Dawn of Chatbots

Case Study –  Dawn of ChatBots

• Chatbot benefits perceived by millennials as per 2018 Research by Salesforce:

Consumer Trends-

1. 50% consumers would make a purchase through a messaging app
2. 65%consumers prefer using a messaging app when contacting a business
3. Over 50% customers expect a business to be open 24/7

Market Trends-

1. Between 2016 and 2021- Chatbot marketing is expected to grow at 35.2% CAGR
2. $4.5 Billion is expected to be invested in enterprise intelligent assistants by 2021

Economic Impacts-

1. Chatbots could save business upto $6 billioN per year cross industries
2. 34% of executives say the time they freed up using Chatbots allowed them to focus on deep thinking and creating

• Working of a Chatbot:

A chatbot is an artificial intelligence (AI) software that can simulate a conversation (or a chat) with a user in natural language through messaging applications, websites, mobile apps or through the telephone.

Types of chatbots –

1.  ChatBots that use AI (Artificial Intelligence)- user experience more personalized, have intelligent meaningful conversations with humans
2. ChatBots based on multiple choice scripts (i.e. selection option X leads to path A and so on). They are safe and can be controlled to a large extent since their data set is limited.

Two different tasks at the core of a chatbot-

1. User request analysis-  to identify the user intent and to extract relevant entities.
2. Returning the response- a chatbot returns a response based on input from a user.

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• Enterprises where Chatbots are live in the industries today and processes impacted by it:

In the banking sector

1. State Bank of India-  SIA chatbot is aimed to handle customer queries and guide customers through retail products and services.

1. HDFC Bank-  EVA was launched to provide conversational experience to customers across digital platforms. Customers can access product details, fees, application processes, branch IFSC codes, and other such information.

1. ICICI Bank- iPal offers help on FAQs, paying bills, fund transfers, recharges and new feature discovery. It’s integrated with the search feature on the website and queries are routed to human operators, if needed.

In the insurance sector

1. Bajaj Allianz-  Boing helps customers register claims, get a soft copy of their policy, check the policy status, locate insurance branches and networked hospitals.

1. Birla Sun Life's bot promotes awareness, instantly generates a quote, registers a claim, and helps customer understand their policies better.

1. PNB Metlife-  Dr. Jeevan educates customers on critical illnesses- cancer and heart failure with interactive videos and personalised quotation. It is available on Facebook messenger.

In the e-commerce sector

1. Housejoy’s omni-channel chatbot enables booking of services, raising complaints, making payments and much more.

1. Lenskart uses its bot for order tracking, query logging and for assisted product discovery.

1. Yatra’s bot helps customers search and book flights directly through FB Messenger.

1. Meru Cabs' messenger bot responds in real time with the cab details and the chauffeur's mobile number once the customers verify their booking needs.

In the Marketing sector

1. Domino’s Tinder bot  and Taco Bell’s Emoji Engine often get a lot of mileage on social media, helping to spread brand awareness. They can be used to make communicating with brands more personalized.

• Companies creating chatbots-

The Tracxn startup database lists over 100 chatbot startups in India as of 2017.These are the innovators and challengers. From healthcare to education to fashion to law, we see new chatbot use cases that are being developed by innovative tech companies every day.

1. Haptik aims to be an all-in-one personal assistant- clients Coca-Cola, Housejoy, Tata Docomo

1. Niki.ai (digital assistant)

1. Fynd (Fashion apparel chatbot)

1. Myprivatetutor (tutor finder)

1. Lawrato (legal searches)

1. Wysa (mental health tracker

1. Pandorabots – Chatbot Platform – free source
   
2. Contus Bot – Readymade Chatbot Solution- it can also be easily integrated with social channels like Facebook, Twitter

1. Chattypeople – Facebook Commerce Solution
   
2. Avaamo – Chatbot Platform- heavy-duty industry applications- clients Tally, Aircel, Reliance Securities.

1. Motion AI – Chatbot Builder
   
2. Botscrew – Chatbot Development- multitask and fetch information for dynamic queries raised by users.

1. Gupshup– Bot builder platform- clients such as Flipkart, Tata Sky, Unilever.

1. Marutitech– Custom Development- They create chatbots that are ingrained with multilingual capabilities, machine learning, artificial intelligence and pre-built templates.

• Metrics for measurement

1. Total sale value, direct to customer
2. Conversion rate
3. Increase in Net Promoter Score
4. Active and Engaged Rates
5. Average number of conversations per user
6. Overall customer retention rate-( 1 day, 7 days, 30 days)
7. Self- service rate

• Chatbots benefit business-

1. Reduced Operational Costs- Each time a customer interacts with a Chatbot before a live person, the cost per query gets lower.
2. Lower Labour Expenses
3. Cheap 24/7 Availability
4. ROI in Agent Happiness (and Better Allocation of Corporate Resources)
5. Value in Customer Satisfaction
6. Greater Savings Over Time
7. Drive Revenue

Many businesses use Chatbot technology to generate leads and make sales. Chatbots can proactively alert customers to sales and discount opportunities, increasing upsells and engaging visitors.