Preparing for new products, managing finances, running your businesses social media and fulfilling customer engagements. As a small business owner, you know there’s a ton to do daily without looking for ways to stay ahead of the competition. One innovation that has been gaining momentum are conversational AI chatbots.
AI-powered virtual assistants are revolutionising how businesses interact with customers and streamline their operations. Automation can allow small business owners to focus on their broader strategy and decision making. The rule based chatbots have given way to conversational AI chatbots. In this blog, we will explore how conversational AI chatbots can benefit small businesses while recognising limitations.
To start off, let’s consider what a chatbot is and why it is becoming increasingly more helpful for small businesses. A chatbot is a computer program designed to simulate conversation with human users. There are rule based chatbots that have specific path the user goes down and there are AI chatbots that learn from conversations with users. With the growing importance of digital tools for small businesses, chatbots have emerged as powerful assets for enhancing customer engagement, improving efficiency, and boosting sales. However, despite the advancements there remains very little research on chatbot implementation specific to small – medium size businesses.
Improving Customer Service
Conversational AI Chatbots play a pivotal role in enhancing customer service for small businesses. They provide 24/7 customer support, ensuring that customers can get assistance at any time of the day. Immediate responses to common queries reduce wait times and significantly improve customer satisfaction. From answering frequently asked questions to tracking orders and booking appointments, AI chatbots handle a wide range of customer service tasks effectively.
Increase Customer Engagement
Virtual assistants enable small businesses to engage with their customers in real-time. They can be integrated into various platforms, including websites, social media, and messaging apps. They serve as a means to keep customers informed about new products, promotions, and updates, while also offering interactive and engaging features like quizzes and polls to attract and retain customer interest. One such example is HelloFreshFreddy, designed to improve customer engagement. The bot managed surveys and quizzes, rewarded customers with automated deals and suggested recipes. Reportedly the bot reduced response times by 76% and increased incoming messages by 47%.
Through interactions with customers, chatbots gather valuable data on preferences and behaviour, providing businesses with a wealth of insights. Analysing these interactions helps identify trends and areas for improvement, ultimately contributing to product and service improvements.
Increasing Sales and Conversions
Small businesses have used chatbots to guide customers through the sales process, provide information and offer product recommendations. By personalising the shopping experience based on customer data and preferences, chatbots contribute to increased sales and higher conversion rates. Real-life case studies of small businesses that have succeeded in boosting their sales through chatbot implementation further emphasise their effectiveness. Conversational Design improved conversion rates by scrapping web-based forms and using chatbots instead. As a result, their lead conversion rate increased by 40% with 20k leads in a year.
Saving Time and Resources
Another significant benefit of AI chatbots for small businesses is their ability to automate repetitive tasks, such as scheduling and basic inquiries. By doing so, they free up valuable time for staff to focus on more complex issues, ultimately improving overall productivity. Furthermore, chatbots offer a cost-effective solution compared to hiring additional staff, with the potential for a substantial return on investment over the long term.
The development of chatbot platforms in recent years, like the chatbot builder Japeto is in development of ‘Japeto Chat’, allow smaller businesses to implement chatbots. With the majority of AI chatbots being used in sales personalised human-like AI chatbot builders are becoming a quick and easy solution. Chatbot building platforms tend to be less resource intensive for small businesses and don’t require any coding knowledge.
Easy Integration and Scalability
One of the key advantages of chatbots is their seamless integration with existing systems, such as CRM platforms and e-commerce solutions. This makes them highly scalable, allowing businesses to adapt and grow without incurring significant technical challenges. Small businesses can explore various platforms (WhatsApp, Slack, WordPress, Shopify etc) that offer chatbot integration.
When Not to Use Chatbots
Despite the numerous benefits of conversational AI, it’s crucial to acknowledge situations where they may not be the best solution. Highly sensitive or complex customer issues may require human intervention, and very small businesses with low query volumes may not reap substantial benefits from chatbots. B2B businesses possibly have less use for chatbots than B2C. A balance between human and automated customer service is useful, because there are instances where human interaction adds value to the customer experience. A more accurate picture is of AI assistants as helpers to human workers, not replacements.
In summary
The benefits of using conversational AI chatbots for small businesses are undeniable. From enhancing customer service and increasing sales to saving time and resources, chatbots have the potential to transform operations and drive growth. It is important, however, to recognise their limitations and adopt a balanced approach when considering their implementation. Small business owners can explore the possibilities of integrating chatbots into their operations but to leverage them where appropriate.
If you’re a small business owner looking to harness the power of chatbots for your business, we invite you to contact us today for a consultation.
