6 min readJun 16, 2021


How Chatbot is helping in Customer service and Marketing.

Artificial Intelligence has been changing the prospects of marketing and sales in the Business World. According to the market sales and trends, 67% of Global consumers had an interaction with a chatbot over the last 12 months and 68.9% of the chatbots were able to handle the chats from start to finish. With the widespread use of chatbots for sales, we can infer that most consumers prefer to solve their problems through self-service and that’s where chatbots can help.

What are Chatbots?

A Chatbot is an Artificial Intelligence computer program that is devised to simulate a conversation with a user on the internet or messaging applications, etc. Chatbots are AI-powered and act as Automated virtual assistants, are capable of communicating with people on instant messaging applications, live chat apps, etc.

Businesses are benefiting a long time with the help of chatbots. Chatbots are self-help tools to improve the communication between a customer and the enterprise. With the help of chatbots, businesses can increase the bandwidth of their services without hiring more staff.

Types of Chatbots:

There are 3 different types of chatbots:

  • Rule-Based Chatbots: Rule-based chatbots have pre-defined rules for communication. If a user wants to communicate with the help of these rule-based chatbots then they have to select from the predefined set of rules to get an answer.

Since in these types of Chatbots no Artificial Intelligence is used, therefore an open conversation is not possible. This type of Chatbots makes it difficult for customers to communicate their problems.

  • Intellectually Independent Chatbots: These types of chatbots use Machine Learning (ML) which helps the chatbots to learn from user’s inputs and demands. These Intellectually Independent Chatbots are prepared to discern specific keywords and phrases that trigger the bot’s reply. Gradually, these chatbots train themselves to interpret more questions and respond more efficiently.
  • AI-Powered Chatbots: AI-powered Chatbots are a combination of Rule-based and Intellectually Independent Chatbots. These chatbots can interpret the free language but also have a predefined flow to solve the user’s needs. These chatbots use the concept of Machine Learning, Artificial Intelligence, and Natural language processing (NLU) to understand and interpret. They can remember the background and choices of the users and can respond to random requests of users at any time.

Benefits of Chatbots:

  • Chatbots help in eliminating tedious as well as time-consuming repetitive tasks of customer service. This will save time and resources for other services and provide an efficient problem-solving approach.
  • Research has disclosed that most of the users dread contacting a customer service team. They find these phone calls to be inconvenient, time-consuming, and socially challenging. Chatbots can help in reducing human-to-human conversations by solving basic customer problems through live chats.
  • Chatbots help in making customer service available to users anywhere and anytime. They assist users which helps in getting good feedback as customers do not have to wait for a response in the form of a call or email from the company.
  • Chatbots help your business to grow by engaging targeted consumer groups. They offer recommendations based on the preferences of the users and push your prospects further by guiding the users and answering their questions.

Chatbot Marketing:

Chatbot Marketing is an approach to integrate your business with Chatbots to answer the queries and needs of customers accordingly. Chatbots can be merged with social media platforms such as Facebook to help your business grow with digital marketing. This allows the businesses to answer questions efficiently and even helps in making sales.

Use cases of chatbots in marketing:

  • Chatbots in Customer Service :

Chatbots help in providing round-the-clock service to users. Chatbots can be created to narrow down the issues of customers in a specific category after which they can direct them to the right person to solve their problems. They can provide solutions to customers for small problems instantly which helps in getting better feedback from customers.

  • Chatbots for Sales:

Many customers find it socially challenging to contact businesses for booking appointments or getting information. With help of instant, real-time messaging customers can book appointments and start communication online.

  • Chatbots for FAQs:

Chatbots can be programmed with questions and their corresponding answers as a way to provide instant solutions to users’ queries. They can be used to provide information about your products and engage the customers.

  • Chatbot for Marketing:

Many strategies can be executed with the help of Chatbots in Digital Marketing. They can help in increasing one-to-one communication with customers, sending productive information about products in an effort to lead them in making purchases or signing up for your services.

Companies using Chatbots:


Sephora was one of the first in retail sectors to introduce Chatbots to improve customer service and experience. After getting a good response from — Kik, the basic messaging app, they introduced more features making interaction with the brand easier. Sephora reported an 11% increase in booking rates after adopting chatbots. They also claimed that customers who reserved the services through chatbots spend an average of $50 increasing the in-store sales of the brand.


Duolingo is a language learning application that uses chatbots to help people converse and practice their language. Most of the users prefer learning a language through an app, as they do not want to sound stupid when learning through classes.

Duolingo uses bots in a conversational way, due to automation the bots can learn new phrases and keywords easily and respond to the users accordingly.

Duolingo has seen a constant increase in its revenue from the year it was released. Duolingo, an app completely based on Artificial Intelligence and using chatbots has hit revenue of $180 million in 2020.


Starbucks has introduced a chatbot via its MyBarista App which helps the customer to place their orders from the comfort of their homes through Amazon Alexa or messaging. This bot also allows tipping and billing, and can also learn and help customers to place orders by recommending orders based on their previous orders and preferences.


Domino’s introduced their chatbot Dom that allowed customers to directly order through Facebook messenger. The customers no longer need to make separate profiles or accounts to place an order. This new addition to their working system allowed them to free up their websites and phone lines resulting in a smooth experience for their customers.

In 2017, Domino’s reported a net income of $56.4 million boosted by a 14.5% retail sales growth. The pizza company introduced the chatbot ahead of the Super Bowl in 2017 and claimed to deliver 1 million pizzas worldwide.


The potential of AI in Business and Marketing is limitless. Chatbots integrated with AI are a winning formula for businesses to improve customer retention and engagement. Digital Marketing using Chatbots can help businesses to reap innumerable benefits and help in growing your business rapidly.

Borgfy is an organization with some of the most intellectual minds, working passionately and helping start-ups, SMEs, MSME by giving shape to their ideas and developing their products.

At Borgfy, we have experts who are experienced in building up all sorts of projects. We can help you to integrate your business with Chatbots that will allow you to launch an AI-powered communication with your customers. If you are ready to build Chatbot for your business then get in touch with us at or visit our website




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