Utilization of Chatbots in Customer Interface

Abstract

Automation has become a worldwide trend in business. Businesses try to find competitive edge from more efficient processes, lower costs and better customer service. In this Bachelor’s thesis, I focus on one instance of the trend: web-based chatbots in the customer interface. Based on a broad literature review, this thesis illustrates what are the prerequisites for the utilization of chatbots, how should they be implemented and finally, what pros and cons managers can expect from such investments.

Managers should first be aware of the technical restrictions and challenges chatbots as a medium exhibit. Then, through analysis on their customers, managers should assess the suitability of chatbots for their business. The design process should include both the customers as well as different departments in the company. This can also help with change resistance in the implementation phase. Finally, the chatbot should be constantly evaluated to ensure the benefits promised are delivered. Although chatbots can offer versatility and cost savings, poorly design may end up costing the firm both in the terms of unnecessary investment and reduced customer satisfaction.

Although no new concepts are introduced, this thesis is a good starting point for managers interested in utilizing chatbots. On the other hand, as the topic is currently relevant, this thesis can be useful for other industries as well.