Chatbots have been the talk of the town and this technology is becoming a part of us whether we realize it or not. In e-commerce, the chatbot is the latest trend. Chatbot promises 24x7 availability, auto-learning capabilities that have intrigued e-commerce giants to hop on the chatbot bandwagon. Everyone is talking about implementing a chatbot and the ease it provides in communicating with the customers.
Here are some jaw-dropping chatbot statistics that you need to know in 2021 according to the author of Website builder,
- A chatbot can cut customer service costs by more than 30%.
- Chatbots are expected to help reduce business costs by up to $8 billion by the year 2022.
- There was a 67% increase in the adoption of chatbots by organizations between 2018 and 2020.
- 69% of the public prefers to use a chatbot instead of a company’s official App.
- 63% of people trust chatbots with their most sensitive information.
Additionally, according to an Oracle survey,
“80% of businesses said they currently use or are planning to use chatbots by 2020.”
Well, all this just proves that there is nothing greater than prioritizing customer comfort and convenience., More importantly, creating customer engagement is crucial. Chatbots help to create a brand identity, provide customer support to existing customers, retain loyal customers, and help customers communicate with the brand through an open channel.
CHATBOTS- THE FUTURE OF ECOMMERCE
In the digital age, that we live in today, convenience is a priority, and customers seek convenience. Chatbots provide just that, influencing customer relationships by providing quick solutions to their questions. A recent study found that 53% of service organizations expect to use chatbots within 18 months — a 136% growth rate that foreshadows a big role for the technology shortly.
Over 59% of millennials and 60% of Gen Xers in the United States have interacted with chatbots.
And according to a Facebook survey, more than 50% of customers say they’re more likely to shop with a business that they can connect with via chat.
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WHY CUSTOMER INSIGHTS IS PARAMOUNT
Customer insights give access to a powerful tool, ‘DATA’. Data is more valuable than ever and those who learn to use this data wisely will reap benefits.
According to British Data Scientist Clive Humby; “Data is the new oil”.
A resource that is extremely valuable to the business’s data not only provides crucial information but also helps in the chatbots’ learning abilities. This means that the chatbot can self-train by learning how users express their goals and needs (intents). Artificial Intelligence feeds on data and training the chatbot on this data is crucial.
The core of self-improving chatbots is an
Intent Recognition NLU, which is trained with a variety of question variations. When no intent is matched with a confidence level above 30%, the chatbot returns a fallback answer. For all others, the NLU engine returns the corresponding confidence level along with the response.
WHAT MORE CAN CUSTOMER INSIGHTS PROVIDE THROUGH THE DASHBOARD?
Now that we know customers prefer to communicate with chatbots more than humans, information that the customers chooses to leave behind is vital. Analyzing the information through an “insights dashboard” can help benefit and reframe the customer service strategy. Here are some ways the dashboard can help businesses:
- Improve customer service strategy
The more information the chatbot receives, the more efficient and empathic the chatbot gets. This is possible only with the information the customer leaves behind. This information can be used to create and improve customer service strategies.
- Context on returning customers
The chatbot can also derive numbers of returning customers and analyze their conversation history with the chatbot. When a customer returns to converse with the chatbot. the previous conversation is cataloged and that makes it itis easier to make suggestions to the customers according to their conversation patterns. For example, some customers communicate with the chatbot to check offers and promotions. The chatbot will be able to give relevant suggestions and approach them with different strategies to target a successful conversion.
- Improving communication with customers
The way the chatbot functions and communicates can be examined using metrics i.e. the duration of the conversation or the response time of the chatbot to customers’ questions. that. Longer chat duration could mean that the chatbot is having trouble understanding the customer requests and shorter chat duration could mean disrupted communication as well. Insights can help analyze these communication gaps to improve communication with customers.
- Customer retention
Insights are a key KPI metric to analyze retention rate. Dashboards can help us understand what makes customers stay, and what makes them happy, or why the clicks are not converting. Artificial Intelligence chatbots can categorize words through neurolinguistic programming that helps in understanding the customer pain points. This, in turn, helps in customer retention and also improves the customer journey.
- Analyze engagement rates
Analyzing the average number of conversations exchanged during one chat session will allow businesses to understand the engagement rates with the chatbot. This will help businesses create a more proactive chatbot by creating well-structured scenarios initiating conversations and, creating a personalized experience for customers. Insight’s Dashboard can give valuable information to improve engagement and boost conversion rates.
Analyze chat termination points
This metric will allow a business to understand where the customers terminated their conversation with the chatbot and why. Was the chatbot not understanding the customer requests? This quantitative metric can allow businesses to improve the efficiency of the chatbot by comparing the time spent on the chatbot by each user. This, in turn, will improve the quality of the chatbot’s responses and overall comprehension levels.
There is no doubt that insights are what feeds a chatbot and make it more efficient. Businesses that seek to derive and evolve this valuable information will truly succeed. The Insights Dashboard can be used to analyze most of the business KPI’s. Hence there is no exaggeration in saying that chatbot analytics will enable businesses to understand customer behavior, the key drivers that influence their decision-making process and what it takes to retain them, and more.
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Learn How Customers Think and Evolve with Data Dashboard was originally published in Chatbots Life on Medium, where people are continuing the conversation by highlighting and responding to this story.