Over the past few years, Chatbots have become very popular, mostly due to the advancements in Machine Learning. Chatbots are automated programs that assist online sites to conveniently interact with humans via text or voice means. According to industry experts, they will continue to grow in the future as they are smarter and responsive. Moreover, these technologically advanced programs interact with visitors on the product or corporate information. As a result, they boost in-store interactivity and build a better relationship with their customers. By the year 2020, more than 80 percent of the interactions will be conducted without a human interface.
The Rise of Chatbots
More than 55 percent of millennials prefer stores with chatbots as they believe that these stores are technologically-forward. Moreover, these digital advancements are a crucial marketing tool that can assist in saving over $8 billion in costs. A Chatbot have significantly changed the way businesses used to interact with their customers in the past. Over 50 percent of the consumers prefer chatbots as they believe that it is easier to communicate with these advancements. As a result, it is a useful tool in successfully converting store visitors to loyal customers of the business.
Statistically, over 30 percent of the businesses believe that the cost of implementing Chatbots is high and thus are hesitant towards applying the advancement in the store infrastructure. However, despite initial costs, businesses who invest in chatbots will witness a fall in operational costs by over 30 percent. Moreover, they will improve the profits earned by the company by more than 35 percent. Another major disadvantage of Chatbots is that they require businesses to have high technical skills and knowledge in advanced programs. Companies can tackle this problem by training programs to improve awareness on the optimal use of chatbots and their impact on business operations.
Impact of Technological Advancements
Chatbots are powered by Artificial Intelligence-based software, and thus advancements in AI will positively affect them as well. They play a crucial role in customer service as they assist in a definitive collection as well as convenient and real-time storage of customer data. Retailers can use this data to provide more personalized and successful retail strategies to improve customer satisfaction and retention rates.
Chatbots also assist customers with tasks such as booking appointments and gaining information on offers or products from the company. According to a recent market study, people prefer a chatbot as they speed up the process of a complaint or query by responding up to 80 percent of the usual questions. Chatbots are also available 24 hours a day, and hence, customers can communicate with them at their convenience.
Despite initial skepticism, people are quickly embracing chatbots and thus, urging more and more retailers to invest in the same. Over 30 percent of the customers believe that chatbots have helped them in effective problem solving and thus, improved customer experience. They are becoming the next big thing, and therefore, retailers must embrace them to further strengthen the competitive positioning of the business within the industry.
Written By: Rajiv Prasad