Chatbot is an interactive communication channel that can enable businesses to reach their prospect and existing customers through messenger apps like Facebook, WhatsApp, or WeChat.
Unlike traditional chats, chatbots are run by computer programs, powered by sophisticated technologies like artificial intelligence (AI), machine learning (ML) and natural language processing, that allow them to realistically mimic human interactions, driving more efficient and purposeful conversations.
Companies deploy chatbots to deliver more personalized experiences and to gain a competitive advantage. Besides, they improve convenience, one-to-one marketing, data collections, and reduce service, sales, and support costs. Using chatbots, smartphone users can reach a company anytime and anywhere.
There are more than 34,000 applications that chat and collect data on Facebook Messenger, and by 2020, more than 50% of customer interactions will be handled by machines.
A common customer frustration in using websites is that they are hard to navigate (34%), difficult to provide answers to simple questions (31%), and essential details about a business — like address, hours of operations, and phone number — being hard to find (28%).
The most common predicted uses for chatbots that consumers reported included getting quick answers to questions in an emergency (37%), resolving a complaint or problem (35%), and getting detailed answers or explanations (35%). 34% of consumers say they’d use chatbots as a means for getting connected with a human.
Potential benefits of chatbots
- 24-hour service
- Getting an instant response
- Answers to simple questions
- Easy communication
- Complaints resolved quickly
- A good customer experience
- Detailed / expert answers
- Solutions to complex problems
- Friendliness and approachability
According to a new survey, “Usage & Statistics for an Engaging Online Chatbot Design” by GoodFirms, around 59.05% of people use chatbots to purchase cheaper products from a brand.
When asked what kind of chatbot interactions people would prefer the most, 88.57% of the participants pick chatbots for simple interactions. About 54.29% of them preferred chatbots for moderate interactions.
GoodFirms surveyed 300+ people globally to study the current chatbot usage and share the reports with the businesses and application developers to understand consumer behavior and get knowledge from the valuable insights of used case experiences. The contributors were interrogated regarding their brand communication preference, for what purpose they used chatbots, their chatbot user experience, usage preferences, and perceived benefits & cons.
The participants are chiefly males (73.33%). And the age distribution among them was: 17.14% of Generation Z (18-24), 70.48% of Millenials (25-39), and 12.38%.Gen X (40-59).
Key findings of the survey:
- 94.29% of the participants have used chatbot of some kind.
- Of these, 69.52% have used chatbots frequently, while 24.76% of them sometimes.
- Live chatting or texting (72.38%) is found to be the third most popular medium people prefer to communicate with a brand. With websites (80.95%), emails (76.19%), mobile apps (61.90%), and phone calls (52.38%) making up the five most popular platforms.
- Nearly everyone (94.29%) has used a chatbot in the past 12 months.
- Live chatting or texting (72.38%) is the third-most preferred channel to communicate with brands or companies.
- The next generation is mobile-first, and so have to be chatbots; Gen Z wants chatbots on messenger apps (83.33%) and mobile apps (77.78%)
- More and more people are even taking actions, and not just conversation, over chatbot; people have browsed for a product (91.92%), bought products (71.72%), and made payments (63.64%) in the past 12 months.
- People rated 3.5 out of 5 to their chatbot experience in the past 12 months.
- Most people are set to shop from chatbots, as 59.05% are willing to buy necessary products, and 54.29% engage in moderate interactions.
- Chatbot helps brands to be active while people want; 24/7 availability (89.52%), instant reply (81.90%), and mobile-friendly (70.48%) are the most anticipated chatbot features.
- Businesses need to create best practices for using chatbots; people get irritated by random pop-ups (60.95%), unrelated redirections (56.19%), and lack of information (50.48%).
- Offering chatbot can turn out to be boon for your businesses’ brand image; people think of such brands to be tech-savvy (87.62%), customer-oriented (83.81%), and proactive (85.71%).
- Artificial intelligence is the backbone of chatbot; 3/4th people are okay about it but don’t want chatbots to start pretending to be humans (51.43%).
Top chatbot statistics you should know
- It is predicted that chatbots will power 85% of all customer service interactions within the next two years.
- Research shows that about 45% of end-users prefer to use chatbots for customer service inquiries.
- By 2022, chatbots are expected to provide cost savings of over $8 billion annually.
- A recent study predicts that by 2020, the average person will have more online conversations with bots than with their spouse.
- Businesses sent an average of 8 billion messages to Facebook users on Facebook Messenger each month.
- Chatbots in the banking and healthcare sectors save an average of over 4 minutes as opposed to traditional call centers.
- The global chatbot market will reach $1.23 billion by 2025.
- 80% of businesses are expected to have chatbot automation by 2020.
- Google search volume for “chatbots” has increased 19 times in the past five years.
- 67% of internet users have used a chatbot within the past year.
- 35% of consumers have already bought items with a chatbot’s help.
- Businesses currently spend $1.3 trillion on customer service each year.
- Chatbots could save businesses up to 30% in customer service spending.
- The use of virtual assistants can lead to a 99% improvement in response times.
- 58% of companies currently using chatbots are B2B.
- 71% of companies with chatbots have between 1 and 50 employees.