Using Chatbots for Customer Service

Last Updated on October 20, 2020 by Sean B

Table Of Contents

Chatbots for Customer Service

The number of companies using chatbots for customer service is increasing daily. Along with artificial intelligence, this has redefined the customer service industry like never before. From live chats and virtual searches to automated messages, AI allows the companies to support their consumers better by catering to them with exceptional customer service.

The use of AI and chatbots in the customer service industry is incrementing day by day. According to the AI statistics, more than 67% of the companies surveyed have used chatbots for customer service in the past year.

Around 85% of the interactions in customer service will be without humans by the end of 2020, and 50% of People usually do not care about talking to a chatbot as long as they are getting the answers they need.

Now, the customer service industry is all about chatbots. AI-powered chatbots have become very common and let you do more than a human customer representative does. It lets you help customers all day, automates the chats, automates the answers of inquires without human intervention and provides support to multiple consumers at once. Simply put, AI-powered chatbots have revolutionized the customer service industry.

Most of the companies are embracing the use of AI in chatbots to enhance their customer service, to improve conversational relationships with their customers, and to expand their businesses.

AI-powered bots do not only help multiple customers at once but automatically generates answers to resolve the customers’ most common queries. In addition to that, using chatbots for customer service adds to the customer team’s efficiency and productivity. It reduces human labor costs and allows companies to open their customer service portal for 24 hours per day. isn’t it amazing?

A robot helping with customer service.

What is a Customer Service Chatbot?

A customer service chatbot refers to a human-built bot that is integrated with machine language and artificial intelligence to answer basic customer queries via live chat, call, or a business messenger.

The idea of a chatbot has existed for the past 5 decades. What’s new is that they are now programmed to work on new platforms like a business messenger. But using chatbots for customer service is relatively new.

Messaging apps have become the most popular platforms for chatbots catering to customers. chatbots are considered the most convenient digital trend of the customer service industry since the year 2016.

AI-powered chatbots can answer multiple customer-focused questions like:

  • “what is the price of your product?”
  • “How can I use this device?”
  • “How can I return this product?’’

AI-powered chatbots are an asset to the customer service industry and use resources to fetch information like knowledge-based articles, FAQs and answers from forums like Reddit. They help answer your customers’ questions and resolve the queries as fast as possible.

Other than that, they can also be trained to give instant responses and answers to the same questions asked by the consumers. Multiple features are available on these chatbots that allow you to set the preferred voice tone and pitch. That’s why most of the chatbots sound friendly to the customers.

With more advanced versions customer service chatbots, you can take a step further and suggest answers to the consumers even before they finish typing the question. This means efficient customer support, faster replies, and consistent customer support for your valuable customers 24/7.

According to IBM, more than 80% of the routine questions can be answered by AI-powered chatbots.

Chatbots can be trained to provide faster solutions by responding to customer service questions like humans. Chatbots bring advantage to the customers as they can get quick replies to their queries without wasting time and without needing any human to attend the live chat or call.

Customer service representative often make mistakes and give misleading information to the customer, that can be harmful to the company’s reputation. If set up and programmed correctly, chatbots will always provide error-free answers. Even if it does give the wrong answer, it can be detected immediately and the fault can be resolved for the future.

For every business including the customer service industry, chatbots offer a way to satisfy the customers with quick replies and convenient service. You can reduce labor costs by 30% if you add a chatbot to your customer service department.

Using chatbots for customer service: a friendly robot helping bring customers into a

Do I Need a Customer Service Chatbot?

Customer service chatbots are basically automated conversation systems installed for convenient customer service. If you are impressed by these chatbots, you might be caught up between the hype of machine language, artificial intelligence, and the fear that these chatbots might not treat your customers right.

Chatbots have a broad application. The most powerful chatbots do make an impact on the company’s reputation by enhancing customers’ experience. These chatbots are powered by machine language and artificial intelligence. They can understand a variety of common customer questions and can answer them within a few seconds.

For instance, a virtual agent can take a customer’s request and provide him with all the necessary information by identifying the customer’s intent.

If the customer says to the bot, “help my upgrade by network”, the bot will display a number of upgraded packages to the customer.

The virtual agent or chatbot is integrated with lots of scripts to help resolve a customer’s problem.

Like all other automation systems, customer service chatbots have reduced labor costs and made incredible improvements in the customer service industry.

Tin toy robots on a shelf.

Is Your Company in Need of a Customer Service Chatbot?

Using chatbots for customer service can be effective in any service-heavy industries like healthcare, telecom, travel and tours, retail, financial services, banks, etc. But how can you know if using a chatbot for customer service is the right choice for your customer service domain?

Start by asking if you have the need to make your customer support service strong. The masses of data from data centers can power chatbots for identifying customer intents effectively.

At this point, customer service chatbots are more successful than sales chatbots. While sales chatbots require navigating through large numbers of data, customer service bots are simple and require scripts to respond to the daily customers’ requests and complaints.

Using chatbots for customer service operations is a necessity for many industries as according to IBM, it can handle 80% of the customers’ requests without human intervention. Ultimately, reducing labor costs. However, to deploy a chatbot, you must prepare your customer service system for automation.

Examples of Companies Using Chatbots for Customer Service

Here are some examples of several companies that are using chatbots for customer service effectively today.

Tinka from t-mobile is a great example of using chatbots for customer service.

T-Mobile Chatbot

This one tops our list of customer service chatbots doing pretty well today. The German arm of the mobile company, T-Mobile uses AI-powered customer service chatbot Tinka to sell mobile phones.

Whenever the customer connects to the chat, Tinka starts the chat by a stream of messages about the company, its locations, the pros and cons of the mobile phones, etc.

However, if the person needs more information, Tinka connects him to a real person. According to T-Mobile, using Tinka has increased its sales by 7 times and retargeting by 3 times.

Amy by Company

Amy was launched in the year 2014 by an artificial intelligence company. Since then, Amy has proven itself as the best customer service chatbot for scheduling and planning.

Amy currently deals with all types of work including scheduling working hours, arranging the upcoming presentation. It also receives calls from investors and helps them connect to the person they want to talk to.

Amy is pretty convenient for the staff as it lets the users negotiate meetings and connect multiple calendars for increased productivity.

Tidio Customer Service Chatbot

Tidio chatbot is the number one choice for many merchants. The app handles most of the marketing and customer service work. Other than that, this chatbot also helps you in real-time data collecting.

Tidio application comes with an editor that allows you to build an optimized chatbot for your use.

Tidio chatbot also helps you navigate through Tidio’s homepage, business page, and store. Many companies including healthcare facilities use this bot to streamline customer service operations.

Sephora’s Chatbot

Interested in learning makeup through a bot? communicate with Sephora’s chatbot on Kik and you will receive tons of picture tutorials, makeup hacks and even video tutorials. Sephora bot will also help you find the best products for your skin and taste.

Customers chatting with Sephora bot can also book make-up appointments.

Domino’s Chatbot

Nowadays, it is common for people to order food without a phone call. All hail to chatbots- a few buttons to order your food and voila, you’d be eating a piping hot pizza from the comfort of your home.

Domino’s chatbot communicates through Facebook Messenger. Customers can place an order through Facebook from any device. This bot also remembers a member’s order history and reorders if the customer wishes to.

Other than that, it also estimates the delivery time and helps the customers to track their food.

CNN Chatbot - using chatbots for customer service.

CNN Chatbot

Have you heard about the chatbot CNN channel is using? No? The CNN chatbot delivers its viewers news through different platforms like Kik or even Facebook Messenger. However, the bot differs on each platform. You can even use the bot for personalized news or news subscription.

The list will go on as there are thousands of companies using customer service chatbot to entertain their customers.

Benefits of Using Chatbots for Customer Service

We have already discussed the applications of chatbots in the customer service industry. The benefits that customer service chatbots bring to the table are incredible.

Here are some of the major benefits of using chatbots for customer service:

24/7 Customer Service

A customer care team to assist the customers 24/7 can be very costly. Providing a way to the customers to ask questions and queries anytime can enhance your customer service domain. Customer service chatbots assist the customers 24/7 without getting tired or making errors. This impacts the businesses positively, even if the customer care staff is not available.

Increased Problem Resolution Speed

The better the availability of the bots, the greater the resolution speed. A quick response to resolve a specific problem is what a customer wants. A customer service chatbot has all the necessary information to resolve a customer’s problem immediately.

Even if there’s a need for human intervention, chatbots cut off the workload and allow agents to assist the customers in the best manner.

Using chatbots for customer service can result in faster response times.

Faster Response from the Company

Even if the chatbots can’t resolve a problem or file a complaint, they can provide a prompt response to the customer. Most of the customers do not like to wait. However, chatbots can engage with them until a customer service representative arrives to help them.

Chatbots can be used for the first contact and to cut off workload when only a few agents are available at the point. Even if the customer requires human assistance, he would feel cared for as he’d be receiving a fast response from the company.

Reduced Operational and Labor Costs

The most immediate benefit of a chatbot is reduced operational and labor costs. Chatbots performs all the duties of a customer care representative, hence, reducing staff.

A full-time customer care staff is costly and can cost you a fortune. On the other hand, chatbots perform repetitive and tedious tasks and provide enormous savings to the company.

The staff’s productivity increases as they won’t be answering basic questions again and again. Simply put, chatbots save time and increase the morale of the customer care staff.

Using chatbots for customer service offers multiple language support.

Multiple Language Support

AI-powered chatbots have the ability to handle thousands of queries at once in multiple languages. Even though they can work with few languages, they get the intent of customers immediately. There are no language barriers when it comes to communicating with a chatbot.

This makes them useful and versatile in nature, especially for global companies.

Accuracy and Consistency

The workload in the customer service department can be heavily strenuous and tough. Customer care representatives do not to their full capacity every day. They make mistakes or give misleading information which then, frustrates the customers. chatbots are powered by AI and machine language. They are programmed accurately. Therefore, they provide 100% accuracy in every answer.

In Conclusion

Chatbots are the new wave of technology in the customer service industry. They are going to shape the customer care industry in a way that vendors will get more opportunities to engage with their customers. More importantly, companies would be able to achieve their customer care goals efficiently and effectively.

When a chatbot is good at what it does, all the customers walk away with a good experience.

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4 thoughts on “Using Chatbots for Customer Service”

  1. Sean, WOW! I’m going to follow your work so have subscribed. Who ever thought of building their own – this I am interested in so will checkout your other articles.

    I have come across Chatbots when dealing with some companies and I have to say it’s beenan effective service, so far. I think as long as we have options to get a real person while we transition, it will become the accepted norm.


  2. What an awesome and helpful article about chatbots, thank you Sean! It’s very evident from reading this that chatbots are much easier and efficient than answering emails or whatever other ‘manual’ methods of customer service. I’ve subscribed and I’m looking forward to your future emails!

    I found this article and your site at the PERFECT time too since I just got Tidio for my Shopify webstore yesterday. Aside from what you wrote about it, what do you think of Tidio?

    • Danny,

      Glad you found the article interesting, and welcome to the email list! Tidio is a solid choice for Shopify and it should serve you well. They have great service if you run into problems. The only downside I see for Tidio is that entering the email might keep some from interacting with it. But it’s also a great way to build your email list, so that might be a benefit in the long run.



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