SMS Chatbot - Definition, Usage, and Benefits

Increasing customer engagement is an essential factor that drives brand loyalty and revenue. Fortunately, SMS chatbots have made this mundane task more accessible and more effective with their ability to communicate with customers in real-time.

Setting up an SMS chatbot for your business or brand is straightforward when you use sound tactics. However, it is crucial to understand the fundamentals of SMS chatbots, what it takes to build one, and why you should do so if you want to create engagement.

This article will explore SMS chatbots’ definition, usage, and benefits.

What is an SMS Chatbot App?

SMS chatbots apps are software applications that can send and receive text messages. They are designed to mimic human conversation and provide customer service or support.

You can create a conversational interface with an SMS Bot that answers customer inquiries, manages responses, and ultimately increases interaction without the need for installing a messaging app.

SMS chatbots that utilize natural language processing (NLP) make it simpler to develop engaging conversations. You may also add buttons and animated GIFs to make your SMS bots more exciting and easy for your consumers to use.

What is the purpose of a chatbot that responds to SMS messages in real-time?

The purpose of an SMS chatbot that responds in real-time is to provide immediate assistance or customer service to users. It allows you to handle many customers simultaneously without needing an extra workforce. 

Chatbots in messaging apps allow customers to get answers regardless of their location or device. Customers don’t have to complete forms or waste time hunting for solutions within the content because they can ask questions via chatbots.

SMS service chatbots can be used in SMS marketing to:

  • Resolve customer complaints and inquiries
  • Assist customers with buying products from your website or online store
  • Help customers book appointments or schedule deliveries
  • Provide information about upcoming sales, events, or promotions

What are the advantages of using SMS Chatbots?

There are many advantages of using SMS chatbots. Apart from increasing customer engagement, here are the highlights of its benefits.

  • Reduced Customer Service Costs: You can reduce the number of customer service representatives you need by automating customer service tasks. It can lead to cost savings for your business.
  • Faster Response Times: Chatbots can reply to messages in real-time, so customers don’t have to wait long for a response.
  • Increased Engagement: Chatbots can handle multiple customer interactions simultaneously, resulting in increased engagement.
  • Customizable: You can create chatbots specific to your brand and needs. You can also program chatbots to provide the exact information or answers customers need.
  • Cost savings. Businesses must pay their workers to run a chatbot at all times. These costs increase as the company expands, and they may soon become prohibitively expensive. Chatbots are a one-time expenditure that helps businesses by reducing personnel costs. Customer support chatbots may respond to simple inquiries from potential consumers and pass on complex problems to customer service personnel.
  • Gaining insights into consumer behavior and data. Chatbots gather valuable consumer feedback, which can be a tremendous help for businesses in improving their offerings. Furthermore, this input may urge firms to improve low-converting pages by making modifications to high-converting ones.
  • Lead generation, qualification, and nurturing. Chatbots obtain consumer information to provide personalized messages to clients at various points in the sales funnel. Bots can ask pertinent questions, persuade prospects to become leads for a company, and so on. Lead generation via key performance indicators (timeline, relevancy, resources, budget, etc.) is possible with chatbots.
  • Easy operation in global markets. With chatbots, businesses may provide exceptional customer service in various languages all year round. On the other hand, brands can expand their operations to new areas.

What are the types of Chatbot?

What are the types of Chatbots

There are six main types of Chatbots that you can leverage in your SMS marketing campaign. These are the following:

  1. Scripted/Quick reply bots

These chatbots are pre-programmed and use a limited number of responses based on user input. They often require specific keywords for users to answer from the chatbot.

It works by matching the user input to one of the pre-written responses. If there is no match, the chatbot will ask for clarification or end the conversation.

The most common uses of quick reply chatbots are for customer service or support, lead generation, and surveys.

  1. Natural Language Processing (NLP) Chatbots

NLP chatbots are powered by artificial intelligence (AI) and use machine learning to understand human language. It allows them to interpret the user’s intent and respond in a way that is as close to a human conversation as possible.

Chatbots are one of the most well-known artificial intelligence applications (AI). Chatbot employs Artificial Intelligence technology called Natural Language Processing (NLP) to interpret user input, such as text or speech. It analyzes messages and uses parsing to obtain variables for a response.

NLP chatbots are utilized by companies in various industries, including customer service, marketing, and sales.

  1. Service/Action Chatbots

Action chatbots are designed to provide customers with a specific action or service, such as booking a flight or ordering a pizza.

In this case, the chatbot will need to have access to specific information such as dates, times, locations, etc.

The airline sector is one of the few industries that extensively use action chatbots. Customers utilize these to check their flight reservation, price, and status.

  1. Social Messaging Chatbots

Social messaging chatbots are designed to interact with customers through social media platforms such as Facebook Messenger, WhatsApp, WeChat, etc. Customers may converse with social messaging chatbots in the same way they would with family or friends through social messaging platforms.

It works by integrating with the social media platform and providing customers with information or services through the chat interface.

One of the most well-known examples of a social messaging chatbot is Facebook’s Messenger bot, which allows businesses to interact with their customers on the Messenger platform.

  1. Context Enabled Chatbots

Context-enabled chatbots are designed to provide customers with information or services based on the context of the conversation. These are some of the most advanced chatbots and can understand and react to a wide variety of inputs.

Context-enabled chatbots use machine learning to improve their understanding of the customer’s conversation constantly. It allows them to provide more relevant information or services to the customer. To recall the discussions before, these chatbots rely on Machine Learning and Artificial Intelligence to learn and improve over time. Contextual chatbots learn from user interaction.

One of the most well-known examples of a context-enabled chatbot is Google Assistant, which provides information or performs actions based on the context of a conversation. Other examples are Siri and Alexa.

  1. Voice-Enabled Chatbots

Voice-enabled chatbots are designed to respond to users through voice commands.

This type of chatbot utilizes artificial intelligence (AI) and natural language processing (NLP) to understand the user’s intent and respond accordingly.

You can interact with voice-enabled chatbots through devices such as Amazon Echo, Google Home, Apple Homepod, and so on.

What is the evolution of SMS Chatbot?

The evolution of SMS chatbots can be traced back to the early 2000s, when the first chatbot was created. This early chatbot was created to communicate with humans through text messages.

In the early days, chatbots were mainly used for entertainment purposes. However, with the advancement of technology, chatbots began to be used for more practical purposes such as customer service, lead generation, and others.

As chatbots became more advanced, they began to be used for more complex tasks such as booking flights, choosing music, or checking the weather. In this case, the chatbot will need access to specific information such as dates, times, and locations.

Today, chatbots are powered by Artificial Intelligence and can understand human language. It allows chatbots to communicate with humans through a natural conversation just like a human would.

Why Do You Need an SMS Chatbot That Responds to Your Questions?

There are many reasons why you may need an SMS chatbot that responds to your questions. Customers like to text, and they want to communicate with companies. Statistics on SMS open rates and response rates are only a tiny portion of the many benefits of incorporating SMS into your marketing plan.

Here are more reasons to include the use of SMS chatbots that responds to your questions:

SMS chatbots are personal: SMS is a unique form of communication. It’s a one-to-one conversation that feels natural, and people are used to communicating this way.

SMS chatbots are immediate: One of the best things about SMS is that it’s a quick form of communication. Your customers can get in touch with you anytime, anywhere.

SMS chatbots are convenient: SMS is a very convenient form of communication. Your customers can text you while they’re on the go, and they don’t need to download an app or be on a particular website to do so.

SMS chatbots are unobtrusive: Unlike other forms of communication, such as email and social media, SMS doesn’t require your customers to take any action. They can type a message and hit send.

Is it possible to use a chatbot without having access to the internet?

Yes, it is possible to use a chatbot without having access to the internet. There are a few different ways that you can do this.

One way is to use a chatbot that is powered by Artificial Intelligence. These chatbots are designed to understand human language and communicate through a natural conversation.

Another way is to use a chatbot that is powered by SMS. This type of chatbot doesn’t require the internet to function. Instead, it uses text messages to communicate with humans.

Is it a Good Idea for Your Company to Use a Chatbot or SMS

Yes. There are many advantages to using chatbots and SMS for your company. If your firm receives many inbound messages, you might want to think about employing a chatbot to assist with customer support. These bots are an excellent first line of defense in dealing with simple queries and spam.

SMS and chatbots are a powerful combination. When you combine SMS’ ability to connect quickly with consumers intuitively with AI chatbot’s fast information retrieval, talk about a team.

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