According to research conducted jointly by Google and Forrester, about 70% of online shoppers claim that they are more likely to buy products from businesses that offer the communication channels they prefer.1 As seen in Figure 1, clients transact more frequently on mobile devices than on computers as of 2022, and this trend is anticipated to continue over time.2
Therefore, mobile applications are important platforms for improving:
- Customer conversion
- And brand awareness.
The problem is that only a small percentage of companies can create apps that people want to download, and more than 70% of app users abandon apps within the first 90 days of downloading them.3 Mobile application bots can minimize this problem by offering efficient customer service and guidance. Therefore, in this article, we introduce everything managers need to know about mobile app chatbots.
What are mobile app chatbots?
Mobile application chatbots or mobile app chatbots are conversational AI tools that engage with customers on the custom mobile application interface of the company. They can understand and respond to the text or voice input of the users.
There are numerous use cases of mobile application chatbots such as:
- Answering frequently asked questions of clients.
- Automating customer service.
- Recommending products.
- Sending personal notifications.
- Lead generation.
- Providing information regarding how to invest
- Filing insurance claims and more.
Figure 2: A wealth management chatbot interacts with a user.
What are the benefits of mobile app chatbots?
We can categorize the benefits of mobile application chatbots within two buckets:
1. General benefits of having a chatbot
- 7/24 availability: Chatbots never get sick or tired. Thus they can work around the clock.
- Instant access: Chatbots scale your customer service since they can simultaneously engage with numerous clients.
- Multilingual service: Nowadays we live in a global world where people from different backgrounds live in the same location. Therefore, offering multilingual service becomes important for enhancing customer experience.
- Cost savings: Chatbots can automate customer service tasks by up to 90%. Thus, employees can focus on other tasks that require human intellect.
- Increase sales: Chatbots generate leads since while communicating with customers they reach valuable client data.
- Human agent takeover: A real person can take over the conversation if it is needed.
To learn about chatbot benefits in detail you can read our Top 14 Chatbots Benefits For Companies & Customers article.
2. Benefits of having a chatbot on a mobile app
- Increase conversion rates: Since having a mobile app bot improves customer satisfaction, your mobile platform will be rated better. Thus you can make potential customers download your app and increase conversion rates.
- Secure customer data: On chat platforms like WhatsApp or Facebook Messenger, businesses can create bots. When they do this, their customers’ data may be leaked owing to both their partners’ and their own cybersecurity flaws. You may increase the security of your customers’ data if you regularly test your mobile app and implement cybersecurity best practices, such as zero trust cybersecurity architecture. Thus, if you exert the necessary effort, building bots on mobile apps can be safer.
- Improve your omnichannel capabilities: Integrated customer service is demanded nowadays.
Which industries can benefit from mobile application bots?
The banking sector can heavily benefit from mobile application chatbots since:
- Data compliance regulations force banks to be cautious regarding cybersecurity.
- Banks can automate customer service tasks thanks to bots.
- Machine learning algorithms of AI chatbots help banks to deploy them for banking related tasks like determining interest rate of mortgage plans. Mortgage chatbots can collect personal information from users and interpret it as a financial expert (see video below).
Insurance industry is another sector that can benefit from deploying chatbots on mobile applications due to data protection regulations. Insurance chatbots can help underwriting and claims processing by helping customers to upload documents. Insurance chatbots also help users to find policy specific information so reduce operational expenses.
Thanks to chatbots, users can interact with e-commerce businesses with ease. E-commerce companies can inform customers concerning:
- New products
- Delivery information
Also, chatbots help e-commerce firms with lead generation and product recommendations.
How can firms have their own application chatbots?
There are 3 ways of having a mobile app chatbot.
- You can create your own from scratch: Such a strategy is optimal for the small proportion of companies that have high-talent staff, time, and financial capital to finish this challenging task
- You can modify an open source code: Another way of having a mobile app chatbot is by modifying the code of other software engineers. But you should take the licensing terms and conditions of the open-source code into account.
In this regard our following 3 articles can guide you:
- Conversational Commerce Platforms: Data-driven Benchmarking
- 50+ Chatbot Companies To Deploy Conversational AI
- Top 14 Open Source Chatbot Platforms: Build Your Custom Bot.
If you have further questions regarding mobile app chatbots do not hesitate to ask them:
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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