Great customer service determines the success or failure of your business. Most businesses are looking for ways to enhance their customer service. Artificial Intelligence (AI) technology is being used by most businesses to automate and improve their customer relationship management (CRM).

This is where chatbots come in. Chatbots enable AI communication which means an all-around 24/7 interaction is possible with customer service. Customers can now access information at a touch of a button at any time. In this article, we've taken time to look at what chatbots are and how they work and how they've revolutionised the customer service industry.

What Is A Chatbot?

A chatbot is software designed to have conversations with users over the Internet. Chatbots are often used in customer service to answer frequently asked questions or to help customers complete tasks such as purchasing a product online. Chatbots are sometimes also called conversational agents. For example, that chatbox that usually pops up in a casino online like Polish Unibet or on an ISP website at the right-hand side corner of your screen could be a chatbot.

The common types of chatbots are AI chatbots and flow chatbots.  Flow chatbots guide a user on a predetermined path that has been defined by its developer.  AI chatbots are self-trained and can produce knowledge based on the information they get when interacting with users.

AI Chatbots with self-teaching and self-learning abilities come highly recommended because they will acquire the relevant knowledge based on the words customers use when conducting a search. Typically these bots may be immature at the start and as time goes they learn words and the service improves.

Advantages Of Using Chatbots In Businesses?

AI is revolutionising and changing customer service. They've become the quickest way to give accurate and convenient basic information, source quotes, complete applications, and confirm purchases or availability of stock. Here are some advantages associated with using chatbots:

1. They are available 24/7: Chatbots don't need to rest or take a break. Chatbots can work around the clock, meaning that customers can get help or information anytime they need it.

2. They can handle multiple tasks: Commonly in a customer service centre a person can only answer one call at a time but that isn't the case with chatbots. Chatbots can be programmed and embedded into websites to handle a wide variety of tasks, such as answering frequently asked questions, providing customer support, or helping customers make purchases.

3. They can improve efficiency: There isn't a limit to the number of requests a chatbot can handle. Chatbots can handle large volumes of requests, which can help reduce the workload for customer service agents and allow them to focus on more urgent issues.

4. They can improve the customer experience: The quick responses provided by chatbots make a good impression on users. They also create a personalised experience for customers anywhere, improving the overall customer experience.

5. They can be cost-effective: Chatbots can be less expensive to operate than hiring additional human customer service staff.

6. They allow easy access to big data: For decades this has been a timeous and tiring task but AI has made that as simple as a click of a button, through its ability to analyse big amounts of data.

Disadvantages Of Chatbots

Although chatbots come with some great benefits we find it essential that you also know the limitations and disadvantages associated with implementing them. Below we'll look at a few disadvantages.

1. They lack personal touch: Chatbots are not able to provide the same level of personalisation as a human customer service representative. They may not be able to fully understand or empathise with a customer's problem.

2. They totally depend on technology: which means that they may not be able to function if there is a technical issue.

3. They lack transparency: Some customers may not realise they are interacting with a chatbot, which can lead to misunderstandings or a lack of trust.