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How AI Chatbots are Enabling Businesses to Better Engage

Rapid digitization and digital transformation have led us to connect to each other via smartphones and social media.


People are now found more on social media and smartphones as compared to other means of transport. Business and marketers are well aware of this fact and they do not want to let go this marketing opportunity. Big enterprises also have to revolutionize the way of interaction with the clients. The response of Chatbots is based on Natural Language Processing techniques in which Chatbot can understand the text or human voice. Chatbots are built using artificial intelligence and machine learning algorithms that can make a conversation with the clients. They can understand the query and respond back in the form of solution to the query.

Chatbots can be used for several purposes like customer interaction, data collection, marketing, reducing overhead costs etc. It is estimated that by 2020 almost all customer interactions will be handled without human interaction. The market of Chatbots is growing and will further grow exponentially in the upcoming years.

Building a Chatbot

Chatbot development can be tricky and time consuming. But by following the appropriate approach, chatbot development can be a cakewalk. Before building the chatbot for any business, following steps must be considered:

Make Clear Goals

Jot down the points and be clear in your mind what do you want your chatbot to do as a problem well defined is half solved. The Goals must be practical and focused. Start with simple first and then proceed with complex functionalities. Give some time to your clients to understand the Chatbot functionality and then proceed with an advanced version.

Choose the Proper Channel

Choose the appropriate channel to interact with your clients. It can be anything from your website to Facebook messenger, mobile app, WhatsApp or any other communication platform. Or you can choose all at once. Carry out a survey to check which is the most preferred channel where your potential customers are comfortable to interact.

Select Method of Creation

Next, select how you want to create your chatbot. There are many software tools available in the market that let you create chatbots instantly. Although they are built instantly, there is very less scope to customize them. However, if you build the chatbot from scratch, you can tailor it according to your needs and requirements.

Customize and Launch

Define the artificial intelligence algorithms that define the working of the Chatbot. Feed the Chatbot with a huge number of datasets and real-life examples. Create a big database of questions and answers and test you Chatbots thoroughly before showing it to your clients.

Chatbots represent a new trend in how people access information, make decisions, and communicate. We think that Chatbots are the beginning of a new form of digital access, which centers on messaging. Messaging has become a huge component of how we interact with our devices, and how we stay connected with the people, businesses and the day-to-day activities of life. Chatbots bring commerce into this part of our lives, and will open up new opportunities – Christie Pitts, Manager – Ventures Development of Verizon Ventures

Let us have a look how Chatbots are enabling businesses to engage better:

1. Identifying the Lead

Business intelligence services can generate huge traffic on its website with various promotional activities. Generating the traffic is good but it is not the main aim of business. It is the first step towards the main goal i.e. enhancing the sales. Chatbots prompts the user when he/she is looking to buy your products or services. Chatbot can also narrow the results based on his requirement. This encourages the user to buy your product and services and improve the sales.

2. Order Processing using Chatbots

Chatbot as a service have improved the order processing for the businesses. Take an example of the food industry. International brands like Domino’s and KFC have deployed Chatbots that can take the orders form the customers. They can handle multiple customers at a time, so the order processing becomes quicker. It automatically puts the order in the queue for processing. This has increased the sales of food industry or any other order processing industry.

3. Better Availability and Support

Chatbots are helping the business intelligence services to perform better. B2C engagement has taken a huge shift. Chatbot is available at your service round the clock. Chatbots can provide 24/7 customer support service to your clients. Your business can have local clients or over the seas clients. Clients ask various queries before buying your products and services. Chatbots answer the client queries and also act as marketers for your product. With 24/7 availability, you can improve the customer support service considerably.

4. Chatbots are Cost Effective

Round-the-clock customer support staff can drain out a huge amount of budget of the organization. No doubt that larger organizations are also hesitant in employing the customer support staff. Chatbots can solve this problem for the businesses. A Chatbot is a one-time investment that has a huge return on investment (ROI). Data mining techniques makes the Chatbots smarter over the time. Also, Chatbots have the ability to handle multiple clients simultaneously.

5. Improving Response Rate

No one in the world likes to wait for long hours to get their queries answered. The customer expects businesses to respond quickly regarding their queries. However, this may not be possible every time due to several reasons. It may take several hours or days for a business to respond. But customer won’t wait for that long. Artificial intelligence companies have developed chatbots that are quick in responding. They can resolve the minor issues and queries of the clients. The client gets better service and this will be reflected in the sales of the organization. This also improves the SEO of the website as the customer will be visiting the website again for any further assistance.

6. Chatbots Automates Recursive Tasks

A lot of clients ask the same repetitive queries to the customer support staff. The customer support staff can get bored or irritated by answering the same questions. Artificial intelligence applications have helped in creating Chatbots that can answer the repeated and basic queries of the clients. They can be programmed to transfer more complex queries to the human support staff. This works on 80-20 ratio. 80 percent of the queries asked are repetitive and only 20 percent queries are complex or new. This frees the customer support staff and they can be given more productive and challenging task.


In the end, we can say that Chatbots have become an integral part of any company. Big players have already come to know about the importance of Chatbots. Artificial intelligence research in Chatbots will further enhance the functionalities and usage of Chatbots. Technology is helping the companies in serving the content to the customers in an effective and quicker way. Chatbot development companies are constantly working on more intelligent and robust solutions that can further improve the sales of the businesses.


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