Chatbots are becoming increasingly popular across industries as businesses realize their potential to automate tasks, provide 24/7 customer service, and generate valuable insights. In this comprehensive guide, we will explore over 30 chatbot use cases and applications to showcase how they can benefit companies.
Overview of Chatbots
A chatbot is an artificial intelligence (AI) system that can simulate human conversation through text or voice interactions. Chatbots can be integrated into messaging apps, websites, mobile apps, and virtual assistants.
Some key capabilities of chatbots include:
- Natural language processing to understand human queries
- Machine learning to improve conversations over time
- Integration with back-end databases and systems
- 24/7 availability to assist users anytime
- Scalability to handle high volumes of conversations
According to Grand View Research, the global chatbot market size was valued at USD 2.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 24.3% from 2020 to 2027. This growth highlights the rising demand for chatbots across sectors.
Now let‘s explore some of the most common and impactful use cases of chatbots for businesses.
Customer Service Chatbots
One of the most popular applications of chatbots is in customer service. According to IBM, about 75% of customer queries are repetitive and can be easily handled by bots.
Some examples of using chatbots for customer service include:
Answering Frequently Asked Questions
Chatbots can be loaded with answers to common questions customers might have about a company‘s products or services. This helps deflect a large volume of routine inquiries so human agents can focus on more complex issues.
Customer service chatbot answering frequently asked questions (Image source: Helpshift)
Resolving Common Issues
Beyond answering questions, customer service chatbots can troubleshoot and resolve common problems like account access, password resets, tracking orders, updating personal information, and more. This further reduces the burden on live support staff.
Directing to Human Agents
When a customer query is too complex for a chatbot, the bot can smoothly transfer the conversation to a human agent. According to Aspect, 86% of customers expect chatbots to reliably connect them with real people when needed.
Collecting Customer Feedback
Chatbots make it easy for companies to collect feedback through quick surveys within conversations. This provides useful customer insights to improve products and services.
Marketing Chatbots
Chatbots are also gaining popularity in marketing, enabling more personalized and engaging interactions with customers.
Recommending Relevant Products/Services
Sophisticated chatbots can understand customer needs and behavior to provide personalized recommendations for products or services they might like. This creates a more tailored experience.
Chatbot providing personalized book recommendations based on user‘s preferences (Image source: drift.com)
Lead Generation
Many businesses are using chatbots to qualify leads by asking interested prospects a series of questions to gauge their needs. The bot can then route qualified leads to sales teams.
Surveys and Market Research
Chatbots make it easy to survey customers at scale to gain market insights. Customers are more likely to respond to a quick bot-driven survey than a lengthy online form.
Sales Chatbots
Chatbots are transforming sales processes by acting as sales assistants and enabling conversational commerce.
Lead and Deal Management
Sales chatbots can be integrated with CRM systems to help sales teams manage leads and deals more efficiently. For example, the bot can automatically log interactions, update lead info, and prompt next steps.
Conversational Commerce
Chatbots allow customers to make purchases through natural conversations. For example, a shopper can simply tell the bot they want to buy a specific product, and the bot can guide them through the checkout process.
Shopping chatbot enabling conversational commerce (Image source: drift.com)
Cross-selling and Upselling
Based on a customer‘s purchase history and preferences, sales chatbots can recommend complementary or higher-end products to cross-sell or upsell. This drives more revenue.
Lead Nurturing
Sales chatbots can engage leads through timely and personalized messages to nurture them down the sales funnel. The bot can provide useful information, promotional offers, and tips tailored to the prospect.
HR Chatbots
Human resources teams are using chatbots to automate repetitive tasks and provide quick access to company information for employees.
HR Policy Questions
HR chatbots serve as a go-to resource for employees to get answers to common HR questions like vacation policies, dress code, training programs, and company perks.
HR chatbot answering employee questions about company policies (Image source: Chatbots Magazine)
Onboarding and Training
HR chatbots help onboard new hires by providing personalized step-by-step guidance on processes like paperwork, system access, equipment setup, and training.
Managing Time-Off Requests
Employees can use HR chatbots to seamlessly submit vacation or sick leave requests, and get instant confirmation on whether their time-off was approved based on company policy.
Submitting Expenses
Employees can easily submit expenses by itemizing them through a conversation with the chatbot. The bot can guide the employee through the required info needed to complete the submission.
IT Help Desk Chatbots
IT chatbots allow employees to get technical support and solve common tech issues anytime without waiting for live assistance.
IT chatbot helping employee fix printer connectivity issues (Image source: Yekaliva)
Some examples include:
- Password reset
- Software installation guide
- Steps to connect devices to WiFi
- Troubleshooting network issues
- How-to tips for common programs and tools
This improves productivity by reducing IT ticket volumes so tech teams can focus on critical infrastructure and cybersecurity.
Facilities Help Desk Chatbots
Similar to IT help desks, facilities teams can use chatbots to provide quick assistance with common workplace needs and streamline request ticketing.
Answering Questions
Enable employees to ask the facilities bot questions on conference room availability, how to adjust office temperature, when janitorial staff comes, etc.
Managing Service Requests
Employees can submit requests for repairs, equipment, catering, cleaning, mail services, and more. The bot logs all details into a ticket for assignment and tracking.
This takes pressure off facilities staff while giving employees an easy way to get facilities help anytime.
Supply Chain Chatbots
Chatbots are being adopted across supply chain and logistics functions like inventory, shipping, tracking, and more.
Inventory Lookups
Let warehouse workers or external suppliers easily check real-time inventory levels and location by querying the chatbot with a SKU or product name.
Shipment Tracking
Customers and partners can track the status of shipments by providing shipment or order IDs to the supply chain chatbot. This improves visibility.
Logistics Management
A logistics chatbot can help manage transportation of goods by gathering details needed to schedule pickups, plan routes, and address any delivery issues.
E-Commerce Chatbots
Chatbots provide an easier way for shoppers to research, browse, and purchase products online through conversational experiences.
Personal Shopping Assistants
Shoppers can describe what they‘re looking for and get personalized product recommendations from the chatbot. It‘s like having a virtual shopping assistant.
Conversational Commerce
Shoppers can place orders, make payments, track deliveries, and get support purely through conversations. No need to navigate complex apps or sites.
Ecommerce chatbot enabling conversational shopping and purchases (Image source: Chatbot‘s Life)
Wish Lists
Shoppers can use the chatbot to easily add or remove items from a personalized wish list for future purchase consideration.
Product Information
Instead of searching, shoppers can simply ask the chatbot for specifics like price, size, availability, features, and recommendations for a given product.
Travel and Hospitality Chatbots
Chatbots are transforming travel planning and bookings by providing a conversational interface.
Trip Planning Advisor
Travelers can describe their ideal trip parameters and get personalized destination, hotel, flight, and activity recommendations from the chatbot.
Travel chatbot providing trip recommendations based on user criteria (Image source: Engati)
Booking Flights/Hotels
The chatbot can ask about travel dates, location, number of people, and preferences to provide booking options and complete reservations.
Managing Itineraries
Travelers can ask the chatbot for details on upcoming trips like confirmation numbers, booked hotels, car rentals, and flight info.
Checking Loyalty Points
Enable customers to instantly check their loyalty program balance and redemption options by querying the travel chatbot.
Banking and Finance Chatbots
Financial institutions use chatbots to provide faster customer service, simplify transactions, and act as virtual financial assistants.
Account Balance Checks
Customers can instantly check their latest account balances and transaction histories by asking the banking chatbot.
Funds Transfers
The chatbot walks users through transferring money between accounts or wiring funds to third parties by gathering necessary details.
Loan and Credit Guidance
Bots can answer common questions on loan and credit products, application processes, required documents, eligibility, rates, and terms.
Investment Management
Wealth management bots can provide investment portfolio recommendations aligned to a customer‘s risk appetite, goals, and preferences.
Healthcare Chatbots
Healthcare organizations use chatbots to improve access, reduce costs, and assist patients.
Symptom Checking
Patients describe their condition and symptoms to a medical chatbot that provides possible conditions and triage advice based on the info.
Chatbot helping user check symptoms (Image source: Your.MD)
Managing Appointments
Patients use healthcare chatbots to book, confirm, cancel, or reschedule medical appointments. Some bots connect directly to practice management systems.
Insurance Coverage Q&A
Bots can answer common patient questions on what treatments, tests, and medications are covered under their health insurance plans.
Medication Management
Chatbots integrated with pharmacy systems can help patients track prescriptions, request refills, check drug interactions, and set medication reminders.
Real Estate Chatbots
Real estate companies use bots to engage home buyers and sellers with a conversational agent.
Property Recommendations
Home buyers describe their needs like price range, location, bedrooms, amenities etc. and get suggestions on matching real estate listings.
Real estate chatbot providing property recommendations based on user criteria (Image source: Chatbot‘s Life)
Comparative Analysis
Chatbots can compile and compare listing details like price, square footage, amenities, and location between shortlisted properties.
Schedule Home Tours
Instead of emailing or calling, home buyers can use the real estate chatbot to easily schedule tours for properties of interest.
Mortgage Information
Bots can provide key mortgage-related information like rates,calculators, eligibility requirements, and application process.
Final Takeaways
This covers over 30 impactful chatbot use cases that are revolutionizing industries and enhancing customer and employee experiences.
Some key trends include:
- Customer service – Chatbots deflect routine inquiries to improve satisfaction.
- Sales and marketing – Personalized bots drive conversions and engagement.
- Streamlined workflows – Bots automate repetitive manual processes for efficiency.
- Instant answers – Users get on-demand help and info from chatbots 24/7.
- Conversational interfaces – Bots enable natural conversations with customers and employees.
Businesses of all sizes and sectors can benefit from thoughtfully implementing the right chatbots for their needs. With continuous advancement of AI, these conversational agents are becoming smarter and more useful.
Careful planning on chatbot design, seamless integration with backend systems, continuous improvement based on conversations analytics, and a focus on truly enhancing user experience will drive chatbot success.
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