Chatbot Benefits for Business
The following statistics highlight chatbots' significant impact across various industries, demonstrating their effectiveness in modern business applications.
Let's explore these numbers in detail to understand their value better:
- A car rental company used virtual agents as customer service, and they stated these chatbots could identify and automate 68% of service calls. (Harvard Business Review)
- Companies can save 30 percent by using digital assistants to answer customer questions. (Chatbots Magazine)
- Digital assistants resolve 58% of returns and cancellations. (Master of Code)
- 90% of businesses witnessed faster complaint resolution due to bots. (Master of Code)
- Only 43% of customers under the age of 34 believe that chatbots simplify problem-solving (CGS)
- In the banking sector, it’s estimated that chatbots can handle 90% of customer inquiries in 2022. (Zippia)
- Chatbots are utilized across various business functions, with 41% in sales, 37% in support, and 17% in marketing. (Intercom)
- Chatbots save about $300,000 a year. (Intercom)
- 67% of business leaders say bots increase sales. (Intercom)
- 50% of support leaders also say bots improve team productivity. (Intercom)
Chatbot Market Statistics
These statistics show that businesses are realizing the strategic importance of chatbots in improving customer experience and streamlining operations.
The statistics we have given to the benefits above support this increase.
- The chatbot market size has grown from $6.7 billion in 2023 to $8.43 billion in 2024 at a compound annual growth rate of 25.9% (The Business Research Company)
- The chatbot market size was valued at USD 4.6 Billion in 2022 and is expected to reach USD 32.4 Billion by 2032 at a CAGR of 21.6%.(DataHorizzon Research)
As technology evolves, chatbots will play an increasingly vital role in meeting the dynamic needs of businesses and consumers.
Chatbot Usage Statistics
- Around 1.5 billion people use chatbots, mostly in the US, India, Germany, the UK, and Brazil. (Tidio)
- By 2027, chatbots will become a quarter of businesses' primary customer service channels. (Tidio)
Customer service and support leaders are increasingly focusing on chatbots, but surprisingly, customer use of chatbots remains low:
- Only 8% of customers used a chatbot during their most recent customer service experience, and only 25% said they would use it again. (Gartner)
It's important to take note of the following opinions given by Michael Rendelman, Senior Research Specialist at Gartner:
“To improve chatbot adoption, the key is to focus on improving the chatbot’s ability to move customers’ issues forward.”
Here is a statistic from Tidio in 2022:
- The bar chart shows that chatbots are used by 22% of micro-businesses, 20% of small businesses, 11% of medium businesses, and 12% of big businesses.
Chatbot Ecommerce Statistics
It's fascinating to see the transformative impact chatbots have on ecommerce:
- Total spending on chat-based commerce channels will reach $290 billion by 2025. (Juniper Research)
This shift highlights the growing recognition of chatbots as invaluable tools for improving customer interactions and driving sales.
- Chatbots can improve conversion rates for ecommerce businesses by up to 30%. (Shopify)
These AI chatbots give customers information on items they're interested in, tell them about new products and promotions, and help direct them to an item that will meet their needs or desires.
- Chatbots can help ecommerce businesses cut down on their customer service costs as the average cost of a chatbot interaction is $0.50, while that of a human customer service interaction is $6.00. (Zendesk)
- 34% of people prefer chatbots in ecommerce rather than other service-oriented places, including banks where an AI bot helps customers. (Invesp)
This is more than any other sector, as shown in the infographic below:
- Fashion company Dressmann reported higher purchase rates and a 17% increase in average order value thanks to the use of Chatbot. (Kindly)
- Chatbots have helped logistics company Helthjem increase order tracking by 30%. (Kindly)
In each case, the success stories underline the transformative role of chatbots in facilitating and optimizing various operational flows, ultimately contributing to improved customer satisfaction and business outcomes.
Chatbot Challenges/Disadvantages Statistics
Chatbots allow businesses to run 24/7 without human error or software failure.
However, they are not perfect and do have their challenges and disadvantages.
When it is about talking with a human, randomness is always there, and for a program to understand that randomness, you need to know these random possibilities.
NLP Limits:
In an article on challenges of chatbots for business, it is stated that the huge challenge with chatbot customization is understanding the limits of Natural Language Processing (NLP).
NLP allows chatbots to understand the meanings of words and phrases but cannot analyze every possible meaning.
Your chatbot may not understand what you mean if you use a word or phrase with multiple meanings.
People Prefer Human Assistance:
Despite the growing popularity of chatbots, most consumers still prefer human assistance.
- In a survey of global consumers, 56% still preferred to speak with a human instead of getting assistance from a chatbot.
People are willing to interact with bots while waiting for human assistance.
- Yet, at least 60% of respondents answered that they would prefer to wait in a queue if it meant they could immediately speak with a human agent, says an article on customer preference.
Expectations from Chatbots
A chart from Zendesk's report caught my attention, which included results from a global survey of 2,500 consumers in 20 countries and a second global survey of approximately 4,500 businesses.
It presents research findings on people's current views on chatbot performance in different areas of customer service, as well as their expectations for how chatbots will evolve over the next two years:
In Zendesk's CX Trends 2024 report, people's expectations from chatbots are as follows:
- Currently, 65% of people believe chatbots handle simple questions well, and this is expected to increase to 69% in two years.
- Presently, 55% of people are satisfied with chatbots assisting in finding products they might like, and this satisfaction is anticipated to rise to 66% in two years.
- For providing accurate information, 57% of people are currently satisfied with chatbots, and they expect this satisfaction to increase to 65% in the next two years.
- In terms of personal recommendations, 53% of people think chatbots do a good job now, and they expect this to improve to 63% in two years.
- Currently, 56% of people are pleased with chatbots' ability to help them understand products better, and this is expected to increase to 63% in two years.
- In answering more complex questions, 49% of people are content with chatbots now, and they foresee this improving to 58% in the next two years.
- Regarding having a conversation that feels natural, 47% of people are okay with chatbots' current capabilities, and they anticipate this will increase to 56% in two years.
- In terms of empathy in addressing concerns, 47% of people currently rate chatbots positively, with the expectation that this will go up to 55% in two years.
General Chatbot Statistics
- $11 billion could be saved annually by the adoption of chatbots. (MedCity News)
- Chatbots can reduce operational costs by 30%. (Marketing Insider Group)
In a recent survey by Gartner on investment in chatbots, it is found that customer service to significantly increase investments in chatbots, AI and analytics over the next 2 years in 2019.
That's with 89% planning an increase in their investment for this year.
This is due to major shifts in consumer expectations – including a shift from brand-centric marketing to consumer-centric marketing.
- Business Wire mentions that the global transactional value of mobile payments is projected to reach $12,407.5 billion by the end of 2025, the anticipated CAGR clocked between 2020-2025 is 23.8%.
The major factors contributing to this growth are the rise in smartphone users, the increasing number of merchants accepting mobile payments, and the development of AI and chatbots.
- Voice assistants have also been a trend for a long time. A survey result by Capgemini suggests that 28% of the users in the US have already switched to voice payments.
- 64% of people say that 24/7 service is the biggest benefit of chatbots. (Zendesk)
- Another research by CNBC suggested that the average cost savings of healthcare and banking services using chatbots are 0.5 to 0.7 US dollars per interaction.
- In Technology Review's survey, nearly 90 percent of survey respondents report that they have recorded measurable improvements in the speed of complaint resolution by using chatbots.
Wrapping Up
As chatbots gain more popularity, it’s becoming increasingly important for businesses to understand their potential impact on the industry.
To help you stay up to date with the latest statistics, we’ve compiled this list of 20 chatbot trends that will be relevant in 2024.
As you can see, there is no shortage of studies and data to keep marketers busy over the next few years!
If you are interested in more information about stats:
- The 10 Best E-Commerce Growth Statistics You Should Know
- Impressive Shopify Statistics You Need to Know
- 16 Essential Lead Generation Statistics You Should Know
- 12 Best Landing Page Statistics You Should Know
Also you can check out these related post:
- 18 Best AI Chatbots to Maximize Efficiency in 2024
- 12 AI Chatbots for SaaS to Accelerate Business Success
- Choosing the Best Chatbot for Shopify: 10+ Options
Frequently Asked Questions
Which Country Uses Chatbot the Most?
According to Facebook Business, the countries that use chatbots the most are the United States, India, Germany, the United Kingdom, and Brazil.
These five countries have the highest number of chatbot users, with the United States leading at 36%, followed by India at 11%, and Germany at 4%.
This widespread usage is reflective of the global trend where chatbots are increasingly becoming mainstream in various customer service sectors.
How Big is the Chatbot Market?
The chatbot market has demonstrated significant growth over recent years. In 2022, the market size was valued at USD 4.6 billion.
The following year, it expanded to USD 6.7 billion, and by 2024, the market size reached an impressive USD 8.43 billion, showcasing a compound annual growth rate (CAGR) of 25.9%, as reported by The Business Research Company.
The upward trend is expected to continue, with estimates showing the market could reach $32.4 billion by 2032, maintaining a Compound Growth Rate (CAGR) of 21.6%, according to DataHorizon Research.
