Businesses around the world want to keep their operational expenditure as low as possible so that the revenue can be maximized by them. Maintaining low operating costs can also be helpful in offering low cost to the customer so that voluminous sales can be achieved. In recent years, there has been an inclination by businesses towards adopting technologies that can help in cutting costs for them, and one of them is the chatbots. Chatbots have been used by many businesses successfully, even famous blogs like HuffPost and TechCrunch re utilizing them so there is more interest for them in the market.
However, in certain spheres, there are inhibitions on using these bots as there is not much clarity regarding them. In the following sections, we take a look at the pros and cons of chatbots so that it can be helpful for businesses to take a call regarding their usage in an application.
Advantages of using chatbots
- Lower overhead costs
Deploying people for business chats can be costly as well as tedious because a supervisor will also be needed to monitor a large number of employees. In comparison, there is no need to monitor the conversations by chatbots as everything is completely automated. They can get in touch with customers and solve their queries accordingly without any external help. The best part of employing chatbots is that they can deal with multiple customers at a time, and that can significantly help in improving the conversion rate so that a business can generate more profits.
- Always available
These days, most businesses are global and hence operate 24X7 as that has become the new normal. But along with this, there is also a need for extra manpower to cater to customers, and that can be quite expensive. Chatbots do not need rest and can be deputed for the same at all times. Additionally, there will be no need to leave or any other disruption by them. Hence, they will always be available for the customers. The consumer traffic can also be studied effectively by using chatbots as that can provide a fair idea of the sales.
- They can learn and update
Most chatbots that are available today function on Artificial Intelligence (AI). These AI-based bots keep on updating the responses automatically that they receive through their interactions with customers. They gauge customer interactions and create updates for themselves. Hence, they can help in providing enhanced customer experience as they can learn to be polite while at the same time being professional. Moreover, they will not get tired even after significant work hours, and the same output can be received from them at all times.
- Manage multiple clients at once
One of the most challenging issues for a business is to manage multiple clients at the same time because one operator can only cater to one customer at a time. It effectively means that if there are more customers compared to chat operators, they will be held in a queue while a chat operator gets free. The waiting time in such a case will go up, and at times, that can be quite frustrating for customers. Businesses may even lose revenue due to the problem. With chatbots in place, multiple clients can be served simultaneously without any hindrance. Customers can also feel good about it as they will no longer have to wait for their turn and can get solutions relatively faster.
Disadvantages of using chatbots
- No emotions
One of the biggest constraints of chatbots is that they don’t have emotions. At times, this lack of emotion can be quite a disadvantage because they may not exactly know how to address a situation in which a customer may need more emotional support. It can inadvertently lead to conversation failure, and a customer may not be properly attended. Comparatively, AI-powered chatbots can be a bit better as they can learn from their experience and show empathy after a few similar experiences.
- Installations are complex and costly.
Installing a chatbot can be costly due to its complex nature. The installation cost is also quite substantial because they have to be custom-made for each application. Moreover, they need maintenance and up-gradation at regular intervals for proper functioning, and that can again mean some upfront investment.
- They do not have a good memory
Chatbots may not be able to memorize full conversations. It can be frustrating for customers as repetition for a single task may have to be made by them. Therefore, while designing them, the need is to create a chatbot that can understand and respond with clarity.
From the discussion, it is clear that chatbots have their own advantages and disadvantages. However, some businesses can benefit through them, while for others, they may not be as effective. In recent times, AI-powered chatbots have shown a good response as they can upgrade themselves without much help.