In today's rapidly evolving digital transformation landscape, chatbots have become an integral part of corporate customer service strategies. Chatbots are revolutionizing the way businesses interact with customers by providing 24/7 customer support, instant responses, and personalized experiences. They are effective tools for handling customer inquiries, swiftly resolving problems, and delivering immediate assistance.
A chatbot is a software application which can respond or provide answers to customer requests through text-to-speech conversations in place of live human agents. These AI-powered virtual assistants can also transfer customers to live agents when they are unable to provide helpful answers or based on customer request.
Chatbots leverage technologies such as natural language processing (NLP) and machine learning to understand and respond to user inputs. Over time, through a concept called machine learning, as they are exposed to more conversations, they learn and get better at providing more useful responses.
Chatbots can perform a variety of tasks such as booking an appointment, offering product recommendations, troubleshooting basic problems, order placement and management. Here are some of the ways that organizations are using chatbots in their systems to improve customer service delivery
Sephora
A leading cosmetic brand, Sephora uses chatbots on Facebook Messenger for reservation assistance, virtual art, and product recommendations
Sephora Reservation Assistant on Facebook Messenger: This chatbot helps customers to book a makeover at Sephora stores. It uses Natural Language Processing (NLP) to understand and respond to customer requests in a conversational manner. When a customer wants to make a reservation, the bot asks for the necessary information such as the desired date, time, and specific service. The bot then finds the nearest store with an available slot and completes the reservation.
Sephora Virtual Artist on Facebook Messenger: This bot offers an interactive and personalized shopping experience. It uses Augmented Reality (AR) and Artificial Intelligence (AI) to help customers try on different makeup products virtually. Users can upload a selfie, and the bot applies various products to their image, showing what they would look like with different lipsticks, eyeshadows, etc. The bot can then provide product recommendations based on the user's choices.
Sephora's Kik Chatbot: On the messaging app Kik, Sephora's chatbot offers personalized beauty advice and product recommendations. It asks users a series of questions about their beauty preferences and needs, then provides tailored tips and suggests products from Sephora's inventory that match the user's profile.
Domino's Pizza
This bot named “Dom” is available through Domino's website and app and is designed to make the process of ordering a pizza as simple and efficient as possible. Dom uses Natural Language Processing (NLP) to understand user requests and can handle tasks including:
Ordering Pizza: Users can simply type in or say something like "I want to order a large pepperoni pizza," and Dom will add it to their order. The bot can also handle more complex requests, like half-and-half pizzas or orders with multiple toppings.
Tracking Orders: Once an order is placed, users can ask Dom where their pizza is in the process. Dom can tell users if their pizza is being prepared, in the oven, undergoing a quality check, or out for delivery. This enhances transparency and keeps customers updated on their order status.
Faster and Easy Ordering: Domino's customers can create a pizza profile and save their favorite order. With this feature, repeat customers can simply tell Dom, "reorder my Easy Order," and the bot will place the order without the customer needing to specify the details each time.
Answering Questions: Dom can answer common customer questions about the menu, deals and promotions, or the ordering process.
Mastercard
Mastercard uses an AI-driven chatbot called "Mastercard KAI" on its mobile app and on Messenger platforms. It provides a variety of services, from answering questions to providing real-time transaction details.
Mastercard KAI uses Natural Language Processing (NLP) to understand user requests in a conversational manner, allowing users to interact with the bot as they would with a human. Here's how it works:
Transaction Information: One of the primary functions of the Mastercard KAI bot is providing users with real-time transaction updates. This can include everything from recent purchases to monitoring credit card balance. The bot can break down a user's spending into categories like food, transportation, or clothing, offering insights into spending habits.
Payment Services: The bot can assist users with completing payments. It can also provide payment reminders to help users manage their credit effectively.
Customer Support: The bot is equipped to answer a wide range of customer queries, from basic account information to more complex issues like travel-related queries about foreign transaction fees. If the bot can't answer a question, it can connect the user to a human representative for further assistance.
Financial Advice: Using AI and machine learning, the Mastercard KAI bot can analyze a user’s spending habits and credit history, and offer personalized financial advice. The bot can provide tailored tips to help users manage their finances better.
Duolingo
Duolingo, a popular language-learning platform, uses chatbot technology as a tool to help users practice and learn new languages in a low-pressure environment. Here's how it works:
Interactive Conversations: Duolingo's chatbots simulate text-based conversations in the language the user is learning. Users can interact with different characters who will ask questions or make comments that the user has to respond to. The chatbot uses Natural Language Processing (NLP) to understand and respond to the user's inputs.
Learning Adaptation: The chatbot tailors the difficulty of the conversation to the user's skill level. As the user progresses and their language skills improve, the chatbot will start to introduce more complex phrases and vocabulary.
Guided Responses: To assist with responses, the chatbot provides suggested replies. This is especially helpful for beginners who might struggle with formulating their own responses. Users can also click on a word or phrase during the conversation to get an instant translation.
Error Correction: If a user makes a mistake, the chatbot provides instant feedback and correction, which is a crucial part of language learning.
Engaging Content: The chatbots often simulate conversations that reflect real-life scenarios, like ordering at a restaurant or asking for directions, which can make learning more engaging and practical.
Lyft
Lyft, a popular ride-hailing service launched in 2012, uses chatbot technology in a few different ways to improve the customer experience and make ride-hailing more accessible. Here are ways they are implementing the chatbot technology:
Facebook Messenger Chatbot: Lyft has integrated a chatbot into Facebook Messenger to enable users to request rides directly from their Messenger app. When interacting with the Lyft chatbot, users can specify their pickup location and desired destination, and the bot will provide a cost estimate and wait time. Once the ride is confirmed, the bot will send updates about the driver's location and estimated arrival time.
Slack Integration: For business users, Lyft has a Slack bot that allows users to request a ride directly from their Slack workspace. This is especially convenient for arranging transportation related to work, like rides to meetings or events.
Amazon Echo and Google Home Integration: Lyft has also developed a voice-activated chatbot for Amazon Echo and Google Home devices. Users can ask their smart speaker to order a Lyft, get a quote for a ride, or check on the status of their ride. The chatbot uses Natural Language Processing (NLP) to understand and respond to user commands.
Automated Customer Support: Lyft uses AI-powered chatbots to handle common customer service queries, such as lost items, fare estimates, and ride cancellations. The bot can handle simple issues autonomously and can escalate more complex issues to a human agent if necessary.
eBay
eBay, a multinational e-commerce corporation, employs chatbot technology to streamline shopping and customer service experiences. It uses an AI-powered chatbot known as "ShopBot". Here's how it works:
Personal Shopping Assistant: eBay's ShopBot acts as a personal shopping assistant, helping users find the items they're looking for among the billions of listings on eBay. Users can type in what they're looking for, and the bot will ask follow-up questions to refine the search, such as size, brand, or price range for a piece of clothing. The bot will then provide a selection of items that match the user's criteria.
Image Recognition: The ShopBot also features image recognition capabilities. Users can take a photo of an item they want and send it to the bot, which will then search for similar items on eBay. This is particularly useful for users who are looking for a specific item but don't know how to describe it in words.
Price Prediction: Another unique feature of eBay's chatbot is its ability to predict the price of certain items. Users can ask how much something is worth, and the bot will analyze similar items on eBay to provide a price range.
Customer Support: Beyond shopping assistance, eBay's chatbot also helps answer customer queries. This includes questions about buying and selling on eBay, account issues, and resolving problems.
Amtrak
Amtrak, the National Railroad Passenger Corporation in the U.S., uses a chatbot named "Julie" to improve customer service and provide information to travelers. Here's how it works:
Ticket Booking and Modification: Julie assists users in booking tickets for their travel. It helps users find the best fares, select seats, and even modify their existing reservations. The bot can handle complex requests, such as booking for multiple passengers with different requirements.
Train Status Updates: Julie can provide real-time updates on train statuses. Users can ask Julie about the timing of a specific train, and the bot will provide information about any delays or schedule changes.
Station Information: The bot can provide information about Amtrak stations, such as location, amenities, and hours of operation.
Customer Service: Julie can answer a wide range of customer queries about the Amtrak service, including questions about baggage policy, onboard services, and special offers. If Julie is unable to assist with a specific query, it can connect the user to a human customer service representative.