Chatbot – Concept, Working, Types, Tasks, Potential, Advantages & more

Know everything about Chatbot & find details like its workings, types, tasks, potential, benefits & more.

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About Charbot

A chatbot is an Artificial Intelligence Technology that interacts with humans in ‘natural language’. Chatbots are basically used to solve trivial matters that require minimal processing.

For instance, if you want an update on your delivery status, a chatbot would very easily be able to assist you with that.

It has made it very simple for companies by providing an already well-built chatbot that avoids the companies to build one themselves.

There are two kinds ‘Stateless’ and ‘Stateful’. A stateless chatbot approaches every conversation as if it’s a new one which will require you to explain your entire issue again.

On the other hand, a stateful chatbot is well-built which helps it to review and store the information from previous convos and append its replies accordingly.

How do Chatbots work?

Chatbots work on “AI” and AI needs very complex working for it to perform flawlessly.

For a chatbot, the most crucial aspect that we should consider is the Natural Language processing (usually the NLP).

For instance, it also allows interaction through speech will require the speech recognition function to understand the user’s issue.

Even via text, the it should be capable to understand multiple languages. Another aspect that we should take into consideration is whether it should be structured or unstructured.

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Types of Chatbots

A majority of people resort to the structured chatbot. A structured chatbot is very easy to build as compared to an unstructured chatbot because it requires less technical coding.

A structured chatbot will be able to assist the user with only simple or frequent issues.

This requires minimal coding as it is ‘structured’ to only respond to a specific amount of problems. This restricts users to asking only a certain type of thing.

If a user wishes to address a complex issue, it will connect the user to a real-time person or a call, whatever the user wishes to pursue.

Unstructured chatbots are not restricted to any certain amount or type of questions. These types of chatbots require very complex programming.

But they offer a wide range of interactions as they refrain from any kind of restrictions.

Although, it is but obvious it won’t be able to solve an issue that can only be solved by a person. But it still would help a user with widespread issues.

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Major Tasks to Execute

The two main tasks that a chatbot has to execute are –

Analyzing The User Request – This is the very first task it will perform; this basically includes identifying the use request and giving a relevant solution.

For instance, if a user requests to connect a representative to the company, it would both directly transfer the call via intercom and if that is not possible, it will provide the user with the correct details that will help them to connect the person they wanted to.

But if it fails to recognize the user request, it would fail to carry out either of the tasks.

Returning The Response With A Solution – This step is always after the identification of the request. Only if it identifies a request, will it be able to respond with a solution.

So, it goes without saying, failure of the first task will automatically leads to the failure of the second task. The response can be either –

• A predefined text
• Data stored in the system
• A text retrieved from a knowledge base

What can a Chatbot do?

It can be built to do a lot of things other than just answering simple questions. The purpose of a chatbot determines the kind of tasks it will be doing.

The purpose, however, depends on the companies wants and needs. When a company or an organization wants to build it, they have a specific set of tasks they need it to perform.

Taking all these requirements into consideration, it is built or appended accordingly.

Virtual assistants – Chatbots are mainly and widely used as virtual assistants. In simple words, a virtual customer service.

These are used to answer simple questions that do not require any special attention or looking into.

For example, when a user wants information about a specific product, their delivery status, or assistance with the procedure of something.

It will be able to assist the user very easily. These allow human customer service reps to focus on complex issues that require personal interaction.

Automating Manual Processes – Chatbots are very useful in automating manual processes.

This is like a one-time investment for a company as the bot will execute all processes automatically which will be quicker and more accurate as compared to manual processes.

This spares a huge amount of time for innovation.

Analyses Unstructured Data – It help analyze unstructured data which helps to understand user requests in a much-advanced manner and thus results in giving more accurate solutions and responses.

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Advantages of a Chatbot

Great For Gathering Customer Reviews – Chatbots are very useful when it comes to gathering customer insights.

The process of taking feedback or review from a user becomes very easy through it. A chatbot can simply ask a few questions or ask the user to rate the overall experience.

It also allows the user to type in a personalized review which is stored by it.

This can also allow the user to send in a problem or issue and it can help them resolve it as soon as possible.

Helps in Boosting Sales – Given the quick and timely response, it is more likely to draw in more customers.

When customer’s issues are solved instantly and precisely, they are more likely to continue business with that certain company.

Good publicity about the overall good experience will also draw in more customers.

24/7 availability – Availability is the most important aspect for a good customer-company rapport.

With advanced technology, it will not only respond quickly but also give accurate solutions to the user. This increases customer continuity.

Chatbots Improve Customer Satisfaction – Well obviously, who doesn’t like quick and accurate solutions to problems?

With chatbots, these experiences have become very easy and quick. A human customer service rep will assist or behave according to his mood, this won’t happen with a chatbot.

Well, mainly because it doesn’t have any emotions.

Disadvantages of a Chatbot

No emotions – Just like we mentioned before, the no emotions aspect can be a pro. But it also has its drawbacks.

A chatbot having no emotions would fail to understand the urgency or importance of an issue.

The issue might be very urgent and someone should attend to it at that very second but it won’t be able to understand the cruciality.

If the issue is not familiar, it would simply fail to give the user a solution. Because no matter how quick it is, nothing can beat a personal touch of the Customer Service Rep.

Difficult to build – It is very difficult to build. It requires limitless complex programming. Building a chatbot from scratch will require a company to invest a lot of time, effort, and manpower.

Built To Solve Simple Issues – A chatbot, however, an advance may fail to solve complex issues. By far, it will be able to solve frequently asked, simple questions very quickly.

But if the question asked by the user is complex, it might fail to recognize the request and hence, fail to provide a solution.

Need Maintenance – They requires regular maintenance. We should update it constantly to solve newer issues.

For this, the analysis of the chatbot’s conversation is very important which can be difficult and might need a lot of effort.

Conclusion – Chatbot

Overall, chatbots are becoming important in almost every company. Though it might not be able to resolve complex issues, it very efficiently solves questions and queries that it has been designed to solve.

This saves a lot of companies a huge amount of manpower. This also is beneficial to users and customers and the team attends to their queries and questions quickly.

Chatbots have been evolving constantly and will only result in the enhancement of company and customer experiences.

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