As the use of AI technology is increasing in businesses, chatbots have become an essential part of successful customer service. These versatile conversational apps are doing wonders in improving the customer experience.

The role of chatbots in customer service is not limited to answering customers' queries. It can help you improve your sales and lead generation, improve customer relations, and develop a unique brand voice. While it is just the start, the global chatbot market is predicted to reach around 1.25 billion U.S. dollars in 2025.

Do you wonder why chatbot is important and what it can bring to the table? Keep reading to find out more.

Table of Contents

5 Reasons Why Chatbot is Important

What Is A Chatbot? And What are Chatbots Used for?

To 5 Benefits of Chatbots For Businesses and Users

1. 24/7 Customer Support

2. Increase Sales

3. Develop and Maintain a Brand Voice

4. Collect Customer Feedback

5. Reduce Stress For Both Employees and Customers

Conclusion

What Is A Chatbot? And What are Chatbots Used for?

When browsing through the websites of your favorite brands, you must have come across a little window that appears on your screen. Behind this screen is a mini-assistant who is always present to help you. It can answer your questions and queries and provide you with all the necessary information about a product or service.

There are more than 300,000  of these assistants, also known as chatbots, on Facebook Messenger only. There are two types of chatbots:

• Basic Chatbot: A basic chatbot works with a predefined script or a set of rules and answers a limited number of questions, which are usually FAQs.
• AI-Powered Chatbot: An AI chatbot uses natural language processing (NLP) and machine learning to function. This is helpful in understanding a user's intent and engaging with them in a humane and interactive manner.

To 5 Benefits of Chatbots For Businesses and Users

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Chatbots can help you achieve your customer satisfaction goals and even improve your lead and sales generation. Let's look at some of the most prominent benefits of chatbots:

1. 24/7 Customer Support

Chatbots enable you to stay connected with your customers all the time. This can help you achieve desired levels of customer satisfaction, especially if you are running a business with a global presence.

People can always remain in touch with customer support through live chat. Imagine a customer has purchased a PlayStation from your website which is not functioning properly. While he may be sitting in an opposite time zone, chatbots make sure that there is always someone at the other end to support them. They can quickly help answer FAQs, recommend products, track orders, perform troubleshooting, and other customer service tasks.

Remember, it only takes one bad experience from you, and 72% of customers will quietly move towards a competitor. This is why a chatbot is important for your customer support.

2. Increase Sales

Chatbots are continuously interacting with your customers and, hence, store a large amount of customer data. You can use this data to strengthen your connections with customers and improve your sales up to 67%. To achieve this, try to build a service model on personalized marketing and omnichannel support.

• Customers from different age groups have diverse communication preferences. Chatbots encourage a unified support system that encourages seamless conversations on all platforms. E.g., Facebook, Instagram, X, WhatsApp, and phone support.
• Use your customer's data to send them personalized recommendations based on their intent and purchasing preferences. E.g.

"Jane has sensitive skin and often purchases a gentle cleanser from Flawless Beauty. She receives an email that offers her a complete range of sensitive skincare from the same brand along with some free samples."

3. Develop and Maintain a Brand Voice

Just like your customer support team, chatbots are the first digital line of interaction between your business and customers. The personality and behavior of your chatbot can influence the user experience and impact their purchasing decisions. Consider your brand voice and business persona before developing the name, profile, and interaction style of your chatbot.

When your chatbot's personality matches your company's profile and your target audience, it becomes easier to improve the business communication. It is able to guide and provide information to the customers appropriately, according to their age group and preferences. However, it is important to remain mindful of the racial, cultural, and religious diversities and treat all users with respect and dignity.

For example, if you are a business dealing with toddlers' clothing and toys, your chatbot should have a light and lively demeanor. Similarly, if you are running a SAAS setup, try to maintain a professional and knowledgeable tone that uses appropriate industry terms.

4. Collect Customer Feedback

An honest feedback from a customer can give you way more insights than any market research or focus group. You can use your chatbots to collect customer feedback by adding rating/survey questions at the end of every interaction. This can give you valuable insights into what customers think about your products and services. Also, how could you use this information to improve your business strategies?

Only 1 in 26 customers will share their bad experience, and the rest will move on. Program your chatbots to encourage customers by offering discounts and promotions in exchange for feedback, such as:

"Hi James, hope you had a wonderful stay at the River View Lodges. Please share your feedback with us and get 15% off on your next visit."

Before you ever ask again why chatbot is  important for a business, check out the varied benefits they can offer to your business.

5. Reduce Stress For Both Employees and Customers

Customer support staff has to deal with a massive workload, which can leave them drained and unproductive. Stress, burnout, and poor work-life balance are the reasons why 40% of people quit their jobs. Using chatbot technology in your customer service can bring it down. Chatbots can handle and reduce a large number of tickets by providing proactive customer service.

AI-powered chatbots are capable of dealing with and reducing potential tickets by easing the workload of live agents. They can handle repetitive questions, respond to customer queries, and help customers with their buying journey. These queries may include:

• Providing accurate information regarding products and service
• Dealing with payment issues
• Tracking order status and delivery details
• Offering self-customer service

The use of AI chatbots can help you save up to 30% of costs in customer service. It also allows your live agents to relax and divert their expertise towards more urgent and productive tasks.

Conclusion

Having an AI chatbot customer service has now become essential for the success of any business. It provides 24/7 customer service, helps you maintain a consistent brand voice, and develops a positive work culture among your employees.

Chatbots are not designed to replace human interaction. Instead, they are tools that can enhance the working efficiency of business and improve customer experience.

Wanna jump on the chatbot bandwagon? Visit Aidbase and see how AI chat support can unleash the potential of customer service for your business. Aidbase’s AI-powered chat support and ticketing system can help you design an outstanding customer service experience.