By Ina|2019-04-01T16:05:49+02:00March 21st, 2017|Categories: Automation, Chatbots & AI|Tags: AI, artificial intelligence, automated customer communication, Automation, Bot, bots, chatbot, Chatbots, Customized Chatbots, Facebook Messenger, how do chatbots work, Instant Messaging, machine learning, onlim, rules, what are chatbots|Comments Off on How Do Chatbots Work?


Improve loyalty: By providing a responsive, efficient experience for customers, employees and partners, a chatbot will improve satisfaction and loyalty. Whether your chatbot answers questions about employees’ corporate benefits or provides answers to technical support questions, users can come away with a strengthened connection to your organization.
A chatbot is an automated program that interacts with customers like a human would and cost little to nothing to engage with. Chatbots attend to customers at all times of the day and week and are not limited by time or a physical location. This makes its implementation appealing to a lot of businesses that may not have the man-power or financial resources to keep employees working around the clock.
There are NLP services and applications programming interfaces that are used to build the chatbots and make it possible for all type of businesses, small. Medium and large scale. The main point here is that Smart Bots have the potential to help increase your customer base by improving the customer support services and as a result boosts the sales as well as profits. They are an opportunity for many small and mid-sized companies to reach a huge customer base.

Chatbots succeed when a clear understanding of user intent drives development of both the chatbot logic and the end-user interaction. As part of your scoping process, define the intentions of potential users. What goals will they express in their input? For example, will users want to buy an airline ticket, figure out whether a medical procedure is covered by their insurance plan or determine whether they need to bring their computer in for repair? 
An AI-powered chatbot is a smarter version of a chatbot (a machine that has the ability to communicate with humans via text or audio). It uses natural language processing (NLP) and machine learning (ML) to get a better understanding of the intent of humans it interacts with. Also, its purpose is to provide a natural, as near human-level communication as possible.
Kik is one of the most popular chat apps among teens with 275M MAUs and 40% of those are in the 13–24 year old demographic. In April, Kik launched its own bot store with 16 launch partners including Sephora, H&M, Vine, the Weather Channel, and Funny or Die. Using Kik’s bots currently feel like using the internet in 1994, very rough around the edges and limited functionality / usefulness. However, we’ll see how their API and bots progress over time, Kik’s popularity among an attractive demographic might convince some brands to invest in the platform.
Chatbots are a great way to answer customer questions. According to a case study, Amtrak uses chatbots to answer roughly 5,000,000 questions a year. Not only are the questions answered promptly, but Amtrak saved $1,000,000 in customer service expenses in the year the study was conducted. It also experienced a 25 percent increase in travel bookings.
“It’s hard to balance that urge to just dogpile the latest thing when you’re feeling like there’s a land grab or gold rush about to happen all around you and that you might get left behind. But in the end quality wins out. Everyone will be better off if there’s laser focus on building great bot products that are meaningfully differentiated.” — Ryan Block, Cofounder of Begin.com
Like most of the Applications, the Chatbot is also connected to the Database. The knowledge base or the database of information is used to feed the chatbot with the information needed to give a suitable response to the user. Data of user’s activities and whether or not your chatbot was able to match their questions, is captured in the data store. NLP translates human language into information with a combination of patterns and text that can be mapped in the real time to find applicable responses.
One of the first stepping stones to this future are AI-powered messaging solutions, or conversational bots. A conversational bot is a computer program that works automatically and is skilled in communicating through various digital media—including intelligent virtual agents, organizations' apps, organizations' websites, social platforms and messenger platforms. Users can interact with such bots, using voice or text, to access information, complete tasks or execute transactions. 
To be more specific, understand why the client wants to build a chatbot and what the customer wants their chatbot to do. Finding answers to this query will guide the designer to create conversations aimed at meeting end goals. When the designer knows why the chatbot is being built, they are better placed to design the conversation with the chatbot.
There was a time when even some of the most prominent minds believed that a machine could not be as intelligent as humans but in 1991, the start of the Loebner Prize competitions began to prove otherwise. The competition awards the best performing chatbot that convinces the judges that it is some form of intelligence. But despite the tremendous development of chatbots and their ability to execute intelligent behavior not displayed by humans, chatbots still do not have the accuracy to understand the context of questions in every situation each time.

When considering potential uses, first assess the impact on resources. There are two options here: replacement or empowerment. Replacement is clearly easier as you don’t need to consider integration with existing processes and you can build from scratch. Empowerment enhances an existing process by making it more flexible, accommodating, accessible and simple for users.
Using this method, you can manage multiple funnels of content upgrades, and even convince your users to take the next step in the buyer journey directly within Messenger. In the example below I just direct the user to subscribe to content recommendations via Messenger, but you could push them to book a meeting with a sales rep, take a free trial or directly purchase your product.
“HubSpot's GrowthBot is an all-in-one chatbot which helps marketers and sales people be more productive by providing access to relevant data and services using a conversational interface. With GrowthBot, marketers can get help creating content, researching competitors, and monitoring their analytics. Through Amazon Lex, we're adding sophisticated natural language processing capabilities that helps GrowthBot provide a more intuitive UI for our users. Amazon Lex lets us take advantage of advanced AI and machine learning without having to code the algorithms ourselves.”
Human touch. Chatbots, providing an interface similar to human-to-human interaction, are more intuitive and so less difficult to use than a standard banking mobile application. They doesn't require any additional software installation and are more adaptive as able to be personalized during the exploitation by the means of machine learning. Chatbots are instant and so much faster that phone calls, shown to be considered as tedious in some studies. Then they satisfy both speed and personalization requirement while interacting with a bank.
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