Chatbot Analytics - Appy Pie

Chatbot Analytics: How to Measure your Chatbot Performance?

Neeraj Shukla
By Neeraj Shukla | Last Updated on March 6th, 2024 7:13 am | 5-min read

“Any sufficiently advanced technology is indistinguishable from magic” Since the advent of chatbots, businesses can easily treat their customers as king. Customers too find it convenient to talk with chatbots and get their queries resolved in a jiffy! As per Inbenta’s Chatbot Consumer and Business Survey, 50 percent of consumers prefer to communicate with chatbots while shopping online, rather than calling support.

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On the other hand, some people, especially senior citizens find it difficult to engage with chatbots. As per the statistics of PointSource, 80 percent of retail customers are not comfortable with chatbot assistance. Confused! Whether to deploy a chatbot or not! Creating your chatbot and integrating it into a business website is definitely worth an investment. To make sure that the chatbot provides a smooth experience for your customers, you should consider using a no-code AI development platform to build it.To ensure that the chatbot is giving a seamless experience to your customers, you must keep the track of chatbot analytics. You should frequently check the performance of your chatbot based on qualitative and quantitative parameters. In this blog, we will help you learn how to measure chatbot success for your business. Before moving ahead, let us check out some major key factors related to chatbot performance.How to Measure the Effectiveness of Chatbots - Appy Pie

Why Measure Chatbot Effectiveness

“Information is the oil, and analytics is the combustion engine”- Gartner Research An AI-based chatbot is a recent technological advancement and is still in the nascent stage. To constantly update your bot for catering to your business needs and ensuring seamless customer experience, you need to regularly analyze chatbot metrics. Measuring chatbot performance makes you aware of your chatbot capabilities. Let us understand a few of the major benefits of chatbot analytics:
  • Helps in understanding chatbot contribution to achieving business objectives
  • Provides insights into customers’ expectations with your chatbot
  • Aids in measuring the KPIs like conversion and retention rate of users
  • Offers a chance to improve the conversational flow of the chatbot
  • Helps in making better strategies to increase user-chatbot engagement

How to Measure Effectiveness of Chatbot? | Chatbot Analytics

The process of analyzing the chat history of your business chatbot to gain insights into chatbot performance is known as chatbot analytics. To know the effectiveness of a chatbot, you need to utilize chatbot metrics consisting of several parameters. Chatbots metrics are based on qualitative and quantitative indicators. Let us discuss both separately.

  1. Quantitative KPIs

    2. Quantitative indicators allow businesses to analyze the “number of users”, engage, come back, retain, and much more. Let us learn more about different parameters.

    • Activity Volume of Chatbot

      • To evaluate the number of interactions, you need to measure the activity volume of the chatbot. It provides you insights into the number of times your chatbot is used and also gives figures for an increase in the number of users on your website.

    • Bounce Rate

      • To analyze the numbers of users who did not engage with the chatbot, you need to keep track of the bounce rate. It provides you an insight into the volume of user sessions that ended without communicating with your chatbot.

    • Conversion Rate

      • To have the numbers of visitors who get converted to subscribers after conversing with your business chatbot, you must check the conversion rate.

    • Retention Rate

      • To ensure if your customers return to your chatbot after their first conversation with your chatbot, you need to take the insight of retention rate. It helps in knowing your chatbot’s relevance.

    • Penetration Rate

      • To verify if your ongoing conversational flows of a chatbot are enough to target your audience and achieve business goals, you can measure the penetration rate. It will help you find out if intended people are using your chatbot.

    • Interaction Rate

      • To analyze whether your customers are having a seamless experience while engaging with a chatbot, you must take care of the interaction rate. By keeping the track of response time, conversation duration, the number of queries resolved, and feedbacks given by users; you can track the interaction rate.

    • Goal Completion Rate

      • To measure the success rate of given action performed by your chatbot, for instance, clicking on the CTA button or any URL, filling a form, and others; measure goal completion rate. It is the number of times your bot successfully processes the query and reverts with a satisfying response.

  2. Qualitative KPIs

    3. Qualitative indicators allow you to measure how satisfied and contended your customers are after having a conversation with your business chatbot. Let us learn more about parameters.

    • Level of Comprehension

      • To analyze if your chatbot knowledge base is sufficient to respond to users, you must keep up with the comprehension levels of the chatbot. This can help in updating your chatbot knowledge base and making your customer experience smooth.

    • Self Help Rate

      • To track if your chatbot is efficient enough to resolve the queries of users for which it is intended, you should consider the self-help rate. By analyzing the number of calls your customer support receives with the queries which your chatbot can resolve, you can subsequently improve the productivity of your chatbot. Making the chatbot conversation flow in easy to understand language and adding the humanize touch to your chatbot can scale up the self-service rate.

    • User Feedback

      • To check the overall performance of your chatbot, what your users think of the chatbot, and how the chatbot performance can be improved; you must keep a close eye on user feedback. To remodeling your chatbot for improving your customer experience, user feedback cannot be ignored. It is the most powerful indicator to discover the weak points in conversational flow as users themselves advocate about their concerns with your chatbot.
Keeping a regular track of qualitative and quantitative KPIs can help you in chatbot analytics. This can help you in evolving satisfaction rates, evaluating, and improvising your chatbot response system. Overall, a chatbot can then be turned into the most effective tool for your business growth.

How To Measure KPIs for Chatbot Analytics?

Initially, to create a chatbot for your business website and apps, you must choose a chatbot builder which have its own-in built analytics. There are many chatbot analytics tools available online. One of the most trusted chatbot builders which can perform bot analytics too is Appy Pie Chatbot. Appy Pie Chatbot provides you with a no-code development platform for creating your own chatbots without even coding a single line. Within a few steps, you can design your chatbot with numerous striking features affordably using Appy Pie’s Chatbot Builder. You can add the analytics feature with your chatbot which can provide you the insights into customers' experience with your chatbot.Go through this post to learn how you can create your own chatbot in just a few steps - How to Make a Chatbot from scratch?

Summing Up

A chatbot is turning into the new communication channel for most of the industries. To keep ahead of your competitors, you must integrate chatbot today and be up to date with chatbot analytics. Make sure your chatbot has the humanize touch for a seamless customer experience!Let us know in the comment section, how chatbot is boosting the sales and growth of your business!

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Neeraj Shukla

Content Manager at Appy Pie

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