How Chatbots Improve Service & Decrease Chargeback Potential
It’s absolutely essential for eCommerce merchants to offer fast, responsive customer service. However, the costs associated with live, round-the-clock service across multiple avenues of contact represent a significant burden for many businesses. This is why chatbots are becoming an increasingly popular option for eCommerce merchants. When properly deployed, chatbots are an easy and cost-effective way to improve customer service and decrease chargeback potential.
Learn how to identify chargebacks caused by customer service mistakes.
What are Chatbots
Chatbots are apps designed to perform basic communicative tasks to streamline interactions between human customers and businesses. A chatbot can serve as the first interaction a customer has with a business, allowing the individual to relay his concerns while the chatbot collects and organizes important points. These interactions increasingly play-out through social media and direct messaging apps like Facebook Messenger, Kik, and WhatsApp.
This system benefits the customer by providing a quick and efficient service channel that directs them where they need to be with as few hurdles as possible. It also benefits the merchant, because chatbots are cheaper than live service and require no training, saving valuable time and resources.
Many in the business community see chatbots as the future of customer service. Consider the following facts and figures collected by Forbes:
Chatbots Provide Secondhand Benefits
Chatbots immediate benefits are obvious: faster, more-accessible customer service, and superior data-mining. The long-term benefits are equally important, because they preserve and enhance a merchants’ profitability.
Streamlined customer service practices can significantly decrease chargebacks. It cultivates reservoirs of goodwill between the customer and the merchant. It reinforces a customer’s loyalty and validates his/her decision to shop at your e-store, and demotivates a customer from seeking restitution from his/her bank.
But please note, this is ONLY true when chatbots are properly deployed. Chatbots may have the opposite affect if not closely and expertly managed, potentially resulting in greater customer frustration and more chargebacks.
The State of Chargebacks 2018
Launched as a way of collecting and analyzing industry findings, the State of Chargebacks survey reflects the experiences of more than one thousand respondents in the card-not-present space. Download to learn the latest insights on fraud and chargeback management.Free Download
The Potential to Do Harm
Over-reliance on any single technology or solution is a problem, and chatbots are no exception. While AI technology continues to improve, a chatbot that can be trusted with full, genuine autonomy is still many years away.
Contemporary chatbots improve with additional data, but there is still a point of diminishing returns. Currently, the technology tends to max-out at 85% efficiency. In addition, making live human customer service seem too remote can “brand” a company as cold and indifferent.
One must remember that the point of automation is to remove friction from customer interactions, and to simplify and streamline the overall process. Chatbots are only useful if they achieve these ends; otherwise, they are counter-productive.
Counterbalance Machine Learning with Human Oversight
Customers want to have access to live, effective, human-based customer service at every stage of their interaction. This means:
Decrease Chargeback Potential by Managing Chatbots Effectively
Chatbots are important to create smooth customer interactions, decrease chargebacks, and learn more about customers. However, managing chatbots without attention to customer service best practices will cause more problems than chatbots resolve.
Do you know how to make the most of chatbots and AI technology? Concerned that you may be under-utilizing resources or alienating customers?
Our team of eCommerce experts has the necessary insight to help you free-up resources, prevent revenue-draining mistakes, and convert shoppers into buyers.