customer loyalty

Can Chatbots Improve Customer Loyalty?

by Ryan Schradin

According to a recent Pitney Bowes poll, 55 percent of consumers are open to using chatbots as their main source of communication with a company. Consumers also stated that reducing effort is the number one factor in customer loyalty. Retailers who implement chatbot technology can increase their customer loyalty, reduce costs, and increase employee productivity.

On Facebook messenger alone, there are over 2 billion messages exchanged each month. Messaging platforms are becoming increasingly popular for social, so why not business? Globe Telecom saw a 22 percent increase in customer satisfaction after introducing chatbot technology. Call volume also decreased by 50 percent and employee productivity jumped by 350 percent.

Amtrak saw a 30 percent increase in revenue per booking and saved over $1 million in customer service email costs. Banks that have implemented this technology saved 4 minutes per chatbot inquiry vs call center interaction. Cost savings are projected to hit $8 million by 2022 with chatbot use.

Artificial intelligence engages customers who need help with orders, payments, or returns, freeing up employees for more important tasks. Chatbots provide personalized experiences for customers by using word recognition technology that provides useful, fast data.

When asked what the primary motivation for exploring chatbots solutions was, 58 percent said they need to improve operational efficiencies. Chatbots provide a platform for retailers to communicate with customers with little effort. Utilizing chatbot technologies can result in improved customer engagement and reduced costs.

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