What are Chatbots and Why are They Important for eCommerce Business?

What are Chatbots and Why are They Important for eCommerce Business?

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The evolution of machine learning has attracted various innovators to incorporate the technology in their respective fields. One of the fields where the system has been used is in the developing of chatbots.

So what are these chatbots? Well, these are computer programs developed to aid customers access desired products. They accomplish this through interactions with clients, based on details obtained, so as to redirect the marketers on the type of products required.

The integration of this system is in tandem with the growing need for companies to adopt responsive customer care techniques. Now since the hiring of human labor is rather expensive compared to the customer demand, various e-commerce firms have opted to outsource modern ways.

Chatbots for eCommerce

Types of Chatbots

Notably, the chatbots are classified into two types,

  • Fixed bots
  • AI-based bots

The former is characterized by specific data being fed into the system to acquire a product whereas the latter learns from the environment and conversation held with the customers.

Consequently, the type of chatbot used depends on the type of e-commerce conducted by the entities so as to determine how efficient to connect with the target group. However, the machine learning bot is popular over its counterpart due to its vast application in a conglomerate of activities such as online business transactions.

According to recent reports, 40% of consumers prefer to deal with chatbots to human interactions.

Interestingly, chatbots are used in a number of areas such as financial guidance, the recommendation of products, social media, and customer care services.
Chatbots

Merits of Using Chatbots

Are you aware that the chatbots are common in a number of online applications? Yes, this is the case with the likes of Facebook, Google, and Microsoft already making use of them. This implies that the machines have a series of pros. This includes

  • Quick and effective response
    When it comes to machine applications, one key aspect of testing its usability is the processing and feedback speed. For the chatbot, it meets this qualification as it is able to interpret the information keyed in by the customer and pinpoint the items in the shortest time possible.
  • Pocket-friendly
    Establishing a customer service and care unit is no mean task as it calls for a lot of resources to having it up and running. With the inclusion of bots (to connect between producers and consumers) saves on the funding required for the human response team.
  • Ability to serve multiple clients at a go
    Contrary to the one person per desk approach in the conventional customer service unit, chatbots are capable of sorting out a number of users purchasing products spontaneously. This makes it possible for the company to expand the customer base.
  • Available 24/7
    A disparity linked with manpower is the limitation to working during the day. Although this isn’t the case with all companies, the use of chatbot ensures there is continuous interaction with customers at all times. On this note, clients can easily tend to any unforeseen emergency and receive a fast response.
  • Self- launch and update capability
    A common trait with a multitude of online applications is the need to update regularly. So to overcome this challenge, which frustrates a lot of users, designers of the chatbot made sure that the system is able to automatically update themselves.
    This savors clients the stress of dealing with an outdated program thus providing an enabling environment with minimal disturbance.
  • Freedom to customize based on your specification
    Considering the great diversity in enterprises available worldwide, chatbots are remarkable in that they are able to fit in your organization structure. This implies that it has the capability to interact, retrieve and respond objectively. This application savors you the trouble of having to incorporate new staff members for operational changes.
  • Full package
    According to tech analysts, the machine learning bot is able to project any data required. Its application has significantly reduced the number of apps required to deliberate separate results as the bots got you covered.
  • Potentiality
    It should be noted that the use of chatbot is steadily gaining grounds as more individuals and firms integrate the AI bots in their day-to-day activities. Furthermore, the chatbots foster bonds between entrepreneurs, developers and end users within the shortest span of time possible.

Demerits of Using Chatbots

Despite the tremendous benefits associated with incorporation of chatbots, they are also likened to a number of shortcomings. The greatest loophole has been manipulation and phishing by third-way parties via the platform to retrieve personal information illegally. Apart from this other demerits include:

  • Overreliance on worldwide protocol- the chatbot makes use of the open protocol which means it is prone to infiltration by high-level Additionally, the presence of the program on the platform encourages online criminals to access personal information under the ‘shadow’ of getting personal details of users.
  • Additional costs incurred in different setups- if you wish to modify the chatbot to interact with your target audience then you’ll have to input additional resources to have the program running. Furthermore, the bots are limited to firms that don’t fully rely on human interaction.
  • Specific audience- according to statistics by Kik, most of the users accessing chatbot are between 13 and 19 years. Consequently, chatbots are mainly used in US and Canada thus may not be resourceful to some parts of the globe.
  • Complex interface- this challenge has been highlighted by several clients who find it cumbersome to navigate through the chatbot. This is attributed to the procedural steps encompassed in enquiring the specific product needed.
  • Not fully precise- it has been observed that the results derived by from the chatbot may not be 100% accurate. This is due to the limitation of the program to certain platforms.
  • Failure to pass the Turing test

Conclusion

From the discussion above it is crystal clear that the number of chatbots been developed is rapidly growing. It’s on this premise that marketers and producers are advised to test, re-test and apply the suitable software system for accurate customer interactions.

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