Chatbots are becoming a common feature online, but they’re not universally popular. In fact, many users are easily frustrated by the limitations of what bots can offer and favour a more personalised service.
In this article, we examine how bots have risen to become a ubiquitous online feature and take a closer look at why a more tailored approach to customer service reigns supreme. So, read on to discover why some companies always prioritise personalised customer service over chatbot alternatives.
What Is a Chatbot?
In simple terms, a chatbot is software that mimics human conversions, typically in written form. These automated programs can use set guidelines or artificial intelligence (AI) in a bid to enhance the quality and accuracy of their ‘responses’.
Chatbots that use programmed set guidelines (also known as ‘fixed bots’) are typically less functional than their AI counterparts, as they are limited by the specific guidelines that have been implemented. If a user inputs a query that doesn’t exactly match the guidelines, the chatbot will be unable to provide a meaningful answer.
In contrast, AI-driven chatbots use machine learning (ML) to ‘understand’ what response is needed to resolve a user’s query. While AI-powered chatbots can provide a better level of support than chatbots using set guidelines, there are still limitations to what can be achieved.
Why Is Personal Service Better Than a Chatbot?
Although chatbots are becoming more useful as they evolve, they are yet to compete with a genuinely personalised service and human interaction. To find out why, take a look at these eight reasons why personal service is better than a chatbot:
1. Knowledge Gaps
Chatbots can be effective at resolving simple queries, such as ‘what time does your store open?’ or ‘how much is delivery?’, but there are inevitably knowledge gaps in a chatbots repertoire, no matter how straightforward the query is. Due to this, users may not be able to access the information they need via chatbot support.
2. Inability to Solve Complex Issues
Although chatbots can solve some simplistic queries, they are less effective when it comes to complex issues. Financial services and management are inherently complex, particularly when it comes to international or high-value transactions, which is why chatbots can be redundant on financial websites.
As chatbots are unable to take into account the multitude of factors that may contribute to an appropriate solution to the user’s query, they’re unable to provide the nuanced response that’s required.
3. Simplistic Answers
Chatbots can’t think critically, which means they’re only able to deliver simplistic answers to questions. In contrast, a more personalised level of service from experienced finance experts ensures users can access innovative solutions and creative problem-solving that allows them to overcome challenges and meet their objectives.
4. Lack of Trust
Interacting with a chatbot is an entirely different experience to interacting with a human. Although chatbots are designed to mimic human responses, it’s still easy to identify when you’re ‘talking’ to software, rather than a human.
Inevitably, this can lead to a lack of trust between the user and the organisation they’re attempting to communicate with. When it comes to financial matters, it’s particularly important that clients have the utmost trust in their financial services provider, which is why a personalised service reigns supreme.
5. Regulatory Compliance
When individuals or businesses are managing their finances, there are numerous regulatory and compliance issues that need to be considered. What is technically possible may not be viable under a specific jurisdiction’s regulations, for example.
Here, in-depth industry and legal knowledge is required to determine the best solution for the accountholder or user and a chatbot is simply unable to provide this level of detail or cope with the intricacies of a complex financial query in relation to the regulatory conditions that may apply.
6. Potential for Misunderstanding
If a chatbot assumes that it understands the user’s input, it won’t seek to clarify the query. Instead, it will simply provide the answer it thinks is applicable. When a misunderstanding occurs, the chatbot’s inability to recognise it may result in the user being given incorrect information.
In a financial setting, this could have catastrophic consequences. If a user bases a financial decision on inaccurate information provided by a chatbot, for example, it could lead to economic loss and subsequent reputational damage.
Fortunately, there is less risk of misunderstanding when a personalised service is delivered by humans. Whether customer support is provided via an online portal, over the phone or through email, the natural language that humans use to communicate provides more clarity and, therefore, ensures a more successful outcome for both parties.
7. Ongoing Optimisation Requirements
Many companies use chatbots because they assume it will reduce the costs associated with delivering personalised customer service. However, chatbots require consistent optimisation in order to expand their ‘knowledge’. In addition to maintenance and security upgrades, companies must continually work to enhance the performance of their chatbots, which inevitably increases costs and utilises more resources.
Furthermore, advanced chatbots that use AI and machine learning can be costly to create and install. While the OPEX costs may seem appealing, the realities of building, implementing and optimising a chatbot can be more costly than you expect.
8. Missing Customer Feedback
Although chatbots can be programmed to request customer feedback, this is often done in a binary way. This limits the qualitative value of customer feedback and means that businesses miss out on critical user insights that can help to enhance their services or products.
What’s more – users may feel undervalued when they’re unable to express their thoughts and feelings or when their feedback isn’t acted on.
Tailored, Personalised Customer Service from PayAlly
At PayAlly, we understand that technology can transform industries and bring new solutions to the market, but we also recognise its limitations. As well as using the latest innovations to deliver digital financial management solutions, we ensure every client receives a personalised and bespoke service.
With a dedicated Relationship Manager assigned to every client, you can be confident that you’ll get the answers you need from an experienced professional – no matter how complex your query is!
