Know how to use chatbots vs. live chat to improve customer experience


Technology is rapidly developing than ever before. As a result, businesses are under pressure to innovate new technologies to meet consumers changing needs. Technological leadership is crucial for business in the age of automation. Businesses have been shifting to different platforms to communicate with their customers.

Thus, it becomes crucial to understand the business requirement and use the right technology – chatbots vs. live chat to deliver a better customer experience. But, how will you know to use the technologies in the right manner?

6 factors that will help you to decide the best fit for your business

When you are asked chatbots vs. live chat – here are six factors that will help you decide the best fit for your website.

1. Response time

Business does not like to put their customers in a long queue. Today’s businesses are clearly aware of the fact that it is a big problem and it will negatively impact customer experience. Live chat software is widely chosen by businesses as a proactive way of delivering real time customer support.

Live chat reduces wait time as 79% of customers prefer live chat because they get instant answers to their questions.

The adoption of technologies depends upon the business requirements. But if your customers expect a response, say less than 20 seconds that chatbots can be the best option.

Chatbots respond to customers faster than support agents to answer their tier 1 questions engage customers 24×7.

My suggestion is to combine both live chat and chatbots.

All customer service requests can be first handled by chatbots. The information based queries can be easily answered by bots and if the query is complex and the bot is not able to answer then it must be transferred to the customer support experts.

2. Cost efficiency

Whether you are a small business or an enterprise, all the decisions that you make for your business must be cost effective.

Live chat helps to reduce business costs when compared to phone support. Studies show that live chat is 17-33% less expensive to communicate with a customer via live chat than phone calls.

Live chat agents can multitask by handling 5 to 6 chats at the same time, which is not possible over the phone. The costing of live chat depends on factors, such as the number of agents you are paying and how long they are available.

Accordingly, if you paying $20 per month for handling one user it is very expensive.

Chatbots will significantly reduce costs. Using AI chatbots is an investment in your business.

Chatbots currently account for business cost savings of $20 million globally and that number is expected to rise. Investing in chatbots saves extra costs of adding more agents. It eliminates the cost in terms of

  • Salaries
  • Training
  • Infrastructure

These costs make a huge difference hence, businesses should not overlook these costs. Chatbots can be scaled during the peak time of business without any extra costs.

3. Human touch

Artificial intelligence (AI) is hopping into all business sectors. Chatbots analyzes the customer request and responds like a human agent. Customers are so much convinced with the answer that they don’t feel that they are talking to a robot.

However, chatbots can enhance conversations but can’t replace that human touch.

Here are some of the chatbots challenges:

  • Misunderstanding of customer requests
  • Fail to execute the inaccurate commands made by customers
  • Misinterpret the nuances of human dialogue.
  • Problem in understanding the accent of the customer

Thus, it can be concluded following the hybrid approach of chatbots support for basic queries and live support for complex queries will help you to deliver the best of both worlds. With this approach, you can boost customer satisfaction and retention.

4. 24×7 availability

If you are using live chat to assist your customers, they are not going to be available 24×7. And customers can reach out to your business in odd hours when the customer support team is not available.

Also if you are only providing live chat support you need to have enough resources to handle these chats. Your business costs will be significantly higher in paying salaries, training them and infrastructure costs as well.

With chatbots, you can engage your customer 24×7. The top benefit of using chatbots is 24-hour customer service.

Chatbots can respond to customers whenever the request is made. In order, to maximize your availability and provide 24×7 service without paying high costs on resources it is better to use chatbots.

You can switch from human support to chatbots when your customer support agents are offline thus delivering a better customer service experience.

5. Scalability

With live chat, you empower your customers to connect with you instantly to get real time support. Live support agents can handle a maximum of 5 to 6 chats at a time so customers are put on the queue, which is annoying and they decline.

Chatbots are a better option as your customers do have to be in the queue. They are responded promptly, which improves your business efficiency.

Chatbots can be easily scaled based on your business requirements. During peak business hours, they ensure to engage all the customers without leaving any query unanswered. Besides, there is no extra cost involved when chatbots are scaled.

Just assume you run a restaurant business. You receive more than 500 delivery requests in a day. It is not possible to with few agents. Using a chatbots helps you to meet the requests on time and improve customer satisfaction.

6. Sales conversion

The goal of every business is to convert your customers after they reach out to your customer support with the options they choose.  Live chat increases the chances of a successful conversion.

Studies show that 38% of customers make e-commerce purchases after having live chat conversation. But human agents are restricted to reach out to every website visitor for a proactive chat to know customer requirements.

With chatbots, you can have proactive conversations. Based on the chat histories bot initiates conversation with the visitors.

If a customer has simple queries like shipping, delivery, etc. bots will handle it instantly and if the bot is not able to answer, the chat can be transferred to a human representative.


Live chat agents are less expensive when compared with reactive support like phone support, but chatbots are a cost efficient solution. Chatbots deliver instant response, but live support agents are still faster to deliver customer support.

In the long run using both live chat and chatbots technology can be used in the right way to improve your customer experience. I will enhance your business efficiency and boost customer experience.