The importance of chatbots in customer service driven businesses

Big data can prove to be of importance in developing customer-centric chatbots


How simple would it be if you can set reminders, order, shop and get queries answered almost instantly through a single messaging app? In 2016, during a keynote, Satya Nadella CEO at Microsoft said that "Chatbots are the new apps".

Have you been including chatbots when you are preparing your company’s vision for the big data? If not, here’s why you should.

An introduction to chatbots

Chatbots are a simple way of solving everyday challenges. One of the major reasons for the popularity of the chatbots is the universality – it can be used in any space in the digital world. From banking to delivery services, chatbots have an important application in customer service. According to Gartner, by the year 2020, 85% of customer interactions will be managed without a human, meaning chatbots are going to replace a vast percentage of human involvement in customer service. When people get used to these prompt conversations with chatbots, the normal human interactions may be seen as a more exasperating routine.

Chatbots can replace the mundane, repetitive work that humans have been doing for so long. Chatbots have introduced a better way of doing the same work in a short time with less manpower and at less cost.

Chatbots are not just created to solve the normal problems but instead, it is made to learn from its responses, store data and refine itself better and increase its efficiency. This is where the importance of big data lies.

The intersection of big data and chatbots

Big data is an integral part of the chatbots. Big data is the governing element which enables the accuracy with which the chatbots are developed and run. Big data provides an answer, checks the authenticity and decides the way the conversation should be progressed by the chatbots.

The digital world is overflowing with data most of which is left unused. The chatbots are one of the best ways to collect the data and put it to use in the most progressive way. Big data can enable the growth of chatbots at a rapid pace enabling customer services to reach a new high.

Nowadays, people look for simpler ways to get work done and therefore find it easier to interact with chatbots and get the work done, rather than waiting on the phone to talk to someone. According to Chatbots Magazine, chatbots can save up to 30% of the total expenses in customer support services. Therefore, chatbots can not only improve customer service but it can also bring down the cost incurred for customer services.

One of the easiest ways of collecting data for business intelligence is through chatbots. The data obtained from the chatbots can also be put to use for other business initiatives. Chatbots can perform a dual role in relation to big data.

  1. Chatbots can collect and analyze data
  2. Chatbots can retrieve the data and put it to use

These two operations are instrumental to big data and therefore chatbots and big data may be seen to be codependent.

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How chatbots make the most out of big data

When a customer speaks with a chatbot, the person inadvertently gives out some data in exchange for any information or work to be completed. If a thousand customers interact with a chatbot in a day, the amount of information it has received in turn from the people will help in providing better replies to the next set of customers. As a result, the chatbot will now be trained to provide an appropriate and efficient response. The more data the system collects, the better its performance will be.

Along with the natural language processing (NLP), the system will be equipped with data to provide accurate results such as the ability to view customer demographics, get accustomed to slang, the usage of words and the different ways in which the queries are asked and any more information that a user expects to get from a chatbot. Armed with this data, the developers will be able to develop customer-centric chatbots.

Over a period of time with the consumption of a vast amount of data, these chatbots will be able to talk like a human and give that intimate touch in its conversations, which is exactly what the customer needs. It can be trained to answer questions from an 80­-year-old and an 8-year-old. Chatbots can also be developed to analyze the human emotions and give a suitable reply in consideration. All of these refinements in the behavior of the chatbots are impossible without big data.

Big data and chatbots together have a lot of potential that is yet to be tapped into. The future holds some exciting developments for this collaboration and the world is keenly looking forward to an optimal customer experience.

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