Businesses, whether they are large corporations or small businesses coming off the ground, are looking for new and innovative ways of interacting with their customers to improve the flow of business and services. That is why chatbots have been gaining traction in many different industries, being able to automate the customer relation process. There are customer service chatbots that offer convenient and accessible support for many businesses.
This blog post will describe the use and function of a chatbot and how it is changing the ease of use for customers in many different industries. By digging deeper into the chatbot statistics, we can examine the most popular industries using chatbots nowadays:
What is a chatbot?
A chatbot is a form of artificial intelligence software designed to engage a customer in a convincing conversation, usually to assess a customer’s needs and why they are visiting the website. They are also useful in answering basic customer questions, using a natural language processing system to sound as human as possible.
(It should be noted that despite the groundbreaking technology, the chatbot has not yet been able to break the Turing test, which is a test used to determine whether or not a machine’s intelligence is similar or indistinguishable from that of a human’s.)
Chatbots have been implemented for many different uses: communication, system analytics, customer support, design, education, entertainment websites, healthcare, gaming, food services, news, marketing, social media, and many, many more. Chatbots are so frequently used that some studies have estimated that approximately 67% of customers have used a chatbot within the past year.
The most popular industries using chatbots
There are many different industries that have made chatbots a regular part of their business. According to the chatbot statistics provided by Invesp, the healthcare industry is the largest sector with 23.1% usage. The healthcare industry uses chatbots to book appointments for patients or to answer questions posed on the availability of certain doctors and healthcare practitioners.
Chatbots can also be used to provide preliminary diagnoses in a self-triage service after the patient provides some of their symptoms. The telecommunications industry (21.4%) also uses chatbots to answer client questions and to help customers pay their bills.
The banking and financial advice industry share 17.1% of the percentage of industries that frequently use chatbots, often implementing them to serve as a stock broker, customer service representative, and provide financial advice to clients on the spot.
In banking, chatbots can help automate bill payments and receive banking advice and investment products. Other industries that actively use chatbots in their line of work include insurance (12.8%) and government (8.5%).
Why are chatbots so popular?
There are a few prime benefits for both customers and business owners to integrate a chatbot into their business practice, such as:
- 24-hour service: Unlike a human representative, chatbots do not need sleep and can function at all times,
- Instantaneous response: Chatbots are much faster than people at identifying questions and responding to customers based on a database of pre-recorded responses.
- Answering simple questions: When the chatbot answers basic questions, it leaves human customer service representatives unencumbered so that they can handle the more complex questions that require a broader explanation.
- Ease of communication: Chatbots are much easier to reach out to and get a response from instead of waiting on the line for a human customer representative to get a hold of.
- Chatbots are more approachable: Everybody has a bad day and their mood may reflect their job performance when speaking with a customer. Since chatbots are not impacted by shifting moods, they are much more able to maintain a positive rapport with the customer.
The biggest measurable benefit for business owners is the fact that chatbot can cut customer service costs by 30%, according to a chatbot report by Invesp. This is because chatbots can save more time and process more sales and a business will require a smaller group of human customer service representatives to hire on a full-time or part-time basis. Considering these benefits, there is little surprise why businesses are bringing chatbots into their customer service branches.
How do customers respond to chatbots?
As much as 40% of customers do not care whether they receive customer service care from a person or a chatbot. As chatbots become more popular, this number will be more likely to increase.
According to Invesp, customers typically use chatbots to get a quick emergency response, resolve a complaint or problem as quickly as possible, getting detailed responses, getting in touch with a human customer service representative, making a reservations, paying bills, purchasing an item, gathering ideas for items to purchase, as well as many others.