How Do Chatbots Work?

What do 67% of your customers have in common? The answer is they’ve used chatbots in the past year.

Chatbots are now staples of the online customer service experience. They’re also smarter than you think: a chatbot can answer 80% of your business’s most frequently asked questions.

You might already be thinking about using chatbots, but you wonder: how do chatbots work? How do they help your business? Are they more labor than they’re worth?

Here’s what you need to know.

How Do Chatbots Work?

A chatbot is a software program that performs automated communication tasks. It responds to messages so a human doesn’t have to.

The vast majority of these tools work in a format that mirrors instant messaging. Many of them integrate with tools like Facebook Messenger and Slack.

But how do chatbots talk to humans?

It happens in two ways. First, chatbots are programmed to respond to certain keywords and messages and provide an answer from a list of the corresponding questions.

For example, if a human sends the message, “What are your opening hours?” The chatbot will see “opening hours” or even the whole question and know to supply the answer related to the hours of operation. It might say, “We’re open from 9:30 AM to 5:30 PM Monday through Friday.”

Some chatbots are even smarter: their programs use a tool called machine learning that allows the algorithm to learn and communicate relevant information on its own. These are the bots that can mimic human conversation and provide a deeper interaction with the real human on the other side of the connection.

However, chatbots will only share the information you give them when you train them. So, you are in complete control of what goes out and when. You can update information based on these chatbot metrics and KPIs to help you better engage users.

Who Else Sees the Conversations?

When a human interacts with a chatbot, where do their conversations go? And who sees them?

The answer depends on the product.

For example, chatbots that integrate with Facebook Messenger will often share data with Facebook, meaning you, the client, and Facebook can see the conversations had.

However, this isn’t always true. For example, chatbots used in the healthcare industry use end-to-end encryption and communication. The data stays between the healthcare provider and the patient, which is required by law. That being said, it also means healthcare chatbots can’t be used with social media tools.

What’s the Future of Chatbots?

How do chatbots work? Right now, they automate certain communication processes. But they have the potential to do so much more.

Chatbots aren’t a new technology, but they are still in their infancy in terms of their potential. Both chatbot intelligence and their use is likely to evolve dramatically over the next two to five years. Before you know it, you might find it hard to tell whether you’re talking to a bot or a person.

Are you looking for new ways to streamline your business operations? Check out our marketing and technology archives for more helpful tips.