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A Multi-Billion Dollar Chatbot Market Awaits Businesses And Developers

A Multi-Billion Dollar Chatbot Market Awaits Businesses And Developers

Suppose You Are Interested In The World Of Information Technology. In that case, You Should Pay Attention To The Fact That Our World Is Entering An Era Based On Conversational User Interfaces, And Chatbots, Which Create A New Model Of Human-Machine Interaction.

Chatbots can be used for different purposes. Simple chatbots can provide leads to experts, sell products, support various marketing models, answer questions, and even provide customer service. More sophisticated chatbots based on artificial intelligence and natural language processing understand natural language and can learn.

The fact is that conversational interfaces are becoming increasingly popular worldwide, and this is a fact that you should pay attention to as an IT professional or developer. Of course, accepting and using this technology in Iran will be slightly delayed compared to other countries. Still, in any case, the entry of these technologies into domestic business is not far from expected.

The good news is that most companies don’t need an AI chatbot, and many problems can be solved with a much simpler, rules-based chatbot.

No matter what type of chatbot you’re developing, the key to success is designing logic-based conversation flows. This is essential to keep the customer interested and make them interact with the chatbot.

Designing conversational bots is similar to writing and branching related questions based on user choices or answers. The essence of everyday design is to have defined and logical conversations that resemble the reasoning of a business professional.

User experience (UX) analysis and skills related to proper data analysis are essential points to consider when designing chatbots. Attention to these points will allow you to create a logical dialogue flow based on data and prepare messages that engage the audience.

Barbaro Jasova, Editorial Director of Landbot, published a summary of several strategic types of research carried out in 2020 and points out that 31% of businesses seeking a competitive advantage will fully implement artificial intelligence in their business by 2025. According to MARKETS AND MARKETS research, the NLP market is expected to grow to $26.4 billion. Some sources indicate that the value of this market may reach more than 50 billion by 2024.

In a part of his article, Barbaro Jasova refers to the following points, citing the Statista Institute’s research conducted in 2019:

  • 78% of chatbots in 2018 were self-service chatbots.
  • 77% have collected and prepared the information to be delivered to the human agent.
  • 71% of referral programs have been sales agents, yet many people are unaware of this.
  • 67% of chatbots only greeted customers and directed them to sites.

Another study found that 55 percent of consumers would continue to do business with a business if they could communicate with it via text message. If you are in the B2B field, B2B customers consider AI more trustworthy and reliable than end consumers.

The events of 2020 accelerated the digitization process of industries, sectors, and types of jobs. Conversation automation has become one of the critical trends in the business world. The reality is that the chatbot industry is booming more than ever.

In 2020, the chatbot market was valued at $17.17 billion and was expected to reach an incredible $102.29 billion by 2026.

In the new era, businesses need to be closely connected with consumers to succeed. Chatbots enable quick two-way communication between the business community and consumers. Chatbots and conversational user interfaces are the future of these communications. We need chatbots and artificial intelligence to process them due to the massive amount of information available on any topic.

Not-so-pleasant customer service experience

The telephone is an excellent example of customer service communication requiring many resources. If you’ve ever done this in the 21st century, you’ve probably received a message like, “Your call is critical to us. Unfortunately, your message will be dealt with in due time due to the high volume of calls.

Whenever we call a semi-major company, almost half of the country’s population chooses to reach the same number! This is a big problem because we, the consumers, are wasting our time waiting for a response from the company. Of course, some companies leave us a contact message, and we hope a call will be made from the company.

Inefficient sales and marketing approaches

Telephone calls are a traditional and less successful method in the sales field, with the lowest absorption rate because it is done sporadically. In most cases, it is associated with a cold reaction from the audience. This marketing model is downright annoying on the part of the consumer and is only profitable for the company if the product they are selling is profitable enough.

Another method available to businesses is email. Companies can create massive email campaigns. Again, if thousands of emails are sent to users every week, the users put them in the spam folder, or the systems automatically put them in the spam folder. Because, in most cases, emails are sent to people or companies that don’t need that product.

Messaging apps like WhatsApp, WeChat, Facebook, etc., are other tools companies use in the 21st century. The consumer can message the company, and the company can send messages. The process is based on asynchronous communication, meaning both parties do not have to be involved simultaneously.

However, messaging apps have the same disadvantages as phone calls. They require very high resources. They need people in the company to answer messages or chat with you. In addition, to satisfy your customers in today’s global market, you need to have people answering messages around the clock.

Forms are poor communication tools.

Another solution available to businesses is websites. In the 21st century, websites are everywhere. The problem with websites is that there is no two-way communication. Organizations can create a website with forms that allow people to contact them, but let’s be honest. When did you last fill out a form on a company’s website (unless you wanted to do whatever they offered)?

All these options have advantages but their disadvantages are more. On the other hand, well-designed chatbots provide efficient and immediate communication between the business community and consumers, so organizations do not need to dedicate full-time resources.

Use of chatbots and user experiences

Chatbots, sometimes called bots, are not meant to replace humans. They intend to enhance human performance. From a company’s perspective, chatbots have the advantage of being able to respond to simple messages, being managed by the company, and not making emotional decisions. Bots can cover many questions if the query is simple.

Another beauty of chatbots is that they have the highest level of scalability. All you need is computing power. In addition, they can almost always respond to users if you don’t make any changes to their source code. This level of adaptability is in contrast to humans, who get tired quickly after doing something and, sometimes, have little adaptability to environmental conditions.

Additionally, chatbots are available 24/7. Unlike most people who rest at night, chatbots never sleep. They are always available. Whenever anyone wants to contact them, they are available and have answers to many common questions. Finally, for many organizations, they have become the first line of defense for customer care or answering simple customer questions.

What can chatbots do for you?

Let’s say you have a small training company offering instructor-led training (a high-end product), online training, and books (a low-cost product) covering the same topics. If your company used chatbots, you could reduce the resources needed to answer product questions (training and books) and focus your help on the advanced product.

But chatbots can do much more than that. They can entertain, engage and increase sales. They can continue the conversation with your customers for a long, provided they have a complex design and structure. Well-designed chatbots can improve your sales while reducing the cost of answering simple questions that customers continually ask.

Many companies use chatbots to replace their FAQs or “FAQs.” Unlike visitors searching through a list of questions for an answer, all they do with a chatbot is ask the question, which guides them to the correct answer.

Technical support is another possible use of Chatbots. They can answer common questions, so you can focus your resources on providing technical support to answer customers’ complex technical problems.