Chatbots - the numbers behind the theory5th February 2018
Intelligent chat agents - or chatbots - were one of the most trending technologies of 2017. As Facebook's announced support for chatbots opened many doors and possibilities, it was very clear that the future contains chatbots and, in order to keep up with industry trends, companies would have to invest in them.
And, in theory, it does make sense. Wouldn't you - as a customer - want to have your questions answered 24/7, to be able to schedule appointments or shop reliably and with ease - plus all that using the same messaging platform you already have? And wouldn't you - as a company - want to reduce costs and improve your service by letting a chatbot handle answering FAQ, provision of basic information, scheduling and similar mundane tasks?
Well, theory is one thing, but what do the numbers say?
Well, first of all, the numbers confirm that the chatbot technology is undeniably here to stay. According to a recent report by Grand View Research, the global chatbot market is expected to reach USD 1.25 billion by 2025, growing at a compounded annual growth rate (CAGR) of 24.3%, with various applications including e-commerce, healthcare and BFSI sectors.
But do they really work?
While chatbots are not for every business, a well tailored chatbot can be the key factor in turning a profit, and success stories are plenty:
RewardStream, a marketing & software company, accounts 30% of their conversion rate to a chatbot.
Amtrak, a transportation company, outsourced Julie - a virtual assistant to engage and serve their customers. As a result, Julie increased their bookings by 25%, with a 30% increase in the revenue generated per booking. The return on investment was a whopping 800%.
Charter Communications, a cable/internet provider, managed to reduce live chat volume by 83% by implementing a chatbot. The ROI was 500% over six months. The chatbot now handles most of the common customer service issues and questions.
Perfeto Mobile, a web, mobile and IOT testing platform, increased their website conversion rate from 6% to 20% in six months. That is an increase of 230%! The bot let their employees focus on leads more likely to result in a buy.
The previous examples were all web-integrated chatbots. The success stories are not fewer on Facebook's Messenger platform: BabyCenter, as stated by Ubisend's case study, achieved a 84% read rate on automated messages and 53% click through rate from Facebook Messenger to BabyCenter.com. After a successful Messenger chatbot implementation, Good Spa Guide's website traffic increased by 29%, while MyTradingHub, a Forex trading education company, recorded a 59% decrease in churn!
Considering the numbers never lie, chatbots should not be ignored - unless you ride around in a horse-drawn carriage. Contact us to talk about chatbots - or to get your own!