What is a chatbot?

A chatbot is an automated conversation partner. It facilitates a conversation between a human and a computer. Usually, you have a conversation with another human via a messenger app (like WhatsApp), but with chatbots you are not talking with another human, but with a computer.

Chatbots are really interesting, and in this blog post I will talk about what they are, how they work, why you need them and how to build them.

An example of a chatbot

EpicReads is a good example of a chatbot. It advices book lovers which book they should read. The customer can select a book/author he loves, or the mood he is in right now. Based on the customer preferences, the chatbot automatically suggests some books that the user could read. The chatbot is live right now, so if you have Facebook Messenger, you can try it out here.

How does a chatbot work?

A chatbot works relatively simple. I will explain it with an example:

1. A user starts a conversation with a chatbot of a car company. He asks “Which red cars do you have?”
2. The chatbot interprets the message and recognizes the words “red” and “cars”.
3. Based on the recognized words, the chatbot will look into a database for “cars” that are “red”.
4. Finally, the chatbot will send a message back to the user with all the red cars that he found in the database.

In general, most chatbots work this way. It is also possible that the chatbot does not understand the question and then he will respond with “I do not understand you, could you rephrase that question?”

If you want to know more about how chatbots work, and the more technical side of it, check out this post!

Where are chatbots used?

Nowadays, chatbot are mainly used on three places:

• Websites
  Often a chatbot is added to a website for asking standard questions, qualifying leads or referring the customer to the right department within the company.
• Social media platforms
  Since social media platforms like Facebook and Twitter integrated chatbots in their platforms, a lot of chatbots have been created there. Chatbots are used for various purposes, from shopping products to emotional support to entertainment.
• Apps
  This is the least used option nowadays. Chatbots can be integrated in apps for asking standard questions, for asking how the app works or for getting help from customer service. Integrating a chatbot in an app is more difficult than on a website or a social media platform.

What can a chatbot do?

Chatbots are used for different reasons, but there are mainly three roles:

1. Role of a digital assistant
   With the role of digital assistant, the chatbot helps the user with doing certain tasks. They are mainly used to increase productivity and doing things faster.
2. Role of an information provider
   With the role of information provider, a user asks questions to a chatbot and it providers answers to these questions. They are mainly used for obtaining help and information.
3. Role of a general chatbot
   With the role of a general chatbot, a user uses the chatbot to conduct a conversation for entertainment or emotional support.

Why you should use chatbots for your business

As said before, more and more businesses are implementing chatbots everyday. This is a good thing, because it adds value for your customers and for your business. But why should you use it for your business? Here are some reasons:

1. 24/7 available, everywhere
   With a chatbot, your company is 24/7 available for your customers. Wherever they are, whenever they want. Your customers can ask questions to your company, even in the middle of the night. According to Chatbots Magazine, this is one of the main reasons why customers use chatbots.
2. Save on customer service costs
   Chatbots can save a lot of money in terms of customer service. 80% of customer service questions are standard questions, which could be easily answered by a chatbot. The result? Save up to 80% on customer service representatives. And customers are willing to talk to chatbots, because research of Hubspot shows that people are really open to using chatbots, as long as they get help quickly and easily. 
3. Boost your sales
   A chatbot can boost your sales tremendously. With a chatbot, you can sell directly to your customers via a chatbot. Another way, is to promote your products in a chatbot and lead them towards your website. 

How to build a chatbot?

You can build a chatbot in two ways: build them from scratch or use chatbot software. The choice for using one of the two depends on the goal of the chatbot and the time/budget you have for the project. I will discuss the pros and cons of both alternatives.

Building from scratch

When you are building a chatbot from scratch, you need to code it. You could do this yourself (if you are a developer) or you could hire a software development company to do it for you.

Pros

• You can make it exactly how you want it
• Complete control over the design of the chatbot
• Make changes easily, according to changing needs

Cons

• It is more expensive than using chatbot software
• It takes more time than using chatbot software

Using software

You could also use pre-built chatbot software to build your chatbot. With pre-built software, you don’t need to have coding knowledge to build your own chatbot. Most of these software companies also provide (video) tutorials and templates on how to make your chatbot, which makes it even easier. Examples are Chatfuel, Manychat, Octane AI and Mobile Monkey.

Pros

• It takes less time than starting from scratch
• It is cheaper than starting from scratch
• Can make it without any coding knowledge
• Can implement it easily on many platforms

Cons

• Less flexibility
• You have little or no control about the design of the chatbot
• Sometimes they only provide one platform

Conclusion

People start to understand the value of chatbots. They can automate conversations, so you can:

• Drastically reduce your costs on customer service
• Increase your sales
• Automatically qualify your leads

This technology is still at an early stage and a lot of companies don’t use it (yet). By using a chatbot for your company, you are really standing out from the crowd.

Are you convinced to invest in a chatbot? Leave a comment!

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