Many businesses now allow customers to contact them via an instant chat feature on their website.
This can be more convenient for many customers than sending an email, as it allows customers to make quick enquiries and have a simpler back-and-forth conversation. A lot of customers also prefer instant chat to phoning a company because they don’t have to worry about phone queues and all information can be clearly laid out in writing.
There are two main types of instant chat feature that you can opt for: live chat or chatbot. A live chat feature involves customers talking to a human sales representative, whereas a chatbot involves providing automated responses using AI.
Which is the best option? It depends on what you feel is likely to be more efficient. This post compares some of the pros and cons of live chat and a chatbot.
Why use live chat?
When considering live chat or chatbot solutions, traditional live chat involves using software to connect a customer directly with a human agent. This is the most traditional live chat solution and is still used by many businesses today – with some companies favoring it over chatbots.
The pros
1. Human interaction
A live chat feature allows customers to talk to another human being – which some customers prefer. While interacting with AI has become more commonplace, some customers still don’t like talking to a robot, especially when it comes to complex or sensitive enquiries.
2. Ability to control responses
Using live chat software also gives companies more control over how they respond to enquiries. Sales reps may even be able to build up a rapport with potential customers and personalize responses with them. There is also no fear that AI will accidentally provide false information.
The cons
1. Limited availability
Unless you’re willing to hire a team of sales reps to work around the clock, customers won’t be able to receive answers all the time. Responses may be limited to business hours and may be delayed if a sales assistant is dealing with another enquiry.
2. Potentially more expensive
You may have to hire an extra staff member to respond to live chat messages – particularly if you’re getting lots of enquiries per day. They will need to be trained to be experts on your company so that they can provide swift answers to a range of questions. This could work out a lot more expensive than using a chatbot.
Why use a chatbot?
Chatbots have come a long way in the last 5 years. They use AI-powered LLM technology to provide automated responses to general enquiries. Modern chatbots can be easily trained by giving them written information and they can provide human-like responses. These responses are immediate, leading some companies to greatly favor chatbots.
The advancements in these AI tools bring up a key question for businesses: When should you choose live chat or chatbot? While chatbots excel at providing instant, automated responses to common questions, live chat offers the personalized touch and problem-solving capabilities of human agents for more complex or sensitive issues. The decision often depends on the specific needs of the customer interaction and the resources available to the business.
The pros
1. 24/7 immediate replies
Chatbots can answer enquiries within seconds at any time of the day. If you get customers visiting your site out of business hours, they can still get the answers they want, which could lead to more sales.
2. Potentially more affordable
While you have to pay for the chatbot software, using a chatbot is likely to be much cheaper than hiring a human sales rep. It’s definitely a much cheaper solution for providing 24/7 support than hiring a team of agents.
The cons
1. Less control over responses
While you can train AI to give certain responses, you have limited control over how it will reply to enquiries. There is always the potential that a chatbot may give false answers, which could damage your reputation (although it’s also possible a chatbot could be more accurate than a sales rep).
2. Lack of human interaction
Some customers may be put off if they discover they are talking to a chatbot. So while you may win over some customers, you could also scare others away. It may depend on who your target market is and the types of the conversations they are going to want to have with you – an accounting software company may benefit more from a chatbot than a funeral company.
Which option should you choose?
Live chat is a good option if you think your customers are going to prefer talking to a human, or if you want complete control over the responses you provide.
A chatbot may be a better option if you’re looking to save money, as well as being the best option for those that want a 24/7 immediate solution to all enquiries.
