By: Maria Williams

In the world of customer engagement, chatbots have become more prevalent than ever before. They help companies become more efficient and, in many cases, streamline the customer service experience.

Despite the progress chatbots have made over the years, and the increasing satisfaction people have with their chatbot experience, many people aren’t ready to switch to this AI-based experience quite yet. In fact, one recent study published by Fast Company found that 81% of customers would prefer to wait to talk to a live agent rather than immediately engage with an AI assistant over the phone.

While the overall perception of chatbots still has a way to go, Marie C. Lee, a Hong Kong-based marketing consultant and an adjunct lecturer at the City University of Hong Kong, argues that chatbots are already well-positioned to engage with customers effectively and work effectively in tandem with human customer support teams. Here’s why.

Faster, Readily Available Customer Service

For many, effective engagement starts with being able to respond anytime, anywhere. “I think the most obvious way that chatbots can effectively engage with customers is the simple fact that they are readily available whenever you need them,” Lee says.

“A human agent can only speak with one person at a time. Quite often, customer service hours are limited. On the other hand, a chatbot can service a large number of customers 24/7. That instant support can make all the difference for someone who is trying to resolve a service issue, complete a purchase or accomplish another task. We live in a time of instant gratification, instant answers, and chatbots ensure that companies can deliver on that.”

In today’s fast-paced business world, over 60% of consumers expect businesses to be available 24/7 — and for consumers under the age of 35, roughly 75% have this expectation. Chatbots enable businesses to deliver on this growing expectation, even when they don’t have the ability to scale their human support staff.

Personalized Features 

Lee also sees significant importance in chatbots’ abilities to personalize — one of the key factors in chatbot design. “A recent survey I conducted on customer engagement with AI chatbots revealed that participants viewed common personalization features, such as addressing customers by name, as unremarkable. They noted that this practice is widespread among companies, suggesting it is a standard AI-driven feature rather than something that adds unique value.”

“In contrast, the study found that what truly captivates customers is the personalized problem-solving capabilities of AI chatbots, which empower users to address their specific needs effectively,” Lee adds. “For instance, the personalized recommendation features in a taxi-calling app utilize location tracking to tailor suggestions for users. By recommending various taxis or alternative vehicles based on price and estimated travel time, the AI enables users to make informed choices that align with their preferences.”

“Additionally, when there is a delay or change in the pickup location due to issues like an unforeseen road blockage, the AI chatbots notify customers of the updated details. By automatically addressing these issues, the AI also allows taxi drivers to focus on driving rather than managing customer support, enhancing safety and efficiency. The combination of app features and AI chatbots enables customers to address their own needs, becoming a crucial factor in attracting users to engage with and repeatedly use the service. This suggests that companies should invest in developing personalized AI chatbots tailored to user-specific problems.”

Useful and Accurate Features 

While much has been made of tools like chatGPT offering inaccurate responses to user inquiries, Lee notes that chatbots used by businesses typically have a reputation for being able to accurately and effectively address inquiries.

“Chatbots created for a business tend to be quite accurate because they have a narrower range of information that they need to contend with,” she explains. “They are focused on delivering information and responding to inquiries that are related to the brand’s products or services. They are learning directly from owned data, which, as long as it is properly maintained, can be counted on to provide an accurate foundation for the chatbot’s knowledge. This, combined with the speed at which chatbots operate, ensures that customers get timely and accurate responses when they submit an inquiry.” 

“For example, a bus company has received significant positive feedback for its AI chatbots providing useful and accurate bus arrival information,” she adds. “Users expressed that when the AI chatbot informs them of a bus delay, they can choose other transportation options instead, helping save time and ensure punctuality for work. The accuracy and usefulness of this feature plays a crucial role in daily transportation planning, driving user satisfaction. Designers of AI tools should recognize that accuracy and usefulness greatly enhance customer engagement and contributes to the long-term success of the technology,” Lee says.

Such experiences align with the Fast Company research article cited earlier, in which AI assistants were rated higher than human agents in the attributes of providing consistently accurate answers and at addressing simple questions in a satisfactory manner. While human assistants ranked higher in other areas such as empathy and complex problem-solving, this highlights how chatbots already have a positive reputation for effectively handling more data oriented and routine inquiries.

Creating Effective Engagement Opportunities

“Today’s chatbots are more advanced than ever, and they’re only going to get better as time goes on,” Lee says. “Companies should invest in enhancing data sharing and designing AI chatbots that can effectively and accurately solve customer problems, incorporating personalized features to empower users in addressing their own issues. The next step is to ensure that businesses are designing and monitoring their chatbots so they can continue to advance and be better able to deliver on this exciting potential.”

As Lee’s insights reveal, there is good reason to be optimistic for using chatbots across a wide range of industries and applications. 

Lee concludes, “As companies help customers become more comfortable with AI chatbots, this can lead to significant cost savings by allowing businesses to reallocate human resources and traditional customer service options to support those who need it most, such as older customers who are less familiar with the technology. This strategy not only fosters sustainable customer relationships but also provides companies with a competitive edge in the evolving landscape of the AI era.”

Published by: Khy Talara