In competitive business environments, companies are known to go the extra mile to provide customers with the best support. Conversational UIs like chatbots and live chat widgets are popular messaging channels and with good reason. They can facilitate personalized and quick solutions and can also move customers across the sales funnel much faster.
Chatbots and live chat solutions both aid in bettering a company’s customer support efforts but have their individual pros and cons. Choosing the right solution for your business will require a deep understanding and evaluation of the two.
How are chatbots different from live chat?
While live chat has been around for a significant amount of time, chatbots are fairly new and are referred to as the next generation of intelligence. There are a few significant differences between chatbots and live chat software that one must consider before they make a choice between the two.
Faster Resolution Time
Longer wait times for responses are probably the main reason for a customer to leave your website. While chatbots have a negligible response time, on live chats a customer needs to wait for an agent to respond with an appropriate answer. It may seem obvious to assume that chatbots complete tasks at a much faster pace, but that’s not true. Yes, they do reply instantaneously, but is it enough to measure just the first response time?
An example of when first response time falls short as a metric is when a customer encounters a rule-based bot that doesn’t list the customer issue as an option. This would take more time to solve than what a real agent would have taken if the conversation took place on live chat. Hence, it is vital that you compare resolution time alongside the response time. Moreover, artificial intelligence chatbots take time to learn different semantics.
24×7 Availability
If your business is not online round the clock, you are likely to lose customers. Unlike live chat, a chatbot is easily scalable with the use of automation. It is available to resolve customer queries 24×7, 365 days a week with quick answers. This makes it possible to handle huge volumes of requests and common questions without delay and makes your customers feel valued.
Effective Problem-Solving Skills
An important KPI to consider is how efficiently your solution reduces the number of tickets and escalations being generated. Chatbots are machines. They don’t panic, nor do they get stressed. In fact, they are adept at multitasking. But on the flip side, they rarely have the functionality to read intent and emotions and can answer only simple and specific questions.
Read more: “10 Live Chat Etiquette Rules For Exceptional Customer Service”
If your customers usually approach you with repeated questions, chatbots are the way to go. If there is high traffic of unique and complex questions, using a chatbot in tandem with live chat support, that uses a real person, might be the better solution. This is a great option for customers looking for a detailed explanation for a complex query.
Lower Long-Term Costs
Researchers predict that by 2025, more than 90% of the B2C interactions will be accomplished by chatbots. Chatbots have a one-time installation cost and are claimed to cut operational costs for businesses by more than $8 billion per year.
Live chat agents need to be paid salaries that can often compound large expenses, depending on your company size and visitor numbers. The cost of installing a bot might vary based on the types of bots used for different use-cases. But the bottom line is that chatbots are more cost-effective and can save you money and other resources if implemented effectively.
Leaner Training Time
Bots need extensive training to understand the natural language of the customer. Every human interaction is a new learning experience for an AI-powered chatbot. We should also be prepared for the bots to fail in the beginning and ensure that we minimize the damage. However, once trained, AI bots can store and retrieve huge volumes of information compared to humans.
In the live chat scenario, we have to train real humans. Training chat support agents about live chat etiquette and product knowledge is sufficient to help them effectively answer questions, thereby reducing training time.
Higher Engagement Rate
Chatbots provide an interactive chat experience to customers, which surprises them, delights them, and thus proves to be better at customer engagement. A report by Gartner says that interest in chatbots increased by 160% in 2018. Chatbots can also seamlessly initiate proactive conversations, an area where a human agent has limitations.
While compared to email and pre-recorded phone conversations, live chat has a good engagement rate because of its human touch. However, live chat misses the wow factor which excites you while interacting with a chatbot.
Chatbot vs. Live chat: Choose wisely
Both live chat and chatbots substantially improve your business’s customer experience. They can give your website visitors apt, fast, and useful information and give you ample opportunity to create a personalized workflow.
Chatbots and live chat solutions both aid in bettering a company’s customer support efforts but have their individual pros and cons.
Understanding the capabilities and drawbacks of each of these options is a vital step in choosing the best option for your business. For some customers adopting a combination of chatbot and live chat gives advantages. Using chatbot can tackle repetitive questions and FAQs with instant responses in real-time, while the human support agents can solve complex issues that require human interaction. Implementing such a hybrid approach can help you benefit from the pros of each while mitigating the drawbacks, giving the best possible customer satisfaction rates.
For more information on AI Chatbots, check out our free guide and see how we can help you get started with chatbots or live chat software for your business.
Frequently Asked Questions
Q1: What is the main difference between chatbots and live chat?
A: Chatbots are automated AI-powered systems that provide instant responses without human involvement, while live chat connects customers to real human agents. Chatbots excel at handling repetitive questions with 24/7 availability and scalability, whereas live chat provides personalized human interaction for complex issues. Live chat has been around longer, while chatbots represent the next generation of customer service intelligence.
Q2: Which is faster at resolving customer issues: chatbots or live chat?
A: The answer depends on the situation. Chatbots have negligible response time and reply instantaneously, while live chat requires customers to wait for an agent. However, first response time isn’t everything—resolution time matters more. If a rule-based chatbot doesn’t have the customer’s issue listed as an option, it may take longer to resolve than live chat with a real agent. AI chatbots also need time to learn different semantics before becoming truly effective.
Q3: Are chatbots available 24/7?
A: Yes, chatbots are available 24/7, 365 days a week, making them easily scalable through automation. They can handle huge volumes of requests and common questions without delay at any time. In contrast, live chat agents need time off and businesses that aren’t online round the clock risk losing customers. This constant availability is one of chatbots’ key advantages.
Q4: Which is more cost-effective: chatbots or live chat?
A: Chatbots are generally more cost-effective long-term. They have a one-time installation cost and are claimed to cut operational costs by more than $8 billion per year for businesses. Live chat agents require ongoing salaries that compound into large expenses depending on company size and visitor numbers. While chatbot costs vary based on types and use cases, they ultimately save money and resources when implemented effectively.
Q5: How do chatbots and live chat differ in problem-solving abilities?
A: Chatbots excel at multitasking without stress or panic, making them ideal for handling repetitive questions. However, they rarely can read intent and emotions and can only answer simple, specific questions. Live chat agents provide human intuition and empathy for complex issues. If customers ask repeated questions, chatbots are the better choice. For unique and complex questions requiring detailed explanations, live chat with real agents is more suitable.
Q6: Which requires more training: chatbots or live chat agents?
A: Both require training but in different ways. AI-powered chatbots need extensive training to understand natural language, with every human interaction serving as a learning experience. They may fail initially but can eventually store and retrieve huge volumes of information. Live chat agents need training on chat etiquette and product knowledge, which takes less time. Once trained, humans can answer questions effectively with their existing communication skills.
Q7: Which provides better customer engagement: chatbots or live chat?
A: Chatbots provide an interactive experience that surprises and delights customers, with interest increasing by 160% in 2018 according to Gartner. They excel at initiating proactive conversations seamlessly. Live chat offers good engagement through its human touch and performs better than email or phone recordings, but lacks the ‘wow factor’ that chatbots provide. Both offer strong engagement but through different approaches.
Q8: Should I choose chatbots or live chat for my business?
A: The best approach is often a hybrid solution combining both. Use chatbots to tackle repetitive questions and FAQs with instant real-time responses, while human agents handle complex issues requiring personal interaction. This combination allows you to benefit from chatbots’ 24/7 availability and cost-effectiveness while maintaining live chat’s human touch for nuanced situations, ultimately delivering the best possible customer satisfaction rates.
