Chatbot Development in 2023: Applications, Benefits, Trends.

In this issue:

Chatbot Overview: adoption across different industries
Top 5 chatbot predictions for 2021
The future of chatbots

Predictions suggest that 80% of businesses will use chatbots by 2020. If you still haven’t integrated a chatbot to your business operations, you may be falling behind the competition. However, you have an opportunity to develop one in 2020. But before hiring chatbot development companies you need to be aware of the most popular chatbot trends for 2020.

Below we have gathered industries that apply chatbots, benefits chatbots bring to business operations, and main trends to build a conversation interface for your business.

Let’s start.

Chatbot Overview: adoption across different industries

Many industries currently apply chatbots however, the effectiveness of user interfaces varies from one industry to another. To find out whether a chatbot will suit your particular industry, check out the top industries profiting from chatbots:

Real estate

Every person who is looking for a house or apartment to buy has unique requirements. Real estate chatbots help businesses to gather customers’ needs for more personalized recommendations and validate leads, which helps sales managers spend less time answering questions.

E-commerce

Apart from more personalized product recommendation chatbot usage, online retailers use chatbots to streamline the sales process. Now, chatbots help customers search for a product, place an order and pay for it, and even track the delivery of the order.

Travel

Travel agencies use chatbots to help travelers to find the best trip, book a hotel, and even buy tickets. Besides this, chatbots are handy for providing travelers with local insights, weather forecasts and booking tables, and restaurants.

Education

Artificial Intelligence-powered chatbots perform as intelligent tutoring systems, providing a personalized learning environment for students. Chatbots analyze a student’s response and how well they learn new material. Moreover, an AI chatbot can teach students by sending them lecture material in the form of messages, like in a chat.

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HR and recruiting

In this industry, chatbots can automate each stage of communicating with a candidate. Recruitment agency chatbots can perform as advisors, automate the search for candidates, evaluate their skill set, and give feedback on whether or not a candidate qualifies for a particular job.

Healthcare

Healthcare chatbots help patients to book appointments, refill prescriptions, and remind patients to take medications on time. Moreover, more advanced chatbots can monitor a patient’s health periodically, make diagnoses, and give advice on treatment plans.

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Finance

Adopted by banks, chatbots can provide the user with information on their current account balance, report on expenditures, calculate taxes, and make money transfers to other bank accounts.

Consider that there are different types of chatbots. Rule-based or scripted chatbots answer simple questions, and smart agents help the user solve particular tasks via voice commands.

Accenture chatbot statistics show that rule-based bots bring the most benefits for such industries as:

Healthcare (64%),
Telecommunications (59%)
Banking (50%)

At the same time, voice assistants are handy in:

Food (56%),
Banking (44%),
And retail (35%)

Chatbots are also handy in the following business areas:

Customer service (95%)
Sales and marketing (55%)
Order processing (48%)

Business benefits from using a chatbot

Many businesses that have adopted chatbots are already receiving advantages from this technology. But how exactly do chatbots improve business operations? Let’s find out.

Reduce customer support costs by 30%. A vast amount of chatbots are used for customer service by answering simple questions. In this way, by 2020, 85% of all customer interactions will be handled without a human agent, helping businesses to cut costs by $8 billion.
Increase income by 40%. Research shows that customers who interact with brands via social media networks spend 20-40% more than average customers. In this way, to receive the same benefits, you can integrate a chatbot into the social media accounts of your company.
Increase lead generation. Thanks to their proactive nature, chatbots can start communication with your clients, taking them through the sales funnel. Besides this, chatbots can event capture customer’s details, thus, generate more leads.
Increase user retention rate. As you may know, some chatbots are powered by Artificial Intelligence and machine learning. Thus, they can learn from each interaction and remember a client’s preferences. Since customers receive more personalized product recommendations, they become loyal to your brand.

Top 5 chatbot predictions for 2021

Now, let’s find out what the future holds for the chatbot industry.

1. Voice recognition chatbot technology

Voice recognition chatbots will become more widespread in 2020. Why? Because this year, Google and Amazon, recognized tech industry giants, continue driving the “smart speakers” market. For example, Amazon alone has sold 100 million devices with built-in voice assistant Alexa. Moreover, 110 million Americans use voice assistants at least once a month. This market trend shows us that voice-based chatbots, driven by tech industry leaders and voice-powered chatbot platforms, such as PullString, will become even more popular in 2020.

2. Smarter Bots

Rule-based chatbots no longer satisfy the needs of modern business, especially in terms of personal recommendations and customer engagement. Thus, it is expected that most companies that want to automate processes, will choose AI-based chatbots over scripted ones. As well as this, the high adoption of AI-based chatbots is also expected in mass media and live news. In this way, readers will no longer search for relevant news but instead receive personalized news recommendations.

[AI chatbot working logic]

3. Banking and insurance chatbots

Chatbots for the banking sphere allow delivering more personalized customer service. According to statistics, 43% of online banking users want to solve their issues via a chatbot.

A great example is Erica, a Bank of America chatbot that handles customer queries, anticipates customer needs by applying predictive analysis, and guides clients through complicated banking procedures.

[Erica, a Bank of America chatbot ]

As for the insurance sector, businesses will continue to adopt AI chatbots since they have proven their effectiveness. Chatbots help insurance companies to educate clients in various fields, including inspections, submissions, documentation claim adjustments, and update them on the status of their claims.

4. Data analysis

Chatbots are becoming, not only a new form of communication but also a sales channel. Moreover, AI chatbots are able to, not only provide users with more personalized and relevant results but also help in data mining and analytic activities. Thus, by analyzing customer data received from interaction with clients, businesses can get even more valuable insights.

5. Chatbot call centers

Chatbots are no longer only conversation interfaces. In the year 2020, chatbots are expected to be used for automated call centers. Call centers will use this technology to receive information about an issue, as well as personal details. Thus, based on the information received, chatbots can switch a customer to the most qualified human agent. In this way, chatbots reduce the waiting time and improve the quality of customer care.

The future of chatbots

[US chatbot market prediction]

In 2021, the chatbot market is expected to grow as over 80% of businesses will adopt chatbots. AI chatbots help businesses across different industries to automate sales, marketing, and customer care.

With the high adoption of voice assistants produced by Amazon and Google, in 2020, there will be even more which are voice-based. Furthermore, chatbots that participate in the sales funnel will become the new source of valuable customer information for online businesses. Next year, it is also expected that chatbots for banking and insurance companies will become even more popular.