Thaweesakdhi Suvagondha
When organizing a chatbot for sales and customer engagement, businesses can either develop an internal chatbot or acquire a chatbot from external sources. Each approach has its own benefits and challenges, and the decision often depends on resources, technical expertise, and long-term business goals.
1. Internal Creation of a Chatbot
Internal development involves building a custom chatbot tailored specifically to the company’s needs. This approach offers more control over functionality and customization but requires substantial investment in terms of time, technical resources, and expertise.
Key Steps for Internal Creation:
• Define the Use Case and Objectives:
Clearly outline the chatbot’s purpose (e.g., lead generation, customer support, sales assistance, etc.). Align the objectives with the overall business strategy.
• Choose the Right Platform/Framework:
Select an appropriate chatbot development platform or framework such as:
• Dialogflow (Google)
• Microsoft Bot Framework
• Rasa (open-source)
• Amazon Lex
These platforms allow for building, training, and deploying chatbots with NLP capabilities.
• Data Collection & Training the AI Model:
Gather relevant data, such as historical customer interactions, FAQs, and product information, to train the AI model. This data allows the chatbot to understand user queries and provide accurate responses.
• Integration with Existing Systems:
Integrate the chatbot with internal systems such as CRMs, customer support tools, and sales platforms. This enables seamless flow of data between the chatbot and the sales/customer management teams.
• User Experience Design:
Design the conversational flow to ensure a smooth and engaging user experience. This includes setting up fallbacks in case the chatbot doesn’t understand a query, as well as allowing human intervention when necessary.
• Continuous Learning and Improvement:
Deploy the chatbot with a feedback loop for continuous learning. Regularly monitor performance and use customer feedback and interactions to improve the bot’s capabilities.
• Data Security and Compliance:
Ensure the chatbot complies with data privacy laws (GDPR, CCPA, etc.) and that customer data is stored securely.
Benefits of Internal Creation:
• Customization: You can tailor the chatbot to meet specific business requirements and integrate it deeply into internal systems.
• Scalability: As the company grows, the internally created chatbot can be scaled and modified according to new requirements.
• Full Ownership: Full control over the chatbot’s features, data, and intellectual property (IP).
Challenges:
• High Development Cost: Requires significant investment in AI expertise, development resources, and time.
• Maintenance and Upgrades: Ongoing updates and improvements need dedicated technical support.
2. Acquisition from External Sources
An external acquisition involves purchasing or subscribing to a chatbot solution from third-party vendors. This is a faster and often more cost-effective way to deploy a chatbot, though it may offer less customization and control than an internally developed bot.
Key Steps for External Acquisition:
• Identify the Right Vendor:
Evaluate chatbot vendors based on business needs, considering factors such as functionality, pricing, customer support, and integration capabilities. Popular vendors include:
• Intercom
• Drift
• Tidio
• LivePerson
• ManyChat (for social media sales)
• Assess Features and Integrations:
Ensure that the chatbot solution offers features such as NLP, machine learning, and integration with CRM, e-commerce platforms, and other business tools. Check if it provides multi-channel support (e.g., website, social media, messaging apps).
• Customization and Branding Options:
Look for platforms that allow customization in terms of tone, language, and branding. Some external platforms may offer limited customization compared to internal development, so ensure the level of customization aligns with your branding needs.
• Training and Configuration:
Although the chatbot is pre-built, vendors often offer configuration tools to train the chatbot to respond to specific business-related queries. You may need to input product details, customer service policies, and sales processes for personalization.
• Deployment and Scaling:
External chatbot providers typically offer quick deployment. Scaling the chatbot as business demands increase is also handled easily by most vendors, as their infrastructure is designed for enterprise-level support.
• Ongoing Support and Updates:
Vendors often provide ongoing technical support, regular updates, and new features as part of their subscription model. This reduces the burden on internal teams to manage the chatbot’s technical aspects.
Benefits of External Acquisition:
• Quick Deployment: Fast time to market, with little need for development resources.
• Lower Initial Costs: Lower upfront investment compared to developing an internal chatbot.
• Technical Support: Vendors provide support for maintenance, updates, and troubleshooting.
Challenges:
• Limited Customization: Many third-party platforms offer limited customization, which can restrict the chatbot’s capabilities and adaptability to unique business needs.
• Data Ownership: With external solutions, there may be concerns about data ownership and security, depending on the vendor’s policies.
• Vendor Lock-in: Switching platforms or making significant changes may be difficult or costly once a chatbot is embedded into operations.
Comparison: Internal vs. External Chatbot Development
1. Customization
Internal Creation: Fully customizable.
External Acquisition: Limited to vendor features.
2. Development Time
Internal Creation: Requires months of development.
External Acquisition: Can be deployed in days or weeks.
3. Cost
Internal Creation: High initial investment.
External Acquisition: Lower upfront cost, typically subscription-based.
4. Integration
Internal Creation: Seamless integration with in-house systems.
External Acquisition: Integration depends on vendor capabilities.
5. Technical Expertise
Internal Creation: Requires AI and development skills.
External Acquisition: No in-house expertise needed.
6. Maintenance
Internal Creation: Managed by the internal team.
External Acquisition: Vendor provides support and updates.
Conclusion :
* Internal Creation is ideal for companies seeking a highly tailored chatbot solution with full control over its features and data. It’s best suited for businesses with the technical expertise and resources to develop and maintain their own chatbot.
• External Acquisition works well for businesses that need a quick, cost-effective chatbot deployment and are satisfied with standard features and limited customization. It’s ideal for small to medium-sized businesses looking to automate customer interactions without a large investment.
Both approaches can effectively support sales, customer engagement, and management when aligned with the business’s strategic goals.
This blog is adapted from a video on the YouTube channel, AI Paths, Episode 3.2: Internal Creation or External Acquisition of AI Chatbot
Be sure to check it out for more insights into how AI is shaping the future of sales!