PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Are You Training Your Chatbots Correctly?

By James Ramey
December 20, 2017
in Industry Opinions
0
3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Analyzing Data from 1000 companies: 3 key ways to reduce spend

Analyzing Data from 1000 companies: 3 key ways to reduce spend

Just a few short years ago, most brands, and especially consumers, didn’t really know what a Chatbot was, nor were they accustomed to using it in a commercial setting. Today, however, terms like Chatbot, Artificial Intelligence (AI), Machine Learning, and even Predictive Analytics are almost every day terms used in the business world.

That’s good, because businesses that are most effective and responsive today use each of these interdependently for a broader approach to their customer experience.

The use of Chatbots especially has been under the spotlight lately. From the customer’s vantage point they want two things, really: They want to interact with a Chatbot without it feeling like they’re talking to a computer; and of course they want their questions answered.

This is validated from a recent survey1 that showed that 45% of respondents said most of the time, Chatbots will not give them the answer they need. Another 29% revealed Chatbots they interacted with were only successful if they are seeking answers for simple and common questions.

Of course, to accomplish these two goals, brands need to “train” their Chatbots effectively using AI, Machine Learning, and even Predictive Analytics gleaned from self-support materials downloaded by the customers themselves.

The Right & Wrong Ways to Train Your Bot

The problem most brands run into is that they fail to train their bots using each of these technologies and resources, rendering the Chatbot one-dimensional and almost useless in front of the customer. For example, most companies simply design their Chatbot at the beginning based on the top 10-20 frequently asked questions and then turn on the bot without ever making adjustments moving forward. However, when this is the case, the bot never learns different ways that customers ask their questions over time, nor do they update it to reflect new software upgrades or later versions of products, such as a new smartphone that gets a new operating system or new features on a new device model.

What’s the right way to train your Chatbot? Companies should focus on initially designing the Chatbot based on real-time customer interactions with call-center agents, including which downloadable self-support materials are utilized most by customers. These companies study which self-support materials customers download to determine and prioritize question/content. As customers interact with these self-support materials, internal algorithms learn over time (machine learning) what’s important and less important. The machine algorithms even study “how” people ask their questions to the bots online to determine better natural-language processing. As an example, some systems can even use algorithms to determine when a question is mature enough to be automated and handled by a Chatbot as opposed to a live agent in a call center.

Rather than just build a Chatbot Q&A track on the 20 most popular questions, the right Chatbot systems today take interactions from self-support materials, live agents and even social media as a training mechanism using natural language with machine learning on the back end for ongoing evolution of the bot’s abilities. Using continuous machine learning (based on constantly studying self-support downloads), more questions can then be added to the bot’s repertoire. Chatbots should also be designed so that when the customer isn’t getting the answer they need, a live agent can step in without making the customer backtrack all the way back to the beginning.

Why Brands Should Care

What’s at stake may be everything, from sales loss to customer experience and brand reputation. There’s too much competition today in every industry driven by the Internet and mobile marketing. When Chatbots are designed and implemented correctly, with the ability to learn over time, brands can leverage their Chatbots to market to their customers in the future, with a higher return on their investment since those customers know that brand offers a satisfactory experience in addition to great products.

Editor’s Note: James Ramey is CEO of DeviceBits, a software company that services clients through a predictive and personalized understanding of interactive tutorials, adaptive FAQs, Interactive Guides, and Videos designed to for self-serving consumers. For more info visit www.devicebits.com.

Check our the PaymentsJournal Podcast Episode where we talk to James Ramey about Chatbots  

You can subscribe to the Podcast on itunes here

1: Online survey presented to 2,500 U.S. consumers regarding the use of Chatbots; Commissioned by DeviceBits; October, 2017.

3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: ChatbotsNudata

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    small business credit card

    What Banks Get Wrong About Small Business Credit Cards

    April 1, 2026
    embedded payments

    Embedding Payments for Growth: How ISVs Can Scale Through Vertical Focus and Partnerships

    March 31, 2026
    ACH fraud monitoring

    From a Checkbox to a Differentiator: Redefining ACH Fraud Monitoring

    March 30, 2026
    Digitization and Multi-Brand Cards: Prepaid Trends. Bancorp Bank prepaid card fees, Bitpay Prepaid Card, mobile prepaid debit cards, prepaid cards for councils

    Turning a Prepaid Card into a Long-Term Relationship

    March 27, 2026
    payments fraud, faster payments fraud, financial fraud

    The Emotional Toll of Financial Fraud

    March 26, 2026
    hyperliquid

    What Hyperliquid Reveals About the Future of Trading

    March 25, 2026
    Modernizing Payments modernizaion

    Modernizing Payments: Tackling the Toughest Tech Challenges

    March 24, 2026
    fintech bank data

    The Growing Data Battle Between Banks and Fintechs

    March 23, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result