Saturday, September 25Digital Marketing Journals

How Chatbots are Transforming Customer Service with AI | by REVE Chat | Aug, 2021


The traditional way of customer service falls short when it comes to meeting the constantly evolving expectations of new-age customers.

So, businesses that still adhere to the old ways must change the ways if they aim to deliver greater experiences to customers at every step of their journey.

This is where AI chatbots make the foray into the customer service sphere as they not only impact the support but can also automate functions across sales, or marketing verticals as well.

With 50% of consumers no longer caring whether they are dealing with humans or AI-enabled assistants, bots-driven automation can definitely fill the gap in the customer service hierarchy and ensure value.

Using AI bots, it becomes easy to provide better prompt assistance at various touchpoints of the customer journey, streamline the processes and boost the level of enhancing customer engagement.

The use of AI-powered chatbots can positively impact customer service in many ways and at different levels.

Let’s look at each of the ways in detail;

With businesses losing 75% of customers due to waiting times, it would be safe to say that ‘not getting instant responses is easily one of the greatest customer frustrations, and also a major cause of customer churn.

Implementing a chatbot along with other communication channels can help you to deliver instant assistance to the FAQs requested by customers.


Amtrak’s Julie is a good example of how to use a customer service chatbot to best effect. It promptly responds to the queries from a comprehensive knowledge base on travel information and policies from across the Amtrak system.

The bot has answered approximately 5,000,000 support queries in a year. In fact, Amtrak witnesses 25% of a significant increase in bookings and 30% more revenue with the help of Julie.

1. How Conversational AI can Automate Customer Service

2. Automated vs Live Chats: What will the Future of Customer Service Look Like?

3. Chatbots As Medical Assistants In COVID-19 Pandemic

4. Chatbot Vs. Intelligent Virtual Assistant — What’s the difference & Why Care?

  • Bots can be used as the first point of contact to reduce customer churn and make human handover for complex issues.
  • If your business receives repetitive queries, implementing chatbots can be a wise way to provide instant support without making customers wait.
  • Even when chatbots can’t solve a problem immediately, they can at least provide an instant response relevant to the customer’s query and create a good impression on your customer.

When you use a chatbot for customer service, you can address customer’s requests in real-time, making them more inclined towards the brand.

A chatbot on the website or a messaging app is able to provide a certain level of support on a round-the-clock basis.

  • Send the ticket to the right department or agent.
  • Push it to the top of the queue based on the level of urgency.
  • Help the customer schedule a chat/call during business hours to eliminate feelings of uncertainty.

Naturally, a better resolution speed is at the heart of the desire for customers when they expect businesses to be available all the time.

Providing quick response and fixing an issue in a first contact itself is one BIG differentiating factor when it comes to retaining customers.

This is one of the top reasons why chatbots are being deployed for delivering superior customer service round the clock.

The customer service chatbot can tap into the comprehensive resources and provide quick responses, any time, even when the support team is unavailable.

Being able to engage customers at their preferred time improves satisfaction and loyalty towards your brand.

  • Address simple queries instantly with customer support chatbots and reduce the number of support tickets.
  • Trust the chatbot template for customer support to allow agents to focus more on the critical aspects of customer service.
  • Live chat
  • Chatbots
  • Or a hybrid approach of using both

The right balance of both communication channels can help deliver better customer support.

When you offer hybrid support, you are easily able to strike an equilibrium between providing relaxation to the support team and offering qualified services to your leads.

It will be like embedding your bot in the first stage and putting human support backstage.

This is how businesses can automate the repetitive queries with bots and ensure the complex ones are seamlessly transferred to the human agent.

  • There has to be a seamless transition between the chatbot and human agents so that customers do not face any inconvenience.
  • It’s important to trust hybrid support to reduce the number of touchpoints for overall resolution.
  • When the bot is unable to resolve the query, it needs to be directed to the agent for an effective solution in the first contact itself.

There are times when a sudden hike in traffic is inevitable like the festive seasons or peak hours. For such times, how would you handle the rush with the same support infrastructure in place?

Obviously, you will encounter challenges such as adding more support experts, providing training, etc.

Adding chatbots to customer support can help you avoid all such issues and also give the scalability to handle conversations in real-time.

In addition, chatbots for customer service can also help you improve business productivity without any extra costs and resources.

  • Bots can engage in endless conversations irrespective of time and volume that brings business growth as well as customer satisfaction.

Thanks to bots, your business can save expenses that accrue on adding more support agents, providing customer service training, or maintaining a robust support infrastructure.

Deploying a customer service chatbot can help can handle numerous conversations at the same time and deal with an increased volume of customer requests while keeping the costs under check.

For that reason, you should plan to invest in artificial Intelligent for customer support to bring down the costs yet deliver a great chatbot customer experience.

How can AI bots help in reducing customer support costs?

  • You can estimate the peak time for your business and then deploy chatbots for managing the costs.
  • If your cost per chat is high, you can implement a customer support chatbot to handle conversations efficiently without extra investment.
  • You can train your customer service bots regularly with FAQs and help them understand the user intent better to provide a relevant response.

In fact, 265 billion customer support tickets and calls are made globally every year, resulting in a massive loss to the industry in customer service costs.

To avoid such losses, you need to think of boosting customer experience with your brand and resolve their issues in a timely manner.

Globe Telecom — a major provider of telecommunications services in the Philippines — is a good example of how to effectively use chatbots for customer service and achieve amazing results as well. The bot helped it increase employee productivity by 3.5 times and customer satisfaction by 22 percent as it resolved the simple queries in the first go and improved first contact resolution.

  • Customer support bots can be programmed with all the information to deliver error-free service, avoid complications and achieve a higher accuracy level.

However, for businesses, it is not always easy to get the customers to fill up feedback forms or answer questionnaires.

Such situations can be avoided by implementing chatbot services as then you will gain a better feedback loop and improve customer relationships while having better data on users.

Customer service chatbot templates can help make the process interactive, quick, and easy by helping you get real-time feedback at any stage of your customer’s journey, whether as at the end of the chat conversation or at the purchase of a product.

  • The bots-powered feedback can help you know the areas to improve in your products, services, or bot flow for better interaction.

In fact, support reps can become 3x times more productive in handling priority tasks when bots are there to seamlessly address the FAQs promptly.

Similarly, bots can answer queries round the clock and save agents precious time for other more important tasks.

  • Escalate issues to the right team — Some customer issues require expert assistance and bots can route them to the expert support agents and ensure better responses.

However, in the majority of cases, this outreach is neither addressed timely or even not entertained at all.

One reason may be that businesses are constrained for resources and they may not want additional manpower for social platforms.

Chatbots can overcome this problem through automated responses to users’ requests on social media.

Social bots can seamlessly carry conversations with users, with the purpose of assisting them.

They can also help in building stronger relationships with customers by delivering targeted content and anticipating user reactions.

Lufthansa Group has implemented a customer service bot to help users find and book cheap flights without ever leaving their iPhones.The bot is bilingual, speaking both English and German and is extremely easy to use. In order to boost customer satisfaction, the bot is made available on other channels such as airline apps, Whatsapp.

  • Many sectors like retail, travel, entertainment, and even health and finance can use social bots as assistants and deliver customers great services over social media.
  • Social bots can help you grow your social image by providing real-time customer support on a big public platform.

Listening to the menu is a time-consuming task and still not getting personalized responses is a sure-shot recipe for bad customer service.

In addition, some of the other common IVR inconveniences faced by the customers are calls routed to the wrong teams, hang up of calls, limited options offered, etc.

Chatbots for customer service can be a great way for businesses to let customers get relief from the frustrating IVR system.

The straightforward answers without having to wait or choose options will indeed improve user satisfaction.

  • The bot automatically routes the chats to the right team automatically for quick and effective resolution without making users wait.
  • You as a business save time and cost associated with transferring a customer between different departments.

It means customers are happy using the chatbot and seem habituated to it.

However, when you build your chatbot for customer service, one of the fundamental practices is to define the end goal of the bot and find out if those goals are met.

The Customer Satisfaction Score (CSAT ) or Net Promoter Score (NPS) are the key metrics to measure your customer service.

With the help of these KPIs, you will be able to know how far your customers are happy interacting with your bot. You can improve your bot flow based on the scores to improve the chatbot customer experience.

  • Based on your measurement scores, you should really check if the bot is helping or not, and then revisit the flow /design to make sure it is helping customers.
  • You should monitor the bot’s performance regularly to enhance customer satisfaction rates.

Similarly, AI-powered bots have also helped to reduce operational costs which result in greater levels of customer satisfaction. As things stand today, chatbots are set to have more advanced capabilities of Artificial Intelligence (AI) and Machine Learning (ML) to understand the context and sentiments of customer queries and ensure the response is similar to users’ language.

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