Marketing teams are increasingly interested in leveraging branded chatbots, but most struggle to deliver business value. My recently published report, Case Study: Take A Focused And Disciplined Approach To Drive Chatbot Success, shows how OCBC Bank in Singapore is bucking the trend: The bank recently created Emma, a chatbot focused on home loan leads, which […]
Training a chatbot happens at much faster and larger scale than you teach a human. Humans Customer Service Representatives are given manuals and have them read it and understand. While the Customer Support Chatbot is fed with thousands of conversation logs and from those logs, the chatbot is able to understand what type of question requires what type of answers.

There has been a great deal of controversy about the use of bots in an automated trading function. Auction website eBay has been to court in an attempt to suppress a third-party company from using bots to traverse their site looking for bargains; this approach backfired on eBay and attracted the attention of further bots. The United Kingdom-based bet exchange Betfair saw such a large amount of traffic coming from bots that it launched a WebService API aimed at bot programmers, through which it can actively manage bot interactions.


Chatbots such as ELIZA and PARRY were early attempts at creating programs that could at least temporarily fool a real human being into thinking they were having a conversation with another person. PARRY's effectiveness was benchmarked in the early 1970s using a version of a Turing test; testers only made the correct identification of human vs. chatbot at a level consistent with making a random guess.
The progressive advance of technology has seen an increase in businesses moving from traditional to digital platforms to transact with consumers. Convenience through technology is being carried out by businesses by implementing Artificial Intelligence (AI) techniques on their digital platforms. One AI technique that is growing in its application and use is chatbots. Some examples of chatbot technology are virtual assistants like Amazon's Alexa and Google Assistant, and messaging apps, such as WeChat and Facebook messenger.
For every question or instruction input to the conversational bot, there must exist a specific pattern in the database to provide a suitable response. Where there are several combinations of patterns available, and a hierarchical pattern is created. In these cases, algorithms are used to reduce the classifiers and generate a structure that is more manageable. This is the “reductionist” approach—or, in other words, to have a simplified solution, it reduces the problem.
Because chatbots are predominantly found on social media messaging platforms, they're able to reach a virtually limitless audience. They can reach a new customer base for your brand by tapping into new demographics, and they can be integrated across multiple messaging applications, thus making you more readily available to help your customers. This, in turn, opens new opportunities for you to increase sales.
The biggest benefit of having a conversational AI solution is the instant response rate. Answering queries within an hour translates into 7X increase in the likelihood of converting a lead. Customers are more likely to talk about a negative experience than a positive one. So nipping a negative review right in the bud is going to help improve your product’s brand standing.
Having a conversation with a computer might have seemed like science fiction even a few years ago. But now, most of us already use chatbots for a variety of tasks. For example, as end users, we ask the virtual assistant on our smartphones to find a local restaurant and provide directions. Or, we use an online banking chatbot for help with a loan application.
1-800-Flowers’ 2017 first quarter results showed total revenues had increased 6.3 percent to $165.8 million, with the Company’s Gourmet Food and Gift Baskets business as a significant contributor. CEO Chris McCann stated, “…our Fannie May business recorded positive same store sales as well as solid eCommerce growth, reflecting the success of the initiatives we have implemented to enhance its performance.” While McCann doesn’t go into specifics, we assume that initiatives include the implementation of GWYN, which also seems to be supported by CB Insights’ finding: 70% of customers ordering through the chat bot were new 1-800-Flowers customers as of June 2016.
What if you’re creating a bot for a major online clothing retailer? For starters, the bot will require a greeting (“How can I help you?”) as well as a process for saying its goodbyes. In between, the bot needs to respond to inputs, which could range from shopping inquiries to questions about shipping rates or return policies, and the bot must possess a script for fielding questions it doesn’t understand.
Each student learns and absorbs things at a different pace and requires a specific methodology of teaching. Consequently, one of the most powerful advantages of getting educated by a chatbot is its flexibility and ability to adapt to specific needs and requirements of a particular student. Chatbots can be used in a wide spectrum, be it teaching people how to build websites, learn a new language, or something more generic like teach children Math. Chatbots are capable of adapting to the speed at which each student is comfortable - without being too pushy and overwhelming.
To envision the future of chatbots/virtual assistants, we need to take a quick trip down memory lane. Remember Clippy? Love him or hate him, he’s ingrained in our memory as the little assistant who couldn’t (sorry, Clippy.).  But someday, this paper clip could be the chosen one. Imagine with me if you will a support agent speaking with a customer over the phone, or even chat support. Clippy could be listening in, reviewing the questions the customer is posing, and proactively providing relevant content to the support agent. Instead of digging around from system to system, good ‘ole Clippy would have their back, saving them the trouble of hunting down relevant information needed for the task at hand.
For example, say you want to purchase a pair of shoes online from Nordstrom. You would have to browse their site and look around until you find the pair you wanted. Then you would add the pair to your cart to go through the motions of checking out. But in the case Nordstrom had a conversational bot, you would simply tell the bot what you’re looking for and get an instant answer. You would be able to search within an interface that actually learns what you like, even when you can’t coherently articulate it. And in the not-so-distant future, we’ll even have similar experiences when we visit the retail stores.
Your first question is how much of it does she want? 1 litre? 500ml? 200? She tells you she wants a 1 litre Tropicana 100% Orange Juice. Now you know that regular Tropicana is easily available, but 100% is hard to come by, so you call up a few stores beforehand to see where it’s available. You find one store that’s pretty close by, so you go back to your mother and tell her you found what she wanted. It’s $2, maybe $3, and after asking her for the money, you go on your way.

Of course, each messaging app has its own fine print for bots. For example, on Messenger a brand can send a message only if the user prompted the conversation, and if the user doesn't find value and opt to receive future notifications within those first 24 hours, there's no future communication. But to be honest, that's not enough to eradicate the threat of bad bots.
Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year these conversational interactions take off.
“Today, chat isn’t yet being perceived as an engagement driver, but more of a customer service operation[…]” Horwitz writes for Chatbots Magazine. “Brands and marketers can start collecting data around the engagement and interaction of end users. Those that are successful could see higher brand recognition, turning user-level mobile moments into huge returns.”
A chatbot works in a couple of ways: set guidelines and machine learning. A chatbot that functions with a set of guidelines in place is limited in its conversation. It can only respond to a set number of requests and vocabulary, and is only as intelligent as its programming code. An example of a limited bot is an automated banking bot that asks the caller some questions to understand what the caller wants done. The bot would make a command like “Please tell me what I can do for you by saying account balances, account transfer, or bill payment.” If the customer responds with "credit card balance," the bot would not understand the request and would proceed to either repeat the command or transfer the caller to a human assistant.
1-800-Flowers’ 2017 first quarter results showed total revenues had increased 6.3 percent to $165.8 million, with the Company’s Gourmet Food and Gift Baskets business as a significant contributor. CEO Chris McCann stated, “…our Fannie May business recorded positive same store sales as well as solid eCommerce growth, reflecting the success of the initiatives we have implemented to enhance its performance.” While McCann doesn’t go into specifics, we assume that initiatives include the implementation of GWYN, which also seems to be supported by CB Insights’ finding: 70% of customers ordering through the chat bot were new 1-800-Flowers customers as of June 2016.
Multinational Naive Bayes is the classic algorithm for text classification and NLP. For an instance, let’s assume a set of sentences are given which are belonging to a particular class. With new input sentence, each word is counted for its occurrence and is accounted for its commonality and each class is assigned a score. The highest scored class is the most likely to be associated with the input sentence.
Chatbots are gaining popularity. Numerous chatbots are being developed and launched on different chat platforms. There are multiple chatbot development platforms like Dialogflow, Chatfuel, Manychat, IBM Watson, Amazon Lex, Mircrosft Bot framework, etc are available using which you can easily create your chatbots. If you are new to chatbot development field and want to jump…

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Love them or hate them, chatbots are here to stay. Chatbots have become extraordinarily popular in recent years largely due to dramatic advancements in machine learning and other underlying technologies such as natural language processing. Today’s chatbots are smarter, more responsive, and more useful – and we’re likely to see even more of them in the coming years.
For every question or instruction input to the conversational bot, there must exist a specific pattern in the database to provide a suitable response. Where there are several combinations of patterns available, and a hierarchical pattern is created. In these cases, algorithms are used to reduce the classifiers and generate a structure that is more manageable. This is the “reductionist” approach—or, in other words, to have a simplified solution, it reduces the problem.
[In] artificial intelligence ... machines are made to behave in wondrous ways, often sufficient to dazzle even the most experienced observer. But once a particular program is unmasked, once its inner workings are explained ... its magic crumbles away; it stands revealed as a mere collection of procedures ... The observer says to himself "I could have written that". With that thought he moves the program in question from the shelf marked "intelligent", to that reserved for curios ... The object of this paper is to cause just such a re-evaluation of the program about to be "explained". Few programs ever needed it more.[8]
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