AI technology has started to play a tremendous role in modern business. One major publisher recently reported that the stock price of an AI startup rose 23% in response to the growing demand for untamed AI.
One of the many reasons that AI is becoming popular in business is that it can help streamline customer service. The biggest advantage of using AI to improve customer interactions is through AI chatbots.
What Are AI Chatbots?
AI chatbots are software applications that are programmed to simulate conversations with humans. They rely on sophisticated natural language processing technology to understand human needs and respond accordingly. Many people are using AI chatbots to roleplay with people that have romantic partners.
However, they also do a great job helping companies provide better customer service. They do a great job at this, which is why the market for them is likely to be worth $15.5 billion by 2028.
AI chatbots that rely on NLP technology are different from other simulated chatbots that only could respond to a narrow range of queries. Previous chatbots needed to be programmed to recognize very specific strings of text. This was obviously a challenge for many users, because they couldn’t know exactly what text they needed to input to get their questions answered.
AI chatbots use machine learning to become familiar with a wide range of possible inquiries people can make. Therefore, they can provide much more robust service to people using them.
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What Are Some of the Main Benefits of AI Chatbots?
There are a number of reasons that more companies are using AI chatbots to better serve their customers. Some of the biggest advantages are listed below.
Providing Quick and Timely Customer Service
Companies are under growing pressure to provide quick service to their customers. One survey found that 60% of customers want a response within 10 minutes or less. Unfortunately, this can be very difficult for companies that have limited customer service capabilities. They could easily lose business to companies with better customer service capabilities.
This is one of the biggest advantages of using AI chatbots to provide better customer service. Chatbots can provide nearly instantaneous service to numerous customers at once. This is a huge advantage over human customer service professionals that can only serve one person at a time.
Reducing Customer Service Costs
Customer service is also very expensive for a lot of companies. SaaS Businesses spend an average of 8.5% of their operating budget on it. Companies in industries with low profit margins can understandably have difficulty staying out of the red when they are paying so much on it, especially during a bad economy.
AI technology is helping companies cut costs considerably. They can use AI chatbots to provide customer service at a much lower cost. This is going to be advantages to many businesses in the future, since the current outlook for the economy is not very good.
Minimize Problems Caused by Human Error
Bad customer service can cause all kinds of problems for our company. One survey found that 50% of customers will defect to a competitor after just one bad experience for the customer service team. Another survey found that one in 26 customers will tell people about a bad customer service experience.
Sadly, most customer service problems are caused by human error. People may get confused about different products the company is offering. They might be having a bad day due to problems in their professional lives and take it out on their customers. They may also not have been trained well or are still too new to the job.
All of these problems can be mitigated by using AI chatbots instead of relying entirely on customer service professionals. Companies that invest in this new technology should have fewer customer complaints.
Provide Consistent Branding
Another benefit of using AI chatbots is that they can provide consistent experiences for customers. This can be great for companies that are trying to provide consistent brand experience.
Improve Upselling Strategy
Many companies try to use their customer service team to upsell customers that seem to be having a good experience. Unfortunately, they often have mixed results. Some customer service professionals are too timid to bring up new offers. Others are overly aggressive and customers away.
AI chatbots can do a great job Customer is about new opportunities. Customers will probably be more tolerant of them, since they won’t feel like the offer is being forced on them as much. AI chatbots can also use machine learning to become better at gauging customer emotions, so they can tailor their response to meet the customer needs.
AI Chatbots Are Going to Be a Boon for Customer Service
Many companies are starting to use AI chatbots to improve their customer service strategy. This is going to help them offer better service in the coming years.
