CHATBOTS: A VIRTUAL ASSISTANT TO SOLVE CUSTOMER QUERIES
Chatbots are AI-driven software applications that solve the customer queries at hand, guiding them in the right direction without any human agents’ requirement. The adoption of chatbots got accelerated in 2016 after Facebook opened up its messenger app.
Google also got in the queue, and since then, many chatbot apps were built on social media and other websites for providing seamless customer support. Due to the rapid rate in the increase of Chatbot for different apps and platforms. More than 50 % of the customers believe in chatting with the business to resolve their queries.
The past year’s pandemic scenario has led to several changes in the marketing scenarios. Hence, marketers have shifted their focus from being more self-centered to being more empathetic towards customers. Read this blog to know more about the leading trends for chatbots in 2021.
WHY CHATBOT IS THE NECESSITY FOR TODAY :
In 2018, Gartner concluded through a survey that more than 25 % of the customer service operations would be using Artificial intelligence and chatbots till the year 2020. Meanwhile, due to the outbreak of the coronavirus. Many businesses are rewiring technological needs.
More than 71 % of Information technology developers believe that AI and marketing automation can quickly improve customer services during the pandemic and the period afterward. Consequently, more than 64% of the businesses plan to invest in marketing automation in the upcoming years.
Due to contactless communication between the customers and brands, people rely more and more on live chats. They want businesses to serve and respond to them in real-time. In other words, the current situation demands immediacy from the customers’ point of view, and Chatbot is the ultimate solution for providing real-time feedback.
The chatbots can easily handle repetitive queries and allow the agents to focus on complex queries.
For example,- If a customer forgets his password and wants to reset it, they do not have to wait for the agents’ response. AI chatbots will give them immediate solutions.
WHAT ARE THE CURRENT CHATBOT TRENDS :
The current year 2021 will see a massive adoption in the Chatbots due to the pandemic outbreak. Many companies have digitized the processes, and companies are now adopting chatbots not only for customer services but also for generating leads.
It clearly shows the need for chatbots in the current marketing scenarios. You can read further the chatbot statistics to get acquainted with the ongoing trends and how they can influence your marketing strategies.
For your convenience, we are dividing the chatbot statistics into five segments to know the importance of chatbots in each arena:
- Chatbot market statistics.
- Chatbot trends
- Demands of the customers
- Customer acquisition
- Revenue statistics
Read further to know about each of the segments in detail :
WHAT ARE THE BEST CHATBOT STATISTICS FOR THE YEAR 2021 :
1. Chatbot market statistics
Global savings due to chatbots :
Chatbots have the endless potential to replace human agents’ tedious tasks. AI holds the power to converse fluently with the users. Also, Juniper research defines them as a computer-based technology to stimulate conversations with the customers, including automated processes triggered through these interactions.
Chatbots have the power to support all types of industries, right from a simple banking transaction to the minute customer queries over a password. Chatbots can save the cost of over 8 billion more per annum by the year 2022, which is now 20 billion dollars.
Enhancements in chatbot market size :
Due to the rise in customers’ demands for self-services and round-the-clock assistance, Companies are investing more in chatbots. Consequently, the chatbots’ market size expects to increase from 2.6 billion dollars in 2019 to 10 billion by the end of 2024 at an annual growth rate of around 30 %. Companies are working towards developing self-learning chatbots to provide a more human-like experience.
Growth in chatbot market value :
Virtual assistants are now increasing due to advancements in machine learning and AI technologies. Many industries are now using chatbots and smart speakers; for instance, in the banking sector, customers rely on instant communication and chatbots to maintain the relationship with the customers through cognitive analytics.
Chatbot market earlier valued at 18 billion dollars in 2020, which expects to reach around 100 billion dollars by 2026 with the annual growth rate predicted to be over 35 % in this period.
Willingness to talk to chatbots :
As every brand is adapting the AI chatbots to retain the customers, the customers are also willing to engage with the forward-thinking brands.
As per a MasterCard survey, more than 70 % of the consumers use chatbots and voice assistants. More than 87 % of consumers know that AI solutions are available to them. More than 80% of consumers have said that they love to make purchases through chatbots as their earlier experiences are quite positive.
The Facebook messenger passed 3 lakh bots :
Facebook announced that the bot platform had reached a milestone of creating around 3 lakh bots. The statistics got over 2 lakh which was one lakh last year. That means more than 2 lakh developers have used Facebook since its launch. Also, being the first developer of the bots, it has claimed that brands exchange more than 8 billion messages in a day which was 2 billion last year. It shows the popularity of chatbots.
The rise in the use of voice assistants :
Customer communication is taking a new turn as voice assistants’ use is likely to increase by more than 130 % this year. There are vast benefits of voice assistants, and the statistics show that it has positively impacted the customer experience. More than 1000 US consumers are using voice assistants. This evidence proves the earlier statement.
Useful for all sizes of enterprises :
Each type of industry, as well as all sizes of enterprises, can benefit from chatbots. As per a survey, around 24% of large-size enterprises and approximately 15% of medium-sized enterprises are taking advantage of chatbots. By giving your customers instant replies, chatbots can automate low-value tasks, and companies can focus on other tasks.
Top five chatbot countries :
As per the Facebook business, the top five chatbot countries are the UK, ES, Brazil, India, and the USA. More than 64% of respondents are from these countries who send messages to businesses. They like to get in touch with the brands. Also, 60% of users believe that messaging is an excellent way of connecting with a business.
Larger returns of investment :
According to Accenture, conversational chatbots enable third parties to build skills or other conversational interactions through Natural Language Processing and Machine learning. More than 60% of the conversational bots can deliver large returns on investment without much effort.
Use of chatbots from voice to text dictation :
Spiceworks laid down a survey and announced that more than 40 % of the larger businesses are expected to implement voice assistants and chatbots on company-owned devices. More than 25 % of medium-size and small-sized companies are currently using chatbots from voice to text dictations.
2. Chatbot trends
Enhanced interest in Chatbots :
According to Google Trends, interest in chatbots has amplified by over five times in the period of five to six years. Chatbots are AI-driven applications that work on predefined rules which can perform multiple tasks. It can reduce the costs of human labor as well as diminish human errors.
The success rate in banking industries :
Juniper Research says that the banking sectors and healthcare sectors benefit most from Chatbots. These industries can save over 4 minutes per inquiry which equates to the cost savings of around one dollar per interaction. Users can now select predefined answers on any health issues.
Chatbot supports customer interactions :
Due to the rise in artificial intelligence and conversational interface, interacting with a bot will increase more than before. By 2024, the average person will interact more with the bots than their spouses. On a lighter note, like smartphones, tablets, and virtual assistants are rising, people are becoming more addicted to the digital experience.
Willingness to shop from businesses that use chatbots :
The chatbot awareness has prompted the customers to shop only from those businesses with whom they can talk and chat. Also, with the increase in such expectations, brands are now creating chatbots to meet the consumers’ expectations. More than 50 % of the customers like to shop with businesses that use chatbots.
Chatbots used for sale purposes :
As per the INTERCOM, businesses saved more than 3 lakh dollars in 2019 using chatbots. Also, chatbots have surpassed the arenas of customer support in other areas, such as sales and marketing. More than 40 % of companies are using chatbots for sales purposes after customer support.
Bots will surpass mobile apps usage :
People’s interest in chatbots is increasing, and people know the importance of chatbots and how they can resolve a minor to a major issue. The use of chatbots has increased by more than 19 times over the past five years. Also, 67% of businesses believe that chatbots will diminish the usage of mobile apps.
Investments in chatbots :
The growing popularity of chatbots amongst brands and marketers signifies that businesses will invest around 4.5 billion dollars in chatbots in 2021 as the consumers are shopping more under the veneer of augmented reality. The companies will indulge in creating marketing strategies around such tools.
Change in customers’ expectations :
More than 58 % of customers will change their expectations with the brands after the emergence of technologies such as Chatbots and Voice assistants. Therefore, around 54 % of the customers want a change in the way brands interact with them. And 77 % of the customers believe that chatbots will alter the expectations they have with the brands in the upcoming years.
Chatbots in the Insurance sector :
Businesses need to understand the market conditions before they implement the technology. Chatbots have made a remarkable difference in the insurance sector, where an insurance company named Lemonade closed down a claim in a few seconds with chatbots’ help. Also, many insurance companies have integrated chatbots with their mobile apps to know about the incidents on which they provide claims.
Businesses to implement chatbots :
More than 80 % of organizations plan to implement chatbots as your customers are omnipresent and use different channels before making a purchase. Simultaneously, businesses must be ready to provide customers with a better omnichannel experience with their effective customer service strategies.
3. Statistics on customer demand
Escalate the agent option :
Many times, consumers have many serious concerts, which the chatbots cannot answer. In such cases, around 86 % of customers believe that there shall be an option to talk to live agents or redirect the live agents’ queries.
Positive chatbot experience :
More than 80 % of the people who interact with a chatbot have positive experiences. The statistics signify the people’s adoption of technology, and the results they have received from the chatbots are satisfactory.
24/7 availability factors :
Timings play an essential role in customer services. Many customers can face issues during the hours a business is closed. In such cases, chatbots come to the rescue. Otherwise, the brands would lose all the valuable customers. This constant availability demand of the customers needed technology to take care of customers round the clock.
Closure of brick & mortar stores :
According to Capgemini, more than 70 % of the consumers will replace visits to a brick-and-mortar store with their voice assistants as 76 % of the brands have got beneficial results from the voice and conversational assistants. People are also responding more towards the new technology.
Increase in voice commands :
More than 45 % of users between the age of 20 to 60 are using voice searches and commands on all devices. There has been an increase in the number of voice-based searches in which 30 % is for online shopping, which demands the businesses to provide more conversational assistants.
Regions leading in Chatbots :
If we look at the geographical statistics, the European market leads in the highest number of chatbot users, which Northern America follows, but the use of Chatbot in Europe is at a fundamental level; on the other hand, northern America has a blend of medium and advanced bots.
Chatbots in digital banking :
Though the trends of talking to the users to address their needs are still not faded, many users are now shifting towards chatbots to resolve their queries. As per a survey, around 43 % of respondents prefer to go for chatbots rather than visiting the branch
Loyalty towards the chatbots:
Now users and customers prefer chatbots over to go in person for the resolution of their queries. More than 80 % of the respondents believe that they would retain their loyalty towards a brand that offers Chatbot to talk to the brand.
Around 40% of the millennials believe in using AI Chatbots regularly. Most people prefer bots over humans to check their status or research for a product rather than calling on an agent.
Getting detailed information :
More than 35 % of users prefer bots to resolve a complaint or get detailed information about something. Businesses believe that bots are the perfect answer in case of a high volume of inquiries. Many times customers become frustrated with the standard knowledge base answers, which are hard to understand.
4. Chatbots statistics of customer acquisition
Messaging to businesses :
As per a survey, brands and people exchange more than 20 billion messages within a month on Facebook messenger between the brands and people. More than 80% of people message businesses throughout their user journey to know about the product details and store openings. People are now going online for everything, right from ticket reservations to receiving boarding passes.
Chatbots bring in more confidence :
More than 70 % of the consumers feel confident when they talk to a brand and make a purchase. Also, the messenger bots help the brands to acquire customers by talking to them more directly and prompt them to take actions such as purchasing a product.
Reliable brands use chatbots :
Nowadays, people believe in speedy communication and will purchase with the brand in which they can invest their money and trust. Around 70 % of the US’s internet users will likely buy from a brand that uses bots.
Better ROI from the Facebook messenger :
The success of Facebook messenger has threatened the retargeting ads. Analysts believe that Facebook messenger has the potential to retarget customers as compared to the messenger. Companies also believe that the messenger can earn a 30 % better ROI than retargeting ads online.
Hotel and restaurant reservations :
Chatbots have made it so more manageable for the customers to reserve bookings for hotels and restaurants. Reservations through Chatbot is an interactive way to enable the customers to book appointments. Customers can quickly go through the options and choose their preferences to receive recommendations, and hence they can make a purchase.
Top beneficiaries from chatbots :
Almost all the sectors and industries are waging profits from bots. Still, the companies who have earned most of the profits are real estate, following the travel, education, healthcare, and finance industries. Real estate companies are making more than 28 % of earnings following the travel and education sectors pushing 14 and 16 percent of profits, respectively.
Chatbots will rule in retail sales :
The Chatbot-based interactions from retail sales are predicted to double each year and rise to 112 billion dollars by 2023. Interactions through bots will also enhance and reach 22 billion by 2023, which is only 3 billion this year.
Revenues hiked up in e-commerce stores :
Ecommerce stores are now converting into more conversational commerce to prompt users to make an online purchase. Chatbots serve users almost at every stage of the customer’s journey. More and more e-commerce stores are adopting facebook messenger and an abandoned cart flow to raise revenues. Many stores have succeeded in raising revenues by more than 20%.
Millennials opting more for chatbots :
While talking about the age groups who mostly prefer chatbots, by far, statistics say that millennials and youth generations areas twice as interested in shopping using chatbots than the age groups older than the adults.
Social media using voice-enabled assistants :
More and more businesses are now vouching for chatbot applications. Google claimed the rise of Google assistant devices (one billion) in the market. The year 2018 and 2019 showcased the emergence of voice-enabled assistants on social media, and Marketers engage with the customers using voice messages.
5. Chatbot statistics by revenue
Enhanced value of AI-derived business :
AI-derived businesses are now gaining more and more global value, which was reported to be around 2 trillion dollars in 2018 and is expected to reach 4 trillion dollars by 2022. Even Gartner’s value succeeded in the total business value of all sectors which they cover.
Automated customer service positions :
Customer service operations have now been automated with the help of chatbots. The Public tableau estimated the savings of around 23 billion dollars from the annual salaries as the workforce costs are reducing. Bots have cut off the workforce costs.
Savings in top sectors :
As we discussed earlier, the topmost sectors such as retail, banking, healthcare, and insurance have made a lot of savings, estimated at 11 billion dollars by the next two years which was just 6 billion dollars in 2018.
Saving time and hours :
Different business sectors realized the cost savings due to bots, but they also realized that they are going to save more than 3 billion hours for their businesses by 2023. Now chatbots enable the resolution of queries within seconds which earlier businesses have to sort out manually.
Cut off business costs :
According to the juniper research, chatbots help cut off the business costs by more than 10 billion dollars by the next year. This upsurge has been anticipated due to the increase in AI-based service programs.
Savings per customer interaction :
As chatbots cut off the business costs and save time on the customers’ interactions, predictions say that the chatbots will handle more than 90% of the queries in the next five years. It will, in turn, save up costs of around one dollar per interaction.
Top benefits of using chatbots :
More than 60 % of the youths and adults consider the 24/7 services availability of the chatbots as its topmost benefit. Compared to this percentage of adults, the older generation still lacks the understanding of using chatbots.
Worldwide use of chatbots :
The worldwide popularity of chatbots has prompted more than 200 countries to use online chat to begin conversations with brands. Such expansive use of chatbots and AI-driven technology has resulted in sufficient decision-making powers.
Resolution of complex problems :
The customers using AI chatbot rates are increasing, but more than 64 % of the agents love them to solve the customers’ complex queries, whereas the rate of its non-usage is diminishing day by day.
Savings of Germany Banking sector :
The customer service is automating. A study by Juniper Research found out that they can save operational costs by around 8 billion dollars by 2023, which was just 200 billion dollars in 2019. Banks are saving about 800 billion hours with the adoption of chatbots.
Get instant answers in emergencies :
Today’s customers want instant replies, and in case of emergencies, the need increases more. The benefits of instant messaging and replies can be completed with chatbots. Therefore, more than 50% of consumers like to talk with chatbots to get replies instead of brands with personalities.
The above statistics prove that chatbot technology is not time-restricted; they have a long way to go as they are already evolving. The chatbots have a tremendous impact on the users and brands, and it’s real.