The consumer-business relationship has greatly changed in recent years. Consumers have more choices, and businesses spend time trying to keep up with their changing needs.
Consumers choose where to spend their cash depending on their experiences. It’s therefore important for businesses to foster the right kind of relationships to gain and maintain customer trust.
Chatbots can help businesses maintain relationships with customers and improve business processes. They have become a huge market with the global market set to exceed $994 million by the year 2024.
According to Servion, AI platforms will drive three-quarters of all customer service interactions by 2025. At some point, consumers may even prefer machines over humans.
This post examines AI chatbots and the opportunities and challenges they present to businesses. It examines how businesses can use AI chatbots to grow relationships with consumers and increase business value.
Table of Contents
Challenges of AI Chatbots
The current challenges with AI chatbots are opportunities for future developments in the industry. They include:
1. Security Issues
Depending on the use case, an AI chatbot may collect sensitive and personal customer information. That includes account information, legal names, payment details, and so on. If not handled carefully, these details make your company a target for hackers.
You can help protect customer information using firewalls, complex passwords, and virus protection. And you need to make sure employees know how to protect customer data. You can protect the data a chatbot handles too by checking for vulnerabilities that could lead to hacking incidents.
2. Failure to Understand Human Emotions
If the chatbots cannot respond to human emotion, sarcasm, humor, or different languages, communication can break down. Humans are also unpredictable, and sometimes they improvise during conversations.
AI, however, struggles in this area when presented with an unexpected challenge. When this happens, the AI should immediately direct the conversation to a human agent. If not, then the conversation may fail.
3. Ability to Hold the User’s Attention
The first few minutes of a conversation with a consumer are important. If the chatbot does not effectively handle the communication, then communication can also break down.
Make sure the chatbot can help consumers and is smart enough to solve their issues adequately. The more effective they become, the more consumers are likely to come back to your platform.
AI Chatbot Opportunities
Some of the key benefits of using AI chatbots for business include:
1. Improved Customer Experience
Chatbots offer consumers 24/7 end-user support without a wait time. Consumers can readily get answers to questions and complaints, and this improves their experiences.
Interactive chatbots can provide answers to frequently asked questions immediately. If the question is complex, they can forward it to a real person for comprehensive action.
2. Collection of Data and Insights
AI chatbots can collect data and enable your business to offer personalized experiences. They also store customer data which makes it easy to handle customers who have communicated with the company before.
They can also learn more about the consumer’s likes, dislikes, how to keep them engaged, which products to cross-sell and up-sell, what to recommend, and more. AI chatbots get better the more it keeps communicating with consumers.
3. Cost Saving
Using AI chatbots is cheaper than hiring employees to handle huge volumes of consumer queries. They also improve operational efficiency, which makes it easy and fast to meet consumer needs.
Employees can then spend more time handling crucial tasks. Which means your business can save on training costs, hiring costs, and payroll.To learn more about AI chatbots, check out this comprehensive infographic created by team Shane Barker team.