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A Detailed Guide To Types Of Chatbot And Why You Must Have Them Today!

Types of Chatbots

Modern buyers don’t like hustling around for answers. They want information instantly, or they switch to the competition. 

You may have a help desk ticketing system in place, but let’s face it – emails can be a bit slow when it comes to addressing customer inquiries.

Anything that requires a human interface automatically becomes time-consuming. Automation has always been the driving force for increased efficiency and productivity.

That’s where we come around to the different types of chatbots that ease our trouble. You’ve all probably used chatbots while providing customer support to your clients. They are those pre-written pop-ups that respond to the customer inquiries.

Chatbots have been in use for some time now. But businesses are still confused about which chatbot to use. This is understandable given the many options out there.

This article will take you through a detailed tour of the different types of chatbots and their use cases. So, let’s dive a little deeper into what chatbots are and how they work.

What Are Chatbots?

chatbots

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Chatbots are computer applications that provide an interface between a business and the user. It is an automated tool that intelligently responds to a user’s query based on pre-defined modules in real time.

Well-designed chatbots can hold meaningful, human-like conversations with website visitors. Chatbots interpret human queries and intend to process and provide relevant answers.

A sophisticated tool, chatbots can interact with the user in various ways by allowing text inputs, voice inputs, or a combination of the two. They offer the user the comfort of choosing the form of engagement that suits them best.

Additionally, chatbots can initiate conversations with potential clients using automated greetings and proactive chat invitations. This opens up a channel for expanding the scope of generating leads and growing sales.

Platforms like the ProProfs Chatbots even allow businesses to integrate live chat within their website, enabling a delightful user experience.

How Do Chatbots Work?

How Do Chatbots Work?

Chatbots are fed a large amount of data to be efficient enough to answer the users’ queries. This helps them find answers to the questions that pertain to similar data.

They can use this data to provide relevant information to the user. As a result, interactive chatbots respond to requests using stored information.

However, it’s only sometimes the case. Modern AI chatbots can respond to questions by comprehending the intent of the user’s issue. Machine learning, which supports this, enables the chatbot to improve the quality of its responses continuously.

Chatbots rely on the following tactics to understand the nature of generated query:

1. Pattern Matching 

Chatbots work by associating the requested query to the available pattern of data it contains. The best-suited solution is generated according to the interpreted pattern.

2. Algorithm Processing

Algorithm processing is a system of forming a hierarchical system out of the available patterns. The chatbot matches the terms in the user-intended query with data already filled in its memory. Thus, depending on the number of matches, it offers the most appropriate response. 

3. Neural Networks 

In simple words, Artificial Neural Networks are like strings. Each string is used to identify a pattern connected to the query. When one part of the query matches the string, the following string is pulled. Likewise, the chatbot keeps pulling strings until the desired answer is reached.

4. Natural Language Understanding

Natural Language Understanding is a way of interpreting a human query to convert it into machine-understandable language. This machine-friendly language is then used to derive the results for the question. It’s like an interface letting machines communicate with humans. 

So, chatbots act as virtual assistants to help businesses engage efficiently with the user ensuring delightful customer service. 

Businesses can efficiently use chatbots to multiply their profits by providing their customers with an intelligent and interactive AI chatbot. It requires no hustle to integrate a chatbot into their website.

So, let’s take a quick look at the different types of chatbots!

Read More - How to Add Chatbot to your websites [Step by Step Guide]

Types Of Chatbots and Their Benefits 

Chatbots are mainly divided into 5 types, namely:

  1. Button-Based Chatbots
  2. Rule Based chatbots
  3. AI & ML-Driven chatbots
  4. Hybrid Model Chatbots
  5. Voice Based Chatbots

1. Button-Based Chatbots

Button-Based Chatbots are the most basic ones used to enhance customer experience. These chatbots initiate questions based on the pre-defined module and then route the user to the relevant answers. Thus, they are often referred to as ”scripted chatbots.”

This eliminates the unnecessary hassle a user might face in enquiring about the product or services.

Benefits of Using Button-Based Chatbots:

  • The user can be guided to the desired results using a pre-defined questionnaire.
  • Button-Based Chatbots provide a more straightforward interface where it becomes easy for the user to follow instructions.
  • Button-Based Chatbots provide scope for an expanded view from an informational perspective. The chatbot showcases all available choices even if the user is unaware of the feature. 

The same user wouldn’t have searched for the same feature by himself if the chatbot didn’t provide it.

2. Rule-Based Chatbots 

Chatbots that operate according to rules rely on pre-built structures for user questions. They need to be more intelligent to respond to hypothetical inquiries. As a result, these are also regarded as the least effective or slowest in modern technology.

They are mostly integrated to answer common questions. They provide an appropriate interface for customers seeking a self-service inquiry portal.

Benefits of Using Rule-Based Chatbots:

  • The most important advantage of using a rules-based chatbot is its efficiency and faster training capabilities.
  • Businesses that face repeated customer queries can leverage the power of Rule-Based Chatbots to provide streamlined solutions.
  • Rule-Based Chatbots do not require learning overtime to enhance the quality of user experience. They are already deployed with pre-programmed instructions.

3. AI & ML-Driven Chatbots 

The most intelligent chatbots use artificial intelligence and machine learning to respond to the user’s questions. They keep improving thanks to machine learning and Natural Language Processing(NLP).

As a result, it is anticipated that the user will receive better results with each new inquiry. These bots interpret the user’s purpose with the assistance of the entities offered, which aid the bots in providing relevant solutions.

Benefits of Using AI & ML-Driven Chatbots: 

  • AI-enabled chatbots offer omnichannel support, making it easier to access through different social media platforms.
  • Multilingual support provided by AI-enabled chatbots enhances their efficiency and accessibility. 
  • AI chatbots can deliver a personalized interface based on a user’s interaction history.
  • AI chatbots offer the ability to analyze sentiments. This helps in enhancing the user experience.

4. Hybrid Model Chatbots 

These are a boon when it comes to elevating the customer experience. AI-based features are combined with the live support extension. The user’s query can be forwarded to a customer service agent if the AI-based chatbot cannot resolve it independently.

It combines the efficiency of Rule-based chatbots with AI-enabled chatbots. This is complemented by the ability to transfer the query to a customer support executive if needed.

Benefits of Using Hybrid Chatbots:

  • Organizations can utilize AI’s quick responses to frequent queries while utilizing human agents to the fullest by using hybrid chatbots.
  • Customers won’t experience the typical annoyance associated with interacting with bots if the hybrid AI is adequately taught and configured. They might not even be aware that they are speaking with a robot.
  • Hybrid Chatbots are specifically advantageous for large businesses with higher traffic.

Thus, the Hybrid chatbot is a one-stop solution for most of the queries that a user may generate.

5. Voice-Based Chatbots

Voice-enabled chatbots are efficient in taking speech-based queries from the user and answering likewise. It works on the principle of taking audio input from the user and converting it into text for self-interpretation. The text response is then once more turned into speech for the user by the bot.

Voice-enabled chatbots provide a delightful customer experience in real time by engaging vocally. This enhances overall customer satisfaction along with reducing the number of tickets.

Benefits of Using a Voice-Enabled Chatbot:

  • It helps minimize the latent period and generate faster responses through active engagement.
  • It enhances productivity by allowing multitasking. Users can work hands-free, thus, increasing efficiency as well as exposure to smooth customer interaction.
  • It provides a multilingual channel for customer support, which helps expand accessibility across different geographies.
Read Also: 10 Best Free Chatbots to Boost Your ROI in 2024

What Are Live Chats, Then?

Live Chats are a mode of transferring queries to the relevant support team. A human chat operator attends these to solve the user-generated queries. This helps answer complicated questions that the bots might not be able to answer.

Most of the time, enterprises are confused between using a live chat and different types of chatbots

Read More: Live Chat vs Chatbots: A Detailed Comparative Analysis

What Are the Advantages of Using Chatbots?

Chatbots can boost the overall productivity of an enterprise by enabling a better communication channel for customers. The below-listed features ensure an effective customer management system through the use of chatbots:

1. Round-the-clock customer support

Round-the-clock customer support

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Chatbots are ideal for increasing your support capabilities without adding more personnel. Since they don’t get tired or feel the need to take breaks, they can be reached 24/7 to provide quick and precise responses.

2. Multilingual customer support

Multilingual customer support

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Chatbots can be developed to assist clients in the languages of their choice and can be used across channels to increase accessibility. Using multilingual chatbots enhances customer loyalty and increases the sales potential for the business.

3. Enhances productivity

Enhances productivity

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Domains like B2B(Business-To-Business) and B2C(Business-To-Customer) effectively utilize chatbots to simplify their requirements. It helps them better manage the existing workforce, thus, increasing overall productivity.

4. Augments customer engagement

Augments customer engagement

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Chatbots serve as effective virtual assistants that increase customer engagement and open new communication channels. It aids firms in automating lead and sales creation.

Introducing live chat to your website can significantly impact your bottom line. It can increase engagement by 3x and conversions by over 45%.

Sectors Using Chatbots

According to a survey conducted by Gartner, 70% of the white collar workers interact with conversational platforms on a daily basis in 2022.

Chatbots are used for services in various sectors, from healthcare to retail enterprises. Some of the usages are listed below:

  • Healthcare: The most fundamental task a chatbot can assist a user with is making appointments. Chatbots can carry out automatic registration and billing processes. This increases efficiency along with saving time.
  • Fintech Service Providers: Banking services can be efficiently provided using automated chatbots. These include payment processing for recurring bills and user authentication for bank accounts.
  • Retail and Servicing: Modern problems require modern solutions. Gone are the days when product services requesting was a headache requiring multiple calls. These days, button chatbots provide an easy interface for registering complaints as well as resolving tickets with minimal human interface.
  • Media and Entertainment: The famous Alexa is the best example to show chatbot’s relevance in entertainment. Just providing voice instructions can get your task done!

For instance- “Alexa! Tell me the benefits of employing chatbots?” And bingo, you’d have an answer to your question before even finishing this article. On the lighter side, however, try not to be discouraged.

Let’s move on to the various applications of chatbots.

Applications of Different Types Of Chatbots

Up until now you probably had a basic knowledge of chatbots and the benefits associated with deploying chatbots for businesses. Chatbots can be integrated depending on the required usage and condition of the application.

Different types of chatbots are utilized for lead generation and experience enhancement services. The following are some of the applications of chatbots:

1. Customer Support Chatbots

Customer Support Chatbots

These chatbots work as a part of query management and lead-generating systems. Chatbots can act as the first point of contact reducing human engagement.

They are trained to provide solutions to commonly generated queries and can transfer them to live agents for complex ones. The hybrid approach makes them a delight to interact with and access information. The 24/7 functionality of these chatbots adds to the overall reach and engagement of the business.

2. Appointment Scheduling Chatbots

Appointment Scheduling Chatbots

These types of chatbots form a part of the office management system. The appointment scheduling is done using Rules-based or AI-based chatbots. They offer easy customization of appointments as per the customer’s comfort. Booked slots can be easily eliminated, along with displaying the available ones.

The self-scheduling feature allows the customer to choose the duration and gap between slots. These read-to-use appointment chatbots can automate the booking process making it more efficient and less complex.

3. Marketing and Sales Chatbots

Marketing and Sales Chatbots

These chatbots are meant to generate sales by engaging users as a part of the product/service marketing procedure. The transcripts of the chats are stored using these chatbots for future reference.

These chatbots use social media analytics to generate personalized interaction as per the customer’s behavioral assessment. Personalized engagements are most likely to drive increased leads and growth enhancement.

4. Booking Chatbots

Booking chatbots are the most common chatbots that we come across in our daily lives. Whether it be Goibibo or Make My Trip, their self-generated pop-ups for booking are probably not alien to anyone. Overall, these types of chatbots help provide an easy interface for the user.

An AI-enabled chatbot can capture information smartly through the conversation and let you skip redundant steps for providing information. Businesses use booking chatbots to increase growth prospects and higher rates of reservation. Chatbots help achieve this by reducing both the time and effort invested in making bookings.

Multiply Growth Rates Using Different Types of Chatbots

Integrating chatbots into your business can help you offer exactly what your customers need – instant support and interaction. From easy customization to multiple design templates, chatbots can be a dynamic tool for engaging your customers and upscaling your sales.

Businesses can leverage the power of chatbots by customizing them to collect pertinent customer information for lead generation. This can significantly lower marketing costs and help you boost revenue.

If you are also looking for a chatbot solution that can help engage customers more efficiently and enhance lead generation, you have come to the right place. ProProfs Chat helps you develop advanced, customizable chatbots to stay available for customers 24×7.

A delightful customer experience is just a knock away! 

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About the author

Jason Grills is a well-known expert in the customer service sphere. His experience extends across multiple industries, where his technologically savvy solutions have reformed the interaction capabilities and operational efficiency of support teams. Countless businesses have benefited from his expertise, implementing his strategies to revolutionize their customer service strategies. Over his 12+ years in the field, Jason has developed a deep-rooted understanding of customer service landscapes.