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How To Build An Online Chatbot For Your Business?

December 29, 2021  •  8 minute read

Artificial Intelligence has evolved exponentially, and chatbots are just a drop in the ocean of progress. Are you aware that you can cut 30% of your customer support expenditures by merely placing a chatbot on your online platform? 

Chatbots today are already capable of having more human-like conversations, accepting online payments, making personalized recommendations and so much more. 

Gartner predicts that by 2023, chatbots will handle around 85% of customer inquiries without actual human intervention. This explains why the demand for chatbots is increasing exponentially.There is really no reason why your business shouldn’t reap the benefits that chatbots can provide.

However, there are a few things that you need to keep in mind while creating an immersive chatbot that your customers can trust. Read this article to know about how you can easily build an online chatbot for your business in 2022. 

What is an online chatbot?

Chatbots, also known as chatterbots, are computer programs that simulate human-like conversations with users in the language of their choice. They are a natural extension of texting and represent a new trend in how people interact with businesses, access information and make decisions. 

According to the 4th International Conference, some of the major reasons why people use chatbots are:

a. Productivity: Chatbots can access data efficiently and quickly.

b. Entertainment: Chatbots entertain users by creating engaging conversations.

c. Relational and social aspects: Bots boost customer relations by fueling conversions. They understand customer intent and respond accordingly. 

d. Curiosity: The uniqueness of chatbots inspires users to explore all their possible functions.

Types of chatbots

Based on your business objectives, there are largely three kinds of chatbots:

1. Script or rule-based chatbot

Here the ML algorithm has some predefined bunch of queries and answers. Such chatbots obey only the rules and cannot answer out-of-the-box questions, complex requests, or comprehend customers’ emotional conditions. 

Such a chatbot works as a conversational FAQ associate. It works for businesses that direct customers to a distinct goal, like returning a product or contacting via mail.

2. AI/NLP-based bot

This chatbot is powered by natural language processing (NLP, a component of AI) and does not require predefined rules. It can scrutinize the context and respond accordingly. Such a chatbot is based on memory. It trains itself from previous answers in its database to improve its response more humanely.

3. Hybrid chatbots

This chatbot is a mixture of the first two styles. It acts as a FAQ responder, and it can also answer complicated requests through Machine Learning. Also, if the chatbot cannot answer any specific question, it can direct the conversation to a human agent.

When do businesses need a chatbot?

There can be three possibilities when you need to set up an online chatbot:

Firstly, a multinational company receives thousands of redundant requests each day. So you must automate to reduce expenses on customer service.

Secondly, with customers expecting on-demand services, it can get difficult for businesses to hire human agents for 24/7 customer service. 

Finally, to identify and trigger a conversation with prospects for lead generation. 

Benefits of building a chatbot for your Business

1. Cost savings

Deploying robust chatbots allows businesses to handle multiple client inquiries in a reasonably short duration. This significantly reduces customer service costs, including hiring and training more human resources, infrastructure, wages, etc. 

2. Better analysis of customer data

Businesses can understand how skillfully their chatbot is operating by using chatbot analytics. Chatbots allow businesses to serve their clients in sales generation, revenue growth, and detailed insights on what users are asking for and how they engage with the company.

3. Enhances customer engagement and sales

Research suggests that businesses that engage with consumers can boost revenue by nearly 25-45%. A fantastic example is booking reservations online. When a user communicates with the chatbot and exhibits interest in booking, the smart bot instantly directs them to the booking page to close the sale.

4. Better lead generation

An online chatbot is trained to identify qualified leads for better lead generation. Chatbots can also help you attain qualified leads via recognized KPIs, including relevance, timeline, resources, budget, and more. 

Benefits of an online chatbot for your customers

1. 24/7 availability 

Chatbots provide customers with instant responses to their queries. And, also allow customers to to get in touch with a brand at their own convenience, anytime they want

2. Instant response

A human operator can concentrate only on a single user at a time for query resolution, but a chatbot can instantaneously handle the queries of multiple users at the same time.

3. Multilingual communication

Chatbots can be tailored for answering users in the user’s preferred language. Multilingual bots promote your business to enter into new markets and personalize the experience for your users. 75% of online shoppers favour making purchases in their native language, and 40% decline to buy from sites in different languages.

4. Omni-channel support

AI chatbots deliver an effortless and precise way for consumers to communicate with a business through multiple platforms such as Facebook Messenger.

5. Seamless payment

Carrying out payments through a chatbot can enhance conversions. ML/NLP bots can estimate the amount paid in their local currency with available payment choices. Finally, the buyer is taken to a protected transaction page to finish the payment.

How to build a chatbot – No code vs scratch

When building an online chatbot for your enterprise, it all comes down to your budget and understanding of the technical aspects of chatbot development. With this understanding, let’s explore the two ways in which you can build a chatbot:

No-code chatbot

Building a no-code chatbot requires no technical knowledge. You just need to drag and drop the features into the interface to create one. The features you choose for the chatbot will allow you to differentiate between collecting customer data or answering simple questions. 

The development of no-code chatbots is inexpensive, time-saving and the chatbot you create for one channel can easily be deployed to multiple channels in just a few clicks. Hence, no additional integration is required. 

Custom-made chatbot

Custom made chatbots are developed from ground zero. Developers design it according to your requirement, such as the programming language you want it in. Then developers customize it according to the integration you want, like messenger integration, website, or rented server integration. 

Here, you can choose and develop every part of the process according to your needs. This process is often lengthy and more expensive than building a no-code chatbot. 

Steps for chatbot creation 

Depending on the kind of chatbot you choose to develop, the steps of chatbot creation will differ.

Must-have chatbot features


Customize your chatbot to leave a lasting impression on your customers. Program your bot to gauge certain basic information, such as a customer’s name and location, either by directly asking them or through geolocation coordinates. Providing such a service makes your customers feel valued. So, the next time they visit your website and chat with your bot, your chatbot will immediately send them customized information according to their data.


What differentiates a good chatbot from a bad one? It’s ability to understand emotions from textual or voice data. A chatbot programmed with sentiment analysis can provide empathetic responses to the customers by analyzing thoughts, opinions and tone. 

Consolidated dashboard

A chatbot that’s deployed on multiple platforms, needs a consolidated dashboard. With the help of agent assist dashboard, you can check all the conversations taking place on different channels, at one place. This way, your team won;t have to constantly switch between channels to keep a record of everything. 

Live chat 

Chatbots can answer most customers’ questions single-handedly, but when a customer asks to talk to a human agent, the live-chat feature comes in handy. To give the most satisfactory service, you will need a combination of AI and human resources. So, while your chatbot answers routine and repetitive, your human agents can take up more complicated requests.


It is easy to scale and train chatbots. Your chatbot is performing at its optimum best when it decreases the need for human intervention. Even if it is not delivering value, you can train it efficiently by keeping track of its progress.  

Key takeaway

There aren’t any predefined ‘best bot building practices’ as it depends on the unique requirements of your business. As an owner, you need to understand your business needs and build the chatbot accordingly to serve your customers. 

Track your bot analytics to know which area you need to work on and how you can grow your business online. The more you personalize your bot for users, the more interested they will be in your customer service.

Get in touch with our experts today to know more about how you can build a no-code customized chatbot for your business. is the world's leading enterprise-grade conversational AI platform that unlocks business potential at scale. It is powered by Dynamic AI Agents to deliver human-like interactions that boost customer satisfaction and increase employee engagement across 35+ voice and text channels and in 135+ languages.
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