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Top 14 Chatbot Benefits For Companies & Customers in 2024

Cem Dilmegani
Updated on Feb 5
5 min read
Top 14 Chatbot Benefits For Companies & Customers in 2024Top 14 Chatbot Benefits For Companies & Customers in 2024

The benefits of chatbots are not only limited to their 24/7 availability. We reviewed all surveys and reports on chatbot benefits, for companies and customers alike, from various chatbot vendors, agencies, and consultancies to build the most comprehensive list of chatbots’ benefits below.

If you are new to chatbots, feel free to read our article answering all your questions on chatbots.

Benefits to companies

1. Faster internal processes

Chatbots can be used to improve internal communication and processes within the company. Chatbots could be used in the onboarding process, for example, where the new employee asks the chatbot and gets an answer immediately, rather than having to contact various departments.

IBM reports that 72% of employees don’t really understand the company’s operational strategy. A chatbot could be useful in answering employee questions about task prioritization, for instance. Chatbots can also speed up and streamline internal communications for simple queries, such as asking for a WiFi password, whether the company offers paid vacation or continuity protocol in case a laptop crashes.

2. Cost savings

Companies’ need for growing the customer service department can be managed by rolling out increasingly capable bots that can handle more and more complex queries. 

The implementation of chatbots will incur a certain amount of initial investment costs. However, in the long run, this cost can be lower when compared to a customer service’s representative salary, training costs, and so on. .

Taken as a whole, chatbots’ cost saving potential make them an alluring addition to any enterprise. Research has found out that the cost savings from using chatbots in the banking industry was estimated to be at $209M in 2019, and will reach $7.3B globally by 2023.

Moreover, and except for the initial implementation outlay, security maintenance, performance updates, and bug fixes, chatbots do not usually incur anything more. 

3. Increased sales

Business leaders claim that sales chatbots have increased their companies’ sales by 67%, on average. There are a couple of reasons for that:

Personalized recommendations

One reason is that bots can be a frictionless platform for presenting users with algorithm-driven, personalized recommendations of a company’s new products and services. 

24/7 availability

Bots can also boost sales, because of their 24/7 availability and fast responses rate. Customers hate to wait, and long “on-hold times” might cause them to lose interest in the purchase. Chatbots’ instant response time ensures that the customer is constantly engaged, and interacted with, through their customer journey. 

Increased customer interaction

Bots provide another channel to reach out to your customers. Bots can be leveraged to increase customer engagement with timely tips and offers. Real-time customer communication (conversational commerce) thanks to chatbots helps customers to find what they are looking for and also evaluates different suggestions.

A case study indicates that a UK-based insurance company recorded 765 customer interactions (which is recorded as a 20% increase) within 6 weeks, following the introduction of their chatbot.

You can read our article Conversational Commerce Platforms: Data-driven Benchmarking if you are looking for the top conversational commerce platforms to initiate your conversational commerce journey.

4. Reaching new customers

B2B and B2Bot platforms such as WeChat  or Facebook Messenger are some of the most popular messaging apps. Being continuously active on these platforms helps companies reach new customers who may otherwise not want to reach out to the company with an email or call.

In a survey by Telus International, it was stated that 38 percent of millennials give feedback once a week via social media. It was noted that the number of feedback has increased in the last 12 months. Given that Facebook has more than 300K chatbots, chatbots seem to be a way to reach new customers.

5. Gaining a deeper understanding of customers

Your customers could rarely get the chance to directly talk to your business. Chatbots provide your business with detailed, actionable records of your customers’ greatest pain points, helping your company improve its products and services. The chance of selling can be  proportional to the data provided by the consumer. And chatbots can improve the rate of customer data.

Chatbots are optimal tools for organizations to learn customer expectations. In light of the data provided by the chatbot-customer interaction, customer-specific targets can be planned. Thanks to chatbots, the organization can use the feedback to improve on its shortcomings.

Benefits to customers

6. 24-hour availability

According to studies, over 50% of customers expect a business to be available 24/7. Waiting for the next available operator for minutes is not a solved problem yet, but chatbots are the closest candidates to ending this problem. Maintaining a 24/7 response system brings continuous communication between the seller and the customer.

Of course, this benefit is proportional to how well the bots are. Bots that are unable to serve simple customer queries fail to add value even if they are 24/7 available. The main issue at this point is how well the chatbots can understand and solve customer problems. Finally, highlighting 24/7 availability can create backlash when bots are down due to security issues or maintenance.

7. Scalability

An operator can concentrate on one customer at a time and answer one question. However, a chatbot can answer thousands of questions simultaneously. Thanks to the speed of the cloud, internet, and advanced software mechanisms, the scalability of chatbots allows them to address numerous inquiries with minimal hassle.

8. Consistent answers

Talking to different customer service representatives of even the same  entity could result in discrepancies and inconsistencies in answers. That could have many reasons. The agent the customer talks to might be new at their job and might not have had the best on-boarding session. Or they could just be having a tough day at work and cannot give all their attention to the customer, thus providing a different answer than the one the customer was expecting.

The advantage of chatbots is that they function on pre-determined frameworks and leverage their answers from a single source of truth: the command catalog. This minimizes the possibility of inconsistency in answers and fomentation of confusion.

9. Recorded answers

Most chatbots have the ability of recording the conversation and providing the customer with a copy of the chat’s transcript, for further use. The chat could also get archived, and the user could be issued a support ticket for it. So if they were eventually transferred to a live agent, through the support ticket, the customer care representative would immediately bring up the customer’s chat history.

10. Multilingual

One of the advantages of chatbots is that they can be programmed to carry out conversation in multiple language. This is particularly handy for global brands, operating in different markets.  The way chatbots exhibit their multilingualism is that could either ask the user, at the beginning of the conversation, their preferred language. Or depending on where in the world the user is visiting the company’s website from, the chatbot would automatically switch to that region’s language.

How to implement multi language chatbots
Source: Botsify

11. Endless patience

While customer reps and customers sometimes lose their patience, bots do not. The impatience of the representative and the consumer during a conversation is one of the human-related failures. Chatbots can show the patience that no human can provide. At this point, a human-sourced consumer service problem can be resolved directly.

12. Convenient for introverts

Not everyone relishes constant human interactions. Chatbots give introverted users the possibility to have their issues addressed and their questions answered without necessarily talking with a live agent.

13. Programmability

Since chatbots function on pre-determined codes, they can be programmed to carry out various tasks. Chatbots can arrange meetings, provide advanced search functionality, answer specific questions, and more. As long as their command catalog is being continuously updated by programmers, their programmability means their multi-functionality.

14. Personalization

The conversational AI capabilities of chatbots mean they can store and leverage your interaction history with them to provide more personalized interaction. In customer service, for instance, they could remember the customer’s name and their ticket number. This means the chatbots will be able to instantly draw up the background information of the user to resolve their issues quicker.

A chatbot can access the history of your interactions with the company to deliver a personalized experience. Given the relative immaturity of chatbots, this is not a focus area for most companies now but will be an important part of future chatbots. Feel free to read our research for more on personalizing your company’s website or the leading vendors in personalization.

For more on chatbots

If you are interested in learning more about chatbots, read:

And if you believe your business would benefit from adopting conversational AI technology, we have data driven lists of chatbot platforms and voice bot platforms.

And we will help you choose the best conversational AI platform that matches with your specific business needs:

Find the Right Vendors

Featured image source:

Drift

Access Cem's 2 decades of B2B tech experience as a tech consultant, enterprise leader, startup entrepreneur & industry analyst. Leverage insights informing top Fortune 500 every month.
Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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10 Comments
Denis NK
May 10, 2022 at 10:35

Agree!!! They’re always there when you need them, and they never tire of listening to your problems and responding quickly to any question that comes their way. Plus, they don’t get tired or frustrated—they’ll keep answering until the problem is solved!

Bardia Eshghi
Aug 18, 2022 at 15:17

Hello, Denis! Thank you for your feedback. While we agree with you on the benefits of chatbots, and have written extensively about them, we shouldn’t overlook their shortcomings as well. We have an entire article that discusses 9 chatbot failures, that we believe are significant, here: https://research.aimultiple.com/chatbot-fail/

Dean Jonson
Sep 07, 2021 at 10:35

Well Published!
There are many new benefits that I came to know here.
Why have you not mentioned any chatbots like botpenguin so that anybody can avail of all these benefits directly on a single platform.

Bardia Eshghi
Dec 09, 2022 at 13:24

Hi, Dean. This article discusses chatbot benefits; it doesn’t name chatbots. That’s a different topic. Regardless, if you want your product featured, sign up at grow@aimultiple.com. We’d be happy to help you.

Sayed
Feb 28, 2021 at 17:33

Very informative.

Cem Dilmegani
Feb 28, 2021 at 20:05

Thanks but we can’t publish vendor articles in comments.

Bryan Dean
Jan 04, 2021 at 10:21

For the very first time, I read your blog and loved it. Your way of delivering content is amazing and appreciable.

Youssef
Jun 30, 2020 at 12:25

Chatbots are definitely beneficial in the long run. They are becoming something that all businesses need to adapt and do. Have you guys heard of Facebook Messenger Chatbots? Its something that is gaining a lot of traction very fast because big businesses are adapting to it and applying chatbots to their facebook pages.

Cem Dilmegani
Jul 20, 2020 at 20:30

Thanks! Sure, FB bots have been around for a while, we wrote about quite a few of them in this article: https://research.aimultiple.com/chatbot-success/

Cem Dilmegani
Jul 02, 2020 at 06:00

Thanks! Apologies for removing the company link, we don’t include links in comments unless they are absolutely necessary. Or else we get more comments than we can deal with.

Rahul Panicker
Sep 04, 2019 at 16:47

I do believe that the AI-driven technology Chatbots is becoming more and more meaningful to brands and even individuals. A unique way to engage with brands and get your questions answered without getting on long wait calls. I would like to introduce Engati.com a chatbot platform here. It allows you to build, manage, integrate, train, analyze and publish your personalized bot in a matter of minutes. It presently supports 12 major messaging platforms including Website, Facebook Messenger, Whatsapp, Telegram, Line, Skype and more with a focus on customer engagement, conversational commerce, and customer service and fulfillment.

Anastasiia
Mar 20, 2019 at 11:48

Good post. I see they all can be divided into two types: cost decrease and profits increasing, don’t you think? Check the links in case of interest https://chatbots.studio/2019/02/27/the-top-benefits-of-using-chatbots-for-business/

AIMultiple
Mar 27, 2019 at 13:15

We stick to MECE classifications as much as possible. Cost decrease is another way to increase profits so that classification would not be mutually exclusive. Happy to discuss if we can help, you can reach me at info at aimultiple.com

Andres Mujica
Mar 19, 2019 at 14:40

Reading the two previous comments I would say that the article needs to reflect a new type of AI chatbot, the AI Comments Bot… Bots which extract pieces of blog posts on the internet, apply some kind of NLP and appear to be a real comment… all of these just for trying to drive traffic to their websites…

AIMultiple
Mar 19, 2019 at 19:56

It is so meta to have bots comment on a piece of bot use cases so I think they should stay as comments 🙂

Dino Violante
Oct 10, 2018 at 23:57

Of the things that you said, what got me was the idea that chatbots will never lose patience and will constantly offer assistance to a client as long as they are needed. If that is the case, then I think we need that for the business since we are focused mainly on interactions and we sometimes provide training. If we aim for 100% success, we need to utilize the abilities of someone, or something, that does not lose patience.

Amethyst Boheur
Oct 10, 2018 at 23:54

It got me when you said that one benefit of having an AI is the idea that they can provide an answer or a record to the person at a moment’s notice. Since the business mainly focuses on handling financial records of people, I think it is a good idea to have an AI to handle that. After all, pulling up a single record from a vast ocean of records is really hard, especially if done manually. We need help.

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