A beginner’s guide to conversational AI for business [2024]
Conversational AI provides valuable solutions for businesses. This AI subtype allows companies to send meaningful responses to customer messages, without disrupting their human staff. Plus, there’s no compromise on customer experience. Fast, efficient, and friendly, conversational AI software is a win/win solution for customers, staff, and businesses alike. But what does it do exactly?
Conversational AI solutions are diverse, and can easily be integrated with a host of different social platforms. In this post, we’ll demystify this complex topic for businesses. We’ll cover everything you need to know, including key features and benefits, along with where to start with conversational AI for customer service.
What is conversational AI?
Conversational AI refers to artificial intelligence technologies that can “converse” with humans. The software simulates human speech through natural language processing and machine learning. This means it can answer customer questions, send personalized, automated messages, and link to relevant products, for example.
So, what is conversational AI used for? Many website chatbots are powered by it. The virtual assistant tools on your Apple iPhone or Windows computer are too - think Siri or Cortana.
You’ll also frequently find conversational AI utilized in online customer service, both for websites and social media messaging. According to data from Comm100, 39% of B2C chats involve a chatbot at some point. So, it’s essential that your bots make a good impression.
Here’s where conversational AI bots stand out. These sophisticated chatbots can provide quick and personalized answers for most customer inquiries, saving time for your human customer service agents, and reducing costs.
Conversational AI offers different benefits to other subtypes. For example, conventional, or ‘traditional’, artificial intelligence can be programmed to complete specific tasks, whilst generative AI can create new content. Whilst these subtypes are useful for businesses, conversational AI is essential for social media messaging.
Why? This type of AI “understands” human language, both speech and text, and can improve its responses as customers interact with it. So, if you’re aiming to engage customers with messages that feel ‘alive’, then conversational AI is the way to go.
Conversational AI will transform how businesses interact with their customers, improving personalization, customer journey at each touch point, and overall engagement.
Sharmilli Ghosh
Data, AI, ML Storyteller and Product Builder
How conversational AI works
So, how does conversational AI work? Through processing large volumes of both text and audio data, AI can “learn” to imitate human conversations and provide personalized responses to customer queries.
But how exactly is this information processed by AI? That’s all down to AI conversation language learning…
There are two key systems that conversational AI companies use to train and refine their AI. These are ‘machine learning’ and ‘natural language processing’ (NLP). Here’s how these two processes work…
Machine learning
This is a type of artificial intelligence that refines itself through continued use over time. Through each interaction, the software “learns” what works and what doesn’t. It then uses this data to improve its responses, without human intervention.
You’ve likely enjoyed the benefits of machine learning online. For example, personalized product recommendations on e-commerce platforms, as well as inbox spam filters, are generated by machine learning. Ultimately, machine learning ensures AI “understands” its mistakes and learns from them.
Natural Language Processing (NLP)
The other process required for conversational AI is natural language processing (NLP). This is how AI learns to “understand” human language, in both text and speech formats.
Think of NLP as a kind of “translation” process between humans and artificial intelligence…
First, NLP allows AIs to “translate” human text and speech into their “language”.
Next, the AI will utilize speech recognition and natural language understanding (NLU) to interpret the data.
Finally, AI can then generate a “translated” response into a human language, using natural language generation (NLG).
Rather than a surface-level recognition of words and sounds, this ensures that the AI understands the content of what is being said or typed. This may sound overwhelming, but again, you’re likely more familiar with it than you know.
For example, if you ask ChatGPT a question, it’ll need to utilize NLP to understand your query and provide a response. NLPs are also used for autosearch and autocorrect when you use a search engine. Another great thing about NLP is that it isn’t restricted to one language - so a single conversational AI platform can communicate with customers around the world.
Check out the top 10 conversational AI platforms that you can use for your business.
What are the benefits of conversational AI (with examples)
Conversational AI solutions make communicating with your customers easier. But the benefits don’t stop there. Implementing an AI conversation bot can drive your business forward, reach new customers, and make new sales. Discover some of the key benefits below.
Boost efficiency
No two customers are the same. Their queries range from quick and easy to complex and time-consuming. Many simple queries could easily be resolved by conversational AI chatbots. That way, your human customer service agents can spend more time resolving complex issues and tackling other tasks.
Errors in customer support messages are naturally off-putting for customers. Fortunately, SleekFlow conversational AI bots have access to your company help documents, ensuring that responses are kept consistent, accurate, and on-brand.
How a skincare business can boost efficiency with conversational AI (example)
You’ve rolled out a new skincare beauty box, which customers purchase on a monthly subscription. On Instagram, Facebook Messenger, and WhatsApp, most customer queries are related to pricing. You offer tiered packages, so many customers ask questions about what they’ll get with each tier to find the most cost-effective option. At other times, they send messages about promotional offers and discounts.
Naturally, this gets quite repetitive for your customer service and sales teams. They quickly become tired of repeating the same answers over and over again. They’d rather focus on a customer complaint they need to follow up on urgently.
Fortunately, conversational AI solutions can help! With an AI conversation bot, all responses to simple queries can be automated. You won’t have to worry about a drop in quality either. SleekFlow’s conversational AI creates well-written, on-brand responses that use your internal help documentation to ensure accuracy. That leaves your human agents to focus on the complex issues.
Reduce costs
Implementing a conversational AI chatbot can also reduce your costs. Struggling to resolve customer queries with your current manpower? This usually means hiring additional customer service agents. Between wages and training, the costs soon build up for SMEs. That’s especially true if you need them to provide overnight support.
With the hybrid approach, AI can take care of simple customer issues, so your human staff can focus on more complex issues. No need for costly onboarding. Automated customer service software, including conversational AI tools, makes the best use of your current team.
Increase sales
Chatbot conversational AI has clear benefits for sales departments too. For one thing, its responses are tailored to each individual customer. For example, it can make unique product suggestions based on personalized data from your customers. That provides plenty of opportunities for cross-selling.
Plus, an AI conversation bot can be available 24/7. So, your customers know they can get their delivery information as and when they need it. No delays, no long call center queues. Needless to say, this is a much more appealing option for most busy customers. The quick and efficient service boosts repeat sales and long-term customers.
Connect with overseas customers
Why limit yourself to one language? If you’re hoping to sell your products or services in a new country or continent, costs for international customer service operatives and translators are a pricey obstacle.
For businesses that need to balance the costs, AI provides an affordable alternative. Many conversational AI chatbots include in-built translation software that adapts to your customer’s language. So, whatever the language, your e-commerce chatbot can resolve sales and customer service queries across the globe.
Scale your business
Aside from automated translation and 24/7 sales, there are other ways that conversational AI tools can scale your business. For one thing, the software can be implemented quickly across multiple platforms. No need to wait for expensive training and onboarding processes. You’re also fully prepared for unexpected increases in demand.
How an F&B business can scale with conversational AI (example)
The holidays come around quickly. You’ve had steady sales on your gluten-free food delivery platform throughout the year, but now sales have shot through the roof. It’s a nice surprise, but you’re unprepared for the flood of messages on your socials. Most of the customers have relatively simple questions about when they can expect their delivery and whether any holiday discounts are available.
But your customer service agents are mostly away on their holidays. With conversational AI, you’ll have chatbots on hand to respond to the increased questions, even when your human staff are away. Plus, you’ll have plenty of new opportunities for cross-selling. SleekFlow’s chatbots can recommend similar products your customers will love - so they won’t miss out on that seasonal sourdough bread promotion!
To learn more on tailoring AI responses to your brand's unique voice, explore our guide on crafting custom AI responses.
What features can you expect from conversational AI?
Features vary depending on the conversational AI platform you use. So, which is the best artificial intelligence chat for businesses? With SleekFlow AI, there are many exciting features that can transform customer interactions at every touchpoint.
Fluent customer communication
Poorly written chatbots are a thing of the past. Along with accurate grammar and spelling, SleekFlow AI responses can be adapted for the right tone. Want to sell to overseas markets? SleekFlow AI’s handy translation tools make it easy to communicate with customers around the world. Plus, you can even train the AI to adapt to different cultural norms and styles.
In-depth AI chatbot training
Help documents can be complex. Staff may forget some of the vast information, or simply struggle to explain complicated solutions to newbie customers. With SleekFlow AI, you can easily upload your internal knowledge base, so your conversational AI chatbot has an accurate and on-brand answer for (almost) every question.
Integrated customer messaging
You won’t be restricted to one platform with SleekFlow. Connect with potential clientele on WhatsApp, Facebook Messenger, Instagram, WeChat, LINE, Live Chat, SMS, and more - all on a single platform!
Building customer relationships and responding to messages on multiple platforms can be challenging. Thanks to SleekFlow, you’ll have access to all your messages at a single glance. That makes it easy to follow up on omnichannel leads, collaborating quickly and seamlessly with colleagues, and maintaining a consistent brand tone, no matter the platform.
Plus, you’ll also be able to integrate with your Shopify stores for clear access to customer order status and purchasing history as you message.
Collaboration with customer service staff
Conversational AI bots can manage your routine and simple customer queries. When things get more complicated, you can set up an automated flow to hand over the reins to your customer service team. SleekFlow AI provides trustworthy answers using internal documentation, but will always prompt intervention from your team when it’s necessary.
Summarized chat threads
Chat threads can be confusing and time-consuming to read. SleekFlow AI’s summary generator makes it easy for your customer service agents to get up-to-date. These summaries include the key details of the conversation, including the customer’s issue, any steps taken to resolve it, as well as the solution from your team. No more scrolling, everything you need for your records is in one place.
Where to start with conversational AI
Now you know the basics of conversational AI, it’s time to get started. Want to know how to create conversational AI for your business? Making the first step can be daunting.
However, there’s no need for businesses to slow down. SleekFlow is on hand to help! If you’re not sure where to start, take a look at the steps below.
1. Understand your conversational AI goals
Why does your business need to delve into conversational AI? Maybe your current team is stretched, or you want to quickly scale up before branching out into a new market.
Think about what you’d like to achieve, whether that’s saving time or cross-selling new products. Looking for something more simple? Set up automated chatbot replies instead.
2. Determine your most frequently asked questions
Customers often ask the same questions. Before you set up your conversational chatbot, you need to think about some likely FAQs. Don’t have that data to hand? Work closely with your customer service and marketing teams to find out what customers get confused about.
Our AI software keeps chatbot responses short and sweet. They’re highly accurate too, as they’re based on your internal help documentation.
3. Choose the right conversational AI platform
Conversational AI is difficult to get to grips with, especially when you’re managing a whole department or business. You can save time and money by simplifying the process with a conversational AI tool. Enter SleekFlow AI.
SleekFlow ensures your AI chatbot can understand the meaning of complex customer queries, and provide meaningful responses, whether that’s adapted from your internal documentation or through handing over to an agent.
Simplify your conversational AI
Conversational AI provides many benefits for your business. So, if you’re looking to save time, boost your efficiency, and streamline your social messaging, it’s really a no-brainer. However, it’s also not the easiest subject to get to grips with.
Taking steps to simplify your conversational AI bots is a smart move. There’s no need to build from scratch. So, what’s the best conversational AI for customer service and sales? Maybe we’re biased, but our answer is SleekFlow!
SleekFlow AI helps deliver meaningful messages for all your social messaging accounts through conversational AI. Want to train SleekFlow AI with your business documentation? Talk to us.
Want to outcompete your peers with SleekFlow's help?
Book your personalized demo with SleekFlow today and unlock the potential of seamless communication
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