AI & ML, Product Development
Hitesh Dhawan May 26, 2018

Beginners guide to Chatbots : What is a Chatbot & How it works?

Digital evolution has changed how humans do everything. Technological advancements have automated much of the work humans used to do.

These technological advances have seen the development of simple software programs that communicate with humans called chatbots.

Chatbots imitate human conversations to solve various issues, and have become increasingly in demand.

Chatbots could be used in many things, both functional and for fun. They outperform humans in terms of speed and accuracy. Chatbot powered by artificial intelligence is called an Intelligent Chatbot. They accept input in the form of texts or voice. The actual intelligence of this type of chatbot is limited.

What does a chatbot do?

Chatbots combine AI, machine learning and audio technologies. Through the sensor input, Chatbots use algorithms to determine actionable insights and determine how to respond to the insights. They learn recursively due to subsequent input.

Based on the motive and application, Chatbots can be defined as the following:

  • eCommerce Assistant

If you are looking to buy a shoe on Nike’s website, you will have to visit their website and scroll through their huge catalog for the shoe. If Nike has a chatbot, you will message Nike, and the chatbot would ask what are you looking for, and you would ‘tell’ the artificially intelligent chatbot exactly what you are looking for.

For example, the kind of shoes you need to what colour you will prefer. The chatbot then searches for you and displays result based on your inputs

Many eCommerce companies are adopting the use of chatbots in their businesses, to help them grow their clientele and give customers the best experience.

Buying shoes is not the only thing a chatbot can do. Intelligent chatbots are used for many purposes ranging from e-commerce to entertainment.

  • Booking Manager

Booking automation has been made possible by chatbots.
You can now search for flights and hotel and ask your chatbot to book the desired tickets for you. Hotels and salons have adapted automated bookings since they help increase efficiency and reduce cost.

Chatbots can make people acquire information, which helps companies do good in business.

  • Digital assistant

What chatbots can do goes beyond giving customers responses to their inquiries.

They are used to schedule meetings, collect information about users, and book hotels or salon appointments. A chatbot can also direct your users towards special landing pages designed for your digital campaigns.

Whatsapp Integration: Your favorite chat platform.

WhatsApp, a popular messaging platform, has enabled enterprises to create WhatsApp bots to help them interact with their customers quickly and hold real-time communication. WhatsApp chatbots improve the accessibility of businesses and customer relationships.

For example, our home-cooked AI chatbot NEOBOT can be customized and integrated with WhatsApp business for multiple application, including which is the ability to book your flights, hotels and even manage your expenses.

NeoBot is currently serving many global players including Unicharm, Llyod, Whirlpool, Apollo, Sony.

Click here to know more about our intelligent chabot services.

  • Service agent

In this fast-pacing world, everyone needs answers fast. Customers do not want to wait in a queue or interact with annoying & annoyed customer service representatives, and chatbots have come to their aid.

You can now check today’s forecast, search for villas, and play music, order food or groceries online using a click of a button and making a prompt, thanks to chatbots. Booking a service request is easier and faster with chatbots. Simple messages to buy an AMC or submit feedback is what the digital era consumers are craving for. This is no rocket science for businesses looking to expand and improve their consumer experiences. They love chatbot and know the exact potential of the chatbot applications.

Why does your business need a chatbot?


Creating a WhatsApp chatbot for your enterprise will help you in performing different tasks such as;

  • Responding to customers in real-time
  • Sending them reminders and notifications
  • Assisting customers in exploring your products
  • Gathering their feedback

To understand better, let us look at some benefits of chatbot integration to your business:

  • Better customer engagement and management

Companies no longer need a team of customer service representatives to reply to their customers’ inquiries and comments. WhatsApp chatbots can replace your customer service team substantially and, therefore enterprises save a lot of time and money invested in hiring and training customer service representatives.

Many businesses use WhatsApp chatbots to promote

  • Their products and services
  • New offers
  • New services
  • Upcoming events for their customers

Chatbots have improved how enterprises engage with their customers.

  • Improved brand identity

WhatsApp chatbots have made companies build strong brand identities. With a bot that has a human persona, an enterprise may make the right impression on the customers.

A strong brand identity improves customer engagement and sales.

Chatbots are changing the nature of marketing since they can analyze a customer’s interests and help notify them of products based on their interests.

  • Tapping the professional channels

Email marketing is one of the most effective methods of marketing in the digital world. Just like WhatsApp chatbots, email chatbot is used to send personalized information and notifications to the customers.

For Example:

NeoBot is specially designed to work with your official email facility. It takes your preferences over an email, suggests the available options, and lets you book and cancel travel tickets, manage your expenditure for the trip, and submit feedback for the booking services.

  • Increase engagement

Chatbot not only helps the visitor to find what they are looking for but also suggests them with more services or products that you can offer. Via engaging conversation, it recommends products and services which fit into their requirement.


Chatbots have been around for only a short time but have gained a lot of popularity. As they grow and improve, many businesses have started using them to improve their customer services, increase their sales, and reduce operational costs. This exciting technology has enabled companies to engage with their customers better. Not only has chatbots improved business, but it also improved our lives at an individual level. Chatbots have made work easier; you do not need to walk into stores to make a purchase, making hotel bookings have been automated with the help of chatbots. Chatbots have improved dramatically over time. We are yet to see the best of chatbots.


About Author

Hitesh Dhawan

Founder of Neuronimbus, A digital evangelist, entrepreneur, mentor, digital tranformation expert. Two decades of providing digital solutions to brands around the world.

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