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What is Chatbot | 4-Step Guide for Beginners

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What is Chatbot | 4-Step Guide for Beginners

Curious to know what is Chatbot technology? Want to know why it is becoming quite popular these days? – Then this post is personalized for you.

First thing first, who doesn’t like to make conversations? We love to convey things in our mind to someone else.

Getting a solution by making a conversation is more preferred than by searching it in blogs. Reading blogs and wandering about different things can be a monotonous process while talking to someone about it is more interesting.

Chatbots are based on this concept. They offer the most interactive way of talking to audiences and converting them.

As per the report of  Grand View Research at a CAGR , the estimated market size of Chatbot technology by 2025 is going to be $1.25 Billion.

However, if you are unaware of this term then you need not worry!

Here in this article we will be providing you with the ultimate guide to Chatbots and how can you use them to enhance your business.

People are really confused about Chatbot and a number of questions pop-up in their head like what is Chatbot?

How does it work? And so on. It will be a lot easier if we start from the basic, so let’s first understand what do we actually mean by bots?

What are bots?

Software which is powered by artificial intelligence to perform certain tasks without the help of humans is known as a bot. This software can actually perform several operations on their own which means, they don’t require human interference.

Now the tasks that bots will perform can vary from displaying news to reserving your dine at a restaurant. It all depends on the complexity of the software.

Chatbots are the most frequent models of bots and these can make conversations with users and they are versatile at the same time.

Now since we know what bots are, we are ready to read about chatbots –

Let us try to break it one by one-

4 Steps To Understand What Is Chatbot & How To Use It

1. What is Chatbot Technology?

The Internet has evolved a lot in recent years and it is making things easier for users with the passage of time. Messaging platforms are also working in the same direction. A Chatbot is an application of artificial intelligence that you can interact with either by your voice or text.

Now how the bot will behave, completely depends on the level of complexity in that bot. They can tell you weather reports and solve your internet issues as well. These can be used with any messaging platform like Facebook messenger, Telegram and so on.

These chatbots can be used for humour as well as to provide any valuable information. Let us take an example and it will help you to understand chatbots in a better way.

Suppose if you are looking for any product on any website, you will have to do research on that website and then you will be able to purchase it.

What if that website makes a bot and sets it up on Facebook messenger so that you can message it. You simply tell it what you are looking for and it will provide you with the options. Moreover, Chatbot can easily complement your Facebook Marketing.

Won’t it be easier for you? Instead of roaming on the website you can simply get the answer through a conversation. There are a number of such examples of Chatbots like –

  • Newsbot
  • Weather bot
  • Banking and Finance bot
  • Customer Service bot, etc.

The list goes on and on. Bots can be created according to your imagination hence possibilities are endless.

Let us delve in deeper and understand their work in a better way;

Chatbots can be most commonly be used as –

I) Virtual Assistant – Yes, this is the most commonly used feature of chatbots. Businesses are using this at a great extent. When it comes to customer service a lot of businesses these days rely upon chatbots and they are really exceptional at this.

Since a lot of users come with basic questions on different business website hence answering them is not difficult for software powered by artificial intelligence. Booking services, buying the product and so on is nothing difficult for chatbots. With the introduction of chatbots as a virtual assistant, human resource can be better used in other serious areas.

With the introduction of chatbots, it has become easier for businesses to ensure 24/7 customer service which is one of the most important factors behind building a great customer base.

II) Idea generation – One of the best features of artificial intelligence is that it can learn on its own. Data analysis is always one of the most important factors behind the success of any business hence businesses keep their data analysts. With the introduction of this artificial intelligence software, the data can be better analyzed.

Chatbots can learn from the data available in the database of any business through which a better analysis report can be prepared and businesses can operate well. Chatbots can better adapt according to the condition with their smart learning.

III) Automation process – Whenever we talk about artificial intelligence the first and foremost thing that strikes our mind is that they perform automated tasks, Yes they are really good at this.

Chatbots can automate different processes depending upon the situation. This feature can be well used by businesses in collecting data which is further used to prepare analysis reports.

IV) Working on unstructured data – 4/5 of the digital data is not structured which is the major reason behind the poor analysis of digital data. Chatbots which are powered by artificial intelligence can organize and structure this data in a comprehensive manner.

This structured and well-organized data can be better comprehended hence better analysis report can be prepared which is extremely important behind the success of any business.

So these are the most common ways in which chatbots are used these days. Now we are in a position to proceed further in this chatbot guide.

You might be thinking that why do we need a bot and why we should create them?

Let me clear your doubts:

2. What is the Use of Chatbot?

What is Chatbot?

Chatbot Development

You might be wondering about why chatbots are paid so much attention even if they offer a simple service. Let us understand is why they are an opportunity-

With the evolution of the internet, messaging apps have earned great popularity.

Gone are those times when people used to spend a major portion of their day browsing the internet. Instead of browsing the internet these days people tend to spend a large of their day on messaging platforms. These messaging platforms are offering better channelization of work in more personalized fashion

Smartphone users are investing the major portion of their day on messaging platforms.

Messaging apps are being used more often compared to social networks. This is rather a great opportunity for developers.

Since the use of other mobile applications is going down, developers have considered it a better way to make money. If we think in a different way, people are spending most of their time on messaging platforms then why not take our business there where people actually are.

A business can only propel if it is made to reach the right audience and these days most of the internet users are highly active on different messaging apps.

Hence chatbot is a great opportunity if you are looking to take your business to the next level. It is something that people actually want and they will love it.

Now since we have answered your basic questions like what is chatbot and what is chatbot technology it is probably the time to let you know how chatbots actually work and how do they know the answers to your questions. Let us try to understand.

  • Let us have a look upon some of the most important benefits of Chatbots that all kinds of businesses should pay attention to-
  • Chatbots excite your customers and increase your conversion rates
  • Chatbots would never replace humans to function instead they will make human interactions more productive and convenient
  • With the help of Chatbots, your operational cost would cut down
  • You can expect progressive avenues for the marketing and sales with the help of chatbot technology
  • Sales and customer services are positively impacted by the Chatbots
  • Chatbots are highly effective in meeting the expectations of the customers, so with them, you can expect better open rate, engagement and personalized experience
  • You can use Chatbots to showcase new products and services
  • Nature of marketing can be positively and conveniently influenced by Chatbots
  • Customers can purchase products via Chatbots
  • Businesses can use Chatbots for sending notifications to customers

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3. How does Chatbot work?

What is Chatbot

Working of Chatbot

As you came to know about Chatbots you must have thought that it is not easy to create a chatbot that knows the answer to our question and can actually make conversation with us.

You must have thought about the role of artificial intelligence behind chatbots. Yes, artificial intelligence is there but you can also do that. Let me make things simpler;

Basically, there are two types of chatbot; one is very basic one which is based on certain rules and the second one is more advanced which is based on machine learning.

Not clear? Let us understand it deeply:

Basic chatbots are very limited when it comes to their functions.

They are meant to answer basic questions and respond to basic commands and in case you make a wrong input they won’t be able to answer you. The smartness of these bots depends on how they are programmed.

Whereas Advanced chatbots use artificial intelligence and they are not limited to specific commands only rather they can understand your language as well. Such bots keep learning from the conversation that they make with users.

Now since you are clear with that it would be a lot easier for you to understand that these bots are created to serve specific purposes. Somebody would make a bot that is intended to answer the customer’s queries whereas someone will create it to assist their users while making any purchase.

You might be wondering if these chatbots use artificial then will you be able to make it?

Do you need to be a tech expert in the field of artificial intelligence to create a chatbot?

The answer is No, you don’t need to be an expert in artificial intelligence to create a chatbot that has artificial intelligence.

When it comes to creating a chatbot that has artificial intelligence in it, there is a very simple rule; don’t overpromise. If you are not able to create an awesome product with artificial intelligence then probably you should not just start over it.

In last few years artificial intelligence has witnessed an evolution through which if anyone who is well versed with programming can actually introduce a basic level of artificial intelligence in their products.

Chatbox optimization is also an important practice that need your attention. Different things comprised in the optimization of Chatbox are-

  • Optimize Chatbox for setting appropriate goals
  • You can also use varying inviting welcome messages in your Chatbox
  • Using some additional information about the brand in your Chatbox will help in its optimization
  • You can add new products via Chatbox
  • Businesses can also use Chatbox for updating customers abut the pricing changes
  • Chatbox can be effectively used for the broadcasting of new and more attractive offers

Now time has come to understand how you can actually incorporate artificial intelligence in your chatbots.

4. What is Chatbot Development?

You can always create a basic chatbot that follows a certain set of rules but can you also create a chatbot that has artificial intelligence? – Off-course you can.

First of all, you will have to set up your mind, by that we mean you will have to figure out what type of problems are you going to solve using your chatbot and on which platform (Facebook, telegram, etc.) your bot will run.

You will have to figure out the server from where your bot will operate and what type of service will be used to build your bot.

Chatbots can be created on a number of platforms like Facebook messenger, telegram, slack, Kik, etc. It all depends on how you think and how creative you are. You will have to plan everything and implement it while building your chatbot.

Experts believe that creating a successful chatbot doesn’t depend on how technical you are rather how creative you are. A successful chatbot is the one where users would love to come back and chat.

So it might be clear to you that even if you are not a tech geek and a novice in the field of artificial intelligence you can still create an awesome chatbot that has artificial intelligence.

Remember that you can always create a basic chatbot that basically follows a set of rules.

By now you must be clear with your questions like what is chatbot and what is the use of chatbot?

So we are going to witness chatbots more often in the upcoming future.

What is Chatbot

Chatbot Development

One can surely say that in future we are going to witness the messaging platforms and artificial intelligence working together. Since the interest of internet users is increasing in messaging apps, the opportunities of chatbots are increasing as well.

By using chatbots service providers will actually be able to solve the problems of users and handle their pain on the platforms where such services don’t exist.

In order to run the chatbots in the best way we need to train it like that and for that we need to feed it with a huge set of data.

Artificial Intelligence will first learn from the conversation and then it will work accordingly.

Business owners have understood if they want to make their business successful then they will have to do exactly what the users want.

Simply providing the desired products won’t do the job, rather businesses need to be promoted in the right areas. They will have to reach exactly where their users are.

Chatbots can be created according to one’s requirement. You can actually customize it according to your need.

Wrap Up!

Artificial Intelligence is definitely going to mark its presence in future and chatbots will surely be loved by users.

With the emergence of new communication platforms and increased interest of users in messaging platforms comes a huge opportunity for chatbots.

Chatbots are still in the initial phase and they are being improved in various areas. One thing is certain that we will see an improved version of chatbots in the future.

Chatbots will be able to understand human languages better in upcoming future and they will respond in a more preferred way.

That’s all for today!

To learn how chatbot technology can be integrated into Digital Marketing Campaigns, you can join the Digital Marketing Course.

For what purpose do you think Chatbot technology would be good for your business? Share with us in the comments.




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