The chatbot revolution is upon us, and it's changing the way we interact with companies and brands.
In fact, according to Finance Digest's article on AI, it is predicted that AI will power 95% of all customer interactions by 2025.
It's only a matter of time before the majority of people use chatbots for their business and social needs.
The statistics show that it's not just a fad, but a serious business opportunity that's already being adopted by the biggest names in the industry.
"I think chatbots and voicebots may become the future of commerce, as it relates to Gen Z." — Tiffany Zhong, Founder & CEO of Zebra Intelligence
Are you ready? Are you aware of these crucial chatbot statistics to have a better understanding of their future?
You've probably read a ton of hype around chatbots being the future of customer service.
According to an HBR (Harvard Business Review) article, a car rental company used virtual agents as a customer service.And they stated these chatbots were able to identify and automate 68% of service calls.
Additionally, businesses can cut off their customer support costs by using a chatbot.**
According to Chatbots Magazine, companies can save 30 percent by using digital assistants to answer customer questions.
In the report on chatbot market by Grand View Research, Inc, it is suggested that in the next 10 years, the global chatbot market is expected to reach 2.5 billion.
According to a new report by Grand View Research, it's because businesses are increasingly using chatbots to save costs, boost productivity, and increase customer engagement.
Chatbots are on the brink of big growth. Businesses must be ready to integrate them into their existing business model.
According to a recent study on customer service, 90 percent of businesses reported a decrease in customer service time with the help of chatbots.
Customers have high expectations in this new era. They want round-the-clock service for any issue.
For example, they want online banking at any time, and they expect it to be secure, easy to use, and fast.
Accordingly, in this new era of business, companies are looking for ways to develop chatbots and virtual assistants to solve consumer problems at any time to meet the demands.
If prospective customers get their answers quickly from the business about the product/service, they are more likely to convert.
Insider Intelligence's article on chatbot market trends claims that by 2024, it's estimated that chatbots will drive $142 billion in consumer retail sales worldwide. The same number was 2.8 billion dollars in 2019.
Chatbots are agents that interact with humans through dialogue. The bot is autonomously programmed by software engineers with specific instructions on how to interact with users.
Accordingly, they are designed to answer simple questions about the business/product.
Research has shown that consumers' frustrations with online experiences have grown rapidly in the past years.
In 2020 State of Conversational Marketing report, it is mentioned that being unable to get answers to simple questions is one of the three biggest challenges that people face in the last year.
It is also mentioned in the same report that finding basic details about a business’ address, phone ,etc. is the second challenge that is mentioned.
Online shopping has become the norm for many consumers.
Many online retail stores are also offering AI chatbots to their customers as a way to improve the customer experience.
These AI chatbots give customers information on items they're interested in, tell them about new products and promotions, and help direct them to an item that will meet their needs or desires.
According to a study on chatbots in customer service, 34% of online retail store customers accept AI chatbots.
That is more than any other industry as shown in the infographic below.
The new research found that the retail sector will gain the most benefits from chatbot technology, with Juniper estimating that by 2023 over 70% of chatbots accessed will be retail-based.
This is due to the fact that customers are increasingly demanding conversational interfaces when dealing with brands.
In the same research, it is expected that shopping via chatbots will reach $112 billion by 2023.
Chatbots in retail are enjoying a surge due to the omnipresence of messaging apps.
Retail brands are using these platforms to bridge the gap between online and offline experiences.
"By leveraging the ability to build a chatbot on these platforms, brands are engaging with their customers in a more conversational setting."— Pamela Kokoszkaeq, Retail Insight Network
Abandoned cart recovery is a common tactic used by online merchants to boost their revenue.
If you are wondering how to reduce the number of abandoned carts on your site, implementing a chatbot can help.
Chatbots Magazine mentions that using abandoned cart chatbots boosts eCommerce revenue by 7-25%.
Chatbot technology is rapidly moving forward, with many companies choosing to integrate it into their website in order to provide an automated customer service experience.
Chatbots allow businesses to run 24/7, without human error or software failure.
However, they are not perfect and do have their challenges and disadvantages.
When it is about talking with a human, randomness is always there and for a program to understand that randomness, you need to know these random possibilities.
In an article on challenges of chatbots for business, it is stated that huge challenge with chatbot customization is understanding the limits of Natural Language Processing (NLP).
NLP allows chatbots to understand the meanings of words and phrases, but it cannot analyze every possible meaning.
If you use a word or phrase that can have multiple meanings, your chatbot may not understand what you mean.
Despite the growing popularity of chatbots, most consumers still prefer human assistance.
In a survey of global consumers, 56% still preferred to speak with a human instead of getting assistance from a chatbot.
People are willing to interact with bots while waiting for human assistance.
Yet, at least 60% of respondents answered that they would prefer to wait in a queue if it meant they could immediately speak with a human agent, says an article on customer preference.
In a recent survey by Gartner on investment in chatbots, it is found that customer service to significantly increase investments in chatbots, AI and analytics over the next 2 years in 2019.
That's with 89% planning an increase in their investment for this year.
This is due to major shifts in consumer expectations – including a shift from brand-centric marketing to consumer-centric marketing.
Business Wire mentions that the global transactional value of mobile payments is projected to reach $12,407.5 billion by the end of 2025, the anticipated CAGR clocked between 2020-2025 is 23.8%.
The major factors contributing to this growth are the rise in smartphone users, increasing number of merchants accepting mobile payment and development in AI and chatbots.
Voice assistants have also been in trend for a long time. A survey result by Capgemini suggest that 28% of the users in the US have already switched to voice payments.
Another research by CNBC suggested that healthcare and banking services using chatbots’ average cost savings are 0.5 to 0.7 US dollars per interaction.
Chatbots can solve customers’ problems quickly through instant messaging platforms, such as Facebook Messenger, Slack or Twitter.
In Technology Review's survey, nearly 90 percent of survey respondents report that they have recorded measurable improvements in the speed of complaint resolution by using chatbots.
In an article on chatbots in education, it is stated that the chatbots could be used in education as mentors and study partners, helping them understand and develop each topic at their own pace.
Some chatbots can simply answer questions about the material being studied (e.g.: "What was the Great Depression?"), while others can provide more complex answers based on user-specified parameters (e.g.: "How did the Great Depression affect women's rights?").
Social Media Today states that there are over 300,000 active bots on Messenger, and over 8 billion messages are exchanged between people and businesses each month per study.
As chatbots gain more popularity, it’s becoming increasingly important for businesses to understand their potential impact on the industry.
To help you stay up to date with the latest statistics, we’ve compiled this list of 20 chatbot trends that will be relevant in 2023.
As you can see, there is no shortage of studies and data to keep marketers busy over the next few years!
If you are interested in more information about stats: