Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
For small and medium-sized businesses, a competitive compensation...
Financial reporting often appears to be a routine...
February 17, 2021
A Chatbot is an AI-powered software that can perform tasks without the support of a human. One of the most advanced technology, it can stimulate a chat or a conversation with a user on its own through websites, mobile apps, messaging apps or through the phone. For example, if you’re searching for a product on the internet and a window pops up on your computer screen asking if you need any assistance, or you are using voice commands to order food from a nearby restaurant and received a response that tells you the time when the order is ready along with the cost. In all these scenarios, you have encountered a chatbot.
Chatbots can streamline operations for you, and can answer questions in natural language. Thus, simplifying the interaction between humans and machines. For an entrepreneur who keeps an eye on latest tech and trends, platforms and software like these can increase profits, enhance customer satisfaction, and boost market competitiveness that will propel your company above the rest. However, every business has its specific set of requirements. So, before you make a decision to automate your customer service experience ask yourself these questions – “Does your business need a chatbot? Can chatbots engage your customers well? Can they really bring greater profits and qualify leads? Is it worth investing in one?” It’s crucial for you to know the answers, and also weigh the pros and cons.
Let’s dive into the advantages and disadvantages of chatbots that you should take into account.
One of the biggest advantages of using a chatbot is that it can deliver faster customer service and solutions. Unlike humans, they can function round-the-clock without a break with zero burnout. A customer doesn’t have to wait for hours to receive a response. Chatbots can even attend to multiple customers with queries at the same time which a human can’t. So, all you have to do is ask questions to the bot, and your query will be resolved, without human intervention.
It is seen that customers are more satisfied with chatbots. When they receive instant and satisfactory answers, coupled with easy interface and quicker service, they are happy; and happy customers convert to brand loyalists.
If you are trying to cut down costs, you can visit all areas of your business and consider trimming budgets or shutting down verticals but, you can’t afford to compromise on customer service and support. Using chatbots in place of a customer support team will be extremely cost-effective. You don’t have to pay an employee or develop a mobile app; you just need to have a bot. Also, lower workforce expenses translate into increased profits.
Chatbots not just answers queries, but can send notifications about new products or services of your business. It reminds and informs customers of other features and app functions, special offers, and can promptly mention your product or service (you seek to promote) to the customer in the middle of the conversation/chat when it seems relevant.
The best part about chatbots is it’s adaptive, and learns and updates itself independently. It brings along the capability to transform the face of customer service in future. Businesses can leverage the bot to understand the target audience better, learn customer behavior, and deliver personalized assistance to its customers. During each conversation, it gathers the information that is requited about the customer. So, learning doesn’t stop for a chatbot.
Chatbots have a variety of uses other than customer support. Bots can streamline processes by making it simpler, schedule meetings, track unstructured data, and can also be used for personal finance assistance, creating and managing sales funnel, advertising, and developing marketing strategies, to name a few.
Although chatbots are adaptive, they depend on a predefined set of questions and answers. If there is a query beyond their coded instructions, they either fail to reply or their response is inaccurate. This means that chatbots are still not fully capable of understanding the natural language and its nuances.
Most chatbots aren’t able to adapt the natural language of humans, which means they don’t understand slang, misspellings, and sarcasm. Customers who use slang and sarcasm might not get the desired response. If there’s a situation where customers need to repeat themselves, it leads to frustration resulting into poor customer retention.
When you start using chatbots to enhance customer experience, you are actually losing touch with what your customers are saying. You have no clarity on their issues, miss the feedback they give and the insights, which are very valuable for your business.
Some business models are too complex and cannot adopt a chatbot. Likewise, some customers may not be open to bots or respond in a positive manner. So, before making a decision, you need to consider the type of business you are in as well as your audience.
Bots don’t understand indecisive human expressions, and can’t eliminate the risk of human errors completely. They lose track of the conversation when they get confused by a customer query. This means the accuracy level can never be 100%, and there’ll be errors in the form of irrelevant and incorrect answers.
Chatbots are programmed to manage a specific amount of data, and need to be optimized frequently to ensure they deliver correct information to customers. You’ll have to update the bot according to your business requirements as well as keep the customer satisfaction level consistent. Regular maintenance is crucial to avoid holes in the bot’s interface.
Chatbots are certainly one of the most powerful tech tools used by businesses. It’s true that they can offer a quick response, and is cost-effective, efficient and adaptive. However, you need to understand the functionalities of this technology thoroughly, and whether it fits into your business model or not.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...
Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...
Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...
For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...
Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...
Small business owners often grapple with tax obligations that can swallow a large portion of their profits if not managed...
Human Resources (HR) might feel like an afterthought for many small business owners juggling day-to-day demands, yet it has a...
Artificial intelligence (AI) isn’t just for tech giants anymore—it’s increasingly accessible to small and mid-sized businesses seeking a competitive edge...
Setting up a payroll system is an essential step that helps small business owners pay their employees accurately and on...