MENU-DRIVEN BOTS

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CONVERSATIONAL AI: THE FUTURE OF CUSTOMER SUPPORT

IT’S TOUGH TO FORGET THE PAST, EVEN WHEN YOU’RE TRAINING IN THE PRESENT.

HOW DO BUSINESSES SPEND $1.3 TRILLION ON CUSTOMER SERVICE EVERY YEAR AND STILL LEAVE CUSTOMERS UNSATISFIED WITH THEIR QUERIES?  Well, that’s mainly because they still rely on Traditional outdated methods like Menu-driven bots. These traditional bots do serve a purpose BUT they often fall short of the increasingly high expectations of today’s customers. Enter conversational AI, a game-changing artificial intelligence innovation that is rapidly transforming how businesses engage with their customers.

By enabling human-like interactions, Conversational AI not only improves the customer experience but also dramatically reduces operational costs. It’s no wonder the AI chatbot market, valued at $5.4 billion in 2023, is expected to skyrocket to $36.87 billion by 2028 and further grow to $66.6 billion by 2033 at a CAGR of 26.4%.

Menu-Driven Bots: Why They’re Falling Behind

Menu-driven bots operate by guiding users through a series of predefined options, limiting the scope of interactions. While these bots are simple and inexpensive to implement, they often frustrate users with their.

For instance; if a customer asks, “I need to change the delivery location for my order.” Menu-driven bot might fail to understand or act on this specific request and will likely offer rigid replies such as “Track my order” or “Cancel my order,” none of which solve the customer’s issue. The only thing remaining for him/her would be to select one of those unrelated options since there is no other alternative apart from waiting for a live customer support executive.            

Here are the key issues with menu-driven bots:

• RIGID WORKFLOWS: Users often have to navigate multiple steps to get the information they need.

• RESTRICTED FUNCTIONALITY: Complex or abstract inquiries leave these bots stunted, often pushing customers to a live chat for support.

                           

• NOT CUSTOMER FRIENDLY/ POOR CUSTOMER EXPERIENCE: The interaction feels robotic and uninhabited which disappoints customers heavily.

As customer expectations continue to grow, the limitations of menu-driven bots are becoming increasingly apparent. So what Customers need is a system capable of understanding our specific requests and delivering solutions instantly without any frustrating rigidity in choices. This is where an AI chat system powered by Artificial intelligence steps in.

CONVERSATIONAL AI: A SMARTER, MORE EFFICIENT SOLUTION

Businesses are turning towards Conversational AI to meet customer expectations. Powered by Large Language Models (LLMs) and Retrieval-Augmented Generation (RAG), Conversational AI systems offer real-time, personalized responses that are a significant leap from the rigid, pre-programmed responses of traditional bots. These systems leverage artificial intelligence chat capabilities to deliver accurate, human-like conversations.

Where Menu-driven bots fail, Conversational AI excels. Imagine a customer asking,” I need to change the delivery location for my order”. Instead of providing a limited set of options, this online AI chatbot can understand the specific request, pull up the relevant details, and instantly guide the customer through the process without the need for human intervention.

Key benefits of Conversational AI:

• Real-time responses: Conversational AI delivers instant answers based on customer-specific inquiries, eliminating wait times and frustration.

• Understanding complex queries: Unlike menu-driven bots, it can handle more intricate or multi-step questions, providing solutions that feel natural and human-like.

• 24/7 availability: Conversational AI works around the clock, providing instant 24/7 customer support at any time, across any time zone, without the need for human intervention.

• Context-aware interactions: By leveraging RAG, Conversational AI retrieves the most relevant, up-to-date information to deliver personalized responses.

Market Growth and Global Adoption

With the AI chatbot market expected to grow to nearly $37 billion by 2028,  the rise of Conversational AI is undeniable. Industries like health and wellness, personal care, sexual wellness, fashion, and education are driving this growth, as businesses look to improve customer service efficiency while scaling their operations.

• As large enterprises, especially Fortune 500 companies, invest heavily in building in-house AI solutions to maintain control and innovation, mid-size companies and SMBs are increasingly turning to AI solution providers. These businesses are outsourcing their AI development to leverage specialized expertise and scalability without the high costs of building in-house teams​

CONVERSATIONAL AI: MAXIMIZING BUSINESS POTENTIAL

Businesses adopting Conversational AI are realizing significant benefits:

• Cost Reduction: By automating 90% of support requests, The AI chatbot cuts down on the need for human agents, leading to substantial savings in hiring and training costs.

• Handling High Volumes: AI chatbots can manage large numbers of interactions simultaneously. This scalability eliminates the bottleneck caused by limited human resources.

• Enhancing Customer Experience: Instant, accurate responses are key to customer satisfaction. Conversational AI provides real-time support, ensuring a seamless and positive experience for users.

  At Verifast, we achieved a 90% Customer Satisfaction (CSAT) score within the first month of deployment—on par with human agents but at 1/10th the cost. This level of satisfaction is far above the industry average. In contrast, traditional bots can only hit a maximum CSAT score of 60%.

• Scalability for Global Brands: For businesses looking to scale, AI bots for support provide the perfect solution. Its ability to respond in multiple languages makes it an ideal choice for global brands.

                       Verifast AI takes this even further by offering support in over 100 languages, be it English, Spanish, Hindi, or Tamil. Our Artificial intelligence chatbot can engage in the customer’s native language with the same level of fluency and understanding which allows businesses to build deeper relationships with their global customer base using artificial intelligence chat.

CONCLUSION:

Companies that fail to adopt advanced AI technologies are losing ground to competitors. In today’s fast-paced digital landscape, customers demand immediate, high-quality support, and businesses that don’t keep up risk losing valuable, lifelong customers to more forward-thinking competitors.

AT VERIFAST, We are redefining the way customer service is delivered, providing 24/7 multilingual customer support and converting customer interactions into profitable experiences. As the AI chatbot market continues to grow, there’s never been a better time to adopt conversational AI and prepare for the future of customer services. Because, The question now is:

          Can your business afford to fall behind?