Source: Drift’s 2018 State of Chatbots Report

Chatbots have become the buzzword du jour but brands with successful chatbots are rare. We are more likely to find pages full of chatbot failure stories. Here we outline the successful areas of chatbot application.

Starting from the use cases mentioned by potential users above on Drift’s 2018 State of Chatbots Report, we methodically analyzed potential areas of chatbot applications.

First of all, we are talking about chatbots in a platform-agnostic manner. Whether they are on your website, Facebook Messenger, email on some other platform, chatbots are essentially conversational interfaces. We can divide up use cases for conversational interfaces into two categories: reactive and proactive.

Reactive

The first priority of any brand is to satisfy the customers that reach out them. Customers reaching your page, app or website have specific jobs to be done. Identifying this enables you to offer customers a personalized offering through a customized layout, offers on display, messages. The chat box is another medium for personalization allowing you to interact in a more fluid way. For example if you identify with 40% confidence that your customer had a problem with your product, it may not be wise to change your UX to address this issue. But a chat bubble asking if the customer is having any issues with your product is helpful and non-intrusive. Major use cases in this category are:

1- Customer Support

Your customer may be browsing in a fast manner but not completing any actions. Or her online behavior may not fit patterns you observe with other customers. These are good clues that the customer may need support which can be offered by your chatbot

2- Suggest products

Search results, personalized merchandising, recommendations can help your customer find specific products. However, when your customers online activity indicates a willingness to buy however customer is not buying, it may be a good time to probe what customer is exactly looking for. A conversational interface allows you to ask probing questions and understand your customers’ intent better.

3- Offer discounts

Your customer may be looking for a better price because she believes she qualifies for a discount. Understanding if she falls into one of your segments qualifying for a discount and offering that discount immediately can reduce friction in buying.

4- Prevent churn

Churn prediction is one of the most important use cases for subscription based industries. Understanding the reasons for churn and making churn reducing offers are a good fit for conversational interfaces

Chatbots customized to serve specific industries

Some products are more prone to be converted into conversational interfaces while others aren’t. For example, text is not a good interface for displaying large amounts of data. However, if you offer these services, they can be completed in a conversational interface:

Automotive

5- Qualifying leads: A significant portion of leads to car dealers come from online channels. Therefore conversion optimization is crucial for automotive companies. As a result, automotive companies are using chatbots like Kia’s Kian which can answer customers’ complex questions and dramatically increase conversions.

e-Commerce

Chatbots can add a new layer of interactivity to e-commerce, allowing customers to interact beyond menus and buttons. Major use cases are:

  • 6- Set price alerts: Bots that give price alerts notify when there is a change by observing the change of prices on different websites. Settings can be made according to the person and give alarm in desired situations.
  • 7- Order physical goods like clothes with conversational commerce unlock more options
  • 8- Buy gifts: Similar patterns in the users’ behavior can be analyzed and the product they are looking for can be recommended by chatbots. this facilitates the search for gifts.
  • 9- Reserve services: Services such as personal care of dining outside can be reserved in advance for an improved customer experience that eliminates waiting.
  • 10- Track orders: Order tracking, which is one of the most common features of e-commerce platforms, can be done quickly via chatbots. Tars provides a chatbot solution for payment and order tracking by integrating on e-commerce websites.

 Travel:

All the way from booking travel to solving travel-related problems, chatbots have the potential to help. New ventures like Instalocate are already making money by solving people’s travel-related problems.

11- Vacation planning: While most parts of travel bookings are already self-service, it is time-consuming to plan a vacation. Travelers need to discover the sights and experiences they would be interested in, plan an itinerary, pick hotels to stay in based on numerous criteria from kid-friendliness to location. While these tasks are frustrating for travelers, clever chatbots can make them much more pleasant experiences.

12- Reservations: Text-based reservation systems can be easier to use and can complement your online reservation systems. Mariott International’s chatbot is already a growing channel for reservations.

13- Queries & complaints: In the long run, it is not good for business to make complaints more difficult to make. It frustrates customers and deteriorates a company’s reputation. Chatbots can service most queries and complaints fast, improving the satisfaction of your most dissatisfied customers.

Finance

Some examples include Capital One’s Eno & Bank of America’s Erica, Well Fargo’s Facebook Messenger bot.

14- Information service: Most banks chatbots are capable of informing users about their balances, recent transactions, credit card payment dates, limits and so on.

15- Investment management: Robo-advisors are getting smarter everyday and will soon serve as the first level of advisor for most non-affluent customers.

16- Credit applications: Just as robo-advisor chatbots are taking over investment advisors, chatbots are also capable of collecting necessary data for credit decisions

17- Money transfer: Chatbots can easily handle money transfers via SMS, Facebook messenger or other popular chat platforms. Western Union has a money transfer bot that enables money transfer requests through Facebook Messenger. 

18- Bill payments: BillHero is an example of a bank-agnostic mobile application and it brings bill-paying capabilities via chatbots on Facebook Messenger. 

Healthcare

19- Handling healthcare & insurance coverage related inquiries: Applications such as HealthJoy, HealthTap and Your.MD help customers navigate the complex healthcare landscape in the US.

20- Diagnosis: MedWhat and Ada Health are AI-powered chatbots that can serve as a medical assistant by gathering information via conversation with the patients. It seems chatbots are on the way of becoming the first contact point on diagnostic healthcare. After the SARS CoV-2 outbreak, people have become more aware of the dangers of infection. Diagnostic bots, like telemedicine, facilitate remote diagnostics, reducing potential infections.

21- Therapy: Since therapy is almost completely text-based, it is a great area for chatbots to work in. Woebot is one of the leading chatbots, providing cognitive-behavioral therapy in the treatment of depression.

Hospitality

22- Reservations & handling menu related questions: Chatobook aims to become OpenTable of chatbots. Beyond reservations, it can share menus and promotions, collecting feedback.

Insurance

23- Agent inquiry handling: Allstate developed Allstate Business Insurance expert (ABIe) to handle questions from 12K agents. Agents inquire ABIe about policy details sales quotes.

24-  Customer inqury handling: Allstate’s Allstate Business Insurance expert (ABIe) was expanded to serve end users as well.

Media

News is one of the few fields where speed is as important as quality. And while bots certainly outmatch us in speed, they are also catching up to us in quality. News organizations in the US and China are already using chatbots to prepare lightning-fast news

25- News delivery: For example, chatbots can be built to deliver only summaries of news and sharing details as users ask about them. This can create an engaging news experience for busy individuals. CNN Facebook bot and NBC Politics both are example chatbots in news delivery and daily news summarization.

26- Run surveys to collect public opinion

Real estate

27- Lead qualification: Qualifying leads take significant time in B2C businesses that rely on personal contact. Chatbots such as Apartment Ocean greet potential clients and understand their level of interest, helping human agents prioritize who they will serve. Roof.AI is a chatbot platform that helps to create communication between real estate businesses and their customers via social media. It provides connecting, shortlisting and scheduling by using an AI-powered chatbot.

Other products

  • Information services:
    • 28- Provide simple information services like weather
    • 29- Give context-dependent advice on topics like what to wear, makeup
  • Productivity:
    • 30- Schedule meetings

Proactive

Proactive notifications allow your chatbot to interact with customers at critical decision points in their customer journey to increase customer satisfaction, loyalty and engagement. Most of the ideas here can be replicated by brands’ apps with notifications as well. However, bots allow companies to go one step beyond notifications and have a conversation with the customer.

  • 31- Product related reminders: From hospitals to SAAS companies, all products generate reminders. Chatbots gives you a new channel to reach your customers at the right time.
  • 32- Feature notifications: Notifying customers of new features or UX changes your customer would be interested in. Especially if you have a customer-driven feature development queue, this allows die-hard fans of certain features to immediately learn about them.
  • 33- Updates: Depending on your industry, your customers may be looking at you as a source of news, sharing personalized news is a strong addition to your product portfolio. While your daily or weekly newsletter may be comprehensive it is definitely not timely. Chatbot reminders can alert users in a more timely manner.
  • 34- Billing notifications: Helping resolve billing issues could be critical to your cash flow.
  • 35- Activation offers: Some of your customers will leave and never return. Reaching out to them with enticing offers is one of the best tools to boost revenues

Customers do not have to be the only ones talking to your bots. Many companies use bots to understand their employees better. For example, employee satisfaction surveys delivered on collaboration platforms make survey filling much less painful.

If you still want to see more chatbot applications, We also have a guide for chatbot use cases categorized according to business functions.

Enabling these use cases require a chatbot that your users love and follow. To achieve that you can explore our suggestions for building your chatbot.

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5 comments

  1. Love these use cases of chatbots in industries and businesses! I would like to add more. Hope your audience will find it useful and interesting:

    Real estate. The AI assistant was built for simplification property search without additional emailing, calls, or visiting buro. In a few clicks, the client gets the latest offers and books appointments. Take a look at https://chatbots.studio/ai-chatbot-for-real-estate-industry/

    Insurance. Chatbots for insurance are the tool for automation administrative tasks and customer journeys. Chatbot acts like live agent and holds all processes from the start and up to the accident where a client needs quick help. Take a look at https://chatbots.studio/chatbot-for-insurance-services-company/

    Beauty. Chatbots in this business are widely-used. But only some of them are really useful and make interesting engagement like Sephora, Belle or Yves Rocher. The last one is created not only for selling but also for diagnostics skin and hair. Take a look at the example of successful chatbot in beauty and cosmetology https://chatbots.studio/chatbot-for-online-diagnostics-and-sales-in-messenger/

  2. A very interesting article that coincides with our experiences at inteliwise.com. Every day we introduce similar solutions for clients from various industries. Thanks to the use of natural language processing technology (NLP), we have significantly improved the effectiveness of AI-Chatbot InteliWISE. The client, using his natural everyday language, asks a question, and the Virtual Advisor immediately gives a ready solution to his problem. We describe some of our examples in InteliWISE, from around the world, at InteliWISE.com

    1. Hi there! You guys left a comment that begins almost exactly like this at http://18.223.143.42/top-chatbot-success/. Looks like bots are writing comments. I would expect your bot to be more creative or at least to have filters such that it did not leave the same comments via different users on the same website.

  3. Hi Cem,
    You have listed some interesting use cases of chatbot.Loved it!
    I like to add up a few more for your readers.
    https://www.ideas2it.com/blog/50-chatbot-use-cases/

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