What is a Chatbot and How Does it Work?
“Hello, Mr. Harper please share your query with us so that we can help you enhance your shopping experience”- said a voice message sent by the store’s website. We all must have received a similar voice note at some point in time while purchasing online or scrolling through websites over the Internet. Well, these voice notes and texts we receive are nothing but electronically generated messages channeled through a Chatbot or Chatterbot. The flashy icon at the bottom of the screen often greets you with a pop-up “How may I help you?” text is a website chatbot trying to connect to you. They are considered to be one of the most strategic tools for direct business connectivity with users.
The widescale expansion of the Internet, digitalization, and AI resources has brought in a pivotal change in the working paradigms of the global industrial space. Chatbots are the exclusive gifts of technology to the business world. They work as a catalyst for creating strong customer-business relations through machine-based instant interactions.
Here, we will give you a deep insight into the world of Chatbots. Take a look:
What are Chatbots?
In simple words, a chatbot is computer software that simulates a real-like human conversation with the users. The pre-set instructions of the program help customers by generating automatic responses to their queries or starting a conversation with them. Bots can interact with users via multiple social media platforms like Facebook Messenger, Twitter, Slack, etc. as well as messaging apps like WhatsApp, WeChat, and Telegram.
The underlying technology of chatbots allows them to interpret and process the instructions of the customers and generate solutions instantly. The software includes an application layer, a strong database, seamless API, and a Conversational User Interface. The level of chatbot training inputs plays an important role in determining the efficiency of a chatbot.
Types of Chatbots
There are three different types of chatbots ruling the market space:
1. Rule-based Chatbots
Rule-based chatbots are the most user-friendly, simple, and easy to handle chatbots. Users interact with these bots by simply clicking on them and using pre-determined options. People have to make few choices to seek outcomes from the chatbot. The software analyses the data gave by the user to derive the results. The lengthy procedure often makes rule-based chatbots the slowest solution.
2. Intellectually Independent Chatbots
With the use of Machine Learning technology, these chatbots are the latest buzz in the market. Machine Learning allows a computer program to recognize patterns of interactions and inputs to draw information about the user all by itself. The bot is equipped with knowledge about some keywords that trigger instant replies from it. It recognizes the words pre-defined to it and displays result to the user.
3. AI-based Chatbots
These are the latest chatbots that come packed with the goodness of both, rule-based and Intellectually Independent chatbots. AI is the new trend in the field of computer science that works to create machines simulating human intelligence. The AI-based chatbots can remember the information of the chat and customers’ preferences. They cater to any random request of the user instantly. The chatbot has a pre-defined information flow along with a capacity to understand random language inputs through Natural Language Processing.
How do Chatbots Work?
Chatbots work as a bridge between the business entity and its targeted customers. They can be created easily using online chatbot training portals like Google’s Dialogflow DX. These platforms offer a plethora of tools to create customized chatbots.
The chatbot software is divided into three layers explained here:
1. Knowledge Base
Also known as CMS, this layer plays a very crucial role in managing the entire working setup of a chatbot program. It is this layer that offers a real-time, user-oriented experience to customers. The knowledge base helps chatbot software to keep the users engaged and facilitates long-term customer relationships.
2. NLP Layer
The Natural Language Processing layer is the place where the heart of a chatbot resides. It comprises two channels namely, Natural Language Understanding (NLU) and Natural Language Generation (NLG). The NLU helps in the analysis of various aspects of the language content whereas the NLG studies the input to provide a reliable outcome to the user.
3. Data Store
Chatbots are trained effectively via AI technology. This is a continuous process that requires regular data supply. So, a data storage section is designed for the software to ensure an automated learning experience.
Why Chatbots?
Interacting with robots has always been a wishful activity for humans. With Alexa and Siri becoming our everyday partners, this technology has become easily accessible for all of us. Chatbots are everywhere. Today, becoming a certified chatbot expert can fetch you a well-payed career opportunity.
Recently, a report from Gartner revealed that bots are likely to manage over 85% of queries in 2021 itself. Another data from Microsoft conveyed that 56% of people interacting with customer service portals are text-persons. The perks of using a chatbot include:
• Personalized experience to customers
• Quick responses with reliable information
• Round the clock service access
• Cheap in comparison to other technological tools
• Easy-peasy working experience for users
Industrial Use of Chatbots
• Chatbots can work well for firms that require the execution of repetitive processes by staff. Thus, it can play a significant role in sales, customer support, HR, online business, marketing, etc. It can reduce the OH cost for the industry.
• Entertainment industry uses chatbots to expand their content coverage to users depending upon their requirements, surfing patterns, interests, etc.
• In healthcare, chatbots can streamline and speed up medical data sharing records.
• Chatbots can help users in choosing the correct insurance policy for themselves by analyzing the data entered by them. They can easily manage claim settlements and the renewal of policies quickly.
• In the future, we might see chatbot developer teams creating bots with Emotional Intelligence. These bots will be able to assess human sentiments and respond in a fashion that suits their sentiments. This will increase the level of human-AI interactions.
Conclusion
The super success of chatbots is directly proportional to the level of satisfying customer experience they have created since inception. These powerful resources have helped business houses to provide an enriched user experience. The latest technology of chatbot programs helps firms to connect with multiple customers simultaneously through a speedy and cost-effective tool.
