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11 essential chatbot features to consider in 2024

Updated: January 09, 2024
11 essential chatbot features to consider in 2024
11 essential chatbot features to consider in 2024

Have you ever wondered, if chatbots have been around for decades, why have they become the priority of the business world now? And how they have become game-changers in transforming industries, improving performance and seriously upping the ante on customer experience?

Consider your business, whether it’s blossoming new or a well-established giant. Chatbots are like that trusty tool in your kit, ready to add value and sprinkle a bit of magic across your customer’s journey. And it’s not just us saying this. The Zendesk Customer Experience Trends Report 2023 backs it up with a solid stat – 72% of business leaders are betting on expanding AI and chatbots to enhance customer experiences. 

The evolution of chatbots has arrived at a curve where technology like Artificial Intelligence (AI) and Natural Language Processing (NLP) is making AI chatbots a one-stop shop for both customers and businesses.  

In this article, We’ll delve into the nitty-gritty of AI chatbot features and uncover how these chatbot features aren’t just cool tech buzzwords rather they’re real, tangible assets driving growth and bringing real value to businesses and customers. Stick around; it’s going to be an insightful journey!

Related must-reads:

11 Chatbot features to consider in 2024

Remember the early days of chatbots? Back then, they were pretty basic – just following rule-based commands, often leading to a headache for customers. Those initial chatbots didn’t have customer experience at the heart of their design, resulting in more frustration in customer’s minds rather than solutions. 

Jumping ahead to today, things have taken a whole new turn. Chatbots have come a long way, but so have customer expectations. Adding a chatbot to your customer support is a brilliant idea, but choosing the right one to deliver a seamless experience is vital. To help you out, here is the chatbot features list to look out for the ideal chatbot to ensure your company stands out and provides exceptional, intuitive customer experience.

11 Chatbot features

Feature #1. Gen AI dynamic conversation designer

Gen AI dynamic conversation designer revolutionizes how businesses interact with customers. This innovative tool simplifies the setup as well as customization of chatbot conversations and introduces zero-code bot building. With this, you can design and modify the bot directly on the platform using a drag-and-drop interface, making the process incredibly user-friendly and efficient. Whether creating new conversation chains or adjusting existing ones, gen AI dynamic conversation designer enables agile adjustments based on performance metrics, ensuring that the chatbot remains responsive and continually evolves to meet customer needs more effectively.

Key benefits of the chatbot conversation builder:

  1. Zero-code bot building: Empowers anyone to design and modify chatbots without coding knowledge, democratizing the process.
  1. Dynamic customization: Facilitates quick modifications to conversation chains and adapts rapidly to customer interactions and preferences.
  1. Performance monitoring and enhancement: Offers continuous assessment and improvement of chatbot conversations based on live performance data.
  1. Engagement optimization: Ensures dialogues are constantly adjusted to keep user engagement high and conversations relevant and engaging.

Feature #2. Omnichannel messaging support

Omni-channel messaging support in chatbots represents a transformative approach to customer engagement, the key to achieving heightened customer retention and satisfaction. This feature of chatbot helps to integrate across multiple communication channels, such as websites, Facebook Messenger, WhatsApp, and more, facilitating smooth and consistent customer interactions. By connecting with multiple messaging platforms, this feature allows businesses to capture diverse customer interactions, offering a seamless and unified experience regardless of the channel.

Related read: How To Improve Customer Satisfaction?

How does it enhance customer experience?

  1. Contextual support: Reduces the need for customers to repeat themselves, as chatbots provide relevant, contextual information.
  1. Data-driven conversations: Leverages information from past interactions to enrich future customer conversations, enhancing the relevance and effectiveness of interactions.
  1. Rich customer insight gathering: Utilizes interactions across channels to understand customer preferences and behaviors, aiding in more personalized engagement.
  1. Strategic data usage: Enables the collection and application of customer data to enhance sales, marketing, and support strategies.

Feature #3. Seamless human agent handover & agent co-pilot

Even though chatbots are highly capable of managing diverse customer interactions, there are complex instances where a conversation requires the nuanced understanding of a human agent. This feature facilitates a smooth transition from chatbot to human support, and simultaneously, agent co-pilot, with its advanced AI and document cognition, empowers the human agents and streamlines response sourcing for agents from PDFs, manuals, guides, e-books, webpages, and more, significantly reducing handling times by up to 30%. This innovative blend optimizes customer service, balancing automated accuracy and personalized human interaction, embodying a sophisticated solution for customer-centric enterprises.

How it works and helps:

  • Intelligent fallback mechanism: The feature of chatbot includes well-defined fallback scenarios for when the bot encounters a complex query or when users opt for human assistance.
  • Immediate routing to relevant agents: Chatbots are programmed to quickly identify the nature of a customer’s problem and promptly route them to the appropriate human agent.
  • Contextual handover: Information gathered by the chatbot, including user inputs and conversation history, is passed on to the human agent to provide context and facilitate a swift resolution.

Feature #4. Sentiment analysis

Sentiment analysis is like giving a chatbot a degree in psychology. This feature of chatbot goes beyond the surface of customer messages, diving deep into the emotional undertones. Think of it as the chatbot’s way of putting itself in your customer’s shoes, understanding whether they’re happy, frustrated, or just neutral. It’s not just about reading words; it’s about measuring the mood behind them. This is where things get interesting: the chatbot not only figures out the emotion but also gauges how strong these feelings are. And the best part is it uses this insight to tailor responses, making conversations more human-like and personal.

Related read: Customer sentiment analysis – Why you must focus on it?

Why you’ll love it:

  1. Deep dive into customer emotions: It’s like having an emotional radar, helping you understand your customers on a deeper level.
  1. Conversations that click: No more robotic responses; the chatbot now chats in a way that resonates with how the customer is feeling.
  1. Smart audience insights: It’s not just chat; it’s a goldmine of insights, categorizing customers based on how they feel about your product or service.
  1. Strategy with a heart: Use this emotional data to tweak your sales and support strategies, making sure they’re in sync with customer sentiments.

Feedback? Nailed it: Extend sentiment analysis to feedback tools. It’s like having a 360-degree view of customer satisfaction.

Feature #5. Chatbot marketing capabilities

These chatbots are not just about answering FAQs anymore; they’re your all-in-one marketing assistants. From taking and tracking orders to scheduling meetings, chatbots are making the sales journey seamless and engaging. They’re not just promoting your products and services; they’re guiding your customers through the sales funnel with ease. These data wizards collect insights, helping you understand your audience’s needs and steering them gently down the sales path. And it doesn’t stop there — they’re engaging customers with information on webinars, and events, and keeping them looped in on all the cool stuff you have planned.

Related read: 5 Chatbot marketing tips to grow your business

Why you’ll think it’s awesome:

  1. Product promotion: Chatbots actively promote products, making tailored recommendations like a seasoned salesperson.
  1. Deals and discounts: They’re the first to inform customers about sales and special discounts, ensuring great deals don’t go unnoticed.
  1. Smart suggestions: The chatbots make suggestions based on customer intent, ensuring a personalized shopping experience.
  1. Engagement boost: Chatbots keep customers engaged with updates about upcoming events and opportunities to connect.

Feature #6. Chatbot analytics

Chatbot analytics is your digital magnifying glass into customer interactions. This chatbot feature isn’t just about crunching numbers but it’s about understanding your customers like never before. Think of it as the backstage pass to the show, giving you an all-access glimpse into how your chatbot is performing and how your customers are responding. But why is there a need to keep an on these analytics? Here’s why

Related read: Chatbot analytics – 20 Metrics you must track in 2023

  • Total user count: It’s like taking attendance — see how many customers are interacting with your chatbot.
  • Bounce rate analysis: Find out how many visitors check out your website but don’t chat, giving you clues on where to improve engagement.
  • Interaction rate: This is where you measure the heartbeat of your conversations — how engaged are your customers when they talk to your chatbot?
  • Fallback rate (FBR): A reality check on where your bot might be stumbling and how it can offer more relevant solutions.

Unpacking the power of chatbot analytics:

  • Deep customer insights: Chatbot analytics give you a front-row seat to their preferences, behaviors, and needs.
  • Performance measurement: It’s like a report card for your chatbot, showing you how accurately it’s responding to customer queries.
  • Strategic chatbot planning: Use these insights to fine-tune your chatbot strategy, ensuring your bot is not just chatting, but also contributing to your business growth.

Feature #7. Chatbot widget customization

Chatbot widget customization is much more than just changing the appearance of a chatbot; it’s about crafting a chatbot that resonates with your brand’s unique voice and personality. This feature of chatbots allows you to infuse your bot with a choice of tone, style, and language, transforming it into an authentic extension of your brand. It’s not just about communicating; it’s about connecting with your customers in a personalized and meaningful way.

Why it’s a thumbs-up?

  1. Branding integration: Imbue your chatbot with your brand’s core messaging, enabling it to interact with customers in a way that’s unmistakably ‘you’.
  1. Personalized messaging: Set up warm welcome greetings and informative messages about your products and services, initiating engaging and helpful conversations.
  1. Customization options:
  • Bot name: Choose a name that aligns with your brand and its functions, like ‘Support Guru’ or ‘Order Assistant’.
  • Display name: Assign a display name that embodies your brand, making the chatbot immediately recognizable to customers.
  • Tagline: Create a tagline that encapsulates your business’s mission or ethos, adding character to your chatbot’s interactions.
  • Bot avatar: Select an avatar that resonates with your brand’s image, enhancing the visual appeal and relatability.
  • Channel selection: Decide the platforms where your chatbot will be active, ensuring a consistent presence across different channels.
  • Accuracy levels: Set the bot’s accuracy level to ensure it provides relevant and precise responses.
  • Priority settings: Manage the balance between bot and human-agent interactions, optimizing for seamless communication.
  • Trigger events: Implement triggers for the chatbot to initiate conversations in various scenarios, making it more proactive and engaging.

Feature #8. Generative AI chatbots

Generative AI chatbots mark a new era in digital customer service, transcending the limitations of rule-based chatbots. These advanced bots are equipped with AI, ML (Machine Learning), NLP (Natural Language Processing), and NLU (Natural Language Understanding), enabling them to comprehend and respond to open-ended questions and customer intents. AI chatbots go beyond automated workflows, offering dynamic, human-like interactions that understand and adapt to each customer’s specific needs.

Related must-read:

How Gen AI chatbots enhance interactions:

  1. Understanding intent: AI chatbots excel in recognizing the intent behind customer conversations, which is key to providing comprehensive responses and solutions.
  1. Dynamic conversations: They operate on interconnected bot flows, allowing for more agile and context-aware conversations compared to traditional, rule-based chatbots.
  1. Continuous learning: By analyzing historic conversations and user inputs, AI chatbots constantly refine their understanding and responses, improving their effectiveness over time.
  1. Enhanced resolution and sales opportunities: AI chatbots can turn a simple query into an opportunity for further engagement or sales, maximizing the potential of every interaction.

Pelago reimagines customer experience

Within a mere six weeks of going live, Pelago not only onboarded over 5,000 users but also achieved a striking 50% deflection rate!

Feature #9. Goal-based conversations

Goal-based conversations aren’t just any chatbot feature rather it’s a strategic game-changer for businesses aiming to boost sales and generate leads. Imagine a chatbot that does more than answer questions – it’s a savvy sales assistant, guiding each interaction towards your business goals. Whether it’s turning inquiries into leads or casual chats into purchases, this feature is all about making every conversation count.

Why it’s a blessing? 

  1. Redefining chatbot interactions: Say goodbye to standard chatbot responses. Goal-based conversations dynamically adapt, offering tailored communication that evolves with customer goals. It’s like a bot that really ‘gets’ what your customers want.
  1. Smart decision-making: In areas where typical bots falter, this feature shines. Expect advanced, personalized decision-making, delivering solutions that feel custom-crafted for each user.
  1. Empathy meets AI: Injecting empathy into AI, these conversations ensure responses are accurate and emotionally resonant, aligning with customer needs in a more human way.
  1. Beyond queries to tailored solutions: Moving past mere question-answering, this approach focuses on understanding and navigating various customer scenarios, providing solutions that align perfectly with individual objectives. It’s customer service, but more personalized.

Feature #10. Chatbot API

Chatbot API is the turbocharger for your chatbot. It allows your chatbot to connect with the wealth of data from other business tools like your CRM or database, making your chatbot smarter. This is where the magic happens — your chatbot goes from being a simple responder to a savvy conversationalist armed with all the right information.

Why this is a big deal:

  1. Tailored conversations: With the chatbot API, your bot can personalize chats like never before. It’s like having a concierge who knows your customers’ preferences and history.
  1. Seamless information flow: The API creates a bridge between your chatbot and other systems, ensuring that valuable data is always at your chatbot’s fingertips.
  1. Expanded capabilities: This integration is like unlocking a new level of productivity for your chatbot, making it an indispensable tool in your customer service toolkit.
  1. Up-to-the-minute info: Whether it’s order status or product availability, your chatbot is always in the know, ready to provide the latest information.

Feature #11. Data privacy and security

In an era where data is as precious as gold, data privacy and security are fundamental promises to customers. It’s about safeguarding personal details, and transaction information, and ensuring that every interaction within your chatbot is a vault of trust and security. In this digital age, customers are more aware and concerned about how their data is used and protected. This is why choosing a chatbot service provider that aligns with stringent security standards is crucial.

How yellow.ai upholds data privacy and security:

  1. Platform compliance: At yellow.ai, we understand the gravity of data security. That’s why we adhere to robust compliance standards like HIPAA, ISO 27001, ISO 27018, and SOC 2 Type II. 
  1. SSO solutions: We employ industry-standard SSO solutions, including Google SSO, Microsoft SSO, ADFS, and Azure AD at the platform level. This means secure and streamlined access for users, ensuring that only authorized personnel can interact with your chatbot’s data and integrations.
  1. Role-Based permissions: Setting up role-based access is like having a digital bouncer for your chatbot’s data. We enable customizable permission levels for different roles — developers, admins, testers, and more — allowing precise control over who can alter workflows, integrations, or access insights.
  1. Secure password practices: Our platform enforces stringent password standards, and all credentials are encrypted with a salted hash (SHA-256).

How yellow.ai can help you create an AI chatbot?

Navigating the path to AI chatbot creation? Meet Yellow.ai, your ideal partner in this exciting journey. It’s where crafting an AI chatbot becomes not just accessible, but also a creative and strategic adventure tailored for your business. Let’s explore how Yellow.ai makes creating an AI chatbot a smooth, innovative, and impactful process for you.

  1. Robust foundation with DAP: Yellow.ai’s Dynamic Automation Platform (DAP) acts as the bedrock upon which your sophisticated AI chatbot will stand. With DAP, you’re not just building a chatbot; you’re crafting a conversational AI that understands and interacts with your customers intelligently.
  1. Simplified chatbot construction: The beauty of Yellow.ai’s No-code Builder lies in its simplicity. It removes the barriers of complex coding, allowing you to focus on the strategic aspects of your chatbot, such as its personality and the kind of interactions it will encounter.
  1. Precision from the start with dynamic NLP: Right from the outset, your chatbot is equipped to understand the variations of human conversations, thanks to Yellow.ai’s Dynamic NLP. This technology ensures your chatbot isn’t just reacting to words; it’s comprehending intents and contexts.

Integrating with over 100 data sources, Yellow.ai ensures your chatbot is always informed, enriching each interaction. The platform’s training capabilities allow for continuous learning and evolution, making your chatbot increasingly effective. Deployment is extensive, spanning over 35 channels, ensuring your AI chatbot’s presence is felt across the digital landscape.

Yellow.ai’s analytics provide valuable insights for ongoing refinement, ensuring the chatbot always performs at its peak. This journey with Yellow.ai is about more than just launching a chatbot; it’s about creating a memorable and impactful user experience and setting a new standard in AI chatbot innovation.


Far more than tech buzzwords, the essential chatbot features we’ve explored are key to making any modern chatbot a success. All these features of chatbot, from AI-driven interactions to omnichannel messaging, are crucial in transforming chatbots from basic automated tools to pivotal elements of your customer engagement and marketing strategy. In today’s market, leveraging these AI chatbot features effectively is not just an enhancement—it’s imperative for achieving significant ROI and unlocking the full potential of your business.

Yellow.ai is at the forefront of this technological evolution, offering a platform where these advanced chatbot features become accessible and impactful for your business. With a proven track record of over 90% automation, a 50% increase in agent productivity, and a 30% reduction in average handling time, Yellow.ai is the future of AI-focused customer support helping brands leverage the best of Human+AI to provide memorable conversations, every time. 

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