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What is a Chatbot?

A chatbot is a type of Conversational AI software that uses text-based interfaces to simulate human-like conversations with users. Chatbots are used to communicate with users in a natural language format, offering automated responses, answering questions and assisting with various tasks. They are commonly found on websites, messaging platforms, mobile apps and social media.

The Different Types of Chatbots Include:

  • AI chatbots – AI technology-based machine learning and natural language processing (NLP) to understand user intent and generate contextually relevant responses.
  • Transactional chatbots – designed for completing specific tasks, such as processing orders.
  • Virtual assistants – advanced chatbots that can handle a wide range of tasks, provide information, schedule appointments and engage in more complex conversations.
  • Rule-based chatbots – follow predefined rules and scripts to generate responses.

IVR Benefits

  • 24/7 availability: Chatbots can provide round-the-clock customer support and assistance.
  • Scalability: Chatbots can handle multiple conversations simultaneously, making them highly scalable.
  • Cost reduction: By automating customer interactions, chatbots can significantly reduce costs associated with customer support.
  • Increased efficiency: Chatbots can provide quick and accurate responses to customer queries, reducing wait times and improving efficiency.
  • Lead generation and conversion: Chatbots can collect user information and qualify leads by asking relevant questions.
  • Improved customer experience: Chatbots can enhance the overall customer experience by providing instant assistance and resolving queries promptly.

Although chatbots can quickly and efficiently handle customer interactions, customers should always have the opportunity to escalate their queries to voice conversations.

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