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What is a Chatbot ? How does it works? Usage in Businesses

Today we are going to explore about chatbots. Recently, chatbots have made real progress in the artificial industry by helping businesses gain more profit with less cost. Chatbots act like real humans because they are trained by humans. Even chatbots can make calls, and over the calls they can answer like real humans. But for all of that, first you need to train them. 
Let's explore about them.

What is a chatbot?

A chatbot is a computer application that bases its operation on artificial intelligence to simulate conversations with a real person and that has the ability to give automated answers to doubts and questions that are usually common on specific topics for which they have been previously trained.

Chatbots generate their conversations through messaging applications and normally through text, although recent advances have allowed the incorporation of sounds, giving these tools a greater degree of personalization and interaction.


The Digital Transformation of Businesses

Let's talk about the digital transformation of business by chatbots. The digital transformation of companies is an increasingly recurrent process in all sectors of business activity that provides competitiveness and leads to better financial results. Many of these results have to do with cost savings and specifically with the automation of processes. Today we want to talk to you about chatbots, one of the revolutions that, at a business level, is constituting a change in the way of interacting with the different actors that interfere in a commercial transaction. The great advances in artificial intelligence and machine learning have provided several technological applications with great autonomy, which allows them to reach the point of functioning automatically without human contact with truly amazing results.


When Can It Be Useful to Have a Chatbot in My Company?

There are different cases for using this type of intelligent conversation, so their uses can be very varied and for different types of industries and specific sectors focused on specific tasks.

Among the different uses we can highlight:

  • Carrying out marketing campaigns in which we ask our clients specific questions that are answered and through which we can organize an interaction with a specific objective.
  • Chatbots that help clients make their purchases in e-commerce.
  • Customer service that answers questions and helps with different tasks or incidents that may arise during a purchasing process.
  • Chatbots that are capable of monitoring employee and customer satisfaction through a conversation based on the words and language used.
  • Chatbots with automatic responses on topics that generate many questions, all of them with direct answers. For example, airlines use this type of system when a problem arises related to flights, which largely frees up their customer service department, which will only deal with the most relevant incidents.
  • Request food from restaurants or order from robots in the restaurant itself without having to have a waiter available to generate or manage the order.


Main Functions of Chatbots

The installation of these bots by businesses has increased exponentially due to significant advancements in AI and machine learning. These businesses have viewed this as a way to obtain a competitive edge in certain of their target markets.

Companies such as Skype, Telegram, or Windows are betting heavily on the implementation of these chats that constitute great reinforcement for the customer service department of companies and that can achieve:

Improve the purchase or conversion processes

Chatbots are capable of facilitating and simplifying customer purchasing processes and online payment. Among their characteristics is resolving questions or doubts that users have throughout the purchase decision process.

Personalized Communication with the Client

A good chatbot, trained and configured to give the best answers to the person with whom it interacts, will generate an environment of trust between your company and the other party. Giving the right information that they are looking for at the right time generates a feeling of closeness with the company and personalizes the client's user experience.


Improved Customer Service

This is probably the star function of chatbots and what they are most used for. Who hasn't had a conversation with one of them on a website? Many companies use them to relieve the workload of their customer service department employees.

These chatbots are easily integrated into direct messages on the main social networks, such as Facebook, where they can answer frequently asked questions, collect records, and provide information of any kind about the company.

They generate pleasant experiences for the user and make interactions faster and easier.

Immediacy in Responses

One of the most important premises of users with websites and what marks their good or bad user experience is the immediacy and quality of what is offered to them. That is why the versatility and speed with which these bots are interacted with are key, as they must give the appropriate responses without wasting the time or patience of the potential client.

Profitability

Automatic conversations are increasingly in demand by companies, and this is because after achieving good automation, there is no need for maintenance or technical support to keep this functionality operational beyond small content updates, something that is quite a profitable action for the company. A good chatbot is capable of replacing the work of many people.


How Do Chatbots Work?

Explaining this is a complex task; we only have to think about the learning process that we humans undergo when we want to learn a language or understand a conversation. The same situation occurs with these machines, since understanding humans is not an easy task, and the way in which we communicate is very personal and with many nuances.

The same phrase or question can be formulated differently depending on the person who asks it, so when creating a chatbot, several principles of natural language are used to be able to give the appropriate answers.

Natural Language Processing (NLP)

Natural language processing is used to break down user input into sentences and words and expands the meaning of the text by correcting spelling errors before determining the meaning of the words. Other factors, such as user emotions, are also considered and taken into account at this stage.

Natural Language Generation (NLG)

Conversational Artificial Intelligence takes NLP and NLG to a higher level, allowing companies to create much more advanced and complex dialogue systems.

The way forward is undoubtedly to offer a customer experience that is natural and personalized, avoiding prefabricated responses that lack soul. Chatbots are trained to draw on language databases and use personal data and preferences of the person they are interacting with to create the most natural and engaging response.

Natural Language Understanding (NLU)

Natural language understanding is what makes it possible for the chatbot to understand and comprehend what the user has said. It does so based on a system that relates lexical topics and synonyms, and together they form an algorithm that tells the chatbot how to construct the most appropriate response to each interlocution and respond in the best possible way.


Advantages of Creating a Chatbot in Your Business

Creating a chatbot in your business can bring you several associated advantages and constitutes a very important link in the digital sales process with which to meet consumer expectations.

With a chatbot, it is possible to automate most of the frequently asked questions that a client or user has about our products and services immediately by achieving better user-brand interaction. In addition, it is possible to highlight some other advantages, such as:

  • Increased Sales: Having the necessary help and assistance at hand and with total availability for the doubts or questions that arise during a purchase process increases the closing of sales because customers resolve their doubts successfully and immediately, which helps ensure that their process is not interrupted or sometimes forgotten.
  • Increased Customer Retention: Converting visitors to your site into a lead is the goal of every company; many of them use these interaction bots to have the first contact with the person or to obtain their contact information in order to send future communications or get in touch with them. All the time a user spends interacting with our chat and our site increases retention and therefore the chances of success.
  • Increased Conversion: Not feeling alone and the possibility of having an assistant who is able to answer your questions increases the conversion rate of your website.
  • Increased Brand Reputation: As a result of the work of personalizing responses and immediacy, the user's experience and perception are clearly favored, which has a positive impact on the image of trust that people have about a brand and our desire to continue relationships with it or consume its products or services.
  • Reduce Staff Costs: Automation and the fact that qualified personnel are not required to answer certain questions means that hiring is not necessary, and therefore there is a smaller number of staff in the customer acquisition or service departments.

Conclusion

As conclusion indeed I have no option to say that Chatbots have become necessary tool for our business. What else businesses need other than customer satisfaction and profit with less cost. The best thing for chatbot is that these are in our own hands they will act according to your training so that means we can handle them the way we want. Also these are not just bound to some businesses you can use them in any business no matter the business is digital or traditional business.
But we must be careful in the use of chatbot same as we should be careful for every artificial intelligence. The misuse of any technology will result in obesity and loss.
Thank You for reading my blog. Stay with lifeisblog for exploring more amazing blogs like this. 



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