Author: Franz Malten Buemann

In 2024, chatbots are the top investment priority for support teams. 44% of C-level executives are shifting focus from traditional tech to intelligent conversational solutions. But what makes AI bots so effective at engaging clients that companies keep pouring resources into them?

The answer lies in Natural Language Processing (NLP). You can think of it as the brain of an interactive agent, allowing it to understand, interpret, and generate human language in a way that is both meaningful and valuable. Imagine the possibilities:

• A customer contacts you with a technical problem. An NLP chatbot quickly guides them through troubleshooting steps and escalates to a manager if necessary, ensuring a seamless resolution.
• Your enterprise expands its market and starts receiving consumer inquiries in various languages. AI assistants equipped with multilingual capabilities accurately respond to these queries in the client’s native language, improving satisfaction and breaking down communication barriers.
• A shopper browses your company’s website and gets stuck comparing products. An NLP bot proactively initiates a conversation, addressing potential concerns before the buyer abandons their interaction, ultimately increasing conversion rates.

Do these scenarios sound familiar? If so, an NLP-based chatbot might be the right solution for you. Let’s explore what these tools offer businesses across different sectors, how to determine if you need one, and how much it will cost to integrate it into operations. Here we go.

What is a Natural Language Processing Chatbot?

Basically, an NLP chatbot is a sophisticated software program that relies on artificial intelligence, specifically natural language processing (NLP), to comprehend and respond to our inquiries. Traditional rule-based bots rely on pre-defined scripts and keywords. NLP ones, on the other hand, employ machine learning algorithms to understand the subtleties of human communication, including intent, context, and sentiment.

The inner workings of such an interactive agent involve several key components. First, the chatbot receives a user’s input, which can be text or speech. The message is then processed through a natural language understanding (NLU) module. The component analyzes the linguistic structure and meaning of the entry. NLU identifies entities, intents, and other relevant information. The goal is to transform unstructured text into a structured format that the system can interpret.

Next, the chatbot’s dialogue management determines the appropriate answer as per the NLU output and the knowledge base. The reply is then generated through a natural language generation (NLG) module. This element converts the structured response into human-readable text or speech. The entire process is iterative, with the bot constantly learning and improving its responses based on user interactions and feedback.

With the help of chatbots using NLP businesses can:

• Reduce customer support costs by up to 30%.
• Cut response times by an average of 30%.
• Manage 80% of routine inquiries, increasing the manager’s efficiency by 33%.
• Boost client satisfaction, with 99% of business leaders reporting an upsurge.
• Decrease average human agent handle time by 12%.
• Increase consumer engagement by 40%.
• Lessen overall wait times to 33 seconds or less.

Read more about how customer service chatbot impacts other support metrics

Which Chatbot is Right for You?

Now that we’ve explored the inner workings of NLP bots, let’s dive deeper into the characteristics that differentiate them from other chatbot types: rule-based and Gen AI-powered. Understanding these distinctions will empower you to choose the ideal solution for your exact needs.

Rule-Based Bot

• Response generation. Provides predefined responses established on specific keywords or triggers.
• Flexibility. Restricted to scripted replies, struggles with variations in language and unexpected inquiries.
• Complexity of queries. Best suited for simple, straightforward questions with clear answers.
• Scalability. Limited capacity for scaling due to reliance on specified guidelines.
• Use cases. Perfect for FAQs, order tracking, basic troubleshooting, and appointment scheduling.

NLP Chatbot

• Response generation. Generates contextually relevant and human-like responses based on the mechanism described above.
• Flexibility. Adapts to diverse conversational styles and handles unexpected questions with ease.
• Complexity of queries. Excels at understanding complex, sophisticated requests and maintaining context throughout extended interactions.
• Scalability. Easily scales to accommodate high traffic volumes and intricate conversations effortlessly.
• Use cases. Well-suited for customer service, healthcare (appointment scheduling, medical Q&A), eCommerce (product recommendations, purchase assistance), financial services (account information, transactions), education (tutoring, personalized learning), travel (booking, destination suggestions), etc.

Generative AI-Powered Virtual Agent

• Response generation. Provides creative, contextually relevant responses based on patterns learned from vast datasets.
• Flexibility. Highly adaptable and capable of engaging in diverse and open-ended conversations.
• Complexity of queries. Handles both simple and complex input effectively, including creative or analytical answers.
• Scalability. Extensively scalable and can adapt to growing user demands and evolving conversational practices.
• Generative AI chatbot use cases include but are not limited to the following: retail (offering personalized shopping recommendations and client support), hospitality (simplifying reservations and answering guest queries), insurance (processing claims and policy inquiries), banking (assisting with account management and fraud detection), telecom (managing client service load and troubleshooting), etc.

Selecting the right system hinges on understanding your particular business necessities. NLP chatbots have unparalleled conversational capabilities, making them ideal for complex interactions. Rule-based bots provide a cost-effective solution for simple tasks and FAQs. Gen AI-powered assistants elevate the experience by offering creative and advanced functionalities, opening up new possibilities for content generation, analysis, and research.

Consider your budget, desired level of interaction complexity, and specific use cases when making your decision. By thoroughly assessing these factors, you can select the tool that will address your pain points and protect your bottom line.

Do You Need a Natural Language Processing Chatbot?

With a clearer understanding of the different bot types and their capabilities, you might be wondering, “Is an NLP chatbot indeed the right fit for my brand?” To help you answer this question, consider the following scenarios. If any of these strike a chord with you, it might be time to take advantage of Conversational AI and elevate your client journey:

Do you want to provide 24/7 support without increasing your workforce?

Deploy a virtual assistant to handle inquiries round-the-clock, ensuring instant assistance and higher consumer satisfaction. NLP models enable natural conversations, comprehending intent and context for accurate responses. This guarantees your company never misses a beat, catering to clients in various time zones and raising overall responsiveness.

Are your support agents overwhelmed by repetitive questions?

Automate answers to common requests, freeing up managers for issue escalations or strategic activities. This not only boosts productivity and reduces operational costs but also ensures consistent and valid information delivery, enhancing the buyer experience. Moreover, NLP algorithms excel at understanding intricate language, providing relevant answers to even the most complex queries.

Are you looking to boost sales?

Implement a chatbot for personalized product recommendations based on user behavior and preferences. NLP algorithms analyze vast amounts of data to suggest suitable items, expanding cross-selling and upselling opportunities. Increased engagement and tailored suggestions will lead to higher conversion rates and revenue growth.

Do you want to streamline customer service tasks?

Simplify order tracking, appointment scheduling, and other routine duties through a conversational interface. This not only improves efficiency but also enhances the user experience through self-service options. Clients will access information and complete transactions at their convenience, leading to increased satisfaction and loyalty.

Is there a need to optimize the process of gathering and analyzing consumer feedback?

Collect valuable reviews through surveys and conversations, leveraging intelligent algorithms for sentiment analysis and identifying trends. Your brand gains actionable insights to enhance products and services. AI NLP chatbot categorizes and interprets feedback in real time, allowing you to address issues promptly and make data-driven decisions.

Do you struggle with high volumes of user inquiries?

Interactive agents handle numerous requests simultaneously, reducing wait times and ensuring prompt responses. This reduces workload, optimizes resource allocation, and lowers operational costs. Natural language processing enables chatbots for businesses to understand and oversee a wide range of queries, improving first-contact resolution rates.

Do you aim to create a more engaging brand experience?

You can introduce interactive experiences like quizzes and individualized offers. NLP chatbot facilitates dynamic dialogues, making interactions enjoyable and memorable, thereby strengthening brand perception. It also acts as a virtual ambassador, creating a unique and lasting impression on your clients.

If you answered “yes” to any of these questions, an AI chatbot is a strategic investment. It optimizes organizational processes, improves customer journeys, and drives business growth through intelligent automation and personalized communication.

Custom NLP Chatbot Development vs. Ready Platform-Based Solutions

Choosing the right conversational solution is crucial for maximizing its impact on your organization. Equally critical is determining the development approach that best suits your conditions. While platforms suggest a seemingly quick and budget-friendly option, tailor-made chatbots emerge as the strategic choice for forward-thinking leaders seeking long-term success.

To make an informed decision, it’s essential to weigh several key considerations:

• Scalability and future evolution. A bespoke NLP chatbot grows effortlessly with your business, adapting to its evolving needs. In contrast, ready-made platforms might struggle to keep pace with your growth trajectory.
• Integration and customization. Tailored solutions seamlessly integrate with your existing systems and data sources, ensuring a smooth flow of information. Off-the-shelf options often lack this capability, potentially hindering data utilization.
• Unique value proposition and brand identity. If you invest in a tailor-made assistant, you can easily embed your company’s distinctive voice and personality into it. Conversation design enables crafting a truly personalized user experience. Platforms, on the other hand, typically allow for limited customization, resulting in a generic interaction that may not captivate your audience.
• Initial investment. While custom development requires larger upfront costs compared to pre-made alternatives, it’s important to consider the long-term benefits.
• Maintenance. Bespoke chatbots may incur ongoing upkeep expenses. Whereas, the subscription fees for ready-made platforms usually cover maintenance.
• Long-term cost-effectiveness. The scalability and customization offered by a tailor-made chatbot translates to greater ROI over time. As your organization expands and your goals shift, a tailored solution avoids the escalating costs often associated with out-of-the-box options that require frequent upgrades or add-ons.

Understanding the financial implications is a crucial step in determining the right conversational system for your brand. The cost of creating a bot varies widely, depending on its complexity, characteristics, and the development approach you choose. Simple rule-based ones start as low as $10,000, while sophisticated AI-powered chatbots with custom integrations may reach upwards of $75,000–100,000 or more.

When considering available approaches, an in-house team typically costs around $10,000 per month, while third-party agencies range from $1,000 to $5,000. Ready-to-integrate solutions demonstrate varying pricing models, from free alternatives with limited features to enterprise plans of $600-$5,000 monthly.

To gain a deeper understanding of the topic, we encourage you to read our recent article on chatbot costs and potential hidden expenses. This guide will help you determine which approach best aligns with your needs and capabilities.

Remember, choosing the right conversational system involves a careful balance between complexity, user expectations, development speed, budget, and desired level of control and scalability. Custom systems offer greater flexibility and long-term cost-effectiveness for complex requirements and unique branding. On the other hand, CaaS platforms provide a quicker and more affordable solution for simpler applications.

Investing in a bot is an investment in enhancing customer experience, optimizing operations, and ultimately driving business growth. Choose what best aligns with your long-range targets and vision.

However, if you’re still unsure about the ideal type or development approach, we recommend exploring our chatbot consulting service. Our experts will guide you through the myriad of options and help you develop a strategy that perfectly addresses your concerns. To showcase our expertise, we’d be happy to share examples of NLP chatbots we’ve developed for our clients.

Success Stories Across Industries

Capitalizing on Conversational Commerce

Our Apple Messages for Business bot, integrated with Shopify, transformed the customer journey for a leading electronics retailer. This virtual shopping assistant engages users in real time, suggesting personalized recommendations based on their preferences. It also optimizes purchases by guiding them through the checkout process and answering a wide array of product-related questions.

Key achievements:

• 80% client satisfaction score;
• 84% engaged session rate;
• ~$300 average order value.

Driving Charitable Impact and Community Engagement

We partnered with a Catholic non-profit organization to develop a bilingual chatbot for their crowdfunding platform. This tool connected sponsors with charity projects, offered a detailed project catalog, and facilitated donations. It also included features like monthly challenges, collaborative prayer, daily wisdom, a knowledge quiz, and holiday-themed events.

Key results:

• 174K+ users engaged with the bot;
• 6,968 masses were requested;
• $84,500 in donations processed;
• 26 campaigns launched via the bot’s holiday-specific functionality.

Interactive Marketing for Brand Promotion

Messenger chatbot built by our team for Dr. Oetker’s Giuseppe brand promoted their new Easy Pizzi pizza and drove participation in a sweepstakes contest. The bot guided users through competition registration and encouraged PIN entries for instant prizes. It also facilitated interaction with an AR filter on Instagram, resulting in a significant boost in user engagement and product awareness.

Wrapping Up

All in all, NLP chatbots are more than just a trend; they are a strategic asset for companies seeking to thrive in the digital age. Whether you’re a small business aiming to improve customer service efficiency or a large enterprise focused on boosting client engagement, an AI bot can be customized to meet your unique needs and goals.

Don’t let this opportunity slip through your fingers — discover the limitless possibilities that Conversational AI has to offer.

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Don’t Settle for Less: Give Your Customers What They Deserve with a Custom NLP Chatbot was originally published in Chatbots Life on Medium, where people are continuing the conversation by highlighting and responding to this story.

Top Tools to Build an Engaging Omnichannel Customer Experience

Without the right tools, it is extremely difficult to provide the level of omnichannel customer experience that you desire. So, we went ahead and did what we do best. Create a list of the best Omnichannel customer experience tools.

Let us take you through the basics before we tell you what these tools are. We are going to tell you:

1. What are Customer Experience Tools?
2. How to Pick the Right Customer Experience Tools

Review of some of the most common omnichannel customer experience tools:

i) Kommunicate

ii) Zendesk

iii) Microsoft Dynamic 365

iv) Avaya OneCloud

v) Buffer

vi) Twilio Flex

vii) Keap

We will see what customer experience tools are to begin with.

What are customer experience tools?

The software tools used to design and enhance the customer journey, from initial engagement to ongoing support and retention, are called customer experience tools. These tools aim to provide a seamless, personalized experience across all touchpoints, including mobile apps, social media, phone, email, and websites.

Omnichannel customer experience tools often combine artificial intelligence (AI) with machine learning capabilities to study customer data, identify patterns, and give insights that optimize experiences.

Other features of omnichannel customer experience tools include journey mapping, customer feedback management, etc, to help businesses continuously improve their customer experience.

Now that we have a brief idea of what CX tools are, let us look at how you can select the right customer experience tools.

How do you pick the right customer experience tools?

Choosing the right customer experience tool is critical to ensuring exceptional service and build long-lasting relationships with customers. Here are some of the key factors to consider before choosing a CX tool.

1. Map your customer journey: Identify the touchpoints where customers interact with your business. This will help you determine the specific features and capabilities you need from a CX tool.
2. Figure out which channel to engage your customers: Customers today expect to engage with businesses across multiple channels, including messaging apps, phones, social media, and email. Choose a tool that supports this omnichannel approach, such as Kommunicate or Freshdesk.
3. Consider scalability: The CX tool should be scale according to the growth of your business. So the onus should be look for tools that seamlessly integrate with your existing systems, like CRM or marketing automation systems.
4. Take into account automation capabilities: Artificial intelligence (AI) and automation can significantly enhance the customer experience by predicting customer needs, automating repetitive tasks, and giving personalized recommendations.
5. Give importance to ease of use: The customer experience tools that you choose will be used by your CS agents and employees on a daily basis. Hence, it is important that you choose a tool that is intuitive and has an easy-to-use interface. Tools such as Hubspot Service Hub and Kommunicate have simple interfaces that take minutes to master.

We know what omnichannel customer experience tools are and how you can go about choosing the best tools for your business. Now, let us take a look at some of the top names in the customer experience space so that you can choose wisely.

We begin the list with a chatbot-building solution that ticks all the right boxes when it comes to providing an omnichannel experience:

1. Kommunicate

When you think about providing instantaneous responses to customer queries, with minimal friction and 24/7 availability, one of the major omnichannel customer experience tools is chatbots. And when you think of chatbots, think no further than Kommunicate.

Kommunicate enables businesses to provide seamless customer support across multiple channels. There is a wide range of features to choose from, including generative AI-powered chatbots, live chat, a help center, rich messaging options, and Kompose, Kommunicate’s own bot builder tool.

Businesses can leverage Kommunicate’s omnichannel capabilities to deliver consistent, personalized support and make sure that the customers are satisfied.

What you’ll like about Kommunicate:

1. Offers a comprehensive suite of features that deliver exceptional omnichannel customer experience.
2. Has an open-source SDK that simplifies integration into Android apps, giving customers an engaging and customizable chat interface.
3. Has AI-powered chats, rich messaging options like buttons, cards and carousels that enable seamless communication across multiple channels.
4. Even users without coding knowledge can build complex chatbots using the Kompose bot builder with a Flow designer.

What you may not like:

1. Kommunicate’s SDK needs Android 4.1 (API level 16) or higher, which can limit the app’s reach.
2. For smaller projects or individuals, the pricing may be a bit expensive for higher tiers.

Pricing

• Kommunicate Lite at $100/month for small teams.
• Kommunicate Advanced for $200/month for larger teams.
• Kommunicate Enterprise — custom pricing for enterprises.

2. Zendesk

Zendesk is a name that needs no introduction, and the company has been around for more than a decade and a half now. According to the makers themselves, Zendesk allows you to “meet your customers where they are,” and provide truly omnichannel support, no matter the channel.

Zendesk’s Unified Agent Workspace gives agents access to valuable customer data, as they can communicate with customers across channels without switching between tools and dashboards.

What you’ll like about Zendesk

1. Zendesk is an omnichannel customer experience platform where agents can get seamless access to support across multiple channels.
2. It gives access to live chat, AI-powered chatbots, and rich messaging options for effortless communication.
3. It has excellent customization capabilities that allow businesses to tailor the experiences to their brand.
4. OpenAPI enhances integration and extensibility, giving companies the ability to deliver a personalized experience across multiple touchpoints.

What you won’t like

1. During high-traffic scenarios, there have been issues or delays in message delivery.
2. Individual developers and smaller teams may be put off because you need to create a Zendesk account and get the necessary credentials.
3. Pricing is steep, especially for higher tiers, which may be a concern for smaller businesses.

Pricing

• Zendesk Suite Team at $55/agent/month
• Zendesk Suite Growth at $89/agent/month
• Zendesk Suite Professional at $115/agent/month
• Zendesk Suite Enterprise at custom pricing.

3. Microsoft Dynamics 365

For enterprises that are already invested in the Microsoft ecosystem, Microsoft Dynamics 365 is a feature-rich omnichannel customer experience tool that ticks most of the boxes.

Released in November 2016 as a successor to Dynamics CRM, the tool is both a CRM and an ERP.

Dealing with your customers or dealing with your back office functions, everything is covered by Microsoft Dynamics 365. Readers should note that this is different from Microsoft 365, which is a set of office productivity tools such as Microsoft Word, PowerPoint, and Excel.

What you’ll like about Microsoft Dynamics 365

1. Microsoft Dynamics 365 gives access to unified customer data across all channels (social, mobile, web. etc.)
2. There are AI-powered virtual agents that will make sure your customers get a truly personalized experience.
3. Microsoft Dynamics 365 is tightly integrated with Power BI, Office 365, and Azure, which ensures that there is greater productivity.
4. It is feature-rich AI-powered assistance through Copilot, integrated MS Teams collaboration, and unified routing. All these features enhance agent productivity.

What you won’t like

1. For small businesses, the user interface can be a bit complicated and overwhelming.
2. Microsoft Dynamics 365 provides limited out-of-the-box functionality for certain industries.
3. Implementation can be time-consuming. Also, integration with non-Microsoft systems will require additional resources.

Pricing

• Small and medium business first dynamic 365 app, subsequent qualifying dynamic 365 app, and business central essentials: $70/user/month
• Business central premium: $100/user/month
• Customer service professional: $50/user/month
• Sales professional: $65/user/month

4) Avaya OneCloud

Avaya OneCloud is a powerful CX platform that combines advanced features, AI-driven capabilities and cloud-based flexibility. Best suited for enterprises that are looking for a comprehensive cloud-based solution that has excellent communication capabilities and a good CRM integration.

Avaya provides unified communications, a contact center, and workforce engagement tools.

What you’ll like about Avaya OneCloud

1. A unified interface for managing multiple communication channels like voice, video, chat, email, and messaging.
2. OneCloud comes with scalable and flexible deployment options (public, private, or hybrid cloud).
3. OneCloud is known for its reporting and analytics, live monitoring capabilities for supervisors, and quality management features for agent performance reviews.
4. OneCloud Contact Center As A Service (CCaaS) uses cloud computing to allow remote and home-based agents. This enhances productivity from anywhere.

What you won’t like

1. Enterprises with legacy systems may find the initial setup and configuration process complex.
2. Pricing is not transparent and can be a bit more flexible for businesses that have different budgets and requirements.
3. Avaya OneCloud has limited out-of-the-box social media integration.

Pricing

• Digital $48 per user per month
• Voice $83 per user per month
• All-media $125 per user per month

5) Buffer

Okay, so Buffer may not be a full-fledged omnichannel customer experience tool like the other ones mentioned on this list, but it stands out as a social media management platform, and hence makes the cut. To provide a truly omnichannel experience, you may need to combine Buffer with other tools that provide live chat and customer support.

The problem statement that Buffer solves is pretty much the one that led to the foundation of the company way back in 2010. It is a feature-rich and reliable tool for managing social media campaigns and optimizing content performance across channels.

What you’ll like about Buffer:

1. Buffer is a great tool if you want to schedule and target social media messages, and see how your content is performing across various channels.
2. The tool has a user-friendly interface and seamless integration with popular tools and platforms, including WordPress. This makes it a perfect choice for small businesses.
3. Buffer’s collaborative tools facilitate team collaboration and enhance workflow efficiency.

What you won’t like:

1. Buffer does not provide integration with CRM or customer service platforms.
2. Even though it is advanced, the tool does not have a built-in social listening or sentiment analysis feature.
3. Buffer’s onboarding process can be further simplified, and they can provide more customer support resources that will enhance the effectiveness of campaigns.

Pricing

• Free plan for up to 3 channels.
• Essentials for $5/month for 1 channel
• Team for $10/month for 1 channel
• Agency for $100/month for 10 channels.

6. Twilio Flex

Twilio Flex is an omnichannel customer experience solution that works best for businesses that have strong technical capabilities. It enables seamless integration of various communication channels, including voice, SMS, chat, and WhatsApp, into one combined interface.

Twilio Flex was introduced in March 2018 to thousands of sales and customer support agents in companies such as Shopify and Scorpion.

What you’ll like about Twilio Flex:

1. The Flex Conversations API makes the deployment of omnichannel experiences very simple, meaning businesses can easily deliver personalized customer support.
2. Twilio Flex, with its updated UI, has an enhanced screen reader capability, keyboard navigation, and button labeling. This means there is an inclusive experience for agents.
3. The Open API framework and customization capabilities mean businesses can tailor the platform to their specific needs.

What you won’t like

1. The initial setup and configuration process may seem a bit complex for some users.
2. Twilio Flex is a bit more expensive than other traditional contact center solutions.
3. Customization and integration of this tool sometimes require significant development effort.

Pricing

• Free trial
• Per-hour pricing starts at $1 per active user per hour
• Per-user pricing starts at $150 per named user.

7. Keap

Keap is a keeper, especially if you are a small business and are looking for a comprehensive solution that offers a lot of customization opportunities. It is a powerful tool that can manage interactions across multiple channels, giving you CRM integration, automated follow-ups and campaign management functionalities.

Keap started out as Infusionsoft in 2001, and it was created by brothers Scott and Eric Martineau in Arizona. The company rebranded itself to its current name in 2019 and is backed by leading names such as Goldman Sachs.

What you’ll like about Keap:

1. Offers a customizable dashboard that you can use to track and manage customer interactions across multiple channels. This means businesses can better personalize their customer journeys.
2. Keap easily integrates with various CRM tools, which allows businesses to unify customer data.
3. Keap is known for its appointment scheduling and reminder features.

What you may not like:

1. Although we live in the era of Generative AI, Keap has limited AI-powered features that will enhance its automation capabilities.
2. Advanced users will find the customization capabilities a bit lacking.
3. There is a lot of room for improvement in Keap’s mobile app support, for people who interact with the app on-the-go.

Pricing

• Pro for smaller teams: $249/month
• Max for growing teams: $329/month
• Ultimate for larger teams: $499/month

Bringing it all together

And there you have it. Some of the top omnichannel customer experience tools. Note that this list is not exhaustive, and there are new tools coming out every day that offer better features. As an organization, you should realize that merely having these tools in your arsenal will not guarantee that you will succeed in providing a great customer experience. You must have the will to use these tools to their maximum potential and go above and beyond the call of duty to ensure that the customers keep coming back to you.

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Best Omnichannel Customer Experience Tools 2024 was originally published in Chatbots Life on Medium, where people are continuing the conversation by highlighting and responding to this story.

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