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How chatbots are transforming businesses in 2020

Artificial Intelligence (AI) and Machine Learning (ML) are fast becoming part of everyday life making it a must for businesses to leverage such modern technology. AI-powered chatbots are part of this technology that more and more businesses are using to enhance customer engagement.

chatbots transforming businesses

According to a report published by CNBC, using Chatbots not just help save costs but also enable businesses streamline their resources.

In this blog, we shall discuss how chatbots are transforming businesses in 2020 and will continue to do so his decade.

  • Driving Business Growth

A business-friendly conversation is what customers these days seek before making a purchase. Chatbooks from Facebook, namely Facebook Messenger, and WhatsApp are turning out to be an effective tools for enterprises to converse with potential customers and convert them into paying customers.

According to the latest report, Facebook Messenger is already used by more than 350,000 businesses and the number keeps adding everyday. On the other hand, WhatsApp Chat powers huge brands like Netflix, BookMyShow, KLM Airlines, and OYO. Being used by 1.5 billion users, WhatsApp is an excellent tool to provide customer support and address pre-purchase business queries.

  • Transforming Enterprise Functioning

Chatbots have brought about monumental shifts in businesses helping them streamline operations. They are instrumental in easing hiring, human resource management processes apart from providing internal help desk assistance, Recent industry reports show that large organizations like Sony, Visa, and AIG have already integrated chatbots to improve enterprise functioning. Industry analysts expect that in the coming years, more business verticals will adopt chatbots to provide better services, customer support and gain customer satisfaction.

  • Facilitates User Experience

According to Forbes, more than 50% of all online searches by 2020 will be voice-driven. Another research by Accenture states that digital consumers prefer messaging platforms with voice and text-based interfaces. The research further suggests that the ultimate goal for businesses in this decade will be to facilitate users with a seamless experience. Business chatbots can do just that augmenting frictionless journey for consumer groups.

Chatbots utilize artificial intelligence and are capable of assisting customers over both text and voice modes. The trend of automating customer engagement will only surge, and chatbots will be of great help across a range of industries especially travel and education.

  • Responds to Business Queries

Chatbots are improving their responses at a great pace. Modern-day chatbots are capable of performing multiple tasks, including but not limited to, suggesting options, answering questions, and collecting customer information. In a few years, chatbots are expected to be more human in terms of conversation, and handle a broader set of customer requests.

AI-based chatbots that can mimic human conversation and identify the intent behind the text inputs by customers are already on their way. These chatbots are expected to deliver responses matching queries of human beings. Most importantly, these chatbots are expected to identify patterns in the customers’’s behavior by learning from their interactions and responding with reasonable responses.

  • Easing Payment Processes

The use of chatbots in e-commerce is growing with a CAGR (Compound Anual Growth Rate) of 29.7%. This is simply because chatbots offer a human-like conversion with the customers  when used in payment processes. Earlier, payment processes were redirected to third party applications, but now many e-commerce stores have incorporated them in chatbot platforms to ease payment processes. In the near future, chatbots will be directly equipped with APIs of the payment system to reduce third-party interference and provide a hassle-free checkout.

  • Empowering Business Decisions

Businesses are increasingly making critical decisions based on data, enabling them streamline their resources and gain better output. Artificial-intelligence powered chatbots are capable of seamless interactions with customers and capturing critical data. These in turn help organizations identify consumer behavior and  organize their marketing strategies.

In the future, smart chatbots powered by AI and ML will be able to carry out sentiment analysis of potential consumers and interact with them accordingly. This is set to lead to a surge in the use of AI-driven chatbots by businesses to provide seamless interactions for greater customer satisfaction.

  • Generating Automated Responses

Natural Language Processing (NLP) integrated chatbots are extremely helpful for organizations that require multiple help desks and have a large customer base to cater to. NLP helps assess the intent of customers and generate responses. NLP-powered chatbots are capable of learning from past conversations of users and evaluating their queries and provide a solution to their problem . Studies reveal that most B2C businesses are now integrating smart chatbots to improve customer experience through text analysis.

  • Providing Analytics and Insights

For any business, analytics are of great help in tracking, extracting, or analyzing data. It helps organizations understand the customers’ needs so that they can measure and improve their strategies continually.

Chatbots ease the aggregation of large data with their record of customer queries and responses delivered. Such data become part of crucial analytics that help businesses understand consumer mindset and devise new strategies to improve sales. Moreover, chatbot data can help track accurately key search terms and customer preferences helping build stronger relationships with them.

 

  • Reducing Data Integration Time

In the second half of 2020, businesses are expected to integrate chatbots will self-learning abilities. This means that the bots will analyze patterns just after few interactions and automatically train itself to keep users or customers engaged.

  • Providing Businesses with a Voice

Apple’s Siri and Google’s Assistant have made considerable impact on every user’s smartphone. According to a survey conducted by Canalys, user numbers of these two platforms will be more than 250 million worldwide in 2021. This clearly shows consumer preference of voice assistants as a means of communication. Smart voice bots integrated into business applications and websites improve the overall quality of conversation and increase the chances of conversion.

Final Thought

With a lot of predictions coming up pertaining to future of Chatbots, it’s essential to know how well these bots fulfill their responsibilities. Having a deep understanding of the business requirements and a clear strategy is necessary to feed the chatbot with the requisite information. This will not only improve the consumer journey but will also fuel business growth.

Let us know in the comment section when you are planning to integrate a chatbot into your business or have already integrated one. Feel free to share your thoughts.

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