Introduction to Chatbots

The Rise of Chatbots

The advancements in artificial intelligence and increasing use of messaging apps resulted in proliferation of chatbots. Each day more companies invest in chatbot technologies with the aim to provide a personalized self-service across multiple channels.

The Reasons

Growing Customer Expectations

  • Customers today are more demanding than ever.
  • Customers expect answers on their own terms and schedules.
  • Customers expect immediate, accurate solutions to their needs.

Changing Conditions for Organizations

  • The only way to keep customers is by providing an enhanced experience, given today’s strong competition.
  • Every organization’s biggest challenge is providing the best solutions at the lowest costs.
  • Omnichannel self-service is an effective solution.

Technological Factors

    • Rapid progress continues to be made in machine learning and natural language processing.
    • The proliferation of the Internet of Things is creating new uses for artificial intelligence.
    • Users are becoming ever more comfortable in using speech to interact with devices.
    • The increasing use of mobile devices parallels the use of messaging apps.

The result: Increasing use of chatbots

  • Over US$140M has been invested in chatbots since 2010, with ~$US85M invested in 2015/2016 YTD
  • The global chatbot market in 2015 was valued at US$113.0 million. Revenues are predicted to expand at a resounding compound annual growth rate of 27.8% from 2016 to 2024. By the end of 2024, the global chatbot market is expected to reach US$994.5 million.

What is a chatbot?

A chatbot is a conversational computer program that customers interact with via a messaging interface. Instead of dealing with keys and buttons, things get done easily by talking with a chatbot.

Examples of chatbot implementation

Any area that requires self-service and customer support:

  • Retail and E-commerce
  • Media and Entertainment
  • Publishing
  • Food
  • Health
  • Travel
  • Finance and Legal
  • Productivity and Business

Why are chatbots useful?


  • Customers can conduct any search they desire with the help of a conversation-based interface, instead of a search tab or drop-down menu
  • A single chatbot can act as a personal assistant to take care of everything, like paying fees, scheduling appointments, and sending emails

Enhanced self-service

Chatbots allow organizations to provide their customers with:

  • Immediate answers to a wide range of questions
  • 24/7 service; no more time restrictions
  • A personalized experience
  • High-quality self-service

Increased efficiency

With the help of chatbots, organizations can:

  • Deliver faster service by eliminating manual processes
  • Increase automation in a way that decreases overall costs
  • Free up personnel to work on strategic business functions
  • Control labor costs

Improved Brand Image

  • Conversation-based engagement creates a feeling of connectivity, which increases brand commitment
  • Chatbots contribute to a global presence and have the ability to appeal to much wider demographics
  • The ability to provide high-quality omnichannel self-service helps to build a strong brand

How to deliver the best chatbot?

A chatbot is a direct reflection of your company and should be designed accordingly. To deliver the best chatbot to your customers, you first must understand your customers’ needs much more fully, so that you can answer those needs with the latest and most effective technology.

Understand your customers

What do customers expect from chatbots?

  • A practical chatbot that performs difficult and time-consuming tasks easily
  • A personalized experience that is highly tailored to individual needs
  • Comprehensive answers to questions at a moment’s notice
  • Human-like self-service that speaks the same language as customers

Differentiate your company through technology

You can meet your customers’ needs with a chatbot that includes the latest technology:

  • The power of voice: Since many bots are text-based, providing a voice-based bot can make an important difference. Voice is one of the best methods for engaging with mobile apps and devices, especially when people are busy doing something else, so voice-based bots provide customers with a greater ease of interaction.
  • Human-like conversation with natural dialog: By adding a natural language interface to your bot, you can encourage a human-like conversation. Instead of limiting customers by traditional systems that only respond with basic answers, you can provide them with intelligent solutions that make a variety of day-to-day tasks easy and quick to complete. A natural dialog chatbot goes beyond simple bots and performs tasks that genuinely assist your customers.
  • Flexible structure: Provide flexible chatbots that can integrate seamlessly with different platforms. Being able to support different devices, platforms, and channels helps you adopt an omnichannel approach that guarantees consistent, high-quality service across multiple channels.

To learn more about the technologies that can give you a state-of-the-art chatbot, visit our Chatbot page.

Author Hilal Bakanay

Senior Marketing Specialist, Sestek

More posts by Hilal Bakanay

Leave a Reply