What are chatbots and what can they do?

Chatbots are currently the new black in customer communication and in making the digital customer journey more effective. But what exactly are chatbots, what do they require, and where should they be used?

Two aspects are essential in the use of chatbots: 1.) The customer should not realize that he is talking to a machine; 2.) The info must always turn out relevant and correct. (Image: Depositphotos)

Where does the development of chatbots (chatterbots, chatbots or bots for short), text-based dialogue systems, stand? First of all, it should be noted that the customer communicates more and more with messenger services. And he also expects this from the brands that interest him. Already since the beginning of 2015, more messages are sent on services like Facebook Messenger, WhatsApp, WeChat, or Kik than via Facebook, Twitter, and Instagram - with a strong upward trend. (Source: Business Insider)

This means a new expectation on the part of customers with regard to the speed and relevance of communication. Therein lies the danger - after social media - of companies being overwhelmed again, since communication must take place much more in real time than is already the case today.

This is difficult to achieve in terms of personnel and organization. One possible solution is the use of a friendly chatbot.

Human-Machine Communication

A chatbot is software that automates communication with humans over the internet. As virtual assistants, they answer questions asked in normal language in a personal and human way. They thus imitate a human interlocutor, but are a program, so there is pure human-machine interaction.

This is cheaper for the company and faster, easier to use and more accessible for the customer than most of today's communication channels.

Artificial Intelligence (AI)

Some of these programs use AI, some are simply based on preconceived scripts based on rules or decision trees. The now famous Taco Bot (https://www.tacobell.com/feed/tacobot) of the American fast food chain Taco Bell, where you can order your tacos and have them delivered to your office via a chatbot within the collaboration app Slack, is a good example of a rule-based, simple but effective and personal chatbot.

AI-based systems would be Amazon Alexa, Microsoft Cortana or Apple Siri, which - as well as IBM with its Watson software integration - support chatbot development with the provision of AI functions.

Here are a few examples that outline the range of uses for chatbots (MQ takes no responsibility for external links):

Two aspects are important in the use of chatbots: The customer should not realize that he is communicating with a machine (even if he knows it - as in the case of Siri or Alexa, or because the provider discloses it). And the answers the chatbot offers must be correct and relevant. This requires very complex and expensive content management.

Self-learning algorithms

Questions and answers must be available and constantly updated, which can also be partially ensured via self-learning algorithms.

At this point, the job description of a "content engineer" is already forming, who is not only responsible for the creation and provision of content, but also for how the content is automatically further developed and how its relevance and also accuracy are ensured in the process. Rules and regulations must also ensure that, for example, country-specific legal requirements are complied with or that the customer's privacy is protected.

The decision about the use of chatbots is based on different factors and is not trivial. It basically starts with the customer and asks who the target group is, what requirements the target group has of the brand, which messenger services are preferred in the target group and what additional brand loyalty the customer gets with the use of a chatbot. This results in clear requirements for the underlying technology, the expected communication behavior of the chatbot, the interfaces offered, and the content that must underlie the chatbot.

Marketing, IT and external service providers must work very closely together here so that a chatbot project does not fail in the requirements definition phase.

user experience

In the long term, more and more chatbots will become established in the areas of communication and services. Standardized development and integration technologies are increasingly available; the challenges are now less on the technical side, but rather in enabling the integration of existing data and creating the right user experience. The most successful chatbots are those to which the customer returns voluntarily and gladly and which create consistent added value for him.

This text was first published in the ISG ICT-Newsletter (DACH), a full-service provider in "all HR areas".

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