Improve loyalty: By providing a responsive, efficient experience for customers, employees and partners, a chatbot will improve satisfaction and loyalty. Whether your chatbot answers questions about employees’ corporate benefits or provides answers to technical support questions, users can come away with a strengthened connection to your organization.
As artificial intelligence continues to evolve (it’s predicted that AI could double economic growth rates by 2035), conversational bots are becoming a powerful tool for businesses worldwide. By 2020, it’s predicted that 85% of customers’ relationship with businesses will be handled without engaging a human at all. Businesses are even abandoning their mobile apps to adopt conversational bots.

1-800-Flowers’ 2017 first quarter results showed total revenues had increased 6.3 percent to $165.8 million, with the Company’s Gourmet Food and Gift Baskets business as a significant contributor. CEO Chris McCann stated, “…our Fannie May business recorded positive same store sales as well as solid eCommerce growth, reflecting the success of the initiatives we have implemented to enhance its performance.” While McCann doesn’t go into specifics, we assume that initiatives include the implementation of GWYN, which also seems to be supported by CB Insights’ finding: 70% of customers ordering through the chat bot were new 1-800-Flowers customers as of June 2016.


Online chatbots save time and efforts by automating customer support. Gartner forecasts that by 2020, over 85% of customer interactions will be handled without a human. However, the opportunites provided by chatbot systems go far beyond giving responses to customers’ inquiries. They are also used for other business tasks, like collecting information about users, helping to organize meetings and reducing overhead costs. There is no wonder that size of the chatbot market is growing exponentially.
To envision the future of chatbots/virtual assistants, we need to take a quick trip down memory lane. Remember Clippy? Love him or hate him, he’s ingrained in our memory as the little assistant who couldn’t (sorry, Clippy.).  But someday, this paper clip could be the chosen one. Imagine with me if you will a support agent speaking with a customer over the phone, or even chat support. Clippy could be listening in, reviewing the questions the customer is posing, and proactively providing relevant content to the support agent. Instead of digging around from system to system, good ‘ole Clippy would have their back, saving them the trouble of hunting down relevant information needed for the task at hand.
Oftentimes, brands have a passive approach to customer interactions. They only communicate with their audience once a consumer has contacted them first. A chatbot automatically sends a welcome notification when a person arrives on your website or social media profile making the user aware of your chatbots presence. This makes you seem more proactive, thus enhancing your brand's reputation and can even increase interactions, having a positive effect on your sales numbers, too.
A virtual assistant is an app that comprehends natural, ordinary language voice commands and carries out tasks for the users. Well-known virtual assistants include Amazon Alexa, Apple’s Siri, Google Now and Microsoft’s Cortana. Also, virtual assistants are generally cloud-based programs so they need internet-connected devices and/or applications in order to work. Virtual assistants can perform tasks like adding calendar appointments, controlling and checking the status of a smart home, sending text messages, and getting directions.

Smooch acts as more of a chatbot connector that bridges your business apps, (ex: Slack and ZenDesk) with your everyday messenger apps (ex: Facebook Messenger, WeChat, etc.) It links these two together by sending all of your Messenger chat notifications straight to your business apps, which streamlines your conversations into just one application. In the end, this can result in smoother automated workflows and communications across teams. These same connectors also allow you to create chatbots which will respond to your customer chats…. boom!
Polly may be a business-focused application, but the chatbot is designed to improve workplace happiness. Using surveys and feedback, managers can keep track of how effectively their teams are working and address problems before they escalate. This doesn’t only mean organizations will run more productively, but that workers will be happier in their jobs.
In this article, we shed a spotlight on 7 real-world chatbots/virtual assistants across industries that are in action and reaping value for their parent companies. From streamlined operations and saved human productivity to increased customer engagement, the following examples are worth a read if you’ve ever considered leveraging chatbot technology for your business (or are curious about the possibilities).
As the above chart (source) illustrates, email click-rate has been steadily declining. Whilst open rates seem to be increasing - largely driven by mobile - the actual engagement from email is nosediving. Not only that, but it's becoming more and more difficult to even reach someone's email inbox; Google's move to separate out promotional emails into their 'promotions' tab and increasing problems of email deliverability have been top reasons behind this.
With natural language processing (NLP), a bot can understand what a human is asking. The computer translates the natural language of a question into its own artificial language. It breaks down human inputs into coded units and uses algorithms to determine what is most likely being asked of it. From there, it determines the answer. Then, with natural language generation (NLG), it creates a response. NLG software allows the bot to construct and provide a response in the natural language format.

[…] But how can simple code assimilate something as complex as speech in only the span of a handful of years? It took humans hundreds of generations to identify, compose and collate the English language. Chatbots have a one up on humans, because of the way they dissect the vast data given to them. Now that we have a grip on the basics, we’ll understand how chatbots work in the next series. […]

24/7 digital support. An instant and always accessible assistant is assumed by the more and more digital consumer of the new era.[34] Unlike humans, chatbots once developed and installed don't have a limited workdays, holidays or weekends and are ready to attend queries at any hour of the day. It helps to the customer to avoid waiting of a company's agent to be available. Thus, the customer doesn't have to wait for the company executive to help them. This also lets companies keep an eye on the traffic during the non-working hours and reach out to them later.[41]

Chatbots can have varying levels of complexity and can be stateless or stateful. A stateless chatbot approaches each conversation as if it was interacting with a new user. In contrast, a stateful chatbot is able to review past interactions and frame new responses in context. Adding a chatbot to a company's service or sales department requires low or no coding; today, a number of chatbot service providers that allow developers to build conversational user interfaces for third-party business applications.


Through our preview journey in the past two years, we have learned a lot from interacting with thousands of customers undergoing digital transformation. We highlighted some of our customer stories (such as UPS, Equadex, and more) in our general availability announcement. This post covers conversational AI in a nutshell using Azure Bot Service and LUIS, what we’ve learned so far, and dive into the new capabilities. We will also show how easy it is to get started in building a conversational bot with natural language.
Founded by Pavel Durov, creator of Russia’s equivalent to Facebook, Telegram launched in 2013 as a lightweight messaging app to combine the speed of WhatsApp with the ephemerality of Snapchat along with claimed enhanced privacy and security through its use of the MTProto protocol (Telegram has offered a $200k prize to any developer who can crack MTProto’s security). Telegram has 100M MAUs, putting it in the second tier of messaging apps in terms of popularity.
Unlike Tay, Xiaoice remembers little bits of conversation, like a breakup with a boyfriend, and will ask you how you're feeling about it. Now, millions of young teens are texting her every day to help cheer them up and unburden their feelings — and Xiaoice remembers just enough to help keep the conversation going. Young Chinese people are spending hours chatting with Xiaoice, even telling the bot "I love you".
“They’re doing things we’re simply not doing in the U.S. Imagine if you were going to start a city from scratch. Rather than having to deal with all the infrastructure created 200 years ago, you could hit the ground running on the latest technology. That’s what China’s doing — they’re accessing markets for the first time through mobile apps and payments.” — Brian Buchwald, CEO of consumer intelligence firm Bomoda
Utility bots solve a user's problem, whatever that may be, via a user-prompted transaction. The most obvious example is a shopping bot, such as one that helps you order flowers or buy a new jacket. According to a recent HubSpot Research study, 47% of shoppers are open to buying items from a bot. But utility bots are not limited to making purchases. A utility bot could automatically book meetings by scanning your emails or notify you of the payment subscriptions you forgot you were signed up for.
“To be honest, I’m a little worried about the bot hype overtaking the bot reality,” said M.G. Siegler, a partner with GV, the investment firm formerly known as Google Ventures. “Yes, the high level promise of what bots can offer is great. But this isn’t going to happen overnight. And it’s going to take a lot of experimentation and likely bot failure before we get there.”
How: this involves creating a basic content block within Chatfuel that has a discount code within it. Instead of giving all users of the bot the same experience, you can direct them through to specific parts of the conversation (or 'blocks'). Using the direct link to your content block, you'll be able to create CTAs on your website that direct people straight into Messenger to get a discount code (more info here).
Through Knowledge Graph, Google search has already become amazingly good at understanding the context and meaning of your queries, and it is getting better at natural language queries. With its massive scale in data and years of working at the very hard problems of natural language processing, the company has a clear path to making Allo’s conversational commerce capabilities second to none.
Your bot can use other AI services to further enrich the user experience. The Cognitive Services suite of pre-built AI services (which includes LUIS and QnA Maker) has services for vision, speech, language, search, and location. You can quickly add functionality such as language translation, spell checking, sentiment analysis, OCR, location awareness, and content moderation. These services can be wired up as middleware modules in your bot to interact more naturally and intelligently with the user.

The market shapes customer behavior. Gartner predicts that “40% of mobile interactions will be managed by smart agents by 2020.” Every single business out there today either has a chatbot already or is considering one. 30% of customers expect to see a live chat option on your website. Three out of 10 consumers would give up phone calls to use messaging. As more and more customers begin expecting your company to have a direct way to contact you, it makes sense to have a touch point on a messenger.
As AOL's David Shingy writes in Adweek, "The challenge [with chatbots] will be thinking about creative from a whole different view: Can we have creative that scales? That customizes itself? We find ourselves hurtling toward another handoff from man to machine -- what larger system of creative or complex storytelling structure can I design such that a machine can use it appropriately and effectively?"

For every question or instruction input to the conversational bot, there must exist a specific pattern in the database to provide a suitable response. Where there are several combinations of patterns available, and a hierarchical pattern is created. In these cases, algorithms are used to reduce the classifiers and generate a structure that is more manageable. This is the “reductionist” approach—or, in other words, to have a simplified solution, it reduces the problem.

Previous generations of chatbots were present on company websites, e.g. Ask Jenn from Alaska Airlines which debuted in 2008[27] or Expedia's virtual customer service agent which launched in 2011.[27][28] The newer generation of chatbots includes IBM Watson-powered "Rocky", introduced in February 2017 by the New York City-based e-commerce company Rare Carat to provide information to prospective diamond buyers.[29][30]
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