When it comes to innovative ways to improve customer service and optimize your site for conversions, live chat and chatbots are dominating the online business space. But what are the differences between these two customer service approaches? And which one is right for your business (and for your clients)?

Live chat is a customer service tool that allows businesses to communicate with visitors in real-time. This live, real-time dialogue can happen via text, audio, or video chat and creates a highly personalized experience and conversation for your customers. This type of customer service has become increasingly popular in recent years, as it provides a quick and personalized way for businesses to address customer questions and concerns.

Chatbots, on the other hand, are automated software programs that use artificial intelligence to simulate human conversation. They can understand natural language and respond to questions or commands. Most people are familiar with the concept of chatbots and how to use them, and some people even prefer them to have to interact with a customer service representative because they don’t have to wait for a response.

There are a few key differences between live chat and chatbots. First, live chat is typically more personal. Customers can ask questions and get in-depth responses. Chatbots, on the other hand, are more scripted. They are often used for automated tasks, such as providing customer support or booking a hotel room. They can still be helpful, but they may not be able to address every customer concern. Things that are typically lost in translation with a chatbot, such as complicated questions or even tone of voice, are easily picked up by a human representative. There are so many nuances to language that it can be quite easy to feel frustrated with an inanimate robot communicating back.

Second, live chat is typically more expensive than chatbots. This is because it requires human interaction, and that requires one or more paid employees to assist your customers. This can require training costs as well as a typical salary for your customer service representatives. Chatbots can be built relatively cheaply and they don’t require ongoing maintenance costs. They can also operate 24/7, whereas live chat may only be available during certain hours. This makes chatbots more convenient for customers who need assistance outside of normal business hours.

Another difference is in the level of customization. Live chat allows businesses to tailor their conversations to each customer. Chatbots usually have pre-written responses that they give to everyone. This can be good or bad, depending on your needs. A chatbot can be an effective “first line of attack” that can help to filter out minor concerns and frequently asked questions, saving only the most urgent and prominent needs for your live chat support line.

So, which one is right for your business? If you have the budget for it, live chat provides a more personal touch that can help to build trust with your customers. It’s also a good idea to use live chat if you have more complicated questions that require in-depth responses. Chatbots are a good option if you’re looking to save on costs, or if you need a customer support solution that can operate 24/7. Using a combination of the two is a highly effective way to address all of your customer’s needs without them feeling frustrated or stuck with your product, service, or website. Remember, the highest priority is always the customer’s needs and providing them with the best service possible to ensure a high lifetime customer value.