Artificial Intelligence

Customer service chatbots: Benefits and examples

Celia Cerdeira

By Celia Cerdeira

0 min read

Chatbot Customer Service

Step into the future of customer service solutions where AI-driven chatbots are revolutionizing customer interactions. 

Imagine offering instant, tailored support available 24/7 at the tap of a button. They aren’t just chatbots, they’re dynamic, intelligent aides redefining customer interactions, offering immediate and personalized assistance round-the-clock. 

In this article, we’ll explore customer service chatbots in detail—what they can do and how they will benefit your business.

What can customer service chatbots do?

Powered by advanced artificial intelligence (AI), customer service chatbots are fast becoming integral parts of successful customer service strategies. They perform various tasks, each designed to enhance the customer experience and streamline operations.

The following capabilities make customer service chatbots an invaluable asset for any business focused on providing exceptional customer service.

Answer questions. 

One of the primary functions of chatbots for customer service is to answer customer inquiries. Utilizing AI, these chatbots can understand and respond to a vast array of questions, providing immediate and accurate information to customers.

Show customers new products. 

Chatbots can assist customers in finding specific products. They can search through the company’s inventory using parameters provided by the customer, delivering quick and efficient product discovery.

Check inventory. 

Beyond just finding products, chatbots can also provide real-time inventory updates. They can inform customers whether a particular item is in stock, helping to manage customer expectations and prevent frustration.

Provide personalized recommendations. 

After analyzing customer preferences and past purchases, chatbots can offer personalized product recommendations. This feature not only enhances the shopping experience but also increases the likelihood of additional sales.

Connect customers with live agents. 

While chatbots can handle many inquiries, some situations require human intervention. In such cases, chatbots can seamlessly connect customers with live agents, ensuring that all customer needs are adequately addressed.

Order confirmation. 

Once a purchase is made, chatbots can confirm the order, reassuring customers with necessary details like order number, total cost, and more.

Shipping tracking. 

Chatbots can also keep customers updated on their order status. They can provide tracking information and expected delivery dates, keeping customers informed every step of the way.

The benefits of customer service chatbots.

In addition to answering questions, chatbots bring many benefits that impact customer service. Here’s a closer look at how these AI-powered tools can deliver significant business value.

24/7, fast customer service.

It’s a fast-paced world, and people expect fast, efficient service. Chatbots deliver on this expectation by providing 24/7 customer service. No matter what time of day or night a customer reaches out, they can receive instant assistance from an AI chatbot. 

This constant availability meets customer expectations for fast service and enhances the overall customer experience with reliable, round-the-clock support.

Gather customer feedback.

Feedback is crucial for business growth and improvement. However, collecting it can be a challenging and time consuming task. Chatbots simplify this process by automatically asking for feedback at the end of each interaction. For example, a chatbot can ask customers about their experience or if they found the service helpful. 

The collected feedback provides valuable insights into potential inefficiencies in operations, allowing businesses to make necessary adjustments and improvements.

Free up agents to handle complex queries.

Customer service agents are often overwhelmed with a high volume of simple inquiries, leaving little time for more complex issues. Chatbots can alleviate this pressure by handling straightforward inquiries such as updating contact information or checking order status. 

This frees up agents to focus on queries that require a human touch, like processing refunds or handling sensitive issues. This improves customer service, ensuring customers receive the appropriate level of support, and boosts agent productivity, allowing them to focus on tasks where they can add the most value.

Chatgpt And The Contact Center Of The Future


ChatGPT and the contact center of the future

Find out how this exciting new technology will change customer service.

Do you need a customer service chatbot?

So, how do you know if you need a chatbot? All businesses, regardless of industry or size,   can greatly benefit from chatbots to offer 24/7 live agent support and reduce customer support costs. Here are some reasons businesses sign up for chatbots:

A growing international customer base. 

AI-powered chatbots can be programmed to understand and communicate in multiple languages, ensuring that customers worldwide receive support in their preferred language. If your business is experiencing growth in international markets, a multilingual chatbot could be a valuable addition to your customer service strategy.

24/7 customer support requirement. 

Customer queries can come in at any time of the day or night. A chatbot can fill this gap if your business lacks the resources to provide 24/7 live agent support. Chatbots are always available, providing instant responses to customer queries no matter when they are raised.

Reducing customer support costs. 

Maintaining a full-fledged customer support team can be expensive, particularly for small businesses or startups. Chatbots could be the solution if your business is looking for ways to reduce customer support costs without compromising on service quality.

Examples of chatbots for customer service.

1. AI chatbots for websites.

AI chatbots for websites provide immediate, personalized assistance to website visitors. These chatbots use artificial intelligence to understand user queries, respond in real time, and guide users through the website. They can answer questions about products or services, provide troubleshooting assistance, and even help with transactions. In delivering instant support, these chatbots enhance the user experience, increase engagement, and potentially boost conversions.

2. Chatbots that share knowledge from FAQ pages.

Chatbots that share knowledge from FAQ pages serve as an automated knowledge base, providing instant answers to common customer queries. These chatbots pull information directly from the company’s FAQ pages, reducing the need for customers to search through the website or wait for a response from a live agent. This improves service efficiency and empowers customers by providing them with immediate access to the information they need.

3. SMS chatbots.

SMS chatbots deliver customer support via text messages. They allow customers to ask questions, get updates, and receive support without needing internet access or a smartphone app. SMS chatbots offer the convenience of instant responses and the familiarity of texting, making them an effective tool for reaching a broad range of customers.

4. E-commerce chatbots.

E-commerce chatbots are revolutionizing the online shopping experience. They assist customers in finding products by understanding their needs and preferences, making personalized recommendations, and even facilitating transactions. They can provide real-time updates on orders, track information, and answers to common queries about return policies or shipping. This helps streamline the shopping process, reduce cart abandonment, and enhance customer experience.

Elevate CX with customer service chatbots.

Customer service chatbots have become an integral part of the customer service strategy for many businesses. Whether providing 24/7 support, sharing knowledge from FAQ pages, delivering support via text messages, or enhancing the e-commerce experience, chatbots are improving how businesses interact with their customers.

As AI technology develops even further, chatbots are likely to become more sophisticated, intuitive, and integral to providing outstanding customer service. However, designing an ideal customer service chatbot experience can be challenging, since the AI needs to be trained to serve customer inquiries effectively. Watch our on-demand webinar, “5 ways to design virtual agents and chatbots to delight your customers” to learn the specific pitfalls and design flaws in chatbots that can lead to frustrating customer experiences. 

5 Ways To Design Virtual Agents And Chatbots To Delight Your Customers


5 ways to design virtual agents and chatbots to delight your customers

Poorly designed chatbots can lead to frustrating experiences for your customers. Learn how to design effective chatbot conversations to help your customers get the answers they need fast.


What is a customer service chatbot?

A customer service chatbot is an automated tool powered by artificial intelligence (AI) that serves as a virtual assistant to customers. It interacts with customers in real time, answering their questions, guiding them through purchases, and even making personalized product or service recommendations based on their preferences and behavior. They operate 24/7, offering immediate assistance across various platforms such as websites, social media, and messaging apps.

Why are chatbots good for customer service?

Chatbots enhance customer satisfaction and contribute to business growth and development. They:

  • Provide instant responses to customer queries, reducing wait times and improving service efficiency.
  • Free up live agents to focus on more complex issues that require human judgment and empathy, optimizing resource utilization.
  • Can gather and analyze customer feedback and behavior in real time, providing valuable insights that businesses can use to improve their products, services, and overall customer service strategy.

Will customer service chatbots replace live agents?

While chatbots are a powerful tool, they won’t replace live agents. They handle simple queries, allowing agents to focus on complex issues that require human intervention. Chatbots and live agents work in synergy to provide exceptional customer service.


Celia Cerdeira

Celia Cerdeira

Célia Cerdeira has more than 20 years experience in the contact center industry. She imagines, designs, and brings to life the right content for awesome customer journeys. When she's not writing, you can find her chilling on the beach enjoying a freshly squeezed juice and reading a novel by some of her favorite authors.