Attracting a new customer costs businesses five to 25 times more than retaining an existing one, which is why many choose to invest in business innovation strategies to improve the customer experience. Aaron Rodriguez, a business operations expert, is a firm believer that chatbots are an ideal solution, and through his knowledge of business optimization, he explains why.
According to a study recently conducted by the specialist, 80% of consumers are more likely to buy products that offer personalized experiences. And that’s something that can be achieved with chatbots, with the extra advantage of a significant reduction in response time.
A chatbot responds in seconds or minutes, whereas an email could take days and social media could take hours. But not every business has one. Chatbots use natural language processing and machine learning technology to turn complex interactions into simple conversations. Today, the vast majority of consumers (87.2%) have neutral or positive experiences with chatbots.
As the statistic reveals, consumers in 2021 were much more receptive toward interactions with these assistants. Surely, this data supports the upward trend in the implementation of these types of tools, especially in some industries. Chatbots are projected to handle 75-90% of banking and healthcare inquiries by 2022.
Even if a company is not in these sectors, it’s time to consider taking the plunge. 78% of decision-makers invested in new technologies as a direct result of COVID-19.
“The pandemic, in addition to driving business innovation, also drew attention to the importance of self-service, as being able to get quick answers became more important than ever,” Rodriguez explains. “During the crisis, 65% of customers opted for this type of means to resolve simpler issues.”
There is no doubt that the primary application of chatbots is to provide a quick response to an inquiry, but providing the best possible customer service is not their only mission. They are also extremely useful in creating a strong brand image. Thanks to advances in technology and machine learning, chatbots have become more advanced and can do much more than automate mundane tasks.
Today, modern chatbots go beyond customer service, and can also generate conversions and close sales. Another study conducted in 2021 shows that chatbots generate response rates of 35 to 40%. And this percentage is at the lower end of the spectrum: better chatbot experiences, with more engaged audiences, can generate response rates of up to 80-90%.
“Chatbots can help agents solve customer problems, better understand the situation and identify the next best step,” suggests Rodriguez. “Another advantage of going for business innovation in this area is that chatbots can also reduce internal dependencies, especially in a remote work environment, by providing quick and easy responses without having to communicate with a colleague.”
In addition to helping users with loan-related queries or gathering important information, such as their account balance, transaction details, and payment installments. Chatbots can also assist the customer in other facets of banking, such as investments or insurance, as well as with credit and debit card management.
This application can also be applied in media and entertainment. From delivering headlines with the latest news to assisting customers with subscription management, chatbot applications in the media and entertainment industry play a very relevant role today, so much so that they have transformed the way we consume content.
On the other hand, chatbots can help students solve problems related to a book or material loans, access to facilities, tuition and fees, or virtual campus technology. One of their most valued applications is related to alert services, which warn of changes or updates in student policies or important dates.
“Integrating chatbots into the business strategy is a way to take advantage of the opportunity that technology provides to position the business and reinforce the brand image. It is a way to demonstrate that the customer is put at the center of the strategy. After all, it is said that innovation is driven by users,” says Rodriguez.
The chatbot industry had been growing steadily even before the pandemic. However, the crisis gave a big boost to adoption. If in 2020 the chatbot market was valued at $7.17 billion, by 2026, the figure is estimated to reach $102.29 billion. It would thus register a compound annual growth rate of 34.75% in the period covered by these four years.