What is Chatbot?
TL;DR
A chatbot is software that can have text or voice conversations with people, answering questions and completing tasks automatically.
Example
Where you've seen chatbots:
- Website chat widgets asking "How can I help?"
- Bank apps answering account questions
- Ordering food through messenger
- Virtual assistants (Siri, Alexa, Google Assistant)
Chatbot capabilities:
| Basic Chatbots | AI Chatbots |
|---|---|
| Follow scripted flows | Understand natural language |
| Limited responses | Handle unexpected questions |
| Keyword matching | Context-aware conversations |
| "Type 1 for sales" | "I'd like to talk to sales" |
Example conversation: User: "What are your opening hours?" Chatbot: "We're open Monday-Friday 9-17. Is there anything else I can help with?" User: "Can I book an appointment?" Chatbot: "Sure! What date works for you?" [shows calendar]
Explanation
Types of Chatbots
Rule-based chatbots: Follow decision trees. If user says X, respond with Y. Simple to build, limited flexibility.
AI-powered chatbots: Use natural language processing to understand intent. Can handle varied phrasings and unexpected questions.
Hybrid chatbots: AI for understanding, rules for actions. Best of both worlds for most business use cases.
Building a Chatbot
No-code options:
- Intercom, Drift, Zendesk (built-in)
- ManyChat, Chatfuel (social media)
- Landbot, Tidio (website)
Custom AI chatbots:
- Use GPT-4, Claude API
- Train on your specific knowledge base
- More powerful, more complex
Why It Matters
For Business Owners
Chatbots provide 24/7 availability. Customers expect instant responses. Chatbots can answer common questions at 3 AM when your team is asleep.
Chatbots reduce support costs. Many support questions are repetitive. Chatbots handle the easy ones, letting humans focus on complex issues.
Chatbots improve response time. No waiting for a human to become available. Instant answers increase customer satisfaction.
Chatbots capture leads. A well-designed chatbot can qualify visitors, collect contact info, and book meetings while you focus on other things.
Implementation Tips
- Start with FAQs, the questions you answer repeatedly
- Always offer a path to human support
- Set clear expectations ("I'm a bot, but I can help with...")
- Continuously improve based on conversations
- Monitor for questions the bot can't answer
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