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Chatbots will take over: The future of customer service and online marketing

The chatbot “madness” started in the 1950s and Alan Turing is considered the “father” of these computer programs. His “Turing test” is now a criterion of intelligence and depends on the ability of a chatbot to act as a human being.

Created to act by spotting keywords, phrases, or patterns, they are one of the most sophisticated computer programs that have ever been created and are currently one of the most used marketing tools.
The chatbots of today have hundreds of abilities and companies from almost every industry use them according to their needs.

Retailing companies such as Nordstrom Rack use them to help customers find outlets and adequate shopping solutions.

The giants in the technology industry use chatbots as personal assistants with Apple’s Siri and Samsung’s S Voice being just a few of the best examples.

Amazon’s chatbot Alexa was released in 2014 and it includes a huge range of functions such as home automation, ordering, streaming music and movies, giving updates on sports teams, etc.
The global chatbot market is growing at a rapid pace and it is expected that it will rich an astonishing $1.23 billion by 2025.

Chatbots have come a long way since the first bots able to simulate typed conversations only. With the latest developments in modern technology, they are starting to find their place in almost every part of our everyday lives.

In order to find out more interesting facts that you probably didn’t know about chatbots, please check the infographic below.

Why Chatbots Are the Future of Marketing
This infographic first appeared in www.16best.net

 

Infographic Transcript:

 

Conquering the world – Chatbots gone wild!

Chatbots are the marketing tools of the new generation. Easy to use, they help consumers discover new things and help boosting businesses. Get to know the future of customer service in the infographic below.

Chatbots market overview

Chatbots market size growth world wide: from $113 million in 2015 to 703.3 million in 2016

 

Marketing trends

 

  • The global chatbot market is expected to reach $123B by 2025, a compounded annual growth rate of 243%. – Grand view research
  • According to inventor Ray Kurzweil chatbots will be indistinguishable from humans by 2029.
  • More than 25% of the world’s population (1.75B people) will be using mobile messaging apps by 2019.- eMarketer
  • There were 30K chatbots on Facebook as of September, 2016.
  • 54% of the developers worldwide worked on chatbots for the first time in 2016.

 

Top 3 popular platforms to build chatbots among businesses

 

  • IBM Watson 61%
  • wit.ai 45%
  • Microsoft bot 41%

A brief timeline of chatbots

  • 1950 – The Turing test developed by Al Turing.
  • 1966 – Eliza, the first chatbot, was created by Josep Weizenbaum.
  • 1972 – Parry, a computer program by Stanford scientist Kenneth Colby, modeled the behavior of a paranoid schizophrenic.
  • 1981 – The Jabberwocky chatbot was created by British programmer Rollo Carpenter.
  • 1985 – The wireless robot toy, Tomy Chatbot, repeats any message recorded on its tape.
  • 1995 – A.L.I.C.E. (Artificial Linguis nternet Computer Entity) was developed by a nobel-prize winner Richard Wallace.
  • 1996 – Hex, developed by Jason Hutchens, was based on Eliza and won Loebner Prize in 1996.
  • 2010 – Siri, an inteligent personal asistant, was launched as an iPhone app and then integrated as a part of the iOS.
  • 2012 – Google launched Google Now chatbot.
  • 2014 – Amazon released Alexa.
  • 2015 – Facebook launched M chatbot, accesible through Messenger.
  • 2016 – Google unveils its Amazon Echo competitor voice-enabled bot called Google Home.

Chatbots and businesses

 

Businesses trust in chatbots

 

  • 96% of businesses believe that chatbots are here to stay for good.- Mlndbowser
  • 67% of businesses believe that chatbots will outperform mobile apps in the next 5 years.
  • 75% of surveyed businesses planned to build a chatbot in 2017.
  • 80% of businesses claimed they already use or plan to use chatbots by 2020.

 

Chatbots boost sales

 

  • 47% of customers would buy items from a chatbot. -HubSpot, 2017
  • 37-47-year-olds are willing to spend $496.45 via a chatbot interaction.
  • 26-36-year-olds are willing to spend up to $675.89 via a chatbot interaction.
  • Autodesk virtual agent enabled by The Watson Conversation reduced the per-query cost from $15-$200 (human agents) to $1 (virtual agents).

 

Acceptance of al chatbots by customers worldwide (as of 2017)

 

  • 34% Online retail
  • 20% Financial advice
  • 27% Healthcare
  • 15% Insurance
  • 25% Telecommunications
  • 15% Car dealership
  • 20% Banking
  • 10% Government

 

Cost and time saving for banking and healthcare sectors

 

  • Average time saving per chatbot enquiry compared with traditional call centers is 4-F minutes.
  • $0.50-$0.70 average cost saved per chatbot interaction by 2022.
  • 20% of chatbot interactions within the banking sector are successful, i.e. they are completed without a human intervention. This number is projected to be 80% by 2022.

 

Cost savings for banking & healthcare by year

 

  • 2017 – 0.019M
  • 2019 – 0.343M
  • 2022 – 8B

Chatbots and consumers

 

Chatbot usage by consumers

 

  • 27% of consumers worldwide are very interested in Al based tools.
  • 61% of consumers believe chatbots are “here to stay’ in customerservice.
  • 69% of customers said they interact with a chatbot at least once a month.
  • 40% of consumers don’t care whether a chatbot or a real human helps them, as long as they are getting the help they need.
  • 73% of American customers wouldn’t use a company’s chatbot after having a bad experience.

 

Consumers love chatbots

 

  • 48% of consumers would rather connect with a company via live chat than any other mean of contact.
  • 57% of consumers are interested in chatbots for their instantaneity.
  • 21% of customers see 0 chatbots as the easiest way to contact a business.
  • 48% of millennia’s are open to receiving recommendations or advice from chatbots.

 

What percentage of people will turn to AI in the coming 5 years

 

  • Tutor – 58% Agree
  • Tax preparation – 54% Agree
  • Travel Agent – 56% Agree
  • Office Asistant – 52% agree
  • Home or family assistant – 47% agree
  • Health coach – 46% agree
  • Finanial adviser – 41% agree

 

Will chatbots replace human counterparts completely?

 

  • No – 61%
  • Yes, in the future – 31%
  • Not sure – 6%

Voice enabled bots in use

 

Usa voice-enabled speaker users market share

 

  • Amazon Echo – 70.6%
  • Google Home – 23%
  • Lenovo, LG, Mattel and Harmon Kardon – 5.6%

 

What is amazon echo actually used for

 

Seta timer, Play a song, Read the news, Add item to the shopping list, Connect to paid music service , Control Smart lights, Connect to paid music service

 

Google Home & Assistant apps by category

 

  • Games fun 20%
  • Home control 15%
  • Education and references 14%
  • Business and finance 7%
  • Travel and transportation 6%

Case studies: How chatbots pushed businesses

  • Chatbot Winnie has achieved 72% user CTR since it was introduced to Facebook Messenger.
  • Concierge chatbot helped Expensify reduce banking problems by 75%.
  • Leadpages increased their CR by 36% and messages led to 267% conversations after switching to Drift chatbot.
  • Amtrak reached 800% ROI, increased bookings by 25% and got over 5M questions answered every year after switching to Ask Julie chatbot in 2012.
  • MongoDB increased new leads by 70% and total messaging response by 100% in just 3 months after switching to Drift chatbot.
  • 1-800-Flowers increased revenues by 6.3% to $165.8M after adding GWYN chatbot.
  • A UK leasing company increased visitor-to-lead conversions by 28.3% with their Ubisend chatbot.
Chatbots will take over: The future of customer service and online marketing
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