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With the rise of smartphone technology, many consumers are increasingly engaging with their favorite brands while on the go. In today's fast paced world when many consumers communicate with brands online, it's imperative that businesses respond quickly so as to retain business. Research studies suggest that 40% of consumers who complain to brands through social media expect to get feedback within an hour. These evolving consumer expectations have led the rise of chatbots as an important customer service tool.

Chatbots are AI (Artificial Intelligence) powered tools which mimic the conversation a customer might have with a customer service representative. And just like the customer service representative, chatbots stick to the script. They answer typical user questions which have been pre-programmed. They basically work as an optimizer of the overall customer service. Because of their high success rate, they are becoming increasingly popular as a reliable customer service tool. That said, it's important to note that the more advanced AI chatbots use what is known as, 'Natural Language Processing,” or NLP and can understand what is said (and not just the commands), and then tailor its actions and answers accordingly.

This newly enhanced AI technology can give businesses a serious competitive edge if implemented correctly. AI chatbots can help businesses identify and quickly resolve a variety of customer concerns in a cost effective way without wasting resources.

Currently, the customer service chatbots have somewhat limited capabilities, however, their usage is rapidly growing, as many businesses are looking for ways to automate low skill functions, provide 24/7 customer support and reduce labor requirements, These bots can actually let your business be much more proactive in addressing the potential customer queries by acting as an integrated part of the overall browsing or shopping experience. The best thing about chatbots is that they allow businesses to create a first class experience for their customers.

Apart from being excellent customer service tools, chatbots can also generate and even nurture new leads. They're good at targeting your audience and then adjusting to particular needs. While respecting privacy, the bots know exactly what the customer likes, wants and needs.

For instance, when a customer visits business cloud hosting provider Sun Spring Hosting’s Facebook page, visitors are greeted by an AI chatbot when messaging the provider. The chatbot answers customer service inquiries, makes product suggestions, and offers to subscribe visitors to a mailing list.

Bottomline, chatbots have the ability to drastically improve the overall quality of customer service you provide your clients, while reducing costs. The bots can help take your business to the next level, as long as they're implemented properly.

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