot learns from previous data to improve and handle a variety of user interactions with the help of machine learning.

  • Conversational AI Chatbot vs. Typical Chatbot

An old-school chatbot, also known as a typical chatbot, is rule-based (i.e., it only responds to requests by referring to a list of pre-written questions and answers), while conversational AI chatbots handle customer interactions in a human-like manner. Besides, they learn from previous interactions and make their responses better over time.

For example, the newer AI-based chatbot, ChatGPT, not only understands but gives replies in human language, but it also learns and enhances gradually.

Read: ChatGPT 3 vs. ChatGPT 4

  • Use Cases for Conversational AI Chatbots

Conversational AI chatbots are used by loads of industries. Some of the major ones are mentioned below:

  • Retail – To provide customer data insights, recommend products, track inventory, and hold conversations across many channels simultaneously
    • Healthcare – To diagnose health conditions, schedule appointments, and assist patients and practitioners in understanding complex medical topics
    • Finance and banking – To process transactions, detect any fraudulent activity, and access and analyze users’ spending patterns or bank accounts
    • Travel – To help people book flights, offer flight and hotel packages, suggest the best places to visit, and keep travelers updated about their flights.
    • Real estate – To generate leads, handle initial conversations, understand the kind of real estate a customer is looking for, and filter potential clients.
  • Examples of Some Conversational AI Chatbots

A renowned online subscription service, Babylon Health offers a better healthcare experience by using AI bots that provide consultations on the basis of personal medical history and connect patients with a live video consultation from a specialist.

Apart from that,the CNN chatbot provides personalized information to customers. HDFC bank chatbot helps customers with instant answers. L’Oréal chatbot interacts with many candidates at once.

  • Reasons to Consider Conversational AI Chatbots 

There are several reasons to consider and employ conversational AI chatbots in your business. They can boost your team’s productivity by increasing user engagement with 24/7 availability and round-the-clock customer support and assistance. Besides, you can make customer communication efficient by offering human-like interactions and freeing your staff to focus on other tasks.

Below, we’ve covered some prominent benefits of integrating conversational AI chatbots in your business.

  1. Available 24 Hours a Day

When you have an online presence, then being there for your customers all the time is important. Traditional customer service channels, such as email and phone calls, are not available 24/7, thereby causing problems for businesses that operate in diverse time zones or offer support worldwide.

One study describes that 64% of customers appreciate the 24-hour availability of customer service and regard it as the best feature.

Your support agents can sleep, but a chatbot doesn’t! Conversational AI chatbots can work 24/7 and support users anytime. They ensure that help is always available without delays and are perfect for anyone who needs assistance outside of business hours. Issues they can’t solve, they pass along to an agent.

  • Give Responses Swiftly

The AI-powered chatbots give prompt answers to customer queries. They can provide ceaseless service and handle a sundry of concurrent interactions at once. This leads to an increase in customer satisfaction. 

According to a report, 82% of customers claim that instant responses played a pivotal role while interacting with brands. 

By providing responses to customers in real-time, the conversational AI chatbots help smooth the path to purchase. As per one research, these chatbots have the power to escalate lead generation rates by up to 700%. On top of that, they let you maximize human resources and free your team up to work on more important tasks. 

  • Collect Customer Data

The more conversations your conversational AI has with customers, the more data it will collect about customer behavior – This is extremely valuable data that your company can use to improve both your marketing and your product or service.

Using conversational AI, you can tailor recommendations or solutions to your customer preferences. For example, AI can remember past messages and details to adapt new messages accordingly and avoid repeats.

Knowing what your customers want enables you to identify their pain points and the gaps in your knowledge, ultimately helping you to find ways to make your business operations or products and services better. Similarly, you can observe where consumers have stopped engaging in the chats.

  • Reduce Support Cost

Chatbots powered by AI can also lower customer care expenses. Gartner predicts that by 2026, conversational AI will save contact centers $80 billion in labor costs!

By automating and answering routine inquiries quickly and accurately, conversational AI chatbots don’t require as much staffing as human customer support agents do, so they can be a more affordable option. As a result, you’re able to devote more funds to other vital areas of your business operations. This leads to higher profits and makes your business more efficient.

Moreover, chatbots can save the time and costs associated with training and onboarding new customer service representatives.

  • Boost Sales & Conversions

Conversational AI chatbots can also drive sales. Though they are far from outperforming your sales team, they have the potential to qualify leads at scale outside of answering routine questions.

A lead qualifying process is basically a series of queries that lead down various paths based on the answers. When you transmute those queries into a chatbot, you can scale the leads you qualify.

Furthermore, a Harvard Business Review study discovered that the likelihood of qualifying a lead drops by 400% if companies do not reply to a lead within the first five minutes of the initial contact. That’s an issue you won’t have with chatbots as they’ll respond in time.

  • Overcome Language Barriers

Chatbots can be configured to provide multilingual service. This makes them incredibly useful for international businesses looking to reach a wider audience and interact with clients throughout the globe.

Additionally, chatbots can offer real-time translation services, facilitating smooth contact with customers who speak different languages. This creates a more inclusive environment for business and improves the customer experience while also advancing cross-cultural understanding.

A global survey confirms that 68% of customers are willing to move to a brand that offers customer assistance in their native language. Moreover, 64% of these customers expressed their willingness to pay a higher price for goods or services that provide a native language customer experience.

  • Keep Customers Engaged

Not to mention, conversational bots powered by AI can do much more than just converse with humans. They have the ability to have human-like interactions that will keep the customers interested and even entertained.

Conversational AI is an indispensable tool for any business, regardless of its goals. It may be used to increase engagement rates, gather better customer data, or save operating expenses.

With conversational AI, businesses can create interactive conversations with customers that are built on a deep understanding of customer preferences and behaviors. This allows businesses to deliver more personalized and tailored experiences that customers enjoy and find helpful, leading to higher levels of customer satisfaction.

  • Omni-channel Customer Service

With Conversational AI, you can deliver seamless customer service on multiple platforms. A report by Juniper Research informs that the use of chatbot messaging apps will rocket notably from 3.5 billion to 9.5 billion by 2026. Companies that engage in omnichannel retail strategies are expected to drive this growth.

Therefore, offering buyers contextual interactions across all platforms requires the implementation of an omnichannel customer support strategy. You can leverage social media, messaging apps, or emails to reach new customers and offer them a smooth experience.

For instance, a chatbot integrated with social media is able to respond to consumer questions on Facebook or X (formerly Twitter), while an email chatbot can assist consumers with support tickets.  

Conversational AI chatbots can provide insights that you wouldn’t get from other channels, like website data and real-time customer queries. Additionally, companies can better meet customer needs by improving their products and services through the collection of this data.

For any of these reasons, your company ought to consider integrating a conversational AI chatbot into your customer conversations. But if there’s one thing you should take away from this article – it’s that conversational AI is here to stay!

  • Future of Conversational AI Chatbots

Right now, there are so many exciting things that are happening in the AI world, and our knowledge in this field is just beginning to dip into its potential.

What’s the big prediction? The capabilities of conversational AI will continue to get better in the near future – the ability to converse like a human, solve problems and analyze, for example, will improve.

In fact, 75% of customers believe that AI is going to mimic humans more, likely to undertake more in-depth analysis and solve problems more successfully!

  • Build a Custom AI Chatbot for Your Business

You can build a customized chatbot yourself for your business. For this, you will need fine guidance – so you can read our guide on how to create a chatbot. It will help you construct the chatbot that you wish for your business.

When building a conversational AI chatbot, there are several factors to consider. And the implementation will depend on the programming language and the platform you choose. In the following examples, Python is used along with ChatterBot, a well-known open-source library designed to be incredibly easy to use and can be further extended via plugins.

  • Installation

Before you begin, make sure to download and install ChatterBot:

  • Simple Chatbot Example

In the above example, the bot is trained using ChatterBot’s English language corpus. The training data contains a variety of discussions that assist the bot in understanding and responding to user input. The user can communicate with the bot until they write “exit.”

  • Custom Training Data Example

The chatbot in this example is trained using custom data from the ‘custom_data’ list. You can add your own discussion samples to the list.

Remember that the simplicity of ChatterBot makes it an excellent starting point for newbies, but for more complicated applications or integration with certain platforms, you should look into other libraries or frameworks such as Dialogflow, Rasa, or Microsoft Bot Framework.

However, if you want someone to do this task for you, then getting help from an individual with expertise in conversational AI chatbot development or a reliable software development company would be a better choice.

  • Conversational AI Chatbot Development Services

As one of the professional software development companies in the USA, we provide exceptional custom conversational AI chatbot development services for your websites and apps. Be it e-commerce, healthcare, HR, education, travel, or banking, our chatbots are tailored to your unique business needs.

Besides, we provide conversational AI chatbot development services for Facebook, Twitter, WhatsApp, Instagram, and Slack. Our chatbot answers customer questions quickly, has an easy-to-use interface, and is available round-the-clock. Thus, you can trust us if you’re on the hunt for a customized bot for your business.

  • Closing Thoughts

The use of conversational AI in chatbots is escalating in the world and making it painless for us to interact with brands from entertainment to post-purchase support. Today, more and more companies consider and employ conversational AI chatbots in their businesses to market their brands, serve their customers, and even sell their products!

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