Chatbot

Chatbots are digital assistants that automate customer interactions and provide instant responses. They’re ideal for handling simple, repetitive queries and improving response times without overloading your support team.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Show All

Definition

A chatbot is a software application designed to simulate human conversation, typically via messaging platforms, websites, or mobile apps. Chatbots can be rule-based (scripted) or AI-powered, and they help automate customer interactions by answering common questions or guiding users through workflows.

Why It Matters

Chatbots offer 24/7 assistance, reduce wait times, and handle repetitive queries so human agents can focus on more complex issues. They improve operational efficiency and provide customers with quick, consistent support.

Real-Life Use Case

An online fashion retailer uses a chatbot on its site to help customers track orders, check size availability, and start return processes. This frees up the support team for more involved inquiries and improves overall response time.

FAQs

What’s the difference between a chatbot and live chat?

A chatbot is automated, while live chat involves human agents responding in real time.

Can chatbots handle complex issues?

Basic chatbots are best for simple queries. Complex issues may require escalation to human agents or conversational AI.

How do chatbots learn?

Rule-based chatbots follow predefined scripts. AI chatbots learn from past interactions and user inputs.

Do customers like using chatbots?

Yes, when implemented well. A user-friendly chatbot can improve satisfaction, especially for quick answers.


Related Glossary

CRM Integration

CRM (Customer Relationship Management) integration connects your live chat system with your CRM software for data exchange between customer interactions in chat and their corresponding CRM records.

Chat Transcript

A chat transcript is a complete, written record of a live chat conversation between a customer and a support agent or chatbot.

Customer Effort Score (CES)

Customer Effort Score tells you how easy it was for users to get help, because low-friction support keeps customers coming back.

Call-to-Action (CTA)

A Call-to-Action (CTA) is a prompt on a website or in a message that encourages users to take a specific desired action.

Conversion Rate

Conversion rate is the percentage of website visitors who complete a desired action (a "conversion"), such as making a purchase, filling out a form, or initiating a chat.