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Why do You Need a Chatbot in Customer Service?

Why do You Need a Chatbot in Customer Service?

Martyna Biskupska 27.06.2019
Martyna Biskupska

During one year, companies receive 265 billion phone calls, and answering them costs about 1,3 million dollars. According to an IBM report, chatbots allow to save 30% of these costs. Thus, there’s no surprise that companies invest in virtual assistants – tools that bring measurable benefits. Find out how chatbots can improve your communication with clients, shorten response time, increase customer service performance, and generate savings.

More and more companies invest in chatbots, which, by 2020, are supposed to conduct 85% of interactions with clients (IBM, 2018).  We can find large, mid-sized, and small companies amongst the current users of chatbots. There are no restrictions here. Virtual assistants deal with an excessive amount of messages – a problem many companies struggle with on a daily basis.

Given the fact that clients come across 1600 advertising messages a day, it’s getting much harder to grab their attention. Market competitiveness also poses a serious challenge. 67% of buyers choose a different brand, stating that the reason is poor customer service (New voice media, 2018).

1. Chatbot – an Effective Client Communication Channel

As the McKinsey report states, Poles spend 11h a day online, using different electronic devices. To be where customers are, companies place more and more emphasis on online customer service. But web presence is not enough to reach customers effectively. The way we use the Internet has significantly changed. The increasing number of smartphone users and the growing role of social media shape the expectations of clients and leave traditional communication methods far behind. 25% of emails go to spam, entailing losses from 50 thousand to even several millions of dollars a year. Given this, the major challenge is to reach customers, as every unopened message means wasted time and money

Dlaczego chatbot ma przewagę na emailem
*25% of emails go to spam, generating losses from 50 thousand to even several millions of dollars a year

The potential lies in communicators. The survey conducted by BIOSTAT shows that 90,04% of chatbot messages are opened, while only 42% of emails are read. Even though chatbots were created in 1966, only now do they function in the communicator environment. And communicators, by the end of 2021, will be used by 2,48 billion users from around the world (Statista, 2019).

Chatbots allow you to build closer relationships with clients. In places like Messenger, they give you the opportunity to hold dialogue-like conversations, enabling users to: ask questions, participate in contests, subscribe to specific content. Chatbots shorten the distance between your company and its clients, and, at the same time, they help you maintain high user engagement.

Let’s look at the Semilac pushletter, which we created as a new and innovative way to reach customers. It provides users with inspirational and advisory content, redirects them to the brand’s YouTube channel, and increases sales.

Chatbot newsletters in the form of push notifications not only help to increase the brand customer base. They’re also very clickable. In the case of Semilac, we had a 95-100% OR (open rate), and a 32%, 34%, and even 42% CTR (click-through rate), which is quite an achievement :).

You can find more information about the Semilac chatbot in Aleksandra’s post. Find out how the bot increased the engagement of brand fans and improved the sales of Semilac products.

Obsługa klienta w chatbocie Smilaca
*32%, 34%, or even 42% – CTR generated by the chatbot version of Semilac’s newsletter. Its OR remains between 95 and 100%

2. Chatbots Answer Clients More Quickly

We’ve all stayed on a line of a call center, listening to a ringback tone or walking from window to window, trying to find answers to our questions. It’s still happening. But thanks to our experience, we know that time is extremely valuable from the perspective of customer service. BIOSTAT indicates that the most important elements of customer service include the time it takes to respond and to solve the user’s problem (according to 77,8%of respondents).

Chatbots offer a wider range of possibilities in this area – they answer automatically, they’re available 24/7, and, on top of that, they’re able to respond to several thousands of questions at the same time. This is a revolution in client communication – from lengthy phone calls to fast and easy contact with companies. Without having to get out of home, you can use any kind of electronic device, at any time. 

Examples of Chatbots that Allowed to Save the Time of Clients and Companies:

  • The goal of the chatbot for Autodesk, a company that creates software for 3D design, was to answer FAQ. This brought the following results:

-> the response time was improved by 99%,

-> the time it took to solve customer problems was shortened from 38h to 5,4 minutes.

  • The chatbot of Żywiec Męskie Granie, an event bot designed by KODA Bots, was available on Messenger. It kept information about concerts, ticket availability, artist biographies, photo reports, and quizzes. The chatbot worked for three weeks and, during this time, it properly responded to over 94% of messages sent by users.


Obsługa klienta w chatbocie Męskiego Grania
*94% of user messages were properly answered by the Żywiec Męskie Granie event chatbot

3. Chatbots Save Your Company’s Money

It’s time to do some math! Multiply the number of unique questions by the time it takes one customer service employee to answer them. Multiply this by the number of employees and the number of days they work. Now, in the place of employees, put one chatbot. The answer might surprise you.

The savings chatbots can generate are supported by studies – e.g. Juniper Research states that chatbots can significantly improve customer service: you can save 0,5-0,7 of dollars per one client phone call.

  • Another example is the chatbot that belongs to Amtrak (transport industry). “Juli” serves as a guide in railway transportation. It helps clients find information about their bookings, stations, and route networks. During one year, it answers about 5 million questions. These are the benefits the chatbot brought:
    -> 1 million dollars saved on customer service per year,
    -> 800% return on investment.

  • The chatbot of Charter Communication (IT/Internet provision industry) was responsible for answering FAQ. Its goal was to relieve customer service employees of additional work. After the chatbot implementation, the company:

-> reduced the live chat volume by 83%,

-> had a 500% return on investment in only half a year.


Obsługa klienta w chatbocie Nibby
*535 of working hours were saved by the Nibby chatbot
Why is everybody talking about chatbots?
Because brands who use them in business are getting results
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4. Chatbots Entail New Opportunities For Employees

Chatbots help customer service assistants to perform repetitive tasks. It doesn’t mean that they can entirely replace human beings. Actually, virtual assistants give us a chance to deal with more demanding tasks and to realize our potential. This leads to a new role of moderators. 

We can see that chatbots found the ideal niche – communicators. Thanks to them, they can have fast and effective conversations with clients. But most of all, chatbots relieve the customer service department of repetitive tasks – they increase its performance. What’s more, you can also improve the user experience at your brand touchpoints, which, today, is one of the cornerstones of business growth.