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Practical Chatbot Use Cases In Banking and Insurance

In today's fast-paced world, organizations must differentiate themselves by embracing smart work over hard work. The rapid advancement of AI tools has made it effortless to surpass market and industry standards. To ensure uninterrupted service for customers or end-users, availability 24/7 is crucial. Meeting these needs seamlessly and conveniently is now achievable with the introduction of chatbots.

Chatbots are interactive robots designed to mimic human conversations through voice commands, text chats, or both, creating virtual interactions where one participant is an online bot. A study shows 47% of users are open to purchasing products via chatbots and 67% preferring them for faster responses, these AI-driven programs are becoming essential in real-time customer interactions. Depending on the underlying technology, chatbots can provide canned responses, handle various degrees of basic requests, and efficiently route customers.In this post, we'll explore their history before delving into practical use cases.

History of Chatbots/ How Chatbot Evolved Over The Years

The history of chatbots dates back to 1966 with the creation of Eliza by Joseph Weizenbaum. Eliza was among the earliest examples of a computer program designed to simulate human conversation using basic natural language processing techniques. It operated by matching user inputs to scripted responses, focusing on keyword recognition and string substitution rather than true understanding.Over the decades, advancements in artificial intelligence have propelled chatbot technology forward. Modern chatbots now leverage sophisticated AI algorithms, including machine learning and natural language understanding, to engage users in more complex and human-like interactions. This evolution has positioned chatbots as integral components of business strategies, enabling automation, enhancing customer service, and driving operational efficiency across various industries.

Productivity and Coaching

Personal and professional productivity is a rapidly growing market. Bots in this space are typically focused on reminders, to-do lists and personal/team task management and completion. These tasks might look like simple chatbot use cases, but they are very popular in the mobile app world and also have high engagement and download rates in bot stores.There are also many personal coach bots that help people with weight loss, personal finance, parenting, sports improvement and more.It seems like the nature of the medium – having the bot speak to users through a chat interface – makes the interactions more effective and engaging.

Conversational Commerce

For retailers, Conversational Commerce is the flavor of the season when it comes to chatbot use cases. Many businesses are adopting it as a part of their marketing, sales and customer care activities.When done right, conversational commerce can be more intuitive and engaging than traditional commerce. Travel bots can replace travel apps and websites by providing everything from bookings to travel alerts and customer service.Besides, customers no longer have to install apps to book rides – they can just ask their @Uber or @Lyft bots.Kip, a shopping bot for teams, is a very interesting bot in this space. From office supplies to snacks, Kip handles the complex coordination of getting everyone in the team to add to the group order.

Conversational Commerce bot kip interaction with the user

The interesting thing in this chatbot use case is that this bot is introducing a new e-commerce concept called the “team cart”. Here, multiple members in the chat can add to the cart, and the admin can pay for it. In this way, Kip is enabling a way of shopping that was not available until now.

Conversational commerce chatbots are equipped with advanced NLP capabilities that enable them to understand and interpret natural language inputs from users accurately. They also provide personalize interactions based on user preferences, past behavior, purchase history, and demographic information. By providing tailored recommendations and suggestions, they enhance the overall shopping experience.

Conversational can collect feedback from users, conduct surveys, and gather insights to improve their performance and user satisfaction

Alert/Notification Bots

Notification bots keep users engaged by sending them personalized and relevant messages in a channel or group. These bots have started to replace emails and in-app notifications.Some examples of Notification/ alert bots are:

           
  1. Newsbots
  2.        
  3. Price watch bots
  4.        
  5. Analytics report bots
  6.        
  7. Bots that notify you when your kids get home

There are a couple of differences between bot notifications and traditional mobile notifications:

           
  • For example, notifications sent to a group/team/channel chat are more collaborative. We see teams collaborating and taking action faster and more productively than when emails are sent to a group.
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  • While traditional notifications take you back to an app or a website to take action, many chat platforms provide you with a set of controls, such as buttons, that you can use to take action inline.

Given the right use cases, notifications can quickly turn into taking productive action.These micro workflows can happen in consumer chatbot use cases. This includes a discount alert with an action button to buy, as well as business use cases, such as for actionable reports or approval processes.The incentive here is that using bots for reports and alerts improves the actionability, transparency, and context.

Operator Bots

In this use case, the bots act as go-betweens, connecting users with service providers.In the same way that Lyft and Uber connect you with drivers, an operator bot can connect you to another human who then facilitates anything from technical support to marketing help.Sensay is a good example of an operator bot. The Sensay bot connects users with a real human whenever users need advice or inspiration.The incentive here is to provide a friendlier and useful version of the common interactive voice response (IVR) systems we all love when calling our service providers. Operator bots facilitate real-time communication with website visitors or customers, providing immediate assistance and support. These bots are designed to mimic human conversation patterns, making interactions more natural and engaging for users.

Operator bots can be programmed with customizable responses based on predefined scenarios or frequently asked questions (FAQs), ensuring consistency in communication.

Customer Service and FAQ Bots

This is one of the most common chatbot use cases. Here, the bot serves as the customer support executive, for employees or external customers. For internal chatbot use cases, the bot can answer questions like “What is our HR policy?”. An external consumer brand bot can answer questions like “What are the list of products you have?”. Support and FAQs are easy chatbot use cases because they usually follow a pattern of a single request/response, and the questions are usually repeated and easily trainable.Nanorep’s customer service bot.There is a strong incentive to use bots in customer support use cases — this is because bots are typically much more cost effective ( and in many cases faster) than humans at performing simple repetitive tasks.So that mundane and monotonus tasks can be handled by chatbots to allow human customer service agents to focus on more complex cases. The ultimate goal of a chatbot isn’t to replace customer service agents, but to increase their efficiency.

Brand bots

A brand bot is a powerful tool that embodies the personality, values, and tone of voice of the brand, ensuring consistent and authentic communication with customers. It engages users in interactive conversations, quizzes, polls, and games, fostering meaningful interactions and memorable experiences. 

Moreover, the brand bot plays a pivotal role in promoting products or services by providing personalized recommendations, sharing product information, and offering special deals or discounts. Additionally, it distributes branded content such as articles, videos, tutorials, and announcements, keeping customers informed and engaged.

Today, more and more marketing managers are looking for ways to build bots for their brands to increase the brand awareness and engagement.There are many interesting use cases around notifications of new products or special offers by top brands.  Companies are still trying to figure out what a valuable and engaging brand bot looks like over this new conversational interface.Bots provide brands a new and fresh way to engage with their users in a useful way.The core incentive here is app fatigue — users are tired of installing specific brand apps.  It’s not that people don’t care about apps anymore but there are just too many, so smartphone users are starting to become more selective. Only a handful of apps are absolutely key to our lives, and they will become the primary channel through which we communicate, work and play.Today, approximately 75% of all smartphone users in the world use some sort of messaging app. In fact, WhatsApp, Facebook Messenger, Viber and WeChat together have more users than the big networks: Facebook, Twitter, LinkedIn, and Instagram.

use Growth of Chatbot Adoption by Top Social Media Platforms

Content Scheduling

Social media automation tools offer a range of features that streamline social media management. These tools enable users to schedule posts across multiple social media platforms in advance, automating the posting of scheduled content without manual intervention. Additionally, they provide queue management capabilities to maintain a consistent posting schedule. 

These tools also include real-time monitoring of social media channels for mentions, comments, and messages, along with notification alerts for important interactions and engagement opportunities. Furthermore, social media automation tools offer a performance analytics dashboard with metrics such as reach, engagement, clicks, and conversions, providing valuable insights for effective social media strategies.

just have to approve KLM as a messenger contact.Ready to revolutionize your customer interactions? Discover the power of AI-driven chatbots for faster responses and seamless virtual interactions. Join us as we explore their history and delve into practical use cases. Embrace the future of customer engagement with chatbots today!

Source: Topbots.com

Ideas2IT Team

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