Conversational AI vs. Traditional Chatbots in Customer Support: A Comparative Analysis

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Conversational AI Chatbots
Providing exceptional customer service and support is crucial for business growth and customer retention. Reports suggest how a whopping 80% of customers prefer making repeat purchases from a brand that offers good customer service.  However, advancement in technology and the emergence of AI (Artificial Intelligence) have transformed the way businesses interact with their customers. Today a majority of customer service human interactions have been replaced by chatbots. This is especially true for businesses that are looking to grow and expand in a linguistically diverse country like India. Which is why the big debate – what is better for your business – advanced conversational AI or traditional chatbots?  In this we deep dive into the world of AI-powered conversational chatbots and traditional chatbots. We’ll also discuss how multilingual conversational AI, such as Reverie’s IndoCord, is revolutionising the customer service landscape. 
1 What are Chatbots?
2 What is a Conversational AI Chatbots
3 What Makes Conversational AI Better Than Traditional Chatbots
4 Conversational AI vs. Traditional Chatbots: What’s Better You
5 Future of Conversational AI with Reverie’s IndoCord 

What are Chatbots?

Chatbots are designed to mimic human-like conversations with users. Chatbots interact with users through texts and are rule-based in nature. This means that they can only respond to specific questions that are predefined. Most often, these questions include general FAQs. 

Traditional chatbots are a perfect solution for businesses that are presented with predictable queries. However, they lack the ability and intelligence to handle complex interactions, hence, a human agent has to be involved. This increases the burden of unresolved inquiries, which can take a toll on your business’s productivity.

The Key Components of Traditional Chatbots
  • Scripted responses: These chatbots rely heavily on a predetermined set of responses for quick answers to common questions.
  • Operational consistency: They can provide consistent responses at any time of the day for predefined questions.
  • Basic task automation: Traditional chatbots have the ability to perform simple tasks, including scheduling appointments, providing product information, and guiding users through website navigation.

Traditional chatbots can be a valuable asset for a business if the requirement is to manage high-volume basic inquiries. However, due to their limited capabilities, businesses prefer a more advanced solution – AI-powered conversational chatbots. Let’s move forward to learn more about conversational AI chatbots.

What are Conversational AI Chatbots?

Conversational AI represents a technology that enables more human-like interactions between computers and humans. It leverages artificial intelligence along with natural language processing (NLP) and machine learning (ML) to simulate the interactions. They are much smarter than traditional chatbots and can also spot patterns and make recommendations.

With Conversational AI, you can provide your customers with a more personalised experience. They can help facilitate more fluid and effective communication between your business and its customers.

Key Components of Conversational AI Chatbots:

Natural Language Processing (NLP)

NLP is the backbone of conversational AI. It enables chatbots to understand and generate human language. NLP also helps the system process and make sense of the input from the user.

Machine Learning (ML)

Machine learning helps the system improve over time without explicit programming. Its algorithms analyse vast amounts of data to enable conversational AI to learn more about past interactions. This leads to enhanced responses and predictions based on real-world use.

Text Analysis

Text analysis enables the AI to extract meaningful information from text. It understands sentiments, intentions, and even the emotional tone, making customer interaction management efficient.

Speech Recognition

By integrating speech recognition, conversational AI interprets spoken commands and queries. This makes it versatile in both text-based and voice-driven interfaces.

AI-powered conversational chatbots are smart and engage in meaningful conversations with users and customers. It understands the needs of the users and provides them with relevant and contextual responses. It can also handle complex conversations with users that traditional chatbots cannot.

Advantages of AI Chatbots Over Traditional Chatbots

Conversational AI is transforming the way businesses interact with their customers through its ability to understand and respond to their queries. Here are some of the key advantages of conversational AI over traditional chatbots.

Flexibility, Integration, and Adaptability

Traditional chatbots operate on predefined scripts and rules. This makes them rigid in their responses. Conversational AI systems are more flexible and designed to adapt to changing situations. They bring coherence and ensure that your users are receiving a consistent and unified experience.

Conversational AI can be integrated into your business systems seamlessly to manage queries across multiple channels. This allows you to establish a strong presence for your business across different platforms. These systems can also adjust to unpredictable customer behaviour and respond according to the context. 

Advanced Natural Language Understanding (NLU)

One of the significant advantages of conversational AI is its ability to understand and generate human-like responses  by leveraging natural language processing (NLP). This capability enables the AI to interpret the words as well as the sentiment behind them. By doing this, it provides more accurate and relevant responses to the customers.

Scalability and Maintenance

As your business grows, your customer support requirements also become more complex. This is where conversational AI systems come into the picture. They are designed to handle a large volume of interactions. This enhances the overall productivity of your customer support agents. 

In addition, these systems can also improve over time. They learn from each interaction they have with your customers. This leads to a reduced need for frequent manual updates and maintenance.

Personalisation and User Experience

Chatbots lack in providing personalised experiences to the users. On the other hand, conversational AI analyses previous interactions, purchase history, buyer behaviour and preferences. This allows it to tailor conversations according to the needs of each customer. 

With this level of personalisation, you can enhance the user experience, making them feel understood and valued. Conversational AI can also manage multiple intents within a single conversation thread. 

Multilingual Capabilities and Voice Assistant

In a country like India, with multiple languages, having a multilingual solution is crucial. Conversational AI chatbots, such as Reverie’s IndoCord facilitating interaction with your customers in their own language. 

In addition, the integration of voice assistance makes conversational AI more accessible to a broader audience. This way, you can target broader audiences, including even the visually impaired or users who are not proficient in typing. 

Conversational AI vs. Traditional Chatbots: Making the Final Call

The future of customer support is surely leaning towards conversational AI. With the ability to learn from past interactions and improve over time, it stays at the forefront of technological advancements.

Today customer service can either make or break your business. Conversational AI ensures that you’re offering exceptional customer service to your users. Traditional chatbots often struggle with language nuances and cannot switch between languages seamlessly. This is where multilingual conversational AI chatbots shine, especially in linguistically diverse markets like India. 

Reverie provides you with comprehensive multilingual support. It enables seamless interactions in multiple languages, ensuring you can cater to a broader customer base and target local markets. Reverie’s IndoCord provides you with a no-code platform, which allows for rapid deployment and easy customisation. This makes it a tool for today and tomorrow. It integrates seamlessly with existing systems and manages complex, multilingual interactions. To learn more about Reverie’s IndoCord, book a demo by clicking here!

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Reverie’s language practice is dedicated to helping clients future-proof their rapidly expanding content by combining cutting-edge technologies like Artificial Intelligence and Neural Machine Translation (NMT) with best-practice approaches for optimizing content and business processes.

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