10 Insightful Chatbot Statistics for SMBs, Startups, and Solopreneurs
Chatbots have been on the rise since as early as 1966. However, they aren’t a one-size-fits-all solution for every business. It’s essential for companies to determine whether chatbots align with their specific needs.
And that’s precisely where Findstack comes in to lend a hand.
If you need to stay updated on the most recent chatbot trends, we’ve got your back. We’ve gathered ten enlightening chatbot statistics along with other valuable insights to keep you well-informed.
Are you all set? Let’s delve right in.
What is a Chatbot?
A chatbot is a powerful tool that employs artificial intelligence (AI) and natural language processing (NLP) to understand customer inquiries and provide automated responses. With this technology, chatbots are able to simulate human conversation through text or voice exchanges.
Chatbots once worked like an interactive FAQ. They were text-based and programmed to reply to a small set of simple queries using pre-written responses. And, of course, failed when it came to more complex questions that hadn’t been predicted.
Today, AI-based chatbots understand users’ needs through NLU (natural language understanding) and use other advanced AI tools to establish what someone is trying to achieve.
The benefits of using Chatbots
These days, chatbot tech is almost everywhere, from workplace messaging apps to home smart speakers.
Here are some common use cases for Chatbots:
- Frees up staff time – Chatbots can be used to automate repetitive tasks, from answering FAQs to scheduling appointments. Agents can get on with more interesting jobs that require creativity, independent thought, and the human touch.
- Helps decrease bounce rates – Chatbots can serve as a 24/365 way to engage and entertain your visitors while answering queries. They can serve as a function to hold the fight before human interaction is required. They help to lessen bounce rates by popping up on websites if the visitor is about to leave to help them find what they’re looking for.
- Multilingual support – Chatbots are available in several languages, to support your global visitors in their native tongue.
- Makes it easier to collect customer data – They can collect customer details like name and email address. And at the end of the interaction, the customer can have the option to complete a customer satisfaction survey for feedback on your brand and improvements.
However, chatbot usage does come with challenges, including:
- Setup and maintenance can be time-consuming – Chatbots can be tricky to install and set up and require regular optimization to work well. Find a straightforward chatbot platform to set up and assign a team member to maintain it.
- They are emotionless – Chat emotional connection and may seem insensitive during customer interactions. Conventional chatbots follow pre-defined paths, leading to cold responses that could adversely affect user experience. Opt for chatbots with natural conversations and always offer support from a staff member.
- Limited functionality – Chatbots can only perform what they’ve been set up to do. Therefore, they should be used as a supplement to your team and not a replacement. Consider the best chatbot solution for your business requirements.
Types of chatbots
Chatbots can boost business growth and can help enhance your service delivery. Here’s a quick overview of the 6 types, how they work, and how they can assist you.
|
Type |
How it works |
Use case |
|
Menu/button-based |
The user is guided through pre-defined menus to help resolve their query. |
Effective in answering common and repetitive questions. |
|
Keyword recognition based |
The chatbot analyzes the customer’s text input and delivers the best response based on customizable keywords. |
It can be useful on websites for quick response answers to help improve the CX (customer experience). |
|
Rule-based (Linguistic based) |
This type can answer questions based on predefined rules. And rules can range in complexity from basic to advanced. |
This is another way to serve your customers online. They can be built to an advanced-level without spending too much. And when they encounter a query they can’t answer, they’ll hand it over to a live support member. |
|
Machine learning (AI bots) |
This type remembers conversations to learn and self-improve based on what customers ask and how. |
AI-powered assistants are great for providing personalized customer service. They can learn a customer’s preferences and offer suggestions based on previous orders. Additionally, they can handle customer queries from start to finish. |
|
Hybrid model |
Hybrid chatbots offer:
|
Useful for large enterprises with many customer queries from an extensive customer database. For smaller businesses, it’s not worth spending the money and time to set up. |
|
Voice bots and chat virtual assistants |
Voice bots are software programs that allow customers to interact with a device through speech. It understands spoken questions and gives basic responses, like automated messages or more advanced ones like Siri. |
Ideal for delivering customer assistance through conversation. |
10 Insightful Chatbot Statistics
1. 23% of customer service companies are currently using AI chatbots
This statistic from Salesforce’s State of the Connected Customer report reveals that AI chatbot use in customer service is still in its early stages, with only 23% adoption. For SMBs, startups, and solopreneurs, this represents a significant opportunity. Deploying effective, user-friendly AI chatbots can provide a competitive edge through improved customer service. However, it’s crucial to stay abreast of fast-evolving AI technologies, as 31% of companies plan to use AI voice technology within the next 18 months. In essence, adopting and adapting to AI chatbot technology can offer significant advantages to proactive businesses.
2. Organizations report a 70% reduction in call, chat, and email inquiries by implementing VCA
This statistic from Gartner underlines the profound efficiency benefits that Virtual Customer Assistants (VCAs) can offer. With a reported 70% reduction in call, chat, and email inquiries, VCAs can significantly streamline customer service operations.
For SMBs, startups, and solopreneurs, VCAs could free up valuable time and resources, allowing them to focus on other critical aspects of their business. The associated 33% savings on each voice engagement also indicates that VCAs can be a cost-effective solution for handling customer inquiries.
However, the adoption of VCAs should not compromise the quality of customer service. The increase in customer satisfaction found by Gartner suggests that VCAs can indeed enhance the customer experience when implemented effectively.
The implementation of VCAs can provide considerable efficiencies, cost savings, and improved customer satisfaction for smaller businesses, startups, and solo entrepreneurs.
3. Nearly 90% of businesses report considerable improvements in complaint resolution speed
An MIT Technology Review of how companies implement AI into their customer journey found that AI enables customer experience operations at “speed and scale.” Additionally, over 80% of business respondents noted enhanced call volume processing.
For SMBs, startups, and solopreneurs, this means quicker resolution of customer issues, leading to improved customer satisfaction and retention. AI tools, including chatbots, can help smaller businesses resolve complaints more quickly and efficiently handle larger volumes of customer interactions, significantly enhancing their customer service capabilities.
4. The global chatbot marketing revenue is expected to reach $137.6 million in 2023
According to a Statista study, the chatbot business generated $106.6 million in 2022. They predict the industry will grow exponentially and reach an approximate worth of $454.8 million by 2027.
In essence, the forecasted growth in chatbot marketing revenue reflects a broader trend toward automation and AI in customer service. SMBs, startups, and solopreneurs need to stay ahead of this trend to meet evolving customer expectations and maintain a competitive edge.
5. 58% of B2Bs use chatbot software on their websites
According to research into chatbot software deployment trends, Boomtown found that B2B companies tend to use chatbots on their sites more frequently than their B2C counterparts.
Bottom line? Irrespective of the B2B or B2C context, the increasing use of chatbots underscores their value in enhancing user experience and improving business operations. Businesses should consider whether chatbot software aligns with their unique customer needs and service goals.
6. Using Facebook Messenger Checkbox and an abandoned cart conversational commerce experience stores see an increase in eCommerce revenue by 7-25%
Conversational commerce in short is direct two-way communication between you and your customers. To achieve this online, automated tech is used powered by rules and sometimes AI so businesses and customers can communicate via chat and voice interfaces.
Chatbots Magazine discusses how Facebook leverages chatbots to build relationships and boost conversions by sending customers private messages within 1–4 hours after cart abandonment, offering to help complete their purchase or answer questions. Chatbots can also update customers on their order status or thank them for their first purchase.
7. 33% of consumers believe chatbots are ‘very effective’ at resolving their issues
According to Statista, many customers felt their issues were resolved “somewhat” effectively through a chatbot. These stats indicate that chatbots are worth the investment, with only 13% of customers saying a chatbot was “not at all effective.”
Implementing a chatbot can certainly free up human resources to tackle more complex queries, thereby improving overall customer service efficiency. However, it’s also worth noting that a small percentage of consumers found chatbots ‘not at all effective’, emphasizing the need for businesses to ensure their chatbot strategy is well-implemented and customer-focused. In other words, while chatbots offer great potential, their effectiveness ultimately depends on their design, programming, and integration into the broader customer service strategy.
8. Around 46% of customers felt chatbots prevented them from speaking to the people they needed to
Another chatbot statistic that looks into customer insights researched by NewVoiceMedia reveals that chatbots can be a hindrance more than a help, so business owners also need to consider this opinion. Regarding customer’s experiences interacting with chatbots, their research also found:
- 75% of customers prefer to have their needs addressed by a live agent
- 63% found they were unable to solve complex issues
- 25% had concerns regarding data privacy
While chatbots can significantly enhance business efficiency and customer service, they are not a one-size-fits-all solution. Despite being able to handle simple queries and automating routine tasks, human agents should still be readily available for complex issues. These are aspects that should be considered when integrating chatbots into a business’s customer service strategy.
9. With 34%, online retail stores have the highest rates of chatbot ‘acceptance’
Chatbots are used heavily in eCommerce to enhance the customer’s shopping experience. And some studies show customers are receptive to the new technology. Online retail stores have the highest approval rate compared to other industries.
10. eCommerce transactions predicted to reach $112 billion through chatbots in 2023
Juniper Research advised that benefits such as cost savings, cart recovery, and upselling will propel chatbot use to drive transactions and reach this approximate figure.
The value chatbots offer in terms of cost savings, cart recovery, and upselling is clear. For e-commerce businesses, this highlights the importance of integrating chatbots into their sales and customer service strategies. However, while the potential rewards are substantial, companies should ensure the implementation is customer-friendly and adds value to the user experience.
Consider Findstack for expert tech stack advice
The data in this post clearly demonstrates the power of chatbots in handling routine customer interactions, offering an avenue for considerable financial advantage. This isn’t a mere hypothesis – businesses globally are witnessing tangible returns on their investment post-implementation.
Strategically deploying chatbots allows for efficient resource allocation, promptly resolving customer issues while minimizing expenses. It’s important to note, however, that while bots can streamline processes, successfully address complex queries, and maintain a sense of human interaction, live agents remain a crucial component of customer service strategy.
As a trusted advisor, Findstack provides you with comprehensive statistics, informed software guidance, and a plethora of valuable resources, all at no cost. When you start your software search with us, you’re not just browsing; you’re actively moving towards finding the right tools you need for your business, quickly and confidently.
