How to Choose the Right Chatbot for Your Business

Pooja Kashyap
June 26, 2025
Chatbots have revolutionized customer support with AI-driven, 24/7 assistance, improving engagement and operational efficiency. Learn about different chatbot types, essential features, and how to select the perfect chatbot to meet your business goals and enhance customer interactions.

One of the interesting technologies that artificial intelligence has sprouted is the chatbot. It has now become an important part of almost all customer support strategies, as it enhances two-way interaction. Not only this, AI-powered chatbots have become instrumental in scaling support operations by offering round the clock assistance. This has allowed human agents to focus on more complex and sensitive conversations.

Current trend shows that consumers expect AI-responsive chatbots to resolve their queries quickly. Today the customers demand instant and effortless interactions. Unanswered emails, clunky chatbot experiences and high call abandonment rates are proof which shows that there is a dire need for improvement in customer service processes, revealing a longing for smoother, more responsive interactions.

Consumers expect their interactions to be as responsive and intuitive as the AI assistants they see in movies and the numbers speak for themselves:

  • 64% of consumers expect real-time responses from brands.
  • 84% of companies believe that AI chatbots will become more important for communication between a customer and business
  • 83% of consumers worldwide would browse or buy products in messaging conversations
  • 74% prefer to interact with AI bots instead of human agents for simple queries.
  • 80% of customer interactions are expected to be handled by AI-driven systems by 2025. (Forbes)
  • 60% of customers expect a consistent experience across all channels, including online, mobile, and in-person interactions. (SDL)
  • According to McKinsey, 71% of consumers expect companies to deliver personalized experiences, with 76% expressing frustration when this expectation isn’t met.

Powered by natural language processing, chatbots can have conversations and easily connect you to a real person if needed. But simply creating a chatbot isn't enough, it's important to keep improving it over time. With Conversive, you can set up chatbots to talk with your customers on their favorite platforms and smoothly transfer them to a human team member when necessary.

What Are Chatbots and Their Different Types?

Chatbots are showing up on websites, apps, and messaging platforms like WhatsApp, and Instagram. These chatbots have evolved from basic rule-based tools to intelligent, conversational assistants. Each type serves specific business needs based on its capabilities.

The table below highlights common use cases to help match the right chatbot to the right task:

Chatbot Types Overview
Chatbot Type Definition Use Cases Best For
Rule-based Chatbots Follows predefined rules and decision trees to respond to specific inputs.
  • Automating FAQs
  • Basic customer service
  • Simple task routing
Small businesses, customer support with predictable queries
Menu-based Chatbots Provides users with button-based choices to guide interactions.
  • Guided product selection
  • Surveys and feedback collection
  • Appointment booking
E-commerce, service booking platforms, feedback systems
Keyword Recognition Chatbots Detects keywords in user input to trigger relevant responses.
  • Technical support
  • Query classification
  • Handling varied but simple user requests
Tech support desks, telecom, internal helpdesks
Intent-based Chatbots Uses NLP to understand user intent and provide context-aware responses.
  • Personalized customer support
  • Sales assistance
  • Lead qualification
SaaS companies, insurance, banking, real estate
AI Chatbots Leverages machine learning and NLP to simulate human-like conversations.
  • Virtual assistants
  • Complex customer service
  • Language translation
Enterprise customer care, healthcare, HR automation
Omnichannel Chatbots Operates across multiple platforms for seamless and consistent communication.
  • Unified customer engagement
  • Campaigns via WhatsApp, Instagram, SMS, etc.
Marketing teams, customer outreach, multi-platform presence

i) Rule-based Chatbots

The first kind of chatbots were called Rule-based Chatbots. These early chatbots relied on set rules and decision trees to provide answers. One of the first companies to use this technology was Zendesk, which helped businesses automate everyday tasks. 

ii) Menu-Based Chatbots

The second in line were the Menu-Based Chatbots, which created easy-to-use menus for people to explore.

Platforms like Zoho SalesIQ took this technology further by creating “Menu-based Chatbots”. This approach made users feel more in control during their interactions, marking a solid start in the chatbot world.

iii) Keyword Recognition-Based Chatbots

As time went on, chatbots got smarter. They further evolved into Keyword Recognition-Based Chatbot”, which could understand the words people used, all because of the tech called natural language processing (NLP). This meant that instead of just following basic rules, chatbots could actually understand what users were saying. Google Dialogflow played a big role in this development, helping developers create more advanced chatbots.

iv) Intent-Based Chatbots

The real game-changer eventually came into the picture, it's called the Intent-Based Chatbots. These bots didn’t just recognize words, they could understand the reasons behind what users were asking. Companies like Aivo, with their AgentBot, took the lead in creating bots that could have natural, human-like conversations. This opened up a whole new world where chatbots could not only provide answers but also truly interact with people.

v) AI Chatbots

Finally, we entered into the era of AI Chatbots, that use technology to understand and learn from conversations. These chatbots could improve their responses as they interacted more with people. For example, the chatbots from Conversive made it hard to tell if you were talking to a person or a machine.

These AI powered assistants can understand what users ask, give answers, and handle repetitive tasks, making them really useful for businesses that want to improve their customer service and operations.

How to Choose the Right Chatbot for Your Business?

As mentioned above, not all chatbots are the same since a lot depends on the tech behind them. It ranges from basic systems that follow set scripts to more advanced AI-powered bots that can understand the situation, learn new things, and handle more complicated conversations. So the best chatbot for your business depends on your specific needs and goals. 

The points below highlight things to consider when choosing the best chatbot for your business:-

1. Define Business Goals

Identify the primary use case before even getting started. Is it customer support, sales or automation? Figuring out the main reason for using a service like helping customers, making sales or improving efficiency, is the first step in creating a successful plan. When you have a clear goal, it makes it easier to focus your time and resources on what really matters, be it improving customer satisfaction, increasing profits, or simplifying tasks.

2. Check for Multi-Channel Compatibility

Ensure the chatbot integrates with your communication channels. It should connect easily with live chat, email, social media and messaging apps. When a chatbot is well-connected, it improves how customers feel, makes conversations easier and keeps everything consistent across different platforms. This helps create better interactions and makes support, sales, or automated processes run more smoothly.

3. AI and Machine Learning Capabilities

Look for chatbots that learn from interactions and improve responses over time. A good chatbot can adjust to how users behave, grasp what they mean more clearly, and become more accurate over time. This leads to better communication which then feels more personal and helps improve how support, sales and automation work.

4. Bot-to-Human Handoff Efficiency

It's important to have a smooth handoff between computer-generated responses and live customer service agents to provide a great experience for customers. Your chatbot should be smart enough to identify when a question is too complicated or when a person is needed and easily transfer the chat to a live agent. This way, customers get quick help from the chatbot when it can provide answers, but they can also get personalized support from a person whenever necessary. This balance helps improve efficiency, satisfaction and overall interaction.

5. Integration with Business Systems

To make your chatbot work better, connect it with your customer relationship management (CRM), support system and marketing tools. This connection helps the chatbot provide personalized responses, stay updated with the latest information and make processes smoother. A well-connected chatbot can see a customer's previous interactions, keep track of help requests, and start marketing efforts, creating a consistent and helpful experience for customers everywhere they interact with your business.

6. Data Collection & Lead Qualification

Chatbot can only give out more and better personalized conversations if it is fed with adequate information. Choose a bot that can collect key customer details, auto-complete missing information and seamlessly transfer conversation history to a human agent when required. The sequential process will help human agents understand the issue quickly and generate a response that is accurate, relevant and tailored to the customer's needs, ensuring a smooth and efficient resolution.

Besides offering helpful data to agents, your chatbot should also be able to send information to a CRM or other connected systems. This will help in connecting dots between events, like:

  • Tailored Product Suggestions: Spotting that Jake has been browsing running shoes and sending him a discount code, just like a store associate recommending the perfect pair based on his interests.
  • Proactive Appointment Reminders: Noticing that Sarah booked a haircut and sending her a friendly reminder with an option to reschedule, just like a personal assistant keeping her schedule on track.
  • Hassle-Free University Admissions: Detecting that Alex has started an application but hasn’t submitted required documents, prompting a reminder with a direct upload link, just like a college counselor ensuring all paperwork is in place for a smooth enrollment process.
  • Efficient Sales Prioritization: Detecting that Mark, a business owner, requested pricing details, flagging him as a high-priority lead, just like a banker identifying a potential investor.
  • Streamlined Event Check-Ins: Seeing that Emily registered for a conference and sending her a QR code for entry, just like a hotel providing a fast check-in experience for guests.
  • Seamless Subscription Management: Recognizing that David’s streaming service is about to renew and offering him plan options, just like a gym trainer adjusting a fitness routine based on progress.

7. Hassle-Free Integration with Your Customer Support System

The success of a chatbot really depends on the systems that support it. Chatbots that use AI become even more helpful when they can collect and understand information from various places. To provide a smooth experience, a chatbot should work well with your support systems. 

This means it can automatically create support tickets and give agents full details of the conversation when a human needs to step in. Even better, with AI features, your chatbot can suggest helpful responses, point to useful articles, and provide agents with important information. 

A well-connected chatbot also helps you see its effects clearly, allowing you to monitor how it impacts agent productivity and important support measures.

Benefits of Well-Connected Chatbots

A well-connected chatbot also helps you see its effects clearly, allowing you to monitor how it impacts agent productivity and important support measures.

i) 24/7 Customer Support: Instant responses anytime, reducing wait times

People today prefer to get support through their favorite communication channels. By using an AI chatbot on these channels, businesses can provide customers with constant assistance, so they don’t have to wait in line or for an agent to be available.

ii) Cost Savings & Efficiency: Automates repetitive queries, reducing operational costs

Make your team's work easier by handling simple questions for them, so they can focus on more important issues. AI Chatbots can collect information from customers and quickly direct them to the best agent for their needs.

iii) Enhanced Customer Engagement: Personalized interactions for higher engagement

Businesses that make their communications more personal like using smart suggestions, custom emails or personalized support, tend to build better relationships with customers. This leads to greater satisfaction and thus, enhances customer engagement.

iv) Increased Sales & Conversions: Assists with recommendations, abandoned cart recovery, and upselling

By using information about their customers, businesses can offer personalized suggestions, making it easier for shoppers to find products or services they'll like. When customers leave items in their online shopping carts, companies can send reminders, offer discounts, or provide special deals to bring them back and encourage them to finish their purchase. They can also suggest higher-quality or related products, which not only boosts sales but also makes customers happier with their shopping experience.

v) Scalability: Handles thousands of inquiries simultaneously without extra staffing

A smart AI system can handle thousands of customer questions all at once, giving quick answers without needing more employees. This means customers don't have to wait long, it makes them happier, and it helps businesses grow their support easily while saving money.

How Conversive Delivers Smarter, Scalable Chatbot Solutions 

Conversive’s AI-powered chatbots are designed to deliver intelligent, human-like interactions that elevate customer experience while reducing operational workload. They can handle everyday questions, help find potential customers, or give personalized support on different platforms. 

Our chatbots are simple to set up, can grow with your business, and work smoothly with your current systems, helping you save time and get the most value out of your investment. Here are just a few of the many ways our chatbots are transforming industries:

Chatbot Use Cases by Industry
Industry Use Cases
Financial Services
  • Assisting with account management and transactions
  • Providing real-time financial advice and fraud alerts
  • Offering loan eligibility checks and investment insights
Real Estate
  • Virtual property tours and scheduling visits
  • Lead qualification and customer follow-ups
  • Answering FAQs about listings, pricing, and financing options
Legal
  • Handling initial client intake and appointment scheduling
  • Providing basic legal guidance and document automation
  • Routing inquiries to specialized attorneys based on case type
Staffing & HR
  • Automating candidate screening and interview scheduling
  • Answering employee FAQs on company policies and benefits
  • Assisting with onboarding by providing training resources and compliance updates
Education
  • Student enrollment, course recommendations, and tuition inquiries
  • AI-driven tutoring and academic support
  • Administrative tasks like attendance tracking and exam scheduling
Healthcare & Wellness
  • Appointment booking and prescription refills
  • Offering symptom assessment and health guidance
  • Mental health support through AI-driven conversation

Want to set up a chatbot for your business? Get in touch with us today to see how our smart chatbot technology can help you grow, save time and improve how you connect with your customers.

Give our chatbot a try for free and see how it can change your business with smart automation. Book a demo today!

Frequently Asked Questions

What is a chatbot? 

A chatbot is an AI-powered tool that automates conversations and assists users in real time.

How do chatbots work? 

Chatbots use AI and pre-set rules to understand queries and provide relevant responses.

What are the main use cases for chatbots? 

They are commonly used for customer support, sales, and automation.

Can a chatbot integrate with my CRM and helpdesk? 

Yes, modern chatbots seamlessly sync with CRM, helpdesk, and marketing tools for a unified experience.

Do chatbots replace human agents? 

No, they handle routine tasks but can seamlessly transfer conversations to live agents when needed.

Can chatbots learn and improve over time? 

Yes, AI-driven chatbots analyze interactions and refine responses for better accuracy.

What communication channels can chatbots integrate with? 

They can connect with live chat, social media, messaging apps, email, and more.

Is chatbot implementation complicated? 

No, most chatbots offer easy setup with no-code or low-code integration options.

Can chatbots handle multiple languages? 

Yes, advanced chatbots support multilingual conversations for global reach.

Are chatbots secure? 

Yes, they use encryption and authentication measures to ensure data security.