We have another top 3 whitepaper by one of our amazing Squared Online Module 5 groups. A huge congratulations to Colin Atkins, Rocel Junio, Abigail Dede, Andrew Hutton, Ian Godfrey and Katie Boston for this outstanding paper on the rise of chatbot technology and its potential to disrupt the marketing sector.
The recent surge in artificial intelligence (AI) has irrevocably transformed today’s business landscape. On a daily basis, consumers interact with such automated systems as self-serve grocery store checkouts, voice-interactive customer service lines, and the most recent digital innovation: the chatbot.1 While this transformation presents a myriad of opportunities for the marketing and media industry, the sheer volume of data presents huge challenges, too.
The development of chatbots or conversational artificial intelligence (CAI) is driven by innovations in artificial intelligence such as machine learning, natural language processors, multilingual interfaces together with mobile platform capacity and multi-channel capabilities.7 The more data that is fed into an AI platform, the better it becomes at understanding and responding to the tasks demanded from it. Whether the interaction with a chatbot is ‘human enough’ doesn’t really matter as users prefer chatbot communications.
- Increased customer convenience and satisfaction- instant, 24hr customer engagement
- Increased conversion rates
- Personalised user experience based on existing customer data and current behaviour
- Can offer specific guidance based on user behaviour
- Handles customer service queries and FAQs- reduced need for support staff
- Replaces apps that require download, storing and effort to use
- Out of the box solutions are available; low development cost for lightweight bots
- Provides intel on customer intent
- Cross-organisational analysitcs & insights into the true 'voice of the customer'
- Saves time and money by automating certain functions
- Easily scales in response to business growth
- Potential to be hacked
- Spamming and phishing bots may reduce customer trust and therefore usage
- Negative brand experience if query is too complex to handle by a bot
- Displacement of low level workers
- Negative experience if a query is not passed to a human soon enough
- Poor implementation leading to poor customer experience
- Customer thinking they are chatting with a human can lead to frustrations
- Data security breaches on potentially large amounts of data
- High value customers are not recognised and handled as effectively
- Voice recognition errors (e.g. grammar, accent, pace) leading to customer frustration
- Successful implementation dependant on top-down planning
- Natural language programs- limitations, access and implementation
- Integration with existing CRM anbd analytics tools
- Resources needed to maintain & develop bots
- Limitations on data handling, manipulation & analysis
- Cannot replace the 'human touch' element
- Limitations on current AI to be able to answer queries 'outside of the script'
- Ensuring data management is compliant with GDPR
- Enterprise level bots need extensive development resources and budgets
- Lack of trust from consumers in using technology-powered machinery
- Chatbots should be encrypted and can hold highly sensitive information
- Buy in from the C-level
Find out more about Squared Online: you can give us a ring on +44 (0) 20 7173 5938, or download the brochure to read about the course and the Squared experience.