Simplifying the interaction between humans and computers, chatbots are an artificial intelligence (AI) software that can simulate a conversation (or a chat) with a user in natural language through messaging applications, websites, mobile apps or through the telephone.

They are often described as one of the most advanced and promising expressions of interaction between humans and machines, enhancing user experience and offering companies new opportunities to improve the customers engagement process and operational efficiency.

To be successful, a chatbot solution should be able to effectively perform both of these tasks. Human support plays a key role here. Regardless of the kind of approach and the platform, human intervention is crucial in configuring, training and optimizing the chatbot system.

Larry Kim is the CEO and Founder of MobileMonkey, a platform for marketers and agencies that want to explore the use of chatbots. We approached Kim who highlighted the importance of chatbots and their potential, while reviewing its advantages and disadvantages.

“Chatbot services are set to blow up lead generation at the top and middle funnel,” Kim said, highlighting Facebook Messenger as a key example. It is already the second most popular chat app in the world, used by 1.4 billion people every month. Nevertheless, less than 1% of business currently use it to engage with their customers. Actually, the use of chatbots goes much beyond Facebook Messenger.

“Chatbots are great on a website where everyone who sends you a message becomes a contact you can send follow-up messaging to and move them into your sales funnel,” according to Kim.

Among the advantages of chatbots, Kim said marketers can get an average 80% open rate and 20% click-through rate with chat blasts. Facebook ad costs can decrease by 97% when marketers use a chatbot as the post-click experience compared to a website landing page.

Nevertheless, it’s not all straightforward. In order to use them and obtain the most from them, chatbots require companies and agencies to know their audiences, pay attention to metrics, add value and follow platform guidelines, among other factors.

“The technology is developed and mature and everyone should be using them. Chatbots are the most engaging tool available to digital marketers right now. And since only 1% of businesses are actually utilizing the technology, you’ve got a big opportunity to gain a competitive advantage as an early adopter,” Kim said.

Artificial IntelligenceChatbotsLarry Kim