In recent years, there has been a significant increase in the use of conversational artificial intelligence (AI) in the form of chatbots and intelligent virtual agents (IVAs). Although chatbots have been widely used in various industries, they come with several limitations that may hinder their ability to deliver optimal customer service. In this blog, we'll examine the differences between chatbots and IVAs, the benefits of using an IVA over a chatbot, and why companies should consider making the switch to an IVA.
What is a chatbot?
A chatbot is a software application that uses text-based interfaces to communicate with users. Chatbots are designed to simulate human-like conversations and can be used to automate simple tasks or to provide customer service. Chatbots can be integrated into messaging platforms, websites, and mobile applications to provide 24/7 customer support.
Common chatbot use cases
Chatbots are widely used in various industries to improve customer service, reduce operational costs, and increase efficiency. Some common chatbot use cases include:
Customer service: Chatbots can provide immediate assistance to customers by answering common questions and directing them to the appropriate resources.
E-commerce: Chatbots can help customers find products, make purchases, and track their orders.
Healthcare: Chatbots can be used to provide patients with medical advice, schedule appointments, and answer common healthcare questions.
Banking and finance: Chatbots can help customers with account inquiries, money transfers, and financial planning.
But while chatbots are commonly used in these ways, they’re not always the best choice for these uses. Chatbots come with several limitations that make it worth considering chatbot alternatives.
What are the disadvantages of chatbots?
While chatbots have become increasingly popular in recent years, they have several limitations that may hinder their ability to deliver optimal customer service. Some chatbot disadvantages include:
Limited functionality: Chatbots are only able to perform a limited set of functions and are not equipped to handle complex queries or customer requests.
Lack of personalization: Chatbots are unable to provide personalized customer experiences as they are programmed to follow a set of predetermined rules.
Inability to handle complex queries: Chatbots are unable to handle complex queries that require human intervention.
Poor communication skills: Chatbots may struggle to understand user queries or provide accurate responses, leading to frustrated customers.
All of these are results of the biggest chatbot disadvantage. They are chat-based only. And that’s usually further limited to web interactions. They can’t send or receive pictures. They can’t talk over the phone. They operate in one way, in one place.
Texting is the most popular way for people to interact today. And when things go wrong, they still prefer to pick up the phone and call someone for help. Chatbots can’t provide that kind of service. When looking for chatbot alternatives, there’s one option that’s usually a better choice.
Why IVAs are a better choice compared to chatbots
Intelligent virtual agents (IVAs) use conversational AI, natural language processing (NLP), and machine learning to simulate human-like interactions. IVAs are designed to understand and respond to customer queries in a personalized and natural manner. Here are some of the benefits of using an IVA over a chatbot:
Enhanced functionality: IVAs are equipped to handle complex queries in multiple channels, making them a more versatile solution than chatbots.
Personalized experiences: IVAs understand user preferences and tailor their responses accordingly.
Higher accuracy: Advanced NLP and machine learning algorithms allow IVAs to understand user queries and provide accurate responses, reducing the risk of frustrated customers.
Human-like interactions: IVAs are designed to simulate person-to-person communication, providing a more natural and engaging experience for customers.
Cost-effective: IVAs automate a wider range of tasks and make agents more efficient by allowing them to focus on calls that most need their attention.
Mosaicx IVAs operate in both the phone and text space. They can even initiate conversations with proactive outreach. This creates a more helpful and preferable experience to a chatbot.
Example of IVA vs. chatbot
Imagine you are a customer who needs to resolve an issue with their mobile phone plan. You have a complex issue that requires a bit of explanation and you need a quick resolution as you have an important call scheduled soon. You visit the mobile company's website and are presented with two options – a chatbot or a voice-based IVA.
You decide to try the chatbot first and start typing out your issue. However, the chatbot is unable to understand the specific details of your problem and keeps providing generic responses that do not address your issue.
Frustrated, you switch to the voice-based IVA option and are greeted with a friendly voice that asks how it can assist you. You explain your issue in detail, and the IVA is able to understand the nuances of your problem and provide you with a personalized solution in a matter of minutes.
The key difference between the chatbot and the voice-based IVA is the ability to understand and respond to complex queries in a natural manner. With the IVA, the customer was able to provide a detailed explanation of their issue, and the IVA was able to understand and provide an accurate solution quickly. In contrast, the chatbot struggled to understand the specifics of the problem and was unable to provide a satisfactory solution. This highlights why a voice-based IVA is better suited for complex customer inquiries compared to a chatbot.
IVA vs. Chatbot: Final Thoughts
In conclusion, while chatbots have become increasingly popular in recent years, they come with several limitations that may hinder their ability to deliver optimal customer service. On the other hand, intelligent virtual agents (IVAs) use advanced conversational AI and machine learning algorithms to simulate human-like interactions and provide personalized experiences to customers. As demonstrated in the example above, IVAs are better suited for handling complex customer inquiries compared to chatbots. Therefore, companies should consider making the switch to an IVA to improve their customer service and increase efficiency. If you want to learn more about how IVAs can benefit your business, don't hesitate to contact us at Mosaicx and let's explore the possibilities together.