Chatbot For Business As A Dynamic Tool To Increase The Productivity and Win Users' Loyalty

22 May 2017
11 min
author avatar
Daria R.

Chatbot is a real technological leap forward, which allow us to build applications inside the messengers, which means that users dont need to install one more application. Many routine phone calls such as delivery services and bills paying can be automatized with the help of bots. Now, the time of your project launching matters even more than the complexity and cost of your web or mobile app development. The crucial part here is what tasks your product performs. Chatbots are already in use by many multinational companies, where they successfully perform sales pipeline and maintain the communication process with the customers. Smaller companies tend to adopt this technology as well.

How to maximize your revenue and automize routine processes with a business Chatbot?

There are thousands of variants where you can apply a Chatbot, however, if you already have a site or any other kind of software with users, you can use it as a start.

The thing is, now people spend more time in messengers than in social networking sites. Messengers are the platforms of future and Chatbots will provide them with an access to the different services, believes betaworks EIR Peter Rojas. Bots is the new way to please and amaze your customers.


 Learn all tips to develop your own messenger application avoiding mistakes and pitfalls

It is essential that the first sphere of Chatbots use is a B2C sector now. Yet, the sphere grows. Eventually, chatbots will cover a wide range of the consumption requirements, due to the services integration and personalization. It can be used anywhere! For example, we have bots that do shopping for us, they recommend us gifts for our beloved in a week before their birthday. Cinema bot is able not only to book tickets but also to call a taxi to the cinema. Travel, restaurant, cleaning, dry-cleaning and even plumber Bots were developed to make customers life easier and advance our business.

What are the Chatbot advantages for business?

A lot of businessmen still dont understand in what way they can benefit and what they will get launching their own Chatbot. Let us explain list advantages, that the entrepreneurs and their customers get.

chatbots integration advantages

Chatbots - benefits for business

Customer care improvement.

In 2016 Taco Bell fast food company developed a bot for their online service TacoBot. Its purpose is an automatization of the sales processes. TacoBot helps customers to make orders in a restaurant with the help of the application Slack. Customers, who dont want to hang on the line waiting for an operator or to search an answer in FAQ, using Chatbots you can get an answer immediately. You dont have to worry about the number of incoming calls. While the operator can perform two maximum three dialogues, Chatbot can process them all. And the most important is 24/7 availability. Which is especially important for the lead generation.

Purchase process simplification.

Now, the Chatbots can not only provide the comprehensive data on the goods but also order it directly. The other benefit is that in the case when customer hesitates, the next time he contacts the chatbot, the program remembers all the information about the client and his preferences. So bots help companies meet orders efficiently.

Personalized service.

Bots bring a fantastic opportunity for an immediate personalized interaction with the client during the customer lifecycle. Chatbot service offers all sorts of information about a product, motivates the interest, provides support, along with the active interaction with the client and his guidance.

Personalized service

Imagine that you sell flowers. Your company provides delivery services. Do do that, you hire people who work in a support chat. Or you are an owner of an e-commerce site that sales electronics, I bet you have employees whose job is to answer customers queries. This task can be completely performed by a Chatbot and even more effectively than by people. Your employees at the same time can perform another, more important job.

Resource saving

JPMorgan Chase & Co, one of the biggest banks in the USA, recently created technological centres for the teams, whose specialization is big data processing, robotics technologies and cloud infrastructure. They were created to find new income sources with costs and risks minimization. The bank created bots to perform such simple tasks as access granting to the software systems, IT-requests processing, for example, to reset a password of an employee. Bots are going to process 1.7 mln access requests, which is equal to work of 140 people, thus saving time and money.

User experience improvement.

The companies that work with lots of customers can gain the most using Bots. Users wont have to switch between the apps to order food or call for a taxi, they can do it in one messenger. Hello Hipmunk, an online service to plan the trip, can not only show the available tickets and hotel rooms but even recommend the best options and answer such questions as When is the best to fly from Chicago to Cancun.

Check our video to find out if bots will replace mobile applications or the obsession is temporary

The Bots success is defined with its workflow. Such communication is extremely clear and easy. There is no need to look for some specific buttons, study out new interface, all you need to do is just send a message! To create a bot for your company is something you shouldnt skimp on. Then, you will get great service, which can help your customers achieve the desired result, after a small talk with a chatbot. We can conclude, that a Bot is unique business tool. Nothing and no one can beat the speed of Bots. People before they start working need to be taught how to perform one or another job. Chatbots start immediately and reply much faster than people.

What are the best Chatbot technologies?

Lets take a look at the tools which are going to help build our bot fast and cheaply. To do that, you have to decide what tasks will your bot fulfil, on the base of what platform it will be developed (Facebook, Slack or other), you also need to set a server which your bot will use and choose the tools to create the bot.

chatbot technologies

Best technologies for Chatbot

All Chatbots are divided into two categories according to their functionality:

  • Bots, which work with specific commands
  • Chatbot machine learning algorithm based bots

Depending on the type of a bot we need, we will choose the set of tools. In our previous article about Chatbots we covered services, which can be used to build a bot. Now, wed like to continue our investigation on the design instruments according to the bot complexity:

Bots, which work with specific commands

They are Bots of a Retrieval model. It uses the databank of replies and so-called heuristics, to choose an appropriate answer based on the context. The system doesnt create any new texts, it chooses one of the existing. These Chatbots has some characteristics:

  • The programs are very limited and can answer only on some questions. If the question is untypical, the system wont understand you. 
  • Bot can perform only those tasks, which it was programmed to fulfil.  

To work properly Bot has to understand the question. It can be performed in two different ways: 

  • Template search 
  • Type of intention (for instance, buy a ticket, check the flight status, get specific information).

After the Chatbot understood the request, it can choose or form the reply. The replies can be static from the templates, or dynamic on the base of such sources as knowledge bases. The Bot uses them to get the list of possible replies, estimates them and chooses the best variant. Almost all Bots of this type has its arborescent structure that you use to design the interaction between Bot and a user.

Yet, if you want your Bot to develop its own answers you need to apply the deep learning algorithm, using chatbot development platform Chatfuel JSON API. It is a great platform to build interactive Facebook Messenger Bots without programming. The interface is really intuitive and has lots of special features. As far as Facebook Messenger is one of the most popular platforms at the moment, we suggest considering this service.

The next type is a combination of JSON API plugin and Gomix. The technology helps to create a Chatbot quickly integrating any third party API with JSON API plugin. Gomix is created with the help of Node.js and is based on a cloud, which gives you an opportunity to edit any file online in your browser. Using this plugin you can create various integrations with a server, thereby creating dynamic content or data transfer.

Machine learning Chatbots

These bots are characterized with an Artificial Intelligence, so you dont need to be precisely clear when you talk to it. The Bot understands the language not only commands. And they get smarter with the time.

For more complicated interaction using natural language and processing bigger number of requests use (open chatbot platform to process natural language)

Microsoft is Chatbot software that can be applied for data treatment, that user provides, and that cannot be processed by Chatfuel.

These models are generative, which means more complicated. They dont work with predefined replies. They create replies from scratch. Generative models , as a rule, are based on machine translation methods.

Both approaches have benefits and drawbacks. Working with the replies base, Bot doesn't make grammatical mistakes. Yet, they can get a request, the answer on which they dont have. Generative models are smarter. They imitate the conversation of real people. However, it is very likely that they will make grammatical mistakes (especially in long sentences) and requires vast amount of learning data.

If you want to find a dog breed, the primary code processing is needed in order not to get a long list of all breeds. This processing will determine dog breed in a message and will indicate the word with a special tag. In such a case you can search for the tag applying the rule. WordNet can be used to determine basic definitions. You may have to add special libraries domain, like the medicine list if you create a Bot health service.

Cost of Chatbot development

To develop a Chatbot is cheaper than to develop an Android application, for example. The cost mostly depends on the functionality you require. The average price if you order in a middle sized abroad company is approximately 100 000 - 150 000 dollar. While Ukrainian companies will charge you 50 000 dollars.


See how much it costs to create an app for business to compare with the cost of a chatbot 

The cost of Chatbot depends on the platform you want to use for your business Bot on, the complexity of logical filters, chains and database capacity. The final cost will also will depend on the logic that the Bot will use for self-teaching. In the event of a multiple users requests, the important aspect is the system to choose which requests send to the consultant and which will process the Bot. So, the value floats from 10 000 to 50 000 or even 100 000 dollar. And the development process will take from a month to half a year.

However, the development can be absolutely free if the Bot will be created on the base of a free service, like Messenger, Telegram, Sender.

Lets look closer what is included in a minimal cost of a Chatbot development:

cost of chatbot development

The cost of a Chatbot

How to avoid critical mistakes developing Chatbot for business

Now we know what tools will help us develop our Bot fast. Lets consider the necessary elements which every Bot needs and peculiarities that all users like. What I mean is the features which help user to get acquainted with a Bot, they are basically a skeleton that form the workflow of a program.

How to develop chatbot

Necessary elements of a Chatbot

You need to think over the greeting and guidance for inexperienced users, to explain what your Bot does. The welcome screen should display features which the system has. It would be even better if the Chatbot greets a person by name or with active voice feature, thus youll make it more personalized.

Of course, the program needs settings option, users may want to set the notifications or subscribes during the conversation. Ask a user if he wants to get regular reports (it is necessary according to the FBs policy).

Well-considered menu is needed for new as well as for regular customers. Make sure that the menu includes About, Help and FAQ and the opportunity for users to leave comments. Customers support is a very important step.

Dont make your users wait. If the Bot needs time to for or pick the best answer, inform the user about it. Set the Holdover time.

The format of a reply plays here crucial role. Users dont like direct links in the text as well as low-quality pictures.

Never ask users to repeat few times the same information. The Bot has to store the information gotten from a user.

Use stickers. They make a business Chatbot reply more human. The Bot can also use the name, gender or users location in replies to make the conversation more personalized.

Avoid grammatical mistakes. Deep learning helps as well as text analysis with one of NLP libraries, such as Stanford NLP, Spacy. Some words have a few meanings. The same rule works with dates and numbers, different countries use different formats. You should also be careful with the places (countries, cities, streets) and phone numbers.


More handy information on Bots development and where you can use them in our research

Remember, that every mistake will influence the user experience, which leads to the negative feedbacks. You can make your own Chatbot using the most complicated AI algorithms, yet, before you created a perfect Bot business model make sure that users really need it. Our experience says that its much easier to start with an MVP version. The approach allows you to test the product, collect analytics data and improve your project in accordance with the customers feedbacks. If the idea to create your own Chatbot springs to your mind, contact us, well be glad to assist you.

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