Customers in today's market seek timely responses, round-the-clock service, tailored interactions, proactive assistance, and self-help alternatives. Chatbots in customer service can assist businesses in meeting and surpassing these expectations. Businesses of all sizes can benefit from using chatbots due to the advantages they offer to customer service teams. Companies can leverage chatbot technology to increase the bandwidth of their support teams without needing to hire additional representatives.

In this guide, we'll tell you more about how AI-powered chatbots can be tailored for a great customer service experience. With practical tips, actionable insights, and more, you can get started with the right customer support chatbot strategy for your organization.

Let's dig right in!

What's an AI chatbot for customer support?

A customer support chatbot utilizes artificial intelligence (AI) and machine learning to address customer inquiries. AI chatbots serve as valuable customer service tools, offering a self-service option that enables customers to quickly find the information they need without relying on assistance from an agent.

In general, when a customer visits your website with a concern, the chatbot option provides them with the opportunity to directly communicate with your business by typing their request into a chat window. The experience would run smoothly from your website, even though it is managed by a third-party provider. From the perspective of a customer, a customer support AI chatbot platform for websites shares similarities with a live chat tool in helping them get their answers.

Chatbots are becoming increasingly popular, and one common application is for live customer service chat, in which customers can initiate communication with a chatbot to address routine service issues - while also having the choice to connect with a human agent for more complex problems. The AI chatbots utilize your existing resources, such as FAQs or knowledge base articles, to assist in addressing and resolving your customers' inquiries. The AI can identify and respond to various ways of asking the same question, and it can be trained to provide immediate answers using the desired voice and tone.

However, integrating a chatbot into your customer service team can be challenging. In this post, we will discuss the effective use of chatbots for customer service and provide some best practices to consider when implementing one on your website.

What are the benefits of using a chatbot for customer support?

Customer service representatives find chatbots beneficial as they help reduce the time spent responding to basic inquiries from customers over the phone. These basic requests occupy a significant portion of a customer service representative's day, and if chatbots handle those easy solutions, customers would be more satisfied by avoiding phone calls and customer service reps would have additional time for proactive customer support.

Another advantage of adopting a chatbot is that customers would receive quicker responses. In the realm of simple problems, it is difficult for humans to match the speed and efficiency of a computer's processors, which can process thousands of keywords per second. That is why bots can be a valuable addition to your knowledge base, FAQs, and community forums, enabling them to provide relevant resources based on customer comments.

Moreover, when chatbots are operating efficiently, businesses can achieve huge cost savings. Chatbots do not need compensation, allowing management to utilize bots to increase their team's coverage without having to hire additional representatives. Chatbots are considered an attractive and cost-effective solution for understaffed service teams. A customer support AI chatbot platform for websites enables small businesses to enhance their service and improve competition with larger companies that have more customer support resources.

Using AI chatbots has several noticeable benefits, mentioned below:

1. Chatbots provide instant resolutions

When a customer poses a query, chatbots such as Chatden have the ability to autonomously provide solutions by utilizing source material like knowledge base articles and frequently asked questions. It has the added feature of displaying relevant answers based on customer input, even before they finish typing.

2. Reduce support case volume

Chatbots have the potential to effectively decrease the number of customer service cases handled by representatives. Bots are a self-service tool, allowing customers to obtain answers without the need to connect with a human representative.

If the problem they have is relatively simple or common, the chatbot can direct them to your knowledge base or FAQ pages for the solution. This allows agents to dedicate their attention to more intricate and time-consuming cases.

3. Businesses can provide customer support around the clock

If your team is not available, a chatbot can assist by answering questions and providing links to resources. If the bot is unable to assist, it can provide your available hours to inform when a human will contact the customer.

Alternatively, if the bots receive numerous complex inquiries that consistently require human assistance, a specialized "out of office" bot can be developed to handle these situations when there is no one available to respond. By responding promptly, the customer will not be kept waiting, and a team member can reply directly once available.

4. Chatbots are continually learning

Customer service chatbots utilize AI technology to provide answers to inquiries. It is also used for learning and improving the quality of future support. If a chatbot knows how to respond to the question "How do I add another user?", it can also identify that "Where do I add another user?" carries the same meaning. A similar phrasing can be automatically added to its knowledge bank to ensure future questions are phrased consistently. Furthermore, if a customer rates a response given by a chatbot as unhelpful, it is less probable that the chatbot will use that answer again in a different conversation. 

The effectiveness of chatbots relies on their ability to resolve conversations, so it is important to monitor their responses. Please pay careful attention to how well each response answers your customers' questions and identify any answers that may need improvement.

5. Provide tailored responses for various customer types

Although customers may have the same question, their level of satisfaction with the same answer may vary. In the scenario where a customer on the Enterprise plan inquires about the inclusion of apps in the cost, but your bot mentions the Startup plan, the response provided is essentially unhelpful.

Chatden allows users to customize the bot's audience and responses based on factors such as customer spending, type of business, location, and other criteria. Thus, customers' problems can be resolved by providing answers that are specifically tailored to their needs.

6. The support team has a better understanding of each customer's context

Customers who encounter chatbots may be more inclined to seek information by asking questions, rather than silently browsing and remaining unidentified as potential leads. Upon the initial interaction with a customer, their information is logged into your system. This is a helpful step: if there is further contact, your agents can refer back to the conversation history to gain a better understanding of the customer's needs and ensure their initial inquiry was adequately addressed.

An in-depth understanding of each customer journey could potentially offer suggestions for enhancing your chatbot's responses. If you notice that conversations are only happening with your agents, it could indicate that there are questions that your bot is not answering but should be able to. This is a good opportunity to engage in training and incorporate those questions into your database.

7. Integrations with helpdesk and CRMs create a single source of truth

If a customer has a complex issue that needs live assistance, seamless integration between the chatbot and other customer information systems can enhance the customer experience by eliminating the need for the customer to repeat their issue. The representative can refer to the previous conversations with customer and continue from where the bot stopped.

Chatbots can integrate with your CRM system, enhancing customer interactions through personalized experiences. The system can research each customer's experience with your brand and utilize relevant information when needed. This is important because consumers typically expect your representatives to be familiar with their information before starting an interaction.

8. Customers will have a consistent user experience

Customer service chatbots can assist in creating a consistent, on-brand experience for your customers. You have complete control over the voice, tone, and language used in your bot's responses, so there are no limitations on what you can say.

The consistency of chatbots is further supported by their accuracy. With AI in control, conversations are effectively managed, support emails are accurately sorted, and human errors are minimized, ensuring that the correct information is always provided to customers.

9. A lot of tasks can be automated

In cases where a service representative cannot be transferred, chatbots can also perform follow-up functions. Meetings can be scheduled with customers and cases can be assigned to representatives for completion.

Certain bots can send follow-up emails to customers once their issues have been resolved. Task automation plays a key role in ensuring a consistent customer experience and facilitates effective tracking of outstanding customer requirements.

What are the ways in which businesses are using AI chatbots?

Staying informed of customer service trends is crucial for businesses to remain competitive in the marketplace. The software landscape, particularly for tools that depend on generative AI language models, is experiencing rapid evolution. Here are several emerging trends that customer service agents should be aware of:

More human-like touch

Advancements in natural language processing have enabled AI chatbots to generate responses that resemble human communication. As technology advances, chatbots will improve their ability to understand customer inquiries and offer faster and more effective responses, enhancing customer satisfaction and experiences.

Feedback collection with a proactive approach

AI chatbots are being programmed to play a more active role in gathering feedback by requesting customer feedback at appropriate intervals during customer interactions. This is assisting CX teams in collecting more practical information to enhance products and services.

Using analytics to showcase return on investment

AI chatbots continuously gather data. As a result of advanced analytics capabilities, this data is becoming more commonly utilized to showcase the return on investment (ROI) of investing in AI chatbot software. AI chatbots are capable of measuring customer satisfaction and customer engagement levels, which enables CX teams to demonstrate the software's impact on their customer base.

Enhanced employee experiences

Numerous studies indicate that a positive employee experience has a favorable effect on customer service. AI chatbots are used to improve internal employee processes, including automating repetitive tasks, providing instant access to information, facilitating internal communications, and assisting with task management to enhance productivity. By enhancing the experience of your employees, your customer-facing staff will subsequently deliver improved service to your customer base.

Enhanced software integrations

Integrating your AI chatbot with more of your SaaS tools allows for more efficient access and utilization of information across all platforms. This will enhance the effectiveness of your chatbot in providing customer service and ensure a seamless customer interaction experience.

How to select a chatbot that is right for you

The following sections take a look at the factors that you should keep in mind when selecting a chatbot software for your business.

Search for AI chatbots only

Some chatbots do not have AI capabilities or natural language processing abilities. It is possible to incorporate live chat or a search function into your website, but they cannot provide the same level of customer experience as an AI chatbot. Generative AI allows a chatbot to interpret a customer's purpose and emotion to deliver responses that are more similar to human ones.

In the process of choosing a customer service bot, it is important to conduct thorough research on the underlying technology and consider requesting a demo to gain firsthand experience of the user experiences it offers.

Easy visual chatbot builder

A customer support AI chatbot platform for websites offers a visual builder that enables users to create chatbots by using a drag-and-drop interface to arrange elements of customer interaction and create a flow of conversation in a digital workspace. The exchange may begin with a simple question about the loyalty rewards balance. The customer can then enter a response in a field that leads them to a page where they can check their account status. Interactions can also be created to clarify the customer's needs or to ask for feedback from customers.

The software provider trains the AI chatbot platform to understand variations in language and different ways that customers can ask a question, enabling interactions in different wording.

Pricing that only scales as your business scales

When searching for a chatbot platform for your business, it is common to come across free trials or free account versions. While this may allow for the utilization of a chatbot, these deals may not provide all the necessary features such as chat history, automated messages, and unlimited bots.

Consider the capabilities offered in the packages and select the one that will offer the highest value to your support team and business. Additionally, it is worth noting that 57% of businesses have reported significant returns on investment from chatbots.

Deep integration capability

While considering a chatbot technology to use for your business, one key aspect to consider is how easily it connects with your other software and apps. Native pre-built integrations, third-party connectivity through tools like Zapier, and APIs that allow for custom-built connectors should be a part of the software. Look for integration with popular messaging apps like Slack and Facebook Messenger, customer services software like Zendesk and HubSpot, and website plugins for WordPress, Shopify, and other hosting platforms.

Ways to improve support with an AI chatbot

After selecting the platform, it's important to keep these tips in mind to enhance user experiences with the customer support AI chatbot platform for websites.

Add personality

The most effective customer experiences with AI chatbot platforms are achieved through interactions that include elements of human conversation. Provide friendly greetings, express gratitude for using our website, and use a conversational tone to create a comfortable experience for customers. Giving your chatbot a defined "personality" can enhance customer satisfaction and align with your brand.

Expand integrations

A chatbot that is integrated with a knowledge base or help center provides significant value. However, software that is integrated with your customer service management, customer relationships management, or ticketing software can provide additional benefits to both your customers and the customer service team. The goal is to develop effective conversation flows and provide customers with the necessary resources to create optimal experiences.

Develop contingency plans and guidelines for the transition to human agents

It is important to avoid trapping a customer in a loop that does not provide them with the necessary information. The top AI chatbots incorporate fallback options that offer customers alternatives, either by guiding them to additional resources or connecting them with customer service representatives.

Continuously test and update

A customer support AI chatbot platform for websites provides responses solely based on the information provided. Incorporate your customer service team to evaluate the most effective approach in addressing customer inquiries and coordinating customer interactions.

Your customer service team is well-suited to test the chatbox and assist with its updates, enhancing its ability to provide optimal responses.

Monitor chatbot analytics

Continuously monitoring the performance of your chatbot in real-world scenarios is necessary, even if initial test results are positive and it seems to be functioning well. It is important to monitor the most frequently asked customer questions and assess whether the chatbot provides satisfactory responses.

Additionally, it is important to establish key performance indicators (KPI) to assess the performance of the chatbot, such as its rate of correct first-time responses and the frequency of escalations to agents. If the chatbot is not meeting its objectives or if its performance decreases, it is necessary to consider an update or adjustment.

Conduct customer surveys

One way to assess chatbot performance is by seeking feedback from customers. Customers should be encouraged to provide a rating or comment at the end of each interaction to gather valuable information for measuring customer satisfaction and identifying areas that may need improvement.

Chatbots for customer support - frequently asked questions

Some common questions about customer support chatbots are:

What is a chatbot service?

A chatbot service is a tool that offers services through pre-programmed chat messages. Chatbots can be created to provide customer services, assess customer satisfaction, or for sales and marketing purposes.

Chatbots are capable of automating customer support processes. When a customer contacts your organization, certain types of requests can be directed to an artificial intelligence chatbot instead of human support agents. This allows support agents to dedicate their attention to the tasks that require their unique skills and expertise.

How can AI chatbots be utilized for customer service?

Here are a few suggestions on how to utilize an AI chatbot for customer support and service purposes:

• Welcoming customers when they arrive on your website.
• Providing answers to commonly asked questions about our products, services, prices, packages, and more.
• Communicating with customers about the progress of their orders and providing them with tracking information.
• Offering assistance with troubleshooting and technical support for both hardware and software, as well as digital products and services.
• Making appointments and reservations with the business.
• Creating customized product suggestions by considering factors like customer preferences, purchase history, and browsing activity.
• Gathering customer feedback and conducting user research through surveys, polls, and feedback forms.

What are the benefits of using AI chatbots for customer service?

Modern consumers expect quick response time to their inquiries. When customers encounter a blockade, they typically seek out another business. One main advantage of AI customer service chatbots is their availability round the clock, to answer basic customer queries or escalate issues.

AI-powered chatbots can assist businesses with lead generation by automatically gathering users' contact information in real-time. The data collected by chatbots can serve as valuable learning material for both the chatbot and the company.

What is the difference between AI chatbots and rule-based chatbots?

Rule-based chatbots work by identifying keywords in a query and then searching for appropriate answers to respond. As a result, they will consistently respond to queries by using keywords they recognize and relying on predetermined responses. In contrast, machine-learning and AI-based chatbots utilize both human NLP and machine-learning techniques to continually acquire new methods of responding to queries.

What is conversational AI and how does it help customer service?

Conversational AI is a technology that allows computers or machines to comprehend, interpret, and respond to human language naturally and conversationally. It incorporates a range of techniques such as customer sentiment analysis and natural language processing (NLP), machine learning, and dialogue management to replicate human-like conversations.

Conversational AI has the potential to transform customer service by offering efficient and personalized support that can be scaled easily. It can assist businesses in providing exceptional customer experiences, lowering expenses, and enhancing customer loyalty.

How do you measure the ROI of using an AI chatbot for customer service?

The return on investment (ROI) of utilizing an AI-based chatbot for customer service can be determined by assessing the chatbot's performance and its impact on cost savings, customer satisfaction, and overall operational efficiency.

Cost savings

• Agent time: Determine the potential time savings for customer service agents through the use of AI chatbots to answer customer inquiries. To calculate the cost savings, multiply the number of saved hours by the agents' hourly wage.
• Automation of tasks: Assess the potential for task automation using a chatbot. Calculate the potential cost savings by factoring in the time and resources that would have been required to complete those tasks manually.

Customer satisfaction

• Resolution time: Determine the average duration of customer query resolution using a chatbot and compare it to the standard customer resolution time.
• Customer feedback: Establish automation to gather customer feedback immediately following chatbot interactions. The data can be used to assess customer satisfaction levels and compare it to previous benchmarked data.

Operational efficiency

• First-contact resolution: Monitor the rate of queries that your chatbot can handle autonomously instead of escalating to a human intervention.
• Volume handling: Assess the chatbot's capacity to handle large volumes of queries and compare it to the capacity of your human agents, as well as the time it would take them to do so.
• Conversion rates: Track the number of new leads that are produced and transformed from customer interactions with the chatbot and compare them to your previous rates.

Redefine your customer experience with AI customer service chatbots

Feeling ready to take the next step in supercharging your customer support with AI? Get your hands on Chatden, an AI chatbot that can be trained on your data and shaped the way you would want your customer conversations to be.