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Why are Chatbots Beneficial to Businesses?

Sep 22

It's not just a fad! Chatbots have been around for centuries and have been explored by diverse individuals for various purposes. There is endless scope in which they can be used, from customer service to marketing, depending on the application. If you're looking to improve your business with a high ROI, chatbots ought to make it onto your list of options. In this blog post you'll find out what the future holds for the use of chatbots and why they are beneficial to businesses of all sizes.


The Chatbot Has Been Around for a While

In 1843, Joseph Jacquard developed a programmable loom that used punch cards to create patterns on fabric. The programmable Jacquard loom was the first automated system of its kind. Today, automated processes are taken for granted and many users barely understand how automation works or perform the simplest of tasks themselves. In comparison, in 1843 most people had never seen a machine—let alone operated one.

Fast forward to the 1950s, when the first chatbot platform was created by a man named Joseph Weizenbaum. It was a natural language processing computer program that simulated a psychotherapist and helped users with depression. The program—called Eliza—was programmed to follow conversational cues and identify key words. However, it lacked a clever algorithm to manage both the complexity of language and context. Although it could respond with appropriate responses, it couldn't understand or elaborate on what the user said.

Evolution Has Brought Us to Chatbots that are More Valuable than Ever

Today, chatbots are powered by Artificial Intelligence (AI), which means they can understand and respond to human language in ways that no other technology can. They can remember, analyse, and learn from interactions with humans. Clients of all types expect immediate responses, but chatbots allow businesses to take their time and respond appropriately. Chatbots can also learn behaviour patterns and adapt accordingly.


What are the Benefits of Using Chatbots?

There are many benefits to using chatbots, but here are the top 5 reasons why businesses should utilise this technology:

  1. Quicker Response Times

Humans react much quicker to information than bots do, so a chatbot will typically take longer to respond to a message compared to a human being. However, chatbots can still respond instantaneously, depending on the urgency of the query and the amount of available information already stored in a database.

  1. Improved Customer service

Bots can memorise the right answers to the most frequently asked questions which means that businesses do not have to use valuable time searching through customer data or other records in order to answer simple queries.

  1. Reduced Workloads

A chatbot will not take sick days, ask for holiday, or leave to have children! It's up 24/7 ready to respond like an employee without the need for holidays or time off.

  1. Personalized Experience

Chatbots allow companies to personalise the experience of their customers. They can tailor queries and responses to specific segments of a customer base.

  1. Increased Sales

Customers are more open to chatting with a chatbot—according to a recent study by the CMO Council, 75% of consumers would prefer interacting with a friendly bot over a call center agent or salesperson.


Last Words

There is no doubt that chatbots will play a big role in the future of marketing, customer service, and sales. They'll be able to carry out tasks that humans can't and can always save you time and money.