When Businesses should consider Chatbots over Live Chat?

There is a significant likelihood that worries and reservations may surface regarding shopping online. Among the worries customers have while purchasing online, the most prominent are:

The Business Reputation
Payment options offered
Returns policy
Quality of the product
Quality of the product

Fortunately, there are two variations of virtual sales representatives available to customers when they purchase online.

With LiveChat, a real person takes charge of several customer inquiries and quickly, while being accurate, addresses the majority of their problems. A chatbot is an automated version of Livechat that uses a pre-programmed algorithm to answer user inquiries. Both are advantageous for any client-facing firm, but it's important to pick the best one.

Definition of Live Chat and Chatbots
By definition, chatbots are automated responses managed by Artificial intelligence (AI) based on consumer interactions. The system makes use of natural language processing to comprehend the customer's stated questions. It offers users immediate replies and uses data from previous interactions to forecast the customer's behavior.

Live chat is a digital version of an actual person in a store welcoming customers and providing solutions to their queries. When a consumer requests help via a live chat, the agent starts the conversation and seeks to understand their concerns. The agent proposes the appropriate service or item that the company has to offer, based on the conversation.

Importance of Chatbots for Businesses
Global consumer retail expenditure through chatbots is anticipated to reach $142 billion by 2024, up 4971% from 2019 ($2.8 billion). (Juniper Research)

There are two distinct categories of chatbots:
AI-backed
Rules-based

When chat operators are not available or it is after business hours, chatbots are a great tool for providing simple answers. You may utilize chatbots to create leads that are prepared for marketing by using lead generation templates.

Additionally, since chatbots adhere to a set algorithm, there are fewer odds of a hostile chat as a result of irate customers. Additionally, there is no upper limit for how many simultaneous chats a bot may handle with accuracy and speed. Learn about the changes that chatbots are making to contact centers.

Advantages of Chatbots
24/7 Availability
Affordable Solutions
Concurrent conversations
Less prone to make mistakes
May create leads by effectively acquiring information
No Additional training required

Disadvantages of Chatbots
Conversations by rule-based chatbots sound scripted.
Requires significant maintenance
Cost rises as complexity rises
Initial dangers of ineffective responses
restricted capabilities outside of the algorithm

When to Use Chatbots
Chatbots should be taken into consideration by the majority of large organizations and multinational corporations with a network of global audiences. A rule-based chatbot may handle simple inquiries for organizations with limited resources and then refer more complicated ones to a real human agent. Instead of racing through numerous support inquiries or wasting their valuable time repeatedly giving the same basic answers, live agents may spend more time assisting clients with complex issues in this manner. eCommerce chatbot use is on the rise, according to recent eCommerce trends.