How are Custom Chatbots transforming Customer Service?

Chatbots have made it possible for companies to improve their customer servicing and actively engage with consumers to boost up conversion rates. As a result, they have grown into a crucial factor in enhancing the overall customer experience and eliminating the gap between service providers and their intended users. Market reports show that chatbots can answer 80%  of the routine questions asked to customer service executives, thereby saving a considerable amount on customer service costs!

A chatbot customized to meet your business goals can not only increase conversion rates but also up your revenue stream. These business benefits have inspired companies to invest in this technology and have ever since thrived in their respective domains. 

This article will take you through the business benefits of chatbots and highlight how custom chatbots can be crucial to your business growth.

What is a Chatbot?

Consumers can reach out to chatbots as the first point of contact to any business and get instant replies to their queries. They no longer have to wait on busy phone lines or speak to representatives who are oblivious about the small details related to the business. Users can communicate with a chatbot via a chat interface or by voice. The chatbot, in turn, interprets and processes the user's words or phrases and provides an instant pre-recorded response. 

There are three types of chatbots:

  • Rule-Based Chatbots: These chatbots are also known as linguistic-based chatbots. These are the most basic sorts of chatbots primarily used for automating customer service replies on a website. The conversation flow in these chatbots is programmed using an if/then logic. Users can interact with these bots by choosing predefined options displayed on the screen. 

  • ML Based Chatbots: ML-based chatbots are intellectually independent. They understand a user's input and are programmed to answer their queries using a vast knowledge repository. They use Natural Language Processing (NLP) to translate the specific keywords and phrases used in a query and provide the most relevant output to the user. Subsequently, these chatbots learn from the questions asked by the consumers and train from this experience to answer even more complex queries. 

  • AI-Based Chatbots: AI-powered bots are a combination of rule-based and ML-powered chatbots. They engage in a predefined flow to make sure they solve the user's problem. They can also save the user's preferences while conversing with them to provide personalized service.

Chatbots can be deployed on various platforms like websites, mobile applications, instant messaging platforms, such as WhatsApp, Skype amongst many others. For example, there are over 300,000 chatbots on Facebook Messenger alone!

Development of Custom Chatbot


Chatbots that can hold contextually smart conversations need to be empowered with Machine Learning and NLP capabilities. The three most essential steps in the process of creating a custom chatbot are:

#1 Defining Roles and Setting Goals

In this stage, your business will answer questions like why do you need a chatbot? What purpose will the chatbot serve to your business? What are the business goals that your chatbot needs to attain? What would be the "role" of your chatbot? You will also chalk out where you want to deploy your chatbot, either on the company website, mobile app, Instant messaging app, etc. 

#2 Define your Conversational UI

The conversational interface will serve as the medium of communication between the chatbot and the human. Users can enter their queries using text boxes, buttons, predefined options displayed on the screen, or even a voice-based approach. The UI implemented should not make the human feel like they are talking to a robot! 

#3 Create a Dialog Flow

A logical dialog flow will help the chatbot provide excellent customer service. Once the customer query is solved, the chatbot can further divert the conversation towards the brand's products and services, discounts, offers, and any other intriguing aspect on the website. This will not only keep the customer engaged but also convert potential customers into leads. RealtimeBoard and BotMock are examples of platforms to design a conversational flow for a chatbot. 

The chatbot functions look like this:

  • Users interact with the chatbot through a device. 

  • NLP is used to process this query and turn it into machine-understandable logic.  

    • ML can be used to learn from the query, use past experiences and provide an output. 

  • The Information Source is fetched for the most appropriate output, based on which the chatbot can take appropriate action. for example: answer a customer query, fetch a human agent, etc.

A full-stack development approach is the best way to create a custom chatbot. Some popular stacks to consider:

  • Developed by Google to build an AI-powered robust user interface. It uses NLP, node.js, and npm package manager.

  • Dashbot- Uses Node.js, react.js, AWS lambda.

  • Botpress- Open source bot development tool that uses Javascript. Uses typescript Node.js, SQLite, and PostgreSQL.

Benefits of Using a Custom Chatbot


#1 Faster and Accurate Customer Support 

Chatbots have the ability to attend to multiple customer queries at the same time with unmounted precision and accuracy as compared to a human employee. In addition, they are programmed to provide correct and smart replies to any of the customer's questions. When consumers obtain instant information, it makes them feel important, thereby fostering their relationship with the brand.

#2 Personalized Customer Experience

ML- AI chatbots offer a personalized experience to customers based on the information they learn about the customer. Using this data, they can recommend products and services to consumers depending on their preferences. For instance, a custom chatbot built for an eCommerce store can analyze a consumer's shopping patterns and then direct them to the most relevant sales/discounts for that product on the website.

#3 Trainable and Scalable

Custom chatbots can be trained to complete tasks precisely as per your business needs. AI-powered chatbots learn from every interaction they have with their users. This, in turn, makes them smarter and better at completing the task.

Custom chatbots can also be scaled in their operations depending on your business needs. For instance, they can take the consumer through the entire buying journey by educating your website visitors about the products on your website, helping them make an appropriate choice, and finally helping them with the checkout process. 

#4 Increase in Capital and Conversion

Your customer service representative no longer has to perform the same mundane task of replying to repetitive consumer queries. The chatbot can handle this while your agent takes care of more important business matters. Chatbots can work 24*7, ensuring that your business never misses a lead- thereby increasing your capital and conversion rates.

Applications & Implementation of Custom Chatbots on Website and Apps


#1 Increased Lead Generation

Gain potential customers by integrating chatbots on your website/app and resolve their frequently asked questions. They can also collect basic customer details like name, contact info, and email so that your agents can get back to them immediately. The best part about having a chatbot is that they are available round the clock to answer queries so that you never miss out on a single customer. 

#2 Entertainment 

News and media publishing companies can use chatbots to share their content based on customer preferences. Take the instance of the news giant - CNN. Spectrum, CNN's news chatbot that provides daily news and updates to subscribers via Facebook Messenger. Apart from being the most-subscribed news bot globally, Spectrum has also roped in new traffic and helped drive new subscribers towards CNN.

#3 Schedule Appointments

Chatbots can help consumers directly book appointments from your website. Imagine a hospital use case where people have to wait in lines to book an appointment with a specific doctor. A chatbot can instantly book and even assign a doctor to the patient. Similarly, in the field of Real Estate, chatbots can help consumers with information on various properties and appropriately coax them to schedule a property viewing appointment.

#4 eCommerce Shopping

With the rise in mCommerce and eCommerce, chatbots will prove to be a valuable asset for the business. They can take on many roles like customer service, guiding consumers to the appropriate product, promoting products and services, personalized product recommendations, and much more!

#5 Banking and Finance

Chatbots can help policyholders file claims almost instantly, help consumers find the right insurance policy, manage claims and renewals, track the status of claims, and much more. Instead of approaching multiple customer service agents for help, chatbots ensure that banking will become a seamless experience for your customers. 


Chatbots are an essential part of delivering a flawless customer experience that not just ensures better engagement but also leads to a higher rate of conversion and ROI. With a trusted technology partner like Biz4Group , your business can obtain the extensive benefits of a customized chatbot that efficiently handles customer servicing and serves in various other ways as per business requirements. Get in touch with our development experts today!!

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