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Published Oct 31, 21
12 min read

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What Is A Chatbot? Ai Chatbots Explained

AI chatbots are commonly used in social media messaging apps, standalone messaging platforms, or applications on websites. Some typical use cases include: Finding local restaurants and providing directions Defining fields within forms and financial applications Getting answers to healthcare questions and scheduling appointments Receiving general customer service help from a favorite brand Setting a reminder to do a task based on time or location Displaying real-time weather conditions and relevant clothing recommendations Benefits of chatbots The latest AI chatbots process the data within human language to deliver highly personalized experiences, creating clear benefits for businesses and customers.

Industries have been created to address the outsourcing of this function, but that carries significant cost. It also reduces control over a brand’s interaction with its customers. A chatbot, however, can answer questions 24 hours a day, seven days a week. It can provide a new first line of support, supplement support during peak periods, or offer an additional support option.

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Chatbots can help with sales lead generation and improve conversion rates. For example, a customer browsing a website for a product or service may have questions about different features, attributes or plans. A chatbot can provide these answers, helping the customer decide which product or service to buy or take the next logical step toward that final purchase.

What Is A Chatbot? Ai Chatbots Explained

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Best practices and tips for selecting chatbots Selecting a chatbot platform can be straightforward and the payoff can be significant for companies and users. Providing customers with a responsive, conversational channel can help your business meet expectations for immediate and always-available interactions while keeping costs down. For example, an e-commerce company could deploy a chatbot to provide browsing customers with more detailed information about the products, highlight differences between models, and offer additional user guides and how-to videos.

Whatever the case or project, here are five best practices and tips for selecting a chatbot platform. Why does a team want its own chatbot? How is this goal currently addressed, and what are the challenges that are driving the need for a chatbot? How could other groups in your organization also use this technology for their needs, including agent assistance, internal IT or HR support, and even health benefits enrollment? Like many buzzwords, AI gets thrown around, so figure out where and how AI is used.

The goal is to get the customer to the information they need without running into any dead ends. Without this, it’s just another FAQ. Despite the hype, AI doesn’t come knowing everything you need it to do, so get a clear sense of what intents (goals) or prebuilt content comes out-of-the-box and what you need to create yourself.

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Those using machine learning can also automatically adjust and improve responses over time. Often, emerging channels or technologies seem like they will replace established ones. But instead, they become just another medium for an organization to manage. A chatbot that connects to these channels and customer case systems can provide the best of both worlds: Modernizing the customer experience while more accurately routing users to the information and individuals that can solve their problems.

Many chatbots are delivered via the cloud to draw on the learnings and outcomes from other customer conversations, so if you require an on-premises solution or a single tenant environment, the list of available providers is much shorter. It’s also important to understand if and how your data is used, as it can have major impacts in highly regulated industries.

This reduces the frustration of having to rephrase questions, providing a more positive customer experience. In addition, Watson Assistant provides customers with an array of options in response to their questions. If it’s unable to resolve a particularly complex customer issue, it can seamlessly pass the customer to a human agent, right in the same channel.

What Is The Purpose Of Chatbots

In addition to the high ROI, chatbots are also becoming commonplace simply because they are a simple, convenient service that consumers and employees have come to expect and rely on. As organizations invest in more and more complicated technologies and build out multiple messaging interfaces, chatbots are quickly becoming a necessary bridge between customers and employees, and the massive amounts of information, systems, and applications that they interact with.

Chatbots provide customers access to assistance or customer service that is available on demand without restriction. When customers interact with chatbots, they can get replies to their questions anytime. They also tend to have easier sales experiences and have a more personal connection with the brands that they interact with.

Why Conversational AiWhat Is The Purpose Of Chatbots


Chatbots can be used to automate simple tasks, which frees up employee time. They can also be used within organizations to help employees navigate company policies, procedures, HR information, and other internal systems and documentation.

To create an entity, you need to first add that name in an expression and then click on the word to make it an entity, as shown below. Image via Xenioo, The same process can be applied to your business to create product subcategories as separate entities. Train and Test, After you have created your intents and expressions, you also need to test if the chatbot is able to detect these correctly.

Xenioo’s AI engine will evaluate that expression and should be able to tell you the user intent and the entity for that expression. Image via Xenioo, Once you check that, you will know that your chatbot will work fine. Parse Logs, The Parse Logs section under your AI tab shows you actual user conversations and expressions that did not trigger a response.



There is a separate “” tab as well if you want to check individual user conversations. You can also check that from time to time to identify areas for improvement for your chatbot. Check your parse logs and user conversations periodically to train and improve your active chatbots so that they get better over time.

Broadcast, This Xenioo review wouldn’t be complete without the mention of this unique feature. Usually, chatbot conversations are started when a user visits a website or asks a question. The Broadcast feature, however, allows you to push messages to your users without them starting the conversation. Basically, you can set triggers that allow you to send a message to the relevant users.

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You can also send a message if a user is still on your website but has stopped interacting with the chatbot. The trigger, in this case, could be “x minutes after last interaction” and the message could be any follow-up message to assist your users. You can set different triggers and create broadcast messages for all users or specific audiences.

Backup and Restore, Xenioo’s backup and restore feature allows you to create a backup of the current version of your chatbot, in case you want to restore it later. You can create as many backups as you like and can restore those versions anytime. For this, you can go to the “Settings” tab and select “backup”.

Conversation, This is the tab where you can see all your chatbot’s conversations with users. Wondering why you need this? Analyzing past conversations can help you identify where your chatbot got stuck or failed to answer a user’s question. This can then be used to further train and improve your chatbot.

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This shows why the chatbot chose to reply a certain way or chose a path for a conversation. Image via Xenioo, Another useful feature is the option that allows your team members to jump in a conversation and take over from the chatbot. You can also train your chatbot to provide a “Request Operator” option to users if it is unable to answer a question.

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This basically expands the list of permissions to make it more granular. Opt for a Professional or Agency plan to get the Pro Team package for free. 10. Upgrades, This is something that I really wanted to mention in this Xenioo review, as I am very impressed by their upgrade options.

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Top Benefits Of Chatbots In 2021: The Ultimate Guide

This allows your business to serve greater numbers of people while increasing productivity and decreasing costs. 2. Save Money, Chatbot use can be cheaper than hiring more workers. Costs to have a chatbot built can range from 2K to 10K or more depending on the complexity needed. While that may sound like a lot, once created you’ll probably save in the long run.

Does Your Company Really Need A ChatbotWhy Your Business Need A Chatbot Development


It won’t become injured on the job and require medical treatment either. 3. Provide Greater Customer Satisfaction, Another benefit of using chatbots in your business is that they give greater customer satisfaction. Chatbots don’t work 8 hour days and don’t need sleep which means they are always available. Customers who pull up your website in the evening can ask questions and get answers right away.

Why Conversational AiWhy Your Business Need A Chatbot Development


Since chatbots can be used in many applications you can take advantage of that to help your business grow. Chatbots can answer multiple questions at the same time as well. 5. Cut Down on Errors, Unfortunately, humans handling customer service questions and other issues can make errors. They can forget things, transpose numbers, and make other types of mistakes.

Based on the questions asked they will always give the right answers. This makes them a huge asset when used in your business. 6. Add Good Humor, An additional benefit of using chatbots in your business is that they add good humor. You never have to worry about a chatbot being in a bad mood.

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They can be programed to have a bit of humor which can make them seem more humanlike. This puts customers at ease and makes their experience with your business more satisfying. It’s important to make your business the best it can be to generate greater success and profits. As you can see, there are benefits of using chatbots in your business that can help that happen..



In a not-so-distant future, there's a bleak, forsaken landscape. Civilization, absent. Communication channels, silent. All of the people have fled, terrorized by never-ending notifications and antagonizing messages. What could cause such a desolate scene? Bad bots. Okay, maybe that sounds a bit too much like the next superhero blockbuster. But it wouldn't be the first time brands abused a new technology until people were buried in spam up to their eyeballs.

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In fact, if you're wondering today whether or not your business should create a bot, you're asking the wrong question. Bot-powered commerce is our modern-day manifest destiny. But that doesn't mean we can't screw it up. Marketers, we have a terrible habit: We grab hold of glimmering, new communication channels and scorch them to the ground.

Our audience is ever-dwindling and competition ever-rising — yet, we still have to meet our monthly goals. So, we create more content, send more messages, cross our fingers … And when a blue ocean channel opens up, we sprint — forgetting the reason people flocked there in the first place.

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Marketer, business leader, entrepreneur — messaging will be the next great marketing channel. But will you copy and paste your strategies of old and repeat the same mistakes? In the age of bots, the decision is yours… use this power for or What is a bot, exactly? No need to overcomplicate it.

The most advanced bots are powered by artificial intelligence, helping it to understand complex requests, personalize responses, and improve interactions over time. This technology is still in its infancy, so most bots follow a set of rules programmed by a human via a bot-building platform. It's as simple as ordering a list of if-then statements and writing canned responses, often without needing to know a line of code.

That's the of bots. They accomplish their task, start to finish, in the place where you already spend your time: messaging apps. Whether it's Facebook Messenger, Whats, App, We, Chat, or Viber, bots integrate with these apps and are available for you to chat with. If you were making plans with a friend, for instance, you could invite a bot into the thread to place a takeout order or call a Lyft — no need to leave the messaging app to open a browser tab, or even another app.

In other words, bots solve the thing we loathed about apps in the first place. You don't have to download something you'll never use again. It's been said most people stick to five apps. Those holy grail spots? They're increasingly being claimed by messaging apps. Today, messaging apps have over 5 billion monthly active users, and for the first time, people are using them more than social networks. It's all a part of a larger shift we're seeing in consumer behavior.

Why is this so good? Well, I think this is a useful option for anyone who wants to add a few things without investing in a larger plan. You may not want all the features in their next biggest plan, but just a quick upgrade of, let’s say, a few thousand messages.

4. If You Choose the Latter, You Will See the Following Dashboard, Image via Xenioo5. Write the Text to Start the Bot Conversation, This could be something along the lines of “Hi, welcome to XX website”. Whatever you want the bot to say to your users when starting the chat will go in the “Start Interaction” box.

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Add Categories or Options to Direct Users to the Right Interactions, You can also provide some options to start the conversation and keep it organized under certain categories. You can click on the “first option” and “second option” buttons to add the category name where you want it to direct users.

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Image via Xenioo8. Move to the Next Interaction, Once a user clicks on any of the options that you provided at the start of a conversation, they will be directed to a new interaction. For each option, you will need to design the next interaction. You can choose from and add various actions from their extensive list to design your chatbot.

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