5 Benefits of Using NLP Based Chatbot

With the growing pace of technology, companies are now looking for better and more innovative ways to serve their customers. For the past few years, we’ll have been hearing about chat support systems provided by different companies in different domains. Be it food delivery, E-commerce, or Ticket booking, chatbots are almost everywhere now and they are the first communication on behalf of their brand. Nowadays, they’ve become somewhat necessary to the companies for smooth communication.

Besides this, it serves the primary objective of offering help 24×7 and resolves customers’ queries in some way but the path is long ahead and there are many ideas and implementations yet to be done. People need smart communication with less effort and that’s why chatbots need to be crafted in such a way that they process the data well and understand the customer’s queries, which leads to the pathway of NLP in chatbots.

But before that, let’s understand what NLP is?

Natural Language Processing

NLP or Natural Language Processing is an AI-based technology that helps machines to understand human speeches along with words. It’s a combination of data algorithms and computational linguistics that’s the rule-based model of human language which includes machine learning, and statistical algorithms. This technology is a perfect example of today’s smart voice assistants (Amazon’s Alexa, Apple’s Siri, Google’s voice assistant) and so on. Today, we’re surrounded by such voice assistants and might be using them in our day-to-day lives.

So here, we will discuss 5 Benefits of Using NLP Based Chatbot.

1. Immediate Customer Service:

Doing interactions with each customer manually is a bit fuzzy task. So, with the help of chatbots, today companies are offering extensive 24×7 support to their customers. Adding NLP here puts the cherry on the cake and customers don’t hesitate to interact with the chatbots and share their queries for instant and relevant support. With the help of its algorithms, the machine reads human speaking patterns and provides the solution accordingly. As we’re scaling in technology, this is a perfect solution and multiple stats suggest that companies are more interested in investing to opt this technology within their system to offer good customer support.

2. Efficient

You should agree with this “Cost efficiency is one of the major parts of any company’s success”. With the help of technology, you can do wonders and this example fits here very well. You can provide support to customers anytime, without much effort and it will provide you great outcomes in terms of performance. Feature of availability is very demanding these days, not only from a customer’s point of view but also from a company’s view. Implementing this technology, reduces operational cost by 35-40% straight away and offer a balanced efficiency within the business. Apart from this, there are several other factors within “efficiency”, let’s have a look:

• Efficiency can also be related to cutting down the waiting time to enhance customer support.
• There’s a very thin line between rule-based and NLP, where rule-based runs on predefined messages whereas NLP works with algorithms to provide more interactive and fewer error messages to their customers.
• It not only helps customers by providing answers for what they’re looking for but also they do serve without being distracted or answering any false statements and this makes it more reliable than actual human interactions.

3. Conversion Ratio

Chatbots have now become the front support system of companies today. When the right algorithms are being implemented, these chatbots read and understand the human intensity and provide accurate results and the chances are customers get their answers for what they were looking for. It helps in 3 ways, Retaining, Nurturing, and Acquiring Customers. The NLP bases chat systems are the ones that offer more satisfactory results than rule-based or manual chat support. Where manual customer acquisition may cost up to 5-6 times of money, these bots are the real savior. They help in reducing the cost and maintaining the balance by offering solutions and gathering useful information and timely feedback for more accuracy.

4. Being Natural

It’s not just a tool but a set of algorithms that understands and interpret what a person is asking for. With the help of AI and Machine Learning, these chatbots have started gaining popularity today. Over the past few years, it has gained popularity among users and they’re far better than rule-based chatbot systems. Thus, it helps in offering a wide range of solutions to their desired customers by pulling out old records (if any) and any other relevant details in a matter of time. Being natural has different features too, let’s have a look:

• Better interaction ratio: The interaction ratio is 50% better than that of rule-based or manual support
• Sentimental analysis: It offers sentimental statements based on the user’s behavior
• Automatic Suggestions: Based on inputs provided by the user.

5. Employee Centric Solution

It’s not surprising that AIs have taken the serious matter under their hands either calling it increasing productivity or providing accuracy based on the patterns. Meanwhile, NLP-based chatbots are real assistants for both customers and employees. Sometimes, we might have noticed that queries are not being responded to on time while from the employee’s point of view, they often get repeated or unusual questions that make them hard to explain. This not only hampers employee satisfaction but also reduces the customers’ experience to prevent and balance both of them at the same time, NLP is the real solution for that and they also do offer the following features for a better experience:

• Prevents spamming by moderating comment
• Scanning and filtering of documents (which eventually saves time as well)
• NLP will answer the repetitive questions that might irate the manual chat support

We have moved so far in the field of technology today and NLP has taken the support system almost everywhere. From search queries to answering relevant topics, it can do many things and they are improvising every day. NLP is not only the solution for the company but also for the customers which means it’s a WIN-WIN for both ends. The market is likely to grow more by $27 Billion USD by the end of 2024 which is currently standing at somewhere around $600 Million USD.