The future of chatbots is bright, and every industry is recognizing chatbots as an essential tool to grow and manage costs. This article covers all the major chatbot statistics and aspects of the chatbot industry, providing an idea about the future of chatbots and expected growth.
Are Chatbots proving helpful to every business?
The answer to the above question is a clear YES, conversational chatbots are helping every large and small business in many ways (the benefits are discussed later in the article). The data gathered by Business Insider shows that the chatbot market size is projected to grow from USD 2.6 billion in 2019 to USD 9.4 billion by 2024, an increase of 261%.
Many industries are using a conversational chatbot on their website. Chatbots are being most used by internet software companies like Oracle, SAP, and many more. Others are catching up with the trend, and many others will opt for chatbots soon.
1. What is a chatbot
It is a computer program that can communicate with people and handle their queries by picking answers from the data-warehouse created by the company. They can interact & also collect data from customers by engaging them better. Conversing with the users is far better than asking them to fill static, mundane forms.
2. Chatbots have Multiple Benefits.
- It is available 24/7 to handle customers
- Zero development time to create a chatbot
- Capable of being trained in the FAQ
- Customer support handover if query becomes complex
- Can Collect right & valid data
- The chatbot can be integrated with any platform
- It can handle complex tasks
- Serve 1,000,000+ customers at the same time
- Customized your chatbot according to your needs
3. History of chatbots
To get insights into the future of chatbots, we need to understand the history first. The first chatbot ever was developed by MIT professor Joseph Weizenbaum in the 1960s. It was called ELIZA. It was not as smart as the modern-day chatbots but undoubtedly ahead of its times. In the latter half of the 20th century, many other advanced chatbots were developed. Then in 2009, WeChat developed a chatbot that was an instant hit. After 2009 programmers started developing smarter chatbots that could converse like humans. Today chatbots can act as assistants, handle customers, generate leads, and collect meaningful data. The fast progress gives us an idea of the things to come as the technology advances.
4.The Current trend in Chatbot Technology
In 2020, chatbots have become more AI-driven, capable of handling complex human interaction with ease, and are now taking over traditional conversational services.
- Companies have started to recognize chatbots as essential needs, according to IBM - 265 billion customer requests are recorded per year, and businesses spend nearly $1.3 trillion to address them. Using chatbots could help save up to 30% of this cost.
- Automated call centers with AI technology
The chatbots are being modified and upgraded into voice bots nowadays. Voice bots based on artificial intelligence and natural language processing can converse like humans to handle almost any type of queries.
“Chatbots Will Be Indistinguishable From Humans by 2029” - Ray Kurzweil
Chatbot statistics in 2020 to focus on:
- The number of people using chatbots: According to eMarketer research, “More than 35 million Americans use voice-activated, personal assistants at least once a month”. 1.4 billion people are using chatbots (Chatbot.Net). “By 2022, we’ll be talking to bots more than our own spouses” (Deloitte)
- The number of chatbots in the market: According to messenger chatbot statistics, there are 300,000+ chatbots on Facebook pages. According to a projection, 80% of companies in 2020 will be using chatbots at one platform or another.
- Cost savings through chatbots: ECommerce chatbot statistics show that businesses spend around $1.3 trillion on customer requests per year. With the assistance of chatbots, this expense can be reduced by 30%.
- Amount of money needed to use a chatbot: If you are taking help from a leading chatbot developer such as BotPenguin, it will cost you 0$ & you can develop your chatbot yourself with no coding experience needed. Their plans are listed below https://botpenguin.com/chatbot-pricing
- Amount of time a company can save by deploying the chatbot on its platform: A company Varma which is a pension insurance company that invests pension contributions for their 900k customers has paid out €5.9b in pensions and currently has a 12% return on investment. The numbers below show the business growth they were able to achieve and money/time saved by using a chatbot. Getjenny.com
Commercial banking giant JPMorgan chatbot has saved the company 360,000 man-hours till date. Cbinsignts.com
6. Type of Organisations using Chatbots
Statistics show that currently, chatbots are being used by companies who have a small number of employees and want to save time by using conversational chatbots to handle the customers instead of using employees. More than 70% of entrepreneurs and start-ups will be investing in chatbot in 2020.
Data from Boomtown suggests that chatbots are primarily being used for B2C purposes and are rarely used for B2B.
Chatbot building platforms that are hot property in 2020?
The fastest-growing chatbot building platform is BotPenguin, which is working around the globe with 100% customer satisfaction. It’s an AI-powered Chatbot building Platform, builds surprisingly easy to use Chatbots to support your customers on your website, Facebook, and other platforms. To top it up, it offers a free version where you can create a chatbot for customer service incurring no cost. The free version comes with limited capabilities, but as your business grows with the help of a chatbot, you can opt for more feature-rich versions that are offered. Botpenguin has an excellent track record, nearly doubling lead generation and saving valuable time. It has a multiplier effect on your business, and the best part is that it is entirely pocket friendly.
The 4 solutions provided by BotPenguin:
Lead generating Bot:
Higher user engagement leading to higher lead conversion. On average, the lead conversion rate is 2-5% of the leads captured. But using BotPenguin, one can increase the lead generation and ultimately increase the conversion rate by more than 50%; in some cases, it even goes up to 100 percent boosting sales tremendously.
Customer serving Chatbot:
Customer Service Chatbot takes minimal time to answer user queries, update order status, register customer feedback, etc. They are faster, accurate & don’t make your clients wait, resulting in better client retention as well as client satisfaction.
An assistant chatbot can schedule meetings for you, answer queries, remind you of important tasks and do much more, doing all this at negligible cost compared to a human employee.
A chatbot can be used to run surveys, collect research data, and in the case of BotPenguin, even analyze that data. The importance of a tool that can collect data efficiently in the modern world is immense.