The Best Chatbot Software & Providers Compared

Chatbots Definition: What is a chatbot and why is chatbot software needed?

The automation of business processes has long since penetrated the interpersonal level. Artificial intelligence or natural language processing and natural language understanding enable programs to process human language in spoken or written form. More than that, they are capable of understanding corresponding forms of expression and reacting appropriately. The result is communication. If the respective system works well, the people involved can hardly distinguish this communication from a human-to-human dialogue.

When such a communication process takes place between a human and software, a chatbot tool is usually involved. But what exactly are chatbots or chatbot softwares? Chatbot programs offer companies the opportunity to implement a human-machine communication capability into their processes. This can be very useful both externally and internally. The significant savings on personnel resources in particular convince a growing number of companies to use a chatbot or even several for different tasks.

Chatbots or conversation bots used to be relatively simple conversation interfaces. Users would enter text and receive an obviously prefabricated response. Modern chatbot platforms can already imitate natural, interpersonal communication very precisely. Based on the given context, questioners receive tailored answers.

This progress is primarily due to the ever increasing possibilities of artificial intelligence (AI) and generally improved computing power. Through the use of machine learning and deep learning, chatbots can even become smarter. They gradually understand a larger vocabulary and are increasingly able to correctly interpret colloquial language.

How does a chatbot or chatbot software work?

In the frontend of a website, an online shop or even internally used database software, the function of a chatbot is relatively simple: Users usually ask questions and receive corresponding answers. The question can be posed either in writing or orally.

The technology behind it, however, is less straightforward. At the basic level, there are two different types of chatbot tools:

1. Rule-based chatbots: A rule-based bot can only understand a limited number of choices – precisely those with which it was programmed. Predefined rules determine the course of the bot's conversation. Rule-based chatbots are relatively easy to create and use a simple true-false algorithm in communication. They often offer their users various options to arrive at a suitable answer.

2. AI-based chatbots: Such bots are equipped with artificial intelligence, which can be programmed with the help of machine learning algorithms. Understanding more complex, non-predefined questions is not a problem for such programs. AI chatbots are able to correctly interpret natural language. In addition, they learn from interactions with users and continue to develop. AI chatbots recognize language, context, and intent and react accordingly. They can also be specifically trained. For example, a customer support chatbot is regularly fed with a large number of conversation protocols. Based on these protocols, the bot can independently understand the types of questions and answers that primarily arise.

What advantages and disadvantages do chatbot softwares offer?

Chatbots – and more specifically their use – can bring many benefits. The central benefits are listed below:

Many of the following points refer to commerce transactions, as chatbots play to their strengths there in particular. They can also often be transferred one-to-one to bot-supported internal processes.

• Increase Engagement: Chatbots can help businesses take engagement to the next level. By using AI chatbots, activities can be driven and made more interactive based on user data. If always relevant and fast responses are given, visitors tend to stay longer on a website or in a software and use it more intensively.

• An improvement in lead generation and other conversions: Bots are very effective when it comes to addressing customers during their entire customer journey with personalized messages. Businesses can use chatbots for lead generation or to drive other conversions.

• Reduce customer service costs: By investing in chatbots, businesses can save costs that would otherwise be incurred by hiring additional support staff.

• Collection of user data for gaining insights: Chatbots are an excellent tool for tracking purchasing patterns and analyzing consumer behavior by monitoring user data. For example, chatbot interaction data can help companies better market their products and increase their reach.

• Develop conversational marketing strategies: Conversational marketing involves using the power of real-time customer interactions to guide potential buyers through the sales funnel. Personal addressing of potential customers by an intelligent chatbot offers the best chances of convincing them.

• Create a good balance between automation and human contact: Combining AI technology and human contact can help brands provide very efficient support. The integration of chatbot and live chat software means that customers have the opportunity to orient themselves initially and contact human staff if needed.

• Meet customer expectations: Customers expect prompt responses to complaints or inquiries. As chatbots become more intelligent, brands can use them to automate some routine interactions in this area and meet customer expectations better and more promptly.

• Achieve scalability of support: Chatbots ensure that businesses are able to maintain their conversation quality even during peak times without having to add additional human support resources. When particularly busy, the bot simply takes on more possible customers.

• Optimize the onboarding process and customer journey for customers: Customers love to be guided and pampered. Here chatbots can prove very useful. Ideally, they address potential buyers at critical points in their customer journey and guide them in the optimal direction for the operation.

Even the best software can bring special challenges. This is also the case with chatbot programs. The following difficulties occur more often:

• Human agents are sometimes preferred: Although chatbots are ideally suited for many tasks, in some contexts there is a demand for real human-to-human contact. This can be the case, for example, when a high level of empathy is required or when dealing with special and consequential problems. Finding the right balance between critical concerns that the chatbot should answer and those that are intended rather for real employees is just as crucial for success as it is difficult.

• Create the appropriate transition for handing over to humans: There may come a point where a chatbot has no answer to a question. Then it is important to design and set up the system in such a way that this problem can be successfully solved. Ideally, users don't even notice that they are being transferred from a machine to a real support agent. This is not an easy task.

The best chatbot for one's own purposes: How to choose suitable chatbot softwares and what to pay particular attention to?

Choosing the right chatbot provider is extremely important. Because companies should always offer a value proposition to their users. To enable this, software is needed that is truly capable of it. At the very basic level, the following questions need to be asked:

• Which channels are supported by the targeted chatbot system?
• How long does its setup take and how difficult is it?
• How easy is it to program the chatbot?
• How is the pricing structured?

Based on relevant answers, interested parties should weigh up the following points and their relevance for their own business when comparing chatbots.

• Interface: Is the user interface actually aligned with typical user preferences? Is it clear and easy to understand? What the interface looks like determines (to a large extent) how the chatbot will be received. Furthermore, the design of the interface should be within the competencies of those responsible. If there are no programmers in the house, it is better to rely on a drag-and-drop system.

• Chatbot Conversation Elements: What files do companies send to the people interacting with their chatbot? In chatbot elements, more than just text can be transmitted, including emojis, videos, audio, different attachments, menus for extended options and additional files.

• User Insights: Users often have very revealing conversations with the respective chatbot. The information thus gathered can be used very purposefully to better segment the target group. Chatbot software can assist in this by adding specific attributes for individual users. Based on this, users can be selected with pinpoint accuracy for further steps.

• Messages: What type of messages can be sent to users? In addition to "simple" question-and-answer schemes, it is possible to proactively address individuals in different ways. The display of messages based on certain behavioral patterns or the automatic request to participate in special campaigns are just two examples.

• Artificial Intelligence (AI) and Natural Language Processing (NLP): When considering AI and NLP, attention to detail is required. While some chatbots can react to natural language, they are still clearly more limited than others. Especially when it comes to the use of synonyms or typical industry wording, there are major differences in quality.

• Channels: There are specialized chatbot applications for almost every channel. Some can even serve multiple channels at the same time. In particular, the company website or online shop, social networks, but also messengers like WhatsApp or email should be taken into consideration. Special chatbots can also be integrated into internal business processes – for example as support in managing large databases.

• Integrations: It is often sensible to integrate chatbots with other systems. For example, highly efficient support processes could be created. This could involve data from the CRM being available for certain users, or extended analytics being conducted with external tools. Ideally, the chosen chatbot software supports exactly the communication or support-relevant systems that are already established in the company.

• Pricing: Of course, pricing is important. To recognize the return on investment (ROI) of the chatbot, interested parties need to know how much it costs. Is the application within budget or does it exceed it? AI enterprise chatbots can quickly become very expensive.

• Analytics and Tracking: Using a chatbot is like using practically all processes that are based on software – things don't always go perfectly right from the start. Moreover, even with the smoothest processes, there is almost always potential for optimization. Therefore, it is usually wise to choose a chatbot software that has analytics and tracking capabilities or can be linked to existing tools. This way, those responsible receive data to improve their chatbot and its application very accurately.

• E-commerce: For e-commerce experts, some chatbot systems offer the opportunity to sell products directly through the bot. This can be advantageous, as it greatly shortens the buying decision.

• Support: The setup and advantageous use of a chatbot are far from self-explanatory. Therefore, less experienced interested parties should use a chatbot toolkit with good support conditions. Direct customer service, training or even setup services and strategic support are possible. For those who depend on German-speaking support, it is often useful to rely on a chatbot provider from Germany.

What do chatbot softwares cost?

Chatbots cost between zero and over 1,000 euros per month. It depends on what functions they offer and how individually they are adapted to the respective company requirements. Basically, you can define the typical costs in three stages:

1. Chatbot freeware: Free chatbots are often simple editors with few options or frameworks that require a lot of individual effort and expertise to create a chatbot. User-friendly free applications typically only offer basic chatbot functions to answer customer inquiries without AI.

2. Around ten to 100 euros a month: Chatbot software for commercial contexts costs between 50 and 100 euros. They allow companies to easily create well-functioning, flexible chatbots with in-house resources. AI, lead capture, marketing features and other useful elements may already be available here.

3. 500 to over 1,000 euros per month: Very powerful and individually tailored enterprise chatbot toolkits come at a price. Those who spend 1,000 euros or more, however, can rely on a chatbot program that fits exactly with their own requirements and the respective target group. Additional services such as creating your own chat interfaces, training for marketing and co., extensive lead management extensions or other advanced systems are also possible here.