Chatbot vs. Live Support: Which Is Better for Your Business?

19-Nov-2024

Have you ever thought which one is truly the best option for your business: a chatbot or live support? With the constant rise of digital tools and automation, it is a valid and critical question for businesses looking to enhance their customer service experience. Whether you have affinity for a chatbot or a live support, both the options offer considerable benefits, though they operate differently. More importantly, they can dramatically affect the interactions of the customers with your brand. So, which of the options, out of chatbot or a live support, should you prefer?

In the subsequent sections, we will discuss the pros, cons, and real-life cases of chatbots and live support to help you decide which option will best meet your business goals.

The growing need for instant customer support

These days, customers expect support that is instant, accessible, and convenient. A HubSpot study found that 90% of consumers anticipate an immediate response to their queries. And 60% of the customers interpret “immediate” as a response within 10 minutes. This mental shift toward prompt service has pushed businesses to find ways to meet these new expectations without sacrificing the quality of customer support.

What do we understand by a chatbot?

A chatbot represents automated software that uses AI and NLP to replicate human-like conversations. Chatbots can deliver immediate responses to queries, handle basic inquiries, and even direct users through complex tasks on websites and mobile applications. It is usually designed for routine questions and problems that can be easily resolved with human intervention.

What is live support?

On the other hand, live support services involve a human representative interacting with customers in real-time. This can happen over a chat, phone call, or an email. It helps in solving more intricate problems in a personalized manner. Live support service is often preferred when customers need assistance regarding sensitive matters, technical issues, or in situations that require empathy and understanding from the business side.

Now, let's see the advantages and disadvantages of a chatbot and a live support.

Pros of using chatbots

1. Always available: You can expect chatbots to be available round the clock. This means that no matter when a customer reaches out, they will receive an immediate response. This is important, particularly for businesses that operate globally across different time zones, such as a BPO. 

2. Instant responses: The average wait time with chatbots is virtually nonexistent. You don't have to wait for an agent to become available and connect. This can immensely improve the user experience.

3. Cost-effective: Since chatbots are automated tools; they can handle thousands of queries simultaneously. This allows companies to reduce the staffing needs for elementary support levels. Now, for small and medium sized businesses (SMBs) this can lower the operational costs appreciably. 

4. Scalability aspect: During peak hours, there is a surge in customer inquiries. Chatbots can take care of this surge without any delay. This is infact a big advantage during product launches, seasonal sales, or emergency situations.

5. Consistency in service delivery: Chatbots can provide reactions and replies that are constant regardless of when the customer is contacting. This is to make sure that every customer receives the same level of service. 

6. Support for varied languages: Chatbots can be programmed to communicate in different languages. This makes them suitable for businesses with a global client base.

Limitations of using chatbot

1. Problem solving abilities are limited: Chatbots are great when it comes to managing simple tasks or frequently asked questions. However, we have seen them struggling with more complex issues. If a customer's problem is too complicated for bot to understand and resolve or it is outside the bot's scripted responses, they may feel frustrated.

2. Missing human touch: Chatbots are automated machines and cannot reproduce the empathy and emotional intelligence that a human representative can provide. They cannot emote and therefore, in cases where customers need reassurance or a personalized experience, a chatbot may fall short of expectations.

3. Slight risk of miscommunication: Chatbots are dependent on predefined scripts and algorithms. This can sometimes lead to misunderstandings or incorrect responses, particularly in cases where the request posed by the customer is not formulated clearly.

4. Not always trusted: There are some customers who may be wary of chatbots, particularly if they are unfamiliar with the technology behind the bot. Studies have shown that almost 69% of consumers prefer to interact with a live agent rather than a chatbot when solving sensitive or nuanced problems.

Advantages of live support

1. Personalized service: The agents in live support can tailor their responses according to individual customer needs. This level of personalization is important while addressing unique issues or complicated matters. For instance, a live support agent can guide customers better than a chatbot during troubleshooting technical problems or offering product recommendations.

2. Emotional intelligence quotient: Human agents acting as live support can easily gauge the emotional tone of a customer's inquiry and reply accordingly. If a customer is expressing disappointment or is upset with a service, a live support representative can apologize and empathize with that customer and provide solutions in a manner that a chatbot simply can't.

3. Expertise and problem-solving aspect: When clients face issues that require deep knowledge or creative problem-solving, live support service is invaluable. Service agents can think proactively, adapt to new situations and offer various inventive solutions when compared to a machine.

4. Trust and confidence: Several customers still trust live support agents more than the automated systems. This is especially true in case of sensitive or high-value transactions. For instance, when dealing with financial matters or account security, customers are at more ease interacting with a human rather than a bot. This gives them peace of mind.

5. Higher satisfaction rates: According to a study by Zendesk, 85% of customers are satisfied with live chat services when it's available. This indicates that live support is highly valued when executed appropriately.

Drawbacks of live support

1. Limited availability: The live support service requires human agents, which means it is not available 24/7 unless you specifically staff around the clock. This is unlike chatbots that are always available. Now, this can be a challenge for businesses looking to provide instant support services to customers in different time zones.
2. Costly: Hiring, training and retaining competent customer service agents can be expensive for companies. In case of smaller businesses, maintaining a high-quality live support team can lead to considerable overhead costs. 

3. Challenges with scalability: During peak times, like Black Friday or major product launches, a live support team may struggle to mitigate the volume of inquiries. This will ultimately lead to longer wait times, frustrated customers, a lower level of service.

4. Error in judgement by human agents: Humans are infallible. While human agents can adapt to problematic scenarios, they can too commit judgement errors. These mistakes can cause miscommunication with customers which can lead to inconsistent or poor service delivery.

Which is better for your business: Chatbot or live support?

The decision to select chatbots and live support depends largely on the nature of your business, your budget, and your customer base. We have presented few questions to help guide your decision:

• What kind of problems do your customers face?

The businesses should gather information about the frequent problems that their customers face. If your customers typically need help with common tasks that are repetitive as well such as inquiring order status or finding information, a chatbot is more suited to handle these efficiently. However, if your customers frequently deal with emotional issues or complex problems, live support agent may be a better option.

• How much you are willing to invest?

A chatbot is useful for businesses that are small or medium with limited resources as it provides a cost effective solution. On the other hand, if you are a larger business with the capacity to invest in talented agents, live support could provide a higher level of service.

• What is your optimal customer experience?

Chatbots are exceptional in providing quick, efficient replies, but they lack the personal touch that many customers desire. You may prefer live support in case your brand values empathy, personalization and customer satisfaction above everything else.

Concluding remarks

Chatbots or live support service? The truth is, both have their places in contemporary customer service strategies. Several businesses are already using the strengths of both the solutions i.e. using chatbots for basic inquiries and live agents for high-touch and intricate interactions. The best solution for your organization depends on how you balance the efficiency and personalization aspects while serving the customers. Remember, customers want a seamless experience that meets their expectations.

Chatbot vs. Live Support What is live support? Pros of using chatbots Limitations of using chatbot