Service bots are hot

New self-learning Web products are improving online customer service, while cutting overall support costs. Here's how to pick the right bot for your job.

After years in the customer support business, Michael Doyle has dealt with just about every kind of help desk emergency you can think of. Earlier this year, however, Doyle faced a situation that finally pushed him to the edge: His company, Logitech, was about to launch a new product â€" a US$49 camera for sending images over the Web â€" and Doyle expected a flood of customer calls and e-mail would overwhelm him and his help desk.

But Doyle, ever the pro, didn't panic. Instead he hired Lily, a Web-based automated customer support bot that never needs a lunch break or a day off. With Lily working round-the-clock, Doyle and his team managed to handle all the customer queries and save Logitech a pile of money at the same time.

At a time when e-commerce profits are down, margins are thin and the number of new, inexperienced Web users with lots of questions is growing, e-businesses such as Logitech are facing a customer support dilemma. The traditional solutionâ€"a call center manned by trained customer support repsâ€"can cost $20 per call, or more, according to some estimates (see story). Moreover, human staffers aren't easily scalableâ€"for new product launches, for exampleâ€"and they don't work nonstop.

Enter a new generation of smart, self-learning Web products such as Lilyâ€"hosted service bot software from NoHold â€"that can answer e-mail personally, converse with users and even project a personality, of sorts.

Such technology can drastically cut the cost of providing online customer serviceâ€"to around 25 to 50 cents per callâ€"while helping e-businesses gather information about exactly which questions are being asked, how often and how they're resolved.

But, experts say, you need to pick the right bot for the job. A company selling directly to consumers, like Logi tech, might want a chatterbot with a persona, while a business-to-business site might simply need to get the job done efficiently.

So, it's important to examine the underlying technology before choosing a service bot product, experts say, and to resist the temptation to simply give consumers online access to customer service automation systems originally designed for help desk professionals.

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