{"id":52,"date":"2020-02-26T19:45:22","date_gmt":"2020-02-26T19:45:22","guid":{"rendered":"https:\/\/dev.botsify.com\/blog\/?p=52"},"modified":"2023-03-10T13:48:24","modified_gmt":"2023-03-10T13:48:24","slug":"botsify-the-chatbot-phenomenon","status":"publish","type":"post","link":"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/","title":{"rendered":"Botsify &#8211; The Chatbot Phenomenon"},"content":{"rendered":"<p>Chatbots are becoming a necessity for businesses who want to provide exceptional customer service to current and prospective customers and the use of bots across multiple industries is growing. A <a href=\"https:\/\/www.techworld.com\/picture-gallery\/apps-wearables\/best-uses-of-chatbots-in-business-in-uk-3641500\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">2016 Gartner study<\/a> predicted that chatbots would power 85 percent of all customer service interactions by 2020.<\/p>\n<p>Last month <a href=\"https:\/\/botsify.com\/blog\/how-automated-live-chat-support-service-can-reduce-your-customer-support-cost-in-2019\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">we referenced<\/a> a Business Insider report which revealed that chatbots are the one of the top emerging technologies that businesses are implementing, or plan to implement, in the near future. The BI report revealed <a href=\"https:\/\/www.businessinsider.com\/80-of-businesses-want-chatbots-by-2020-2016-12\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">that 80% of global businesses<\/a> will be using chatbots by 2020.<\/p>\n<p>Chatbots are used for a variety of reasons under the sales and marketing umbrella. The overall goal with implementing a chatbot\u2014or any other automation technology\u2014is to improve customer experience and streamline business functions.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_55 counter-hierarchy ez-toc-counter ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor: pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-662c8f0f86b91\" ><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #fee22e;color:#fee22e\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #fee22e;color:#fee22e\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input aria-label=\"Toggle\" aria-label=\"item-662c8f0f86b91\"  type=\"checkbox\" id=\"item-662c8f0f86b91\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/#Types_of_chatbots\" title=\"Types of chatbots\">Types of chatbots<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/#The_top_five_ways_businesses_use_chatbots\" title=\"The top five ways businesses use chatbots\">The top five ways businesses use chatbots<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/#How_do_consumers_use_chatbots\" title=\"How do consumers use chatbots?\">How do consumers use chatbots?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/#Chatbot_success_metrics\" title=\"Chatbot success metrics\">Chatbot success metrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_chatbots\"><\/span>Types of chatbots<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Scripted chatbots<\/strong> respond to specific questions with a corresponding list of answers. Since conversations with these types of chatbots can only follow a preset path, they often employ multiple-choice questions with a specific goal in mind.<\/p>\n<p>Scripted chatbots can replace online surveys or forms and offer a unique, engaging way for users to interact with your website or brand. Embedding lead generation forms into a chatbot dialogue is an example of a scripted chatbot.<\/p>\n<figure style=\"width: 300px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i.imgur.com\/Cc14k43.png\" alt=\"The Chatbot Phenomenon\" width=\"300\" height=\"533\" \/><figcaption class=\"wp-caption-text\">The Chatbot Phenomenon<\/figcaption><\/figure>\n<p>Image Source: Botsify<\/p>\n<p><strong>Artificial Intelligence (AI) chatbots<\/strong> are chatbots that learn. AI chatbots respond to and understand natural speech. They provide a more authentic \u201chuman\u201d experience to your website or social media visitors. AI Chatbots are used for a variety of customer service applications, such as online ordering, providing product or service information, and providing customer support such as account balance information.<\/p>\n<p><strong>Human takeover chatbots<\/strong> begin the process of reaching out to a website visitor then hand the conversation over to a human. This type of chatbot is an excellent solution to businesses who want the ability to respond to questions more quickly than they are currently able, but are nervous about onboarding an AI chatbot.<\/p>\n<figure style=\"width: 446px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i.imgur.com\/w9i28fp.png?1\" alt=\"The Chatbot Phenomenon\" width=\"446\" height=\"516\" \/><figcaption class=\"wp-caption-text\">The Chatbot Phenomenon<\/figcaption><\/figure>\n<p>Image Source: Botsify<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_top_five_ways_businesses_use_chatbots\"><\/span>The top five ways businesses use chatbots<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>1. Customer service\u2014HubSpot reports that <a href=\"https:\/\/smallbiztrends.com\/2018\/07\/real-time-response-to-customers.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">more than 80%<\/a> of consumers expect a real-time response when they have a sales or marketing questions (\u201creal-time\u201d is defined as ten minutes or less). Additionally, fully 90% of customers that have a customer service question rate an \u201cimmediate\u201d response as important or very important. Chatbots are often the only way to meet the rising demand for instant and \u201calways on\u201d customer service.<\/p>\n<p>2. Messaging apps\u2014Chatbots are used widely with apps like Facebook Messenger to answer questions from customers and prospects. Many industries (e.g,. travel and hospitality) can automate at least some portion of customer interaction with the use of chatbots. Companies like Marriot and Booking.com employ chatbots to help customers check availability, get check-in information, and enable travelers to interact with vendors before, during, and after their trips.<\/p>\n<p>3. Pre-screening applicants for job recruitment\u2014Chatbots can help companies screen and recruit applicants in a variety of ways, from messaging apps, to automated bots that use scripts to prescreen applicants. Businesses can also use chatbots to prescreen prospects (more on this, below).<\/p>\n<p>4. Online ordering\u2014Online sales and retail websites are ready-made for chatbots. Bots help users locate products or services that they\u2019re most interested in (Verizon has a chatbot that helps walk people through the process of upgrading their phone). H&amp;M uses a chatbot that acts as a personal shopping assistant, suggesting clothing items and outfits based on users\u2019 preferences.<\/p>\n<p>5. Pre-screen prospects\u2014as mentioned above, human-takeover chatbots provide a hybrid approach to the fully automated AI chatbot and the scripted chatbots. Companies can use these chatbots to pre-screen visitors in a variety of ways by asking pre-programmed questions to assess what their needs are and then routing them to the appropriate (live) salesperson or customer service rep.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_do_consumers_use_chatbots\"><\/span>How do consumers use chatbots?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to a 2018 <a href=\"https:\/\/www.convinceandconvert.com\/digital-marketing\/6-critical-chatbot-statistics-for-2018\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">survey<\/a> by Drift, SalesForce and several other collaborators, Telephone and email are remain the most common ways that customers interact with businesses, but consumer adoption of chatbots is growing.<\/p>\n<p>More than 60 percent of the consumers surveyed indicated they used a chatbot to interact with a business in the past 12 months.<\/p>\n<p>When consumers in this survey were asked how they predicted they might use a chatbot in the future, the top answer was to get a \u201cquick answer in an emergency\u201d (37%) followed by resolving a complaint or problem (35%). Here is the complete breakdown of predicted use cases for chatbots from the survey:<\/p>\n<figure style=\"width: 837px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i.imgur.com\/W3KdJ7N.png\" alt=\"Drift\" width=\"837\" height=\"477\" \/><figcaption class=\"wp-caption-text\">Drift<\/figcaption><\/figure>\n<p>Data source: <a href=\"https:\/\/www.drift.com\/wp-content\/uploads\/2018\/01\/2018-state-of-chatbots-report.pdf\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Drift.com<\/a><\/p>\n<p>As you can see, these are all fairly traditional reasons that consumers reach out to businesses. Adding a chatbot to your website or application provides another touchpoint for people to reach you for any number of issues they may encounter when interacting with your business.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chatbot_success_metrics\"><\/span>Chatbot success metrics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Chatbots aren\u2019t just a passing tech trend, they offer real value to businesses and are expected to cut business costs by <a href=\"https:\/\/www.cnbc.com\/2017\/05\/09\/chatbots-expected-to-cut-business-costs-by-8-billion-by-2022.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">$8 billion<\/a> by 2022.<\/p>\n<p>Industries with a large volume of human interaction\u2014such as healthcare and banking\u2014stand to benefit the most. A study by Juniper Research predicted that up to 90 percent of queries in these industries will be handled by chatbots, resulting in a cost savings of about $.70 per interaction.<\/p>\n<p>Chatbots can also provide backup and assistance to B2B companies whose (largely millennial) buyers are accustomed to researching products and services on their own prior to reaching out to a salesperson.<\/p>\n<p>Improving customer experience for B2B businesses should be a critical focus for 2019 and beyond since B2B organizations score <a href=\"https:\/\/www.elevationb2b.com\/blog\/guide-to-improve-customer-experience\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">below 50%<\/a> in the customer-experience index compared with 65%&#8211;85% for B2C organizations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Chatbots help improve sales and conversions by answering customer questions and providing support exactly when people need it.<\/p>\n<p>Chatbots give businesses the ability to offer 24\/7 support at a time when people are increasingly expecting businesses to respond immediately to questions and concerns.<\/p>\n<p>With millennial buyers dominating the B2B landscape and consumers becoming more comfortable interacting with bots and AI applications, implementing a chatbot is becoming an essential way to expand your business\u2019s customer service offerings.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read how businesses around the world are using chatbots to provide customer service.<\/p>\n","protected":false},"author":10,"featured_media":1684,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,10,9],"tags":[],"ppma_author":[219],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Botsify Fully Managed Chatbot Phenomenon - Botsify<\/title>\n<meta name=\"description\" content=\"An interesting chatbot phenomenon that gives you a stremlined path to reach out your audience to optimize your sales and marketing operations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Botsify Fully Managed Chatbot Phenomenon - Botsify\" \/>\n<meta property=\"og:description\" content=\"An interesting chatbot phenomenon that gives you a stremlined path to reach out your audience to optimize your sales and marketing operations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/\" \/>\n<meta property=\"og:site_name\" content=\"Botsify\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/botsifyapp\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-26T19:45:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-10T13:48:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/botsify.com\/blog\/wp-content\/uploads\/2020\/02\/Copy-of-Copy-of-Chatbot-Automation_-The-Use-Case-In-Major-Functions-Of-Your-Business-9.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ryan Gould\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ryan Gould\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/botsify.com\/blog\/botsify-the-chatbot-phenomenon\/\"},\"author\":{\"name\":\"Ryan Gould\",\"@id\":\"https:\/\/botsify.com\/blog\/#\/schema\/person\/062135fbca02bafc7e7bced1881bc7df\"},\"headline\":\"Botsify &#8211; 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