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Do you struggle to maintain exceptional customer service during busy shopping seasons? Does your support center struggle to manage all of the shoppers referred through your switchboard or call center asking about the same questions again and again?
This scenario is exactly why many brands are investing in a Conversational AI Chatbot. Because chatbots provide 24/7 automated support, they allow global shoppers to receive real-time customer service. Thanks to the machine learning and natural language processing (NLP) algorithms built into the AI technology, chatbots learn how to interact with shoppers using human-like dialogue and guide them on the easiest path toward conversion. This enables your brand to effectively recreate traditional in-store support scenarios for digital experiences.
To help you determine if integrating a chatbot into your website experience is worthwhile, let’s take a look at 15 chatbot statistics that clarify how chatbots are currently being used and their related benefits.
Conversational AI Chatbots have become more valuable than ever before, especially with a scenario like the COVID-19 pandemic. With companies forced to operate with reduced staff and millions of people relying solely on online orders to keep their houses in stock, the demand for high-quality customer support vastly outpaced the amount of available support representatives to handle the volume.
As a result, companies turned to Conversational AI Chatbots to save the day. In fact, these brands soon found that chatbots actually come with a whole host of benefits that extend beyond the timeline of the pandemic, such as:
With such holistic benefits and reasons to use them, it’s clear why many companies are jumping on the chatbot bandwagon.
The demand for chatbots is on the rise and it’s showing no signs of slowing down. With 2022 on the horizon, what does the chatbot adoption rate look like in the near future? What are some of the most telling chatbot statistics that will help you decide to invest in that technology for your own business?
Let’s look into that!
The number of active chatbots is growing as more people use online shopping as their default means of making purchases. In a 2018 report published by Gartner, their research indicated that half of all enterprise brands will spend more per year on chatbots than on mobile app development in 2021. The same report indicates that chatbots will even influence how future apps are developed.
The COVID-19 pandemic accelerated chatbot adoption rates over and above initial forecasts. According to the International Data Corporation’s (IDC) report on the state of the conversational AI market, spending on cognitive and AI systems will reach $77.6 billion in 2022, more than three times the $24 billion forecast for 2018.
This rapid rise in the spending on chatbots and other conversational AI technologies validates the findings regarding how many companies are adopting these resources into their own operations. It also suggests a promising business model that generates direct revenue for companies that rely on chatbots to run their businesses.
Many factors have led to an increased need for AI-powered chatbots, and there’s no sign that demand is slowing down anytime soon. According to Statista, the size of the global chatbot market will surpass $1.25 billion by the year 2025. This is a dramatic growth above the value of the market in 2016, which stood at $190 million.
Similarly, the number of companies using chatbots to directly influence revenue is also significantly increasing. In 2018, the amount of global revenue sourced from chatbots was approximately $41 million. By 2027, global chatbot revenue will approach $455 million.
Chatbots are like 24/7 support staff in that they’re always available and guide shoppers toward what they need to find on your website. The benefits for both your brand and the consumer are a more streamlined and effective approach to customer service that improves shopping experiences and boosts conversions and average order values (AOVs).
Below is a list of further benefits of a Conversational AI Chatbot.
The main purpose of chatbots is to provide real-time support for shoppers so that they can comfortably make the purchase decision they want to complete. When programmed to respond to enquiries with human-like dialogue, they have the potential to simulate traditional in-store shopping experiences in digital format. At Kindly, our Conversational AI Chatbots delight shoppers and improve customer satisfaction rates. One concrete example is Elkjøp, who reported a user satisfaction rate of 80% from those using chatbots.
Sometimes, the benefits of chatbots are less about how they support shoppers and more about how they support your own team of customer service representatives. With so much activity done online, it’s inevitable that a large volume of enquiries will be routed to your support team. But your support staff has a finite amount of time and resources to manage all of that activity, which is why a Conversational AI Chatbot alleviates much of the stress placed on their shoulders. This is exactly what Thon Hotels did to improve working conditions for their staff, resulting in a 30% reduction in both call center referrals and email support tickets sent to in-house reps.
The best feature of Conversational AI Chatbots is their ability to provide ongoing, real-time support to shoppers on any day and at any time. This is how Norwegian Block Exchange (NBX) managed a massive volume of new and existing customer support enquiries, automating 90% of all onboarding-related enquiries through use of the chatbot. This level of automation provided immense relief to the customer support team, so that they could focus on more complex issues rather than answering repeat enquiries.
Now that we’ve highlighted some of the benefits that come from using Conversational AI Chatbots, what does the industry at large say about how companies are prospering from chatbot technology?
For companies that are interested in high growth at rapid rates, they need their employees to have the bandwidth for complex problems. Growth requires an overarching big picture mindset, which not every employee can adopt if they’re bogged down with repetitive tasks. According to data compiled by Salesforce, 64% of employees admit they have more time to focus on the big picture thanks to Conversational AI Chatbots. Conversely, only 50% of employees in companies without chatbots can say the same.
With Conversational AI Chatbots in effect, companies can reduce the number of in-house support staff required to manage day to day tickets and enquiries from concerned customers. According to Juniper Research, all of these savings have the potential to add up to $11 billion in annual savings by 2023, a dramatic increase from $6 billion in 2018. The banking, retail, and healthcare sectors are poised to benefit most from these savings.
It’s not just in-house employees or typical shoppers who benefit from Conversational AI Chatbots. Even the B2B community and white collar employees can improve their day to day tasks with support from a chatbot. According to Gartner, up to 70% of white collar workers will engage with chatbots on a daily basis by 2022. This speeds up responses to enquiries and enables faster decision making to facilitate higher growth for brands.
Conversational AI Chatbots are particularly useful for the e-commerce industry due to the high volumes of customer support enquiries they receive and the need for an engaging and personalised website shopping experience. Here are a few detailed statistics related to how chatbots help improve on typical e-commerce KPIs.
For e-commerce brands, the most effective evaluation of a piece of technology is the impact on the company’s bottom line. Companies want to know that a new addition to their tech stack will help increase conversion rates and revenue opportunities for the business. Dressmann, one of the largest fashion conglomerates in Sweden, is a perfect example of a company that financially benefited from Conversational AI Chatbots, reporting higher purchase rates and a 17% increase in average order value.
Chatbots have become the resource that reinforces the optimal customer experience for shoppers. When someone places an order on your website, the experience continues through the delivery and even the post-delivery process. For example, Helthjem leveraged a Conversational AI Chatbot to provide a seamless pre and post-sale user experience to improve customer satisfaction and the potential for repeat buyers. In fact, their chatbots helped boost order tracking follow-ups by 30%.
Chatbots are most effective as a go-to resource for users who need quick answers while on your website. This can be for something as simple as a link to a specific page, or as complex as how to track the shipment of a new order. In some cases, Conversational AI Chatbots help online gamers enjoy the experience as much as possible. For instance, Kahoot! used chatbots to support over 2 billion players of their online games, ensuring users could ask questions and receive direct answers as they played around online.
Customer support automation is one of the most common use cases for chatbots. As a 24/7 digital support agent, a Conversational AI Chatbot is always available to provide the service that people need when they need it.
As people spend more hours online, they want fast, instant answers to their questions. They don’t want to wait for a random person to get back to them with answers to their enquiries. That’s why 65% of users admit they prefer using chatbots and other automated technology to ask their questions. Chatbots provide instant answers, and time is a valuable commodity people do not take lightly.
Millennials are the demographic with the largest spending power in today’s environment, which means earning their satisfaction is crucial for brands. In a study published by Forbes, 60% of participating millennials admitted they’ve used chatbots for customer support. Of that block of users, 70% admit they had a positive experience with the chatbot. Positive experiences increase the potential for return visits and repeat purchases.
Finally, Conversational AI Chatbots even help HR firms and agencies with employment placement. To give a concrete example, the HR firm, Adecco, heavily relied on their live chat software to handle enquiries from prospective job candidates. Thanks to a Conversational AI Chatbot, Adecco was able to reduce live chat enquiries by 75% and reallocate more time and resources towards areas of the business that helped the company scale and grow.
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