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3 Minute guide to understand “What is a Chatbot?”

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Sourabh Nagar
3 Minute guide to understand “What is a Chatbot?”

Customer Engagement is important for business growth. To build a good rapport with the customers and convert leads into sales it is essential to address the customer queries effectively in time. Chatbot Solution has been helping businesses engage actively with their customers 24*7 by addressing the customer queries using AI, paving the way for new business opportunities. Among the top Chatbot solutions that are leveraged by the companies include Watson, Vergic, Ada, Inbenta, Bold360, and a lot more, which are making customer engagement effective than ever. If you are new to this technology and are looking forward to getting a clear idea about it, here’s a quick 3 minute guide for you to understand the basics of Chatbot Solution.

What is Chatbot?

A Chatbot is a software program that leverages AI to simulate online conversations with the customers in a human-like manner mimicking real-life responses for active customer engagement for businesses. It employs Natural Language Processing (NLP) to address the requests/queries and deliver responses. 

Types of Chatbot

Chatbots with AI can be classified into three categories namely:

  • Menu-based Chatbots

These chatbots offer a menu to the customers where they have the choice to select the relevant option from it. These are the basic chatbots that require the user to get the desired solution based on the options they choose. They are ideal for handling basic repetitive queries such as FAQs, that do not deal with variables, requiring in-depth knowledge.

  • Keyboard-based Chatbots

Keyboard-based chatbots work on the indicative keywords to address the customer queries using specific keywords to derive particular response for the queries. They extract the required information based on these keywords and present them as the response.

  • Contextual Chatbots

Contextual chatbots deal with more complex queries that require in-depth knowledge about the subject. These queries are based on a certain context, where the conversation has to be analyzed and carried out in a natural human-like way. 

These chatbots leverage several AI-based technologies such as NLP, Machine Learning, Heuristics, Reinforcement Learning, etc. to be able to deliver better responses to the customers.

Why is Chatbot important for your business?

Chatbots help you save time, effort, cost, and resources that are put to provide pro-active assistance to the customers online. They not only help in strengthening the existing business ties but also opens new avenues for better business opportunities. 

Chatbot solutions effectively manage customer engagement at scale in a very cost-efficient manner, while serving the customers round the clock without any delay. This enriches the customer experience and helps the business grow.

Applications of Chatbots

Here are a few real-life examples of Chatbots that define its applications in day to day life:

  • Weather Bot
  • News Bot
  • Scheduling Bot
  • Smart Assistant Bot
  • Customer Support Bot
  • Technical Assistant Bot

Benefits of Chatbot Solution

Chatbot Solution helps businesses provide an enhanced user experience to its customers in several aspects. Here are a few ways in which Chatbot Solution benefits business organizations:

  • 24*7 Availability
  • Quick Response
  • Conversational communication
  • Cost Effective
  • Scalability
  • Accurate information
  • Customer Retention
  • Higher lead conversions 


Future of Chatbots

Businesses are looking ahead for more personalized chatbots that use advanced technology to deliver a more human-like experience, emphasizing on the detailed and natural responses which are highly contextual to the conversations. 

Chatbots are yet to be explored in depth, where they would be integrated with the day to day software and devices offering help to the intended audience in a more explicit way. 

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Sourabh Nagar
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