{"id":52958,"date":"2022-02-09T09:20:01","date_gmt":"2022-02-09T14:20:01","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=52958"},"modified":"2022-02-10T09:52:42","modified_gmt":"2022-02-10T14:52:42","slug":"pros-and-cons-chatbots-customer-service","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/","title":{"rendered":"The Pros and Cons of Chatbots in Customer Service"},"content":{"rendered":"<p>We live in an era where customer support teams are regularly overloaded with requests, but companies struggle to justify investment in additional hands. One solution has emerged in recent years that\u2019s incredibly popular for its low cost and ease of adoption \u2014 chatbots.<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-52993\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash-1024x683.jpg\" alt=\"chatbot Volodymyr Hryschenko\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash-1024x683.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash-50x33.jpg 50w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/volodymyr-hryshchenko-V5vqWC9gyEU-unsplash.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"div-spacer\"><\/div>\n<p>However, for all that chatbots can help streamline budgets and reduce overheads, they can also be an immense source of frustration for customers. It\u2019s also worth considering that not all chatbots are created equal \u2014 those with advanced conversational capabilities are far more expensive (and potentially little more effective) than those built with limited, predefined responses.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>It\u2019s impossible to say whether there\u2019s a long-term future for chatbots in <a href=\"https:\/\/www.sogolytics.com\/blog\/customer-service-communication-challenges\/\" target=\"_blank\" rel=\"noopener\">customer service<\/a>. They might overtake human operators entirely, or perhaps they\u2019ll be consigned to fad obsolescence alongside the fidget spinner. In this article we\u2019re going to examine the real-world pros and cons of implementing customer service chatbots in today\u2019s service industry.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Types of online chatbot<\/h2>\n<p>There are several \u201clevels\u201d of chatbot available for customer support needs:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li><strong>Basic clickable chatbot:<\/strong> These are by far the most common and affordable. These chatbots direct customers through multiple choice questions: customers click the relevant answer which leads either to a specific resource or page, or another multiple choice question \u2014 and the process repeats. These chatbots often have \u201cfree\u201d tiers (of up to a few hundred interactions) and can be implemented very quickly, requiring very little maintenance or \u201ctraining\u201d over time. Usually these are connected to a third-party service like Facebook Messenger or WhatsApp.<\/li>\n<li><strong>Intelligent virtual assistant:<\/strong> IVAs are a whole other ballgame. These natural language-understanding assistants can (theoretically) respond to regular free text. The chatbot can also understand customer intent, and use this to direct them as efficiently as possible. These create what are known as \u201cConversation AI\u201d platforms. They are also significantly more expensive and require a time investment to \u201ctrain\u201d the chatbot and integrate it properly.<\/li>\n<li><strong>Deeply integrated intelligent virtual assistants:<\/strong> Once again, this is a level up. These bots typically cost tens of thousands of dollars for setup alone, plus <a href=\"https:\/\/www.alphachat.ai\/blog\/chatbot-pricing\" target=\"_blank\" rel=\"noopener\">$5,000 to $15,000<\/a> a month for licensing. They are effectively more advanced versions of the IVA, with the ability to authenticate users through free text interactions and provide them personalized answers automatically based on the data in your database. They can operate in multiple languages, can often be altered with custom code, and provide a more specific and personalized experience for customers. Crucially, however, there is no data yet that suggests these are actually any better than current, less advanced methods.<\/li>\n<\/ul>\n<p>First, let&#8217;s take a look at the <strong>advantages<\/strong> of customer service chatbots.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Quickly resolve common requests<\/h2>\n<p>There is no limit to the number of enquiries a chatbot can address. For companies that receive an excessive amount of enquiries (which could be hundreds a week for a small company, or tens of thousands a day for a large retailer), hiring enough staff to manually respond to each one can be prohibitively expensive.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>A chatbot can be programmed to answer certain questions and direct customers to specific webpages, resources, or products. When doing this, it\u2019s important to acknowledge that you\u2019re using a bot \u2014 when customers think you\u2019re pretending to have real humans at the helm, it\u2019s a recipe for reputational damage.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>24-7 availability<\/h2>\n<p>Bots can operate every second of the day, in every time zone, in any language. For more international companies, the ability to provide some kind of interactive support, even when human operators are unavailable, is extremely valuable. Multilingual capability is also powerful \u2014 it\u2019s a simple sign that you\u2019re the kind of company they should be interacting with. Done correctly, these features can show prospective customers that you\u2019re going the extra mile on their behalf.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>If an enquiry leads to requesting a human, your bot can simply share the hours that your live support team is available along with the relevant contact information.<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-52995\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash-1024x683.jpg\" alt=\"chatbot customer service Charanjeet Dhiman\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash-1024x683.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash-50x33.jpg 50w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/charanjeet-dhiman-mHusyBu4bxM-unsplash.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Cost optimization<\/h2>\n<p>The cost of hiring a single full-time support agent is significantly higher than implementing a system-wide clickable chatbot. For a large organization processing basic and recurring enquiries, it is a no-brainer from a cost perspective. For an intelligent virtual assistant, the amount of work and cost is significantly higher; however, they offer a very different experience. It\u2019s also true that we don\u2019t truly know the long-term effects on revenue or customer loyalty from implementing chat bots.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>So while cost optimization is generally a major plus point, it\u2019s not always \u201ccheap,\u201d per se.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>And now, the other side of the coin: <strong>disadvantages.<\/strong><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Limited range of answers<\/h2>\n<p>By far the biggest disadvantage to an online chatbot (even a relatively advanced one) is that it just has nowhere near the range of comprehension that all human operators have. The breadth and variety of possible requests \u2014 and the phrasing used to make them \u2014 is well beyond the scope of chatbots.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>This means that, at least for the foreseeable future, you will always need human operators available to jump in and help.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Not suitable for all companies<\/h2>\n<p>Unless your company has a significant number of resources, webpages, or products to send users to, then there is very little a chatbot can actually do \u2014 other than answer basic questions like opening hours or, perhaps, checking product availability.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>If you\u2019re unsure, it\u2019s important to speak to potential vendors and get their opinion on exactly how a chatbot could help your business.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Extremely agitating for return enquiries<\/h2>\n<p>When I\u2019m returning a product (or have experienced issues with a product), the last thing I want is to interact with a bot. I will instantly request connection to a human, usually without even attempting to use the bot.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Product returns or complaints are some of the most crucial customer interactions for companies; they need to be handled deftly and with care, since the future of that customer is in the balance. Struggling your way through a repetitive chatbot can make a frustrated customer\u2019s blood boil \u2014 just something to consider. Some companies filter product returns automatically to human operators.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Requires ongoing maintenance<\/h2>\n<p>You can\u2019t just set up a chatbot and leave it running indefinitely. They require maintenance, updates, and training on their use will evolve over time. It\u2019s important to remember that while you might save resources on human support agents, you also need someone (or a team) to manage the bots themselves.<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-52996\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/GettyImages-1364050120-1024x683.jpg\" alt=\"chatbot customer service\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/GettyImages-1364050120-1024x683.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/GettyImages-1364050120-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/GettyImages-1364050120-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/GettyImages-1364050120-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/02\/GettyImages-1364050120-50x33.jpg 50w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Conclusion<\/h2>\n<p>The reality is that there are potential ups and downs to chatbots in almost any company. There is definite evidence of companies speeding up service requests and handling \u201ccommon\u201d enquiries (and improving the <a href=\"https:\/\/www.sogolytics.com\/customer-experience-platform\/\" target=\"_blank\" rel=\"noopener\">customer experience<\/a>) far more effectively \u2014 and that\u2019s fantastic!<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>The biggest unknown with chatbots is the long-term effect of negative interactions, such as the times when customers want to throw their laptop out the window rather than spend another minute failing to get through to a chatbot.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Thankfully, those are in the minority, and this technology is only improving. Perhaps in five to 10 years we\u2019ll be saying with total confidence that, unlike the fidget spinner, online chatbots will influence our lives and shopping habits for a long time to come.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We live in an era where customer support teams are regularly overloaded with requests, but companies struggle to justify investment in additional hands. One solution has emerged in recent years that\u2019s incredibly popular for its low cost and ease of adoption \u2014 chatbots. However, for all that chatbots can help streamline budgets and reduce overheads, they can also be an immense source of frustration for customers. It\u2019s also worth considering that not all chatbots are created equal \u2014 those with advanced conversational capabilities are far more expensive (and potentially little more effective) than those built with limited, predefined responses. It\u2019s impossible to say whether there\u2019s a long-term future for chatbots in customer service. They might overtake human operators entirely, or perhaps they\u2019ll be consigned to fad obsolescence alongside the fidget spinner. In this article we\u2019re going to examine the real-world pros and cons of implementing customer service chatbots in today\u2019s service industry. Types of online chatbot There are several \u201clevels\u201d of chatbot available for customer support needs: Basic clickable chatbot: These are by far the most common and affordable. These chatbots direct customers through multiple choice questions: customers click the relevant answer which leads either to a specific resource or page, or another multiple choice question \u2014 and the process repeats. These chatbots often have \u201cfree\u201d tiers (of up to a few hundred interactions) and can be implemented very quickly, requiring very little maintenance or \u201ctraining\u201d over time. Usually these are connected to a third-party service like Facebook Messenger or [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":49239,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204],"tags":[783,176,409,427,116,351,69],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Pros and Cons of Chatbots in Customer Service - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"In this article we examine the real-world pros and cons of implementing customer service chatbots in today\u2019s service industry.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Pros and Cons of Chatbots in Customer Service - Sogolytics Blog\" \/>\n<meta property=\"og:description\" content=\"In this article we examine the real-world pros and cons of implementing customer service chatbots in today\u2019s service industry.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-09T14:20:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-10T14:52:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/12\/cust-7.png\" \/>\n\t<meta property=\"og:image:width\" content=\"487\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Jake Burgess\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/\",\"name\":\"The Pros and Cons of Chatbots in Customer Service - Sogolytics Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\"},\"datePublished\":\"2022-02-09T14:20:01+00:00\",\"dateModified\":\"2022-02-10T14:52:42+00:00\",\"author\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/e31925fdcd74025f92fb3b1695e61a8f\"},\"description\":\"In this article we examine the real-world pros and cons of implementing customer service chatbots in today\u2019s service industry.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/pros-and-cons-chatbots-customer-service\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"The Pros and Cons of Chatbots in Customer Service\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/\",\"name\":\"Sogolytics Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.sogolytics.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/e31925fdcd74025f92fb3b1695e61a8f\",\"name\":\"Jake Burgess\",\"description\":\"Jake is the words and grammar guy. 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