Why Chatbots Are a Must-Have for All Types of Startups

The use of chatbots across numerous tech giants is the number-one rule, but how does this automation technology benefit startups that need to carve out a niche for themselves?

A chatbot is a versatile AI-powered tool that plenty of enterprises employ to boost and simplify their business operations.

Many tech giants like Amazon and Google are at the forefront of using and promoting chatbots for business purposes. But despite the appeal of chatbots with large-scale corporations, they are more beneficial to start-ups that are only shaping their business models.

Unlike a mobile app, a chatbot is easier in terms of development and better in terms of functionality.

Business Insider reveals that this automation technology is now used by almost every other business, especially those involved with marketing and customer service and over 80 percent of companies are planning to adopt chatbots in the near future.

The reason why chatbots are growing in demand requires shedding light on the major advantages of this technology. Here are some of them.

1. Excellent customer service

The first and most obvious application of chatbots that you might have repeatedly observed is customer assistance.

They are perfect at providing simple support in issues that do not require subtle thinking, namely answering questions or guiding customers on the company’s range of services.

What is more important, a chatbot can concurrently interact with over a hundred customers, while an in-house employee’s abilities are typically limited to communication with one client.

Since chatbots follow strict algorithms, you won’t be bothered about the consequences that usually arise when a worker makes a mistake.

Finally, overly difficult problems chatbots will delegate to support agents that will handle each case personally with a client.

As a result, the adoption of chatbots lets businesses save on personnel expenditures while increasing customer satisfaction and the company’s overall performance.

2. Effective project management

The use of artificial intelligence in business is now a key to running a digital enterprise smoothly and productively.

Chatbots, in turn, are of much value for project managers that need to track the hours of work employees spend dealing with projects daily.

Based on that, a chatbot measures the productivity of each team member and transfers these metrics to the PM. There are a number of additional tasks that chatbots can do, such as shift planning or absence/leave management.

Unless the PM has time to perform repetitive work, it is reasonable to integrate a chatbot with the business system.

3. HR assistance

When searching for new staff, huge corporations rely on chatbots that can analyze over a thousand CVs at a time and engage with each applicant individually so as to gather information about their experience and expertise.

The role of chatbots in finding the right human resources is incredible today.

In 2018, L’Oreal used an AI-recruiter to assist the in-house HR team in hiring new people. This AI-powered chatbot was called to answer FAQs coming from potential applicants that were making queries about job requirements and the company itself.

In the end, the majority of participants were satisfied with the level of service they experienced when interacting with the chatbot, and the recruitment process was completed prior to the due date.

4. Good for making online payments

Here, a chatbot looks extremely appealing to e-commerce businesses that would like to provide their consumers with convenient and secure payment methods.

Chatbots help users to make quick transactions and payments as well as supply relevant financial information if necessary. For instance, they notify users of expiring free sessions as well as allow people to manage their money better.

Similarly, consumers can talk to chatbots to learn more about banking services and improve their payment capabilities.

To date, many global brands like Lydia and Slack employ chatbots to assist customers in validating their payments safely.

5. Event management

Similar to assistance in project management, chatbots are effective in event management that involves both the company’s personnel and customers.

With regard to the office staff, their main value is schedule synchronization. A chatbot can find the optimal time to hold a meeting so that each attendee could participate.

But when it comes to the consumer audience, chatbots are needed to send notifications and gather feedback from customers.

One way or another, chatbots seem a lot helpful in tasks that imply a high level of organization and planning.

Why are chatbots so popular?

Over 44 percent of US millennials admit that they are more willing to accept customer support in the form of online chatbots than human agents.

Customers expect to get immediate feedback. They hate waiting and usually get annoyed before their time to be assisted comes.

On the contrary, chatbots operate faster and can basically handle 80 percent of customer problems.

Moreover, they are programmed to give an immediate reply, which commonly leads to customer satisfaction and loyalty as they do not feel ignored or abandoned.

Unlike human assistants, chatbots function around-the-clock and thereby allow businesses to make sure their clientele receives proper support and attention anytime.

To date, over 1.4 billion people in different industries use chatbots on a regular basis. This automated technology is gaining popularity among entrepreneurs because of its convenience and connectivity.

It can be integrated with any business model and coupled with any other technology. This compatibility lets B2C and B2B companies boost their production considerably while lowering operational costs.

Though chatbots may vary in functions and opportunities, their main purpose is to spare businesses from repetitive and time-consuming work and reduce the number of errors that in-house workers occasionally make.

Will chatbots replace humans in the end?

Though chatbots are insanely useful for businesses, they are unlikely to fully replace humans in the future.

In spite of their multifunctionality and impeccable performance, their operation still needs supervision and adjustment.

Indeed, they have greatly evolved over the last decade and now can substitute some workers involved with manual or monotonous work.

But overall, the use of chatbots is seen in the areas that do not require creativity, curiosity, and research, the major qualities being a driving force for progress and development.

For that reason, chatbots are largely a good way to increase sales, improve customer experience, or promote productivity in newly founded companies or enterprises that look for digital transformation.