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Understanding What is a Chatbot & How Does it Work For Various Industries

5814 Views | 1 min | Published On: August 29, 2019 Last Updated: November 15, 2019
A detailed post on How chatbot works

What is a Chatbot?

Once I was browsing through a restaurant website at 3 in the morning and thought of booking a table for the next day.

But, I was curious to know about the cuisines available before making a request. I thought of asking it on chat. And guess what, I dropped a message on their website at 3 AM and got a reply instantly that answered all my queries. 

I ended up booking a table right there!

Do you think there were humans sitting that late to answer just a simple question of mine? No, they were not humans – they were Chatbots. 

Now, what is Chatbot? How to make a chatbot? And, What are the benefits of having it for your business? Let’s find out.

What Is a Chatbot?

Chatbot is a AI powered program that automate conversations using text chats or voice commands or, sometimes both. If you go for Chatbot application development for your business, the product can either be incorporated into your current business application/website or it can also work like Siri – a standalone application. 

Incorporation of a Chatbot in a business app or developing one from scratch is no more a new concept for the world. Today, almost all tech savvy companies belonging to various industries, are putting resources into this intelligent and profoundly productive mechanism. 

Before moving into details of How to make a Chatbot and How Chatbots Work, let’s put the spotlight on some of the amazing stats about Chatbots:

Chatbot Application

Also Read: 5 Benefits Of Using Artificial Intelligence In Mobile Apps

5 Business Benefits of Chatbot Development

1. Ensure a Personalized User Experience

One of the most noticeable advantages that chatbots have over human operators is that they are machines. This implies they can process heaps of information in a matter of seconds. They can collect customer details and history fast from your CRM to provide a personalized response to the users.

What is noteworthy here is how a human agent have to spend time finding the customer details from the database whereas a Chatbot can do it in microseconds without the scope of any error.

According to a study, it was found that customer service agents spend half of their time finding personal info about a client, though, a Chatbot can do it instantly. For example, Amazon’s chatbot, can in a split-second retrieve data from a customer’s recent order which makes the process of answering queries of users fast. 

2. Help Increase User engagement

There is no need to mention how much it is crucial for a brand to keep its users engaged. As indicated by research, businesses that keep their customers engaged on social media see an increase of 20 to 40% in their sales. 

While these social sites are contributing well in Customer engagement for businesses, chatbots can make this engagement more intelligent and interactive – and some of the times with jokes! 

Chatbot Development Company


A regular interface for customer service provides more information than the required. However, a ChatBot – powered by Artificial Intelligence, breaks the information into slices. It provides the exact solution to the queries of a user which increases the time spent by user on the platform and in turn increases customer engagement.

Also, Chatbots don’t exhaust users with irrelevant and pointless information and keep the content streamlined by maintaining the conversation.

3. Available 24/7 for Your Customers

Unlike human agents, Chatbots can communicate with users all day and night, and give them better solutions based on communication. This enables the users to communicate regarding any service or product even at 12 PM and get a response right away. 

4. Helps Cross-Promoting Relevant Products/Services

Chatbots can also enable you to attract your customers through consistent cross-promotion. They can execute this in a non-pushy and natural way that is relevant to the ongoing conversation.

For example, let’s say a user needs more data about a specific product before purchasing it. The chatbot could guide them to a blog or website page that describes the features thoroughly. Sometimes, the chatbot may even find it appropriate to cross-promote relevant products that accompany what a customer already has.

5. Helps in Lead Generation and Nurturing

A chatbot can help businesses in lead generation. Along with generating leads and telling the sales team about it, a chatbot can also assist you in determining the unfit leads through pre-decided KPIs (timeline, budget, assets and so on.) and prevent you to manage tedious leads. 

The chatbot advantages are equivalent among all the various sorts of bots. No matter what type of Chatbot you are having for your business the advantages mentioned above will remain constant for them all. Now that you know the benefits of Chatbot development, let’s put some spotlight on how brands in different industries are using Chatbots to take the amazing benefits they offer.

How to make a chatbot

5 Industries That Are Benefiting From Chatbots

Applications of Chatbots in M&E industries are uncountable. Chatbots have driven this industry by being able to increase customer engagement and deliver customized content to users. 

Using chatbots, brands in M&E industry can promote their content easily and cost effectively. For example, Disney made a Judy Hopps bot on FB to market the launch of its movie – Zootopia. The strategy worked and the movie became a hit.

Chatbot for Businesses


2. Healthcare Industry

All healthcare professionals are always ready to support their patients and they know how it is imperative to be available if there is a pressing need of medical consideration. But, unfortunately it is not possible for doctors to be available all the time. That’s where Chatbots come handy. There are a number of examples of Chatbots in Medical Industry and its applications are uncountable.

Also Read: How Artificial Intelligence Is Disrupting Financial Services

3. Beauty and Fashion Industry

Beauty chatbots were at first used to deal with complex customer service enquiries, for example, product returns and store locations. However, today, beauty chatbots have changed into virtual store assistance for a number of leading cosmetic, beauty and fashion brands. 

Have a look on how Sephora’s bot is helping teens in finding the right beauty products:

Chatbot for beauty industry


4. Travel

With technological innovations, the way people travel has now changed. One of the major reasons for this change is Chatbots. May it be booking a flight, hotel room or cab –  Chatbots can do it all for you. 

Have a look at how Uberbot is helping people in booking an Uber right from FB, Telegram, and Slack:

Uber Chatbot


5. Sports

From looking for a match to acquiring the tickets to go to the game itself, Chatbots are disrupting the sports industry all the way. At a time when fans want to watch the game from the solace of their homes, stadiums are trying to embrace engaging new technologies that attract fans back to the field for live experiences. 

Can’t see your industry in the list? Since there is high competition in Chatbot market and almost every industry is utilizing Chatbots, it wasn’t possible for us to list each and every industry or brand here. We love many but above mentioned are our favourite ones.

Being a Chatbot application development company, we have developed a number of Chatbots for several businesses belonging to diverse industries. If you too want to develop a Chatbot for your business, here is how you can do it and how much it will cost you to build a Chatbot.

How to Select a Chatbot Development Company for Your Business?

1. Make Sure Your Developers Have Multi-Language Capabilities

If you are planning to build a bot from scratch, it will require the Chatbot Development Company to work on several programming languages at the same time. So, you must make sure that the developers you are planning to hire are proficient in high-end Programming Languages like JavaScript, SQL, NoSQL, PHP, jQuery, Java, Jabberwocky, NodeJS, Python, etc. He/she need not be perfect in all of them; however, a basic idea will be like a cheery on the cake for you.

2. Your Chatbot Development Company Should Be Proficient in AI and ML

The most asked question about Chatbot on Google in the last ten days is: How to Make an AI Chatbot? This tells us about the scope of Chatbots having AI.

AI and Machine Learning are the two primary parts of Chatbot Development. So, the Chatbot Developers you are going to hire should be experts in these technologies. Your Chatbot Development Company should be an expert in building Chatbot Solutions with AI and ML because without them Chatbots are of no use. So, hire developers who can make self-learning and intelligent Chatbots for your business.

3. Your Chatbot Developers Must Be Creative

In the process of Chatbot Development, skills and creativity go together. The primary purpose of a bot is to give appropriate responses fluently. However, if the developer developing a bot is not creative enough, it will be very tough for him to train the chatbot in a way the modern user wants. Even if your developer is good logically but not creative – the interaction with your chatbot will be a blunder for users.

How to Make a Chatbot and How Much It Will Cost You?

When it comes to developing a Chatbot, a company has two options. You can either utilize a readymade platform to create your bot on or you can make it from scratch. If you choose to go with option A, there are a few limitations in the same and if you choose to develop it from scratch the cost can go up to $25,000 to $30,000.

This cost range involves the development, design and integration part of the chatbot. So, if you are all set to make your customer service game stronger, Contact Apptunix – a renowned Chatbot Development Company.

To sum up the information, here is something for you:


Chatbot Development


Frequently Asked Questions (FAQs)

What Is Chatbot and How Does It Work?

A Chatbot is a computer program that automates the conversations. It helps businesses in streaming their communication with customers – anytime and anywhere. A Chatbot can assist customers through text, can act as their virtual companion and can help business owners understand their customers better.

How to Create a Chatbot?

The process of creating a Chatbot depends on your requirements. A few businesses prefer developing a Chatbot from Scratch; however, others prefer the integration of an existing chatbot within their apps. Also, it depends on the complexity of the operations you want the Chatbot to streamline.

How to Make an AI Chatbot? 

An AI Chatbot can sense, think and act – just like a human. Developing this type is Chatbot is not an easy process – it requires deep learning techniques and immense expertise. However, if you have a top-notch Chatbot Development Company by your side – the process becomes much easier.

How to Build a Chatbot from Scratch?

To build a Chatbot from Scratch, you must first identify what do you want to achieve with your Chatbot. How it is going to be helpful for your business. And then you can work on developing it with the help of a proficient Chatbot Development Company.

What Is Chatbot Development Cost?

The Chatbot Development Cost will depend on whether you are building it from scratch, or you are just customizing the existing one as per your needs. The choice will further depend on the objectives you want to achieve with your Chatbot. To give you a rough estimate, the cost of Chatbot Development will come somewhere around $25k-$30k.


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