6 Types of Chatbots: Find The Best One For Your Business

6 Types of Chatbots: Find The Best One For Your Business

Do you want to know different chatbots that may help you improve your customer service? Well, read this blog and learn about 6 types of chatbots in more detail.

Mar 26, 2024

Chatbots have become an essential part of virtual customer service. These helpful assistants are working 24/7 to provide unparalleled customer support. Almost all of us have interacted with different types of chatbots at this point, whether it was booking a flight, online shopping, or resolving a minor issue with the bank.

Today, 62% of customers prefer to interact with a chatbot rather than wait for a live agent. However, with so many chatbots available in the market, deciding which one is best for your business could be a challenging task. Choosing the right chatbot is crucial for ensuring a smooth and positive customer experience.

In this article, we have explored six different chatbots in detail and how they can help you achieve your business goals.

Key Takeaways

  • Explore six types of chatbots to enhance business operations. Understanding these options is crucial for selecting the best fit for your needs and customer expectations.
  • Choose the right chatbot to ensure smooth customer interactions and efficient processes. Consider factors like business requirements, integration, scalability, and customization for maximum benefits.
  • Different chatbots serve diverse purposes, from customer support to sales facilitation. Each type offers unique advantages suited to specific business contexts.
  • AI chatbots stand out for adaptability, personalized interactions, and continuous learning. Investing in AI enables proactive customer support and fosters positive experiences for long-term growth.

What Is A Chatbot?


A chatbot is a software application that is designed to engage with users in an interactive and conversational manner. This interaction takes place in the form of chat or voice assistance. It is programmed to understand user queries and provide appropriate answers in a way that people feel they are interacting with another person. When in reality, they are talking to a digital assistant.

There are different types of chatbots used by businesses to provide assistance with customer support, engagement, and user interaction. They can quickly help users by providing information regarding products/services, answering FAQs, and even handling complaint resolution.

Design Chatbot For Your Business With Aidbase

Chatbot automation is definitely an intelligent move for your business. AI-powered chatbots increase your business efficiency and productivity and help you provide a personalized customer experience. Aidbase, as a leading AI automation platform, can help you design the chatbot that becomes your brand identity.

The Aidbase Experience

Here is why you should start your automation journey with the Aidbase:

  • One-Stop Automation Platform: We are more than chatbots. Aidbase provides you with an AI-powered support ecosystem, including live chat, email, and ticketing automation.
  • A complete No-Code Solution: Enjoy a seamless conversational experience across all channels without any complicated coding and programming.
  • Fully Customizable: Make your AI to support your digital brand voice. Customize the branding colors, tone, and personality of your chatbot according to your brand persona.
  • Trained on Your Data: Connect your data with AI support and get a Chat-GPT-like chatbot for your business.

6 Types of Chatbots For Business Progress


Businesses today are proactively developing a wide range of chatbots to enhance customer experience. Some of them are simple chatbots, while others are more advanced and sophisticated bots capable of learning and evolving as they store and analyze more data.

We will discuss 6 of the most popular types of chatbots, their specifications, and their use for business progress.

1. Menu-Based Chatbots

Menu-based chatbots interact with customers through a predefined menu and buttons during the chat. A user navigates through different choices before clicking on the most suitable option. These chatbots don't engage in free-flowing conversations and work with a straightforward approach in their interactions.

Think of them as a vending machine. Just like it offers a specific selection of snacks, and you can choose the desired item by pressing a particular button.

Example: Domino's pizza ordering bot is an everyday example of a menu-based chatbot. This chatbot allows users to select from different menus and submenus to order pizza, track delivery, and get help.

2. Keyword-Based Chatbots

Keyword-based chatbots are designed to help with customer service queries and FAQs. These chatbots use pattern-matching techniques to detect the keywords and phrases in the user input and generate appropriate responses accordingly. E.g.

User: "I need a stroller for my newborn."

Chatbot: "Sure, we have the latest collection of lightweight and jogging strollers for newborns."

Keyword-based chatbots are efficient for handling repetitive tasks in different industries such as real estate, hospitality, or food business. However, these chatbots may not perform accurately if there is too much repetition of the exact keywords in different queries.

Example: Marriott Bonvoy program by Marriott uses a chatbot that guides guests with bookings, Check-in/check-out, and FAQs.

3. Rule-Based Chatbots

As suggested by name, rule-based chatbots work with a predefined set of rules and responses. These responses are based on the most common queries and problems related to a business. Rule-based chatbots can handle both simple and advanced rules. However, they can not answer queries beyond their predefined responses and don't learn from user interactions.

It is one of those types of chatbots that are highly effective for small and medium-sized businesses. Rule-based chatbots are good for scenarios with predictable customer interaction and well-defined FAQs.

Example: 'BRUce' by Brussels Airport is a real-life example of a successful rule-based chatbot. BRUce helps visitors with real-time flight updates, information about food and visitors lounge along with FAQs.

4. AI-Powered Chatbots

Unlike all other chatbots, AI chatbots utilize artificial intelligence to interact with users. These chatbots are designed with NLP and machine learning to initiate 1:1 interactions with humans. AI chatbots can understand user intent and formulate an appropriate response accordingly. They are also capable of learning from previous interactions and improving their performance.

AI chatbots are faster to train and can be integrated across different platforms to provide proactive and consistent customer support. They can be easily connected with the CRM of a website and store important information about the users chatting with them.

Example: There is a massive number of different AI chatbots employed by all sorts of businesses. Only Facebook has more than 300k active chatbots facilitating customer service and engagement and providing an enhanced customer experience.

5. Hybrid Chatbots

Hybrid chatbots are a versatile combination that leverages the abilities of both rule-based and AI chatbots. These chatbots combine rule-based chatbot data with the adaptability of artificial intelligence. It is safe to say that hybrid chatbots bring you the best of both chatbot worlds.

When interacting with users, the AI initiates the conversation by scanning the chatbot's knowledge base to find the accurate answers for customers' queries. Then, it generates an appropriate response in a conversational manner. In case of any ambiguity, the chatbot can transfer the request to live agents for further assistance.

Example: Sephora's chatbot is one of the most trending hybrid chatbots that utilize rule-based and AI elements to facilitate customers. It can address both basic inquiries and provide personalized recommendations and video tutorials according to client's preferences.

6. Voice Chatbots

Voice chatbots, also known as conversational chatbots, have taken the chatbot game one step further with their voice-enabled features. These chatbots allow users to send their inputs and queries in audio format. Voice chatbots use AI and natural language understanding (NLU) to interpret the intent and query of the user.

Voice Bots can be integrated into various applications, platforms, and devices, providing a convenient and enhanced user experience.

For example, Google Assistant, Apple's Siri, and Amazon's Alexa are a few examples of chatbots helping users complete tasks, access information, and attain the best potential of conversational AI.

These are just a few examples of how different types of chatbots can help a business grow and evolve in different ways. As the technology continues to evolve, we can expect chatbots to offer advanced features and more personalization.

How To Choose The Best Chatbot For Your Business

Choosing the right chatbot for your business is a crucial step. Different types of chatbots facilitate different business needs with their unique features. Here are a few important things to consider before implementing chatbot automation in your business.

1. Consider Your Business Requirements

The scale and niche of your business can help you decide what type of chatbot would be better for you. For example, menu-based chatbots could be an excellent option for the banking and food industry but a disaster for retail or E-commerce.

Similarly, businesses dealing with technical and sophisticated domains, such as the SAAS industry, should opt for an AI-powered or hybrid chatbot.

2. Omni-Channel Integration

Choose a chatbot that can deliver an omni-channel experience. This means your chatbot can be easily integrated across your website, social media apps, and mobile apps. Omni-channel integration enables customers to enjoy a seamless and consistent experience on their preferred channel.

3. Scalability

Select a chatbot that can grow and adapt to the evolving needs of your business. It should be able to handle large volumes of queries without compromising on performance.

4. Customization

Chatbot customization means how well your chatbot resonates with your brand. The personality, tone, and conversational style of the chatbot should align with your brand's persona.

These are some of the critical factors to consider before implementing chatbot automation in your business. However, it is also important to evaluate things from the user's point of view. What do people want from chatbots, and why exactly are they interacting with them?

Below is a chart of recent studies of customer interaction with chatbots. Let's have a look.


Conclusion

Chatbots are not just a 'nice-to-have' element of customer service but a necessity for proactive customer support. We have explored almost all important types of chatbots and how they help a business grow and evolve. It would be justified to say that AI-supported chatbots stand out due to their unique features and flexibility.

Having an AI chatbot customer service is not just about 24/7 availability. It enables you to create a positive and personalized customer experience. A well-executed chatbot is an investment your business will benefit from for a long time in the future.

Visit our Aidbase blog and stay updated with the upcoming industry trends.

Syed Hassan Zaman