applications of chatbots

Top Applications of Chatbots (with Use Cases)

Chatbots have emerged as the most promising solution for simplifying business communication in recent times. They provide the perfect simulations of human conversations with in-build capabilities for understanding human language and processing it to derive the relevant response for users. Most important of all, the applications of chatbots beyond the scope of communication between customers and brands showcase their efficiency.

Therefore, the demand for learning more about the benefits of chatbots and their applications is constantly increasing in recent times. Chatbots are easily one of the prominent emerging technologies with the potential for transforming various sectors rather than just business communication.

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Readers can find the notable uses of chatbots in the following discussion, followed by an outline of the use cases related to chatbots. The facility of a use case diagram in the discussion for a specific chatbot use case example can also provide a simpler understanding of chatbot and its working.

Why are Chatbots Significant?

Before diving into the applications of chatbots right away, let us take time to reflect on the factors that enable chatbots to improve customer support. The foremost reason for choosing chatbots for applications to provide customer support is that customers prefer text as a primary means of communication with a brand.

According to The State of Global Customer Service Report 2018, almost 66% of customers opt for self-service to avail of customer support. And, chatbots provide the best platform for customers to achieve the same. The benefits of chatbots, such as instant responses and high availability, are also credible reasons for validating their applications. Unlike a customer support representative, chatbots never take a break, go offline, or sleeps!

So, customers have the assurance of receiving support at any time, while businesses can deliver exactly what the customer wants. According to The Live Chat Benchmark Report 2019, live chat is highly responsible for achieving better customer satisfaction ratings. Live chat is interactively conversational and fast with the functionalities of chatbots. So, it is clearly evident that the applications of chatbots can gain prominence on the basis of these factors.

Variants of Chatbots

Another important aspect before reflecting on chatbot examples with their application is the classification of chatbots. The types of chatbots can provide a basic idea of the different types of chatbot use cases. The general categories of chatbots implemented by businesses are transactional chatbots or rule-based chatbots and conversational or AI-based chatbots.

Transactional chatbot includes pre-defined guidelines and follows a specific structure for interacting with the user. Customers can choose the relevant option according to their requirements, and the chatbot determines the next step of the interaction accordingly. Transactional chatbots are more suited for businesses that encounter frequent common queries from customers.

For example, restaurants get frequent requests about the pricing of products, timing, availability of bookings, and other aspects. A transactional chatbot can help restaurant customers find answers to such queries easily within less time. The applications of chatbots have received a completely innovative angle with the second type of chatbots, i.e., conversational chatbots.

Conversational or AI-based chatbots are capable of understanding and responding to conversations just like a human. Conversational chatbots leverage AI capabilities such as predictive intelligence, context evaluation, and sentiment analysis to provide a personalized conversational interface to users.

Furthermore, conversational chatbots are capable of leveraging consumer data for providing ideally tailored responses. Conversational chatbots are the go-to options for businesses having sophisticated SaaS capabilities and B2B enterprises that have enterprise solutions as well as social media platforms.

Also Read: Role of Chatbots in DevOps

Top Applications of Chatbots

Now that you are clear about the significance of the applications of chatbots and their variants let us move towards an outline of the different applications. There is no doubt that the uses of chatbots in various sectors worldwide are large because of their benefits. Well-established firms, as well as startups, want to capitalize on the functionalities of chatbots for enhancing the effectiveness of different aspects in their business operations, such as user experience and customer engagement. Here is an outline of the top implementations of chatbots across various businesses.

  • Media Publishing Applications

One of the foremost applications of chatbots is clearly evident in the content delivery industry. Media publishers recognize chatbots as a promising approach for engaging with the audience alongside monitoring the engagement of the audience. As a result, chatbots can help media publishers in obtaining credible and helpful insights regarding audience interests.

Users could chat with the chatbot of a brand directly on platforms such as Facebook Messenger, thereby providing better ease and responsiveness of communications. Many media publishers also leverage the power of machine learning technology and AI in chatbots for predicting the type of content that could appeal to their audience. As a result, content delivery could become more immediate alongside better personalization.

  • Food Ordering

The second commonly visible application of chatbots is evident in the case of food delivery. Notable names such as Pizza Hut and KFC use chatbots for allowing customers to place orders through a conversation. In addition, the applications of chatbots with a twist in the case of Taco Bell show the potential for tailoring the implementation of chatbots to ensure the best possible customer experience. The Taco Bell chatbot or TacoBot can use emojis in the responses and crack jokes alongside answering trivia questions. These elements in chatbots can improve the association of a customer with a specific brand.

  • Companionship Applications

Chatbots could also be a game-changer in terms of companionship. The applications of chatbots as virtual and digital assistants could help in providing companionship to people in need, such as elderly people and Alzheimer’s patients. One of the notable chatbot examples, in this case, would be the one by Endurance, a Russian technology company.

The chatbot by Endurance is specifically tailored to serve as a companion for elderly people and patients with Alzheimer’s. The chatbot serves as a virtual companion by interacting with senior people about topics such as weather, news, nature, music, and others. The conversational chatbot can ask queries and respond to answers while selecting the ideal topics according to the user’s interests.

  • Market Research Applications

The applications of chatbots could also define new benchmarks in the field of market research. Chatbots can help in personalized interaction with market research respondents. Although dedicated survey applications can be reliable options for market research, chatbots add personalization and conversation factors. As a result, researchers can achieve better engagement of respondents in the research, thereby ensuring higher completion rates.

  • Healthcare Applications

The chatbot examples in the healthcare sector also showcase the breadth of the reach of chatbots. Chatbots, such as Super Izzy has been helping medical professionals in providing quick medical diagnosis and answers to health-related questions. The Super Izzy chatbot could help in tracking menstrual cycles, fertile windows, and menstruation dates. In addition, it also provides helpful information on sexual issues and menstrual health alongside asking questions related to menstruation.

  • Hospitality Sector

The applications of chatbots are also evident in the hospitality sector with various outcomes. For example, Radisson Blu Edwardian Hotels employ a chatbot, Edward, to assist guests. The chatbot can provide support to guests with various things such as management of customer inquiries, online check-in, and verification of the availability of rooms. In addition, the hotel management team also uses data from Edward for monitoring general user requests and improving their services accordingly.

  • Legal Industry

Most important of all, the applications of chatbots are also being accepted in the legal sector. Chatbots are ideal for the legal sector due to their abilities for optimization of work processes to deliver considerable savings on time and money. One of the notable examples of the implementation of chatbots in the legal industry refers to Immigration Virtual Assistant (IVA) chatbot by a Montreal-based law firm, EXEO.

IVA is basically a smart virtual assistant that can provide reliable support for all aspiring immigrants. It can ensure that users complete the immigration process quickly and with limited stress. Most important of all, users can access IVA on Facebook Messenger to obtain reliable information regarding student visas, immigration programs, permanent residence programs, and work permit regulations.

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Use Cases of Chatbots in Different Industries

So, one can clearly notice that chatbots have a wide range of applications across various industries. However, are chatbots just meant to be the replacements of human customer support representatives? As a matter of fact, the major share of discussion around chatbots primarily emphasizes on their capabilities to provide a conversational interface.

Therefore, a reflection on the different chatbot use cases could provide deeper insights into the actual potential of chatbots. Businesses can leverage chatbots for various use cases such as customer service, sales, marketing, and information retrieval. Here are some of the notable use cases of chatbots with the outline of a chatbot use case diagram for retrieving student details from an institution’s database.

  • Use Cases in Customer Service

The applications of chatbots in customer service account for a major share of their use cases. Using chatbots for customer service is a common application that you can notice everywhere. However, chatbots have a lot of uses within the customer service application scope. Chatbots are the perfect tool for automating the website or online support with the facility of in-app customer support.

Most important of all, the applications of chatbots in customer service could also include use cases to ensure the management of internal helpdesk support. Furthermore, the implementation of chatbots in customer service also involves the use of cases of collecting customer feedback.

  • Use Cases in Sales

The next important entry among top use cases for chatbots is evident in sales. Generally, you would assume that chatbots are capable of providing appropriate recommendations for products and services to customers. However, the uses of chatbots in sales extend way beyond the common assumptions.

Chatbots can serve to use cases of lead generation for applications in sales by segmenting audiences and verifying leads. Chatbots could support the applications in sales with use cases of lead retention. They can be ideal instruments for providing personalized product recommendations and offering discount coupons.

  • Retrieving Information

Another common use case of chatbots is evident in information retrieval. This use case can pervade almost any industry that deals with frequent access to information. For example, databases of educational institutions can use chatbots for providing the flexibility of educational administration and learning experience.

Students can use the chatbot for viewing their academic details and learning resources while parents can use chatbots for viewing important notices and academic performance of students. The following chatbot use case diagram can provide you a specific idea regarding the implementation of such chatbots.

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Final Words

On a concluding note, you can clearly observe the wide-ranging applications of chatbots in the above-mentioned discussions. Most important of all, the use cases of chatbots show that they are here to stay. The flexibility of the application of chatbots in different industries and the capability of chatbots to deliver unique use cases for each application strengthens the evidence of the potential of chatbots.

Rather than treating chatbots as means for conversational interfaces, it is important to reflect on the other ways of gaining the most out of chatbots. In the long-run, chatbots would play a huge role in transforming the digital experience of customers. So, learn more about chatbots with the Chatbots with Dialogflow/Nodejs training course and leverage their true potential right now!

About Dharmalingam N

Dharmalingam.N holds a master degree in Business Administration and writes on a wide range of topics ranging from technology to business analysis. He has a background in Relationship Management. Some of the topics he has written about and that have been published include; project management, business analysis and customer engagement.

1 thought on “Top Applications of Chatbots (with Use Cases)”

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