previous icon Back to blog
Oct 12, 2021
5 minutes read

Chatbot vs. Live Chat: Which is Right for Your Business?

Chat is quickly becoming many customers’ favourite way to communicate with brands. From getting their problems solved quickly to finding more information about a company’s products or services - chat is fast, efficient, and doesn’t involve the long-wait times typically associated with phone calls or rounds of back-and-forth emails.

Brechtje van Houtum
Brechtje van Houtum,
Content Marketer

When it comes to offering chat on your website, you have two options: live chat (which involves customers talking to a salesperson or customer service rep in real-time) or a chatbot (where customers can interact with software that offers answers based on a pre-written script or on a flow triggered by keywords or intent.)

Chatbots fuelled by artificial intelligence use NLP and machine learning to understand and analyse conversations with people and tailor their responses by drawing on pre-defined answers, an educational database, or previous conversations with customers. These bots are even able to handle transactions.

In this article, we explore the benefits of both live chat and chatbots and why you should consider both to meet your customers’ needs.

What is the Difference Between Live Chat & Chatbots?

Live chat involves a live conversation between a company’s employee and a customer or lead. In comparison, chatbots refer to an automated conversation with a customer or prospect and software.

Chatbots can answer a range of pre-defined questions, such as, “What are your opening hours?”, or “Do you deliver to Cape Town?”. More sophisticated AI chatbots can help customers with tasks such as subscription renewals, changing an address, or ordering food.

The Benefits of Live Chat

  • Meeting customers’ need for human interactions

With live chat, customers or prospects can engage in direct conversations with customer support employees or salespeople. One-to-one support has always been an essential part of delivering a great customer experience and 70% of consumers say they desire human interactions when it comes to these conversations.

Users site personalised interactions as key to their positive experience of a brand. When customers are feeling stressed and overwhelmed, a warm, helpful, and supportive conversation with an agent can go a long way and it help them feel like your company cares about their problem.

  • Get a deeper understanding of prospects and customers

While you can review chat transcripts to find out more about the concerns of your prospects and customers, live chat gives you the opportunity for a deep dive into a person’s experience. With live chat, agents can ask questions that explore customer issues in more depth, helping them to gain a better understanding of users.

  • Tackle complex problems

Live chat is also a great channel when it comes to combining fast and efficient response times with the ability to resolve complex customer problems. Live chat gives users the opportunity to discuss their complicated problems with a knowledgeable customer service representative.

msc-platform-live-chat

Discover 4 tips to improve your live chat experience

The Benefits of Chatbots

  • Cost-efficient

Particularly in the case of larger companies or those looking to scale, investing in chat software is far more cost-effective than hiring several new employees to engage in online chats. AI-powered chatbots can reduce the costs of customer service by up to 30% — in contrast to the $1 trillion companies spend on customer calls every year.

  • Effective in nearly 70% of cases

While live conversations with agents offer an awesome opportunity to tackle more complex customer issues, chatbots continue to become more and more sophisticated with every passing year. Comm100 reports that chatbots can successfully handle an average of 68.9% of chats from start to finish.

  • Unbeatable response times

90% of customers rate an immediate response from customer services to a question as “important” or “very important.” Chatbots can deliver near-immediate responses to customer queries. In addition, chatbots can provide 24/7 responses, providing immediate support whenever customers need it.

scripted-chatbot-right

Read more: 5 tips to create the best chatbot

What to Choose: Live Chat or Chatbot?

Chatbots and live chats both provide unique benefits. From the immediate responses and 24/7 availability that you find with chatbots to that hard-to-beat human interactions live chat delivers, each addresses different customer pain points and fulfils different customer needs.

Depending on your business, and your customers' preferences, choose the option or combination best suited to your business. In eCommerce for example, live chat can attribute to - and increase conversions. A quick personal interaction can take away small doubts. In utilities, with many repeating questions and standardiSed actions, an advanced AI chatbot might be the best solution.

Always have your use case in mind, before choosing a chat solution.

Chatbots and Live Chats: a Dynamic Combination

The best of both worlds? By providing a hybrid solution, you can offer immediate, round-the-clock response times with the assistance of chatbots. In addition, you can also set up chatbots to pass more complex issues onto customer service representatives, where live agents can provide emotional support and in-depth guidance.

Moreover, by combining live chat with chatbots, you can ensure conversational continuity by using chatbots to collect and pass on data to live agents – reducing the need for customers to repeat themselves. You can also protect your customer satisfaction and retention rates by routing customers to live agents that can provide in-depth support based on their expertise.

Chatbots and live agents work in tandem to meet complex customer needs and provide well-rounded and timely support to your customers. Bring together live chat and chatbots with Conversational AI Cloud and Mobile Service Cloud.

Want to Know More About Live Chat & Chatbots?

Was this article interesting?
Share it!
Brechtje van Houtum
Brechtje van Houtum,
Content Marketer
logo linkedin icon

Whether it’s developing content strategies or creating social media content, Brechtje is eager to contribute. She spreads CM.com’s message far and wide, stays on top of cutting-edge tech developments, and champions a 'customer first' philosophy.

Latest articles

hero-17-sms-customer-service-templates-to-use-today
Nov 11, 2024 • Conversational AI

Turning shoppers into loyal fans: How to retain customers post-Black Friday

Black Friday is a huge shopping event, drawing crowds of eager shoppers hunting for deals. But after the frenzy fades, the real challenge begins: turning one-time shoppers into loyal, repeat customers. Customer retention is vital for long-term success and post-Black Friday is the perfect time to build lasting relationships. So, how can your business retain customers post-Black Friday? In this blog, we’ll explore how to make it happen.

blackfriday-2024-blog-featured-global
Oct 16, 2024 • Conversational AI

The art of simplicity: Helping your customers make quick decisions this Black Friday

Black Friday 2024 is just around the corner, bringing with it a great opportunity for retailers to maximise their sales. However, standing out in such a competitive event isn’t easy. Consumers expect attractive offers, fast deliveries, and top-notch customer support. In this article, we’ll show you how to simplify the purchasing process during Black Friday, optimising everything from promotions to logistics and 24/7 customer service. Discover the best strategies to ensure a seamless experience and increase customer loyalty. Don’t fall behind this Black Friday!

unlock-communication-excellence-with-cpaas
Jul 11, 2024 • CM.com

Unlock communication excellence with CPaaS

Diving deeper into CM.com's CPaaS approach is empowering business users to unlock Communication Excellence - a guest article by Quadrant Knowledge Solutions, a global advisory and consulting firm focused on helping clients in achieving business transformation goals with strategic business and growth advisory services.

engage-platform-effect-customer-service
May 10, 2024 • CM.com

Happy clients, happy agents: The "platform effect" in customer service

As a member of the customer service team, you stand on the front lines of customer interaction every day. In a world where customers demand quick and personalised service - long wait times, impersonal responses, or worse, incorrect answers, can quickly drive a customer away. Your goal, however, is to connect customers with your organisation and deliver the best answers and service possible. It’s incredibly satisfying to see a customer leave a conversation happier and eager to purchase your product. Your efforts can significantly enhance the customer experience, but you need the right tools to truly excel. Integrating these tools into a platform amplifies your capabilities and lets you experience the power of the platform effect.

blog-email-open-rates
Mar 27, 2024 • Conversational AI

Navigating AI Adoption in South Africa

In this ever evolving landscape, businesses that proactively invest in AI capabilities stand to gain a significant competitive edge in the years to come. By embracing AI as a strategic imperative and overcoming the hurdles to adoption, South African businesses can unlock new opportunities, drive innovation, and position themselves for success in the digital era.

Conversational AI Cloud web conversations blog woman chatting chatbot
Mar 11, 2024 • Chatbots

6 steps to MSP profitability with AI Chatbots

As the Managed Service Provider (MSP) landscape continues to evolve, staying ahead means embracing innovative solutions that not only enhance efficiency but also elevate customer service to new heights. Enter AI Chatbots from CM.com – a game-changing tool that can revolutionise how MSPs interact with clients. In this blog, we’ll provide you with a comprehensive roadmap consisting of six steps to boost profitability using AI Chatbots from CM.com.

Telco infographic blog calling lady customer journey
Jan 15, 2024 • Mobile Service Cloud

Why offering customer support by phone is essential

Contrary to what you may believe about the preferences of the younger generations, recent data indicates that the telephone remains the favoured method of customer support for 69% of consumers across various age groups, including Gen Z and millennials. Additionally, there has been a consistent upward trend in Google searches for "phone number customer service" in the US over the past five years. This demonstrates a sustained and growing reliance on phone-based customer service solutions, highlighting its enduring significance in the contemporary consumer landscape.

customerservice-channels-blogimage
Jan 15, 2024 • Mobile Service Cloud

What are the most effective customer service channels?

Today's diverse array of communication channels encourages customers to naturally gravitate towards their preferred social platforms and anticipate brands to be readily accessible across these channels. Rarely will customers go out of their way to switch between channels just to reach you; instead, they are likely to opt for a brand that not only provides the desired product but also ensures excellent customer service (on the channel they like most). How easily can your customers reach you via their preferred channel?

digitalizacion-administracion-publica-y-educacion
Jan 12, 2024 • Customer Experience

Experience Elevation: Customer engagement tech trends 2024

As we approach 2024, the ever-evolving landscape of technology continues to shape how customers connect, consume and communicate with businesses. Forrester even predicts customer experience (CX) will improve for the first time in three years, meaning 2024 will be a pivotal year for engagement with every touchpoint becoming a make-or-break opportunity in the customer journey.

Is this region a better fit for you?
Go
close icon