Chatbots for Customer Service: A Must in 2023?
Chatbots, powered by artificial intelligence, are poised to revolutionize customer service channels. Gartner forecasts that by 2027, chatbots will be the main interface for customer service. However, current trends indicate this transformation might occur earlier, possibly by the end of 2023.
A 2022 Gartner survey highlighted that 54% of businesses with an online presence already use Conversational AI (CAI) for customer service. Businesses are deploying chatbots to handle customer support conversations voluntarily, thus improving customer experience and reducing costs.
Why Chatbots are crucial for Customer Service?
Chatbots are particularly popular among Gen Z users, who comprise over 60% of online users and prefer to address their customer service issues independently. Adoption of chatbots is higher in larger enterprises, with a 46%+ market share, a figure expected to rise as businesses increasingly realize their potential in reducing operating costs.
Here are the 5 reasons why chatbots are crucial in 2023!
- Enables seamless use interaction with Self-service and Omni-channel Deployment.
- Delivers delightful first-contact experiences to build customer rapport and trust.
- Facilitates context-driven personalized interactions enhancing customer engagement and satisfaction.
- Achieves significant reduction in operational costs by managing routine queries and tasks, thereby saving resources.
- Offers a connected experience creating a holistic service environment.
Read the original blog for a more comprehensive understanding of the above points.
Chatbots for Customer Service: A Statistical Analysis
With approximately 2 billion digital buyers globally (Salesforce), the increasing customer base and ongoing trends accelerated by the pandemic make chatbots a viable solution for scaling customer support without raising expenses or staff numbers.
The chatbot market is projected to generate $454.8 million in revenue by 2027, up from $40.9 million in 2018 (Statista). Businesses spend nearly $1.3 trillion annually on customer demands, and chatbots could help reduce customer service costs by 30% (IBM).
Furthermore, with advancements in chatbot technology and machine learning, chatbots can offer a more personalized customer experience. They can also assist in providing the immediate response time expected by modern consumers, thus enabling effective customer service across various selling channels.
The above statistics make it evident that using chatbots as a part of the customer service channel in 2023 seems not just beneficial, but potentially mandatory for businesses aiming to stay ahead in the digital age.
If you are looking to tap into the transformative power of chatbots for your business, feel free to check out our service portfolio
You might also be interested in: Conversational AI in Insurance Industry: Top Use Cases to Explore