What is a Chatbot & How Does it Affect Your Business?

Chatbot for your business

Most business uses Chatbot nowadays due to its capabilities to automate customer experience! Chatbots becomes an integral part of any business since the massive users of messaging apps like Facebook Messenger, Skype, WhatsApp. With almost half of the world population already have access to messaging apps or the internet, it is only right to put this opportunity to be utilized especially for business-men to aims to increase the efficiency of their businesses. There are many advantages of using Chatbot but also there are few misconceptions about it, so before we dig deeper about Chatbot let us know first what is a Chatbot?

What is Chatbot?

Technically Chatbot is derived from the word chat-robot with the function that can stimulate human-like conversation via voice or text.

what is chatbox

Today, Chatbot can be customized in a variety of ways, such as they can now easily communicate via smartphones and commonly found on messaging apps such as Facebook Messenger, Skype, and Whatsapp but they are not only limited to that, you can also found them on large eCommerce sites; technically, anything that deals with a large group of users or clients employed chatbots to handle simple queries. But because of the advancement of technology, there are chatbots today that can handle complex problems just like what Tony Starks have; an ai-powered chatbots although it is not perfect yet, it is now being used by some sites.

Types of Chatbot

There are a few types of Chatbots but are only two categories of it. First is the Scripted chatbots, and the other is the smart chatbot.

Scripted Chatbot is based on a predetermined path in which users can easily choose. This kind of Chatbot does not do a conversation type, but rather something like a “frequently asked question” type of help. This is ideal for some business because it’s rather easier to build than of smart chatbot. This type of chatbot is helpful also to eliminate simple inquiry done by the users and leave the complex inquiry to the right people. There is also Scripted chatbot that does a little bit of conversation, this type of chatbot works like a search engine and detect “keywords” from the users chat and based on those keywords, the chatbot creates a conversation like replies to the user, this is a bit complex to do, especially for the developers.

Smart Chatbot– unlike the scripted chatbot, Smart chatbot is a very powerful type of chatbot, mostly this type of chatbot is AI-powered. the best characteristic of this chatbot is that it creates a good conversation with the users, and it tries to predict what the users wanted.

How do Chatbot works?

How do chatbot works? different kinds of chatbots work differently, as for Scripted chatbots, the conversation is usually mapped-out by the operator or mostly a digital marketing staff to create a precise or predict what the users may want to know. Usually, they follow a simple “if and then” logic and then to predict the next logical question as to what the users want. You can easily spot this chatbot being widely used by the different eCommerce store and most of them are on social media sites like Facebook messenger and Twitter.

How do Chatbot works

As for Smart Chatbots, there are two types of smart chatbots, first is an AI-based chatbot and the other is a Machine Learning based Chatbot. As for AI-based chatbot, this chatbot is powered by artificial intelligence software and uses an NLP or Natural Learning Processes to understand the context and intention of the conversation in which typically very hard for the machines to do. So, what is the advantage of having an NLP? Some users enjoy making a human-like conversation with bots instead of clicking the buttons as what scripted chatbots do.

As for Machine Learning Chatbots, it is somewhat also based on NLP, but it will try to retain information of the users and then predict what they wanted to do. These kinds of bots are using artificial neural networks to optimize users’ experience when conversing. Technically, these smart Chatbots are hard to do and require more work especially the learning the part for this Chatbots.

How does Chatbot Affect Your Business?

After learning what chatbot is, so the question is, what does it do to your business?

First, a chatbot is important especially for customer engagement, it optimized the users’ inquiry and thus eliminating the simple inquiries and can focus on the customers that need special interaction with the customer service. With this in mind, using a chatbot can also decrease the cost of employing chat-support employees.

Chatbot Affect Your Business


Second, people are already used in interacting with bots, based on the study, almost 69% of consumers prefers chatting with a bot rather than human customer support, this is because of the speed of the bots provide when answering questions the consumers’ questions.

The third would be, chatbots provide 24/7 customer support. Since it is a program, you don’t need to worry about the time zones of your consumers, except if there is a problem with the server, there is no need to worry about anything.

Finally, chatbots are great for acquiring information about your consumers, or what are the problems of your products and improve your products based on the feedback of the consumers.

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