Virtual agent vs chatbot: key differences and benefits for e-commerce

Chatbots have been an integral part of the digital world for some time now. They have become popular customer service tools, helping businesses automate repetitive tasks, save costs, and increase efficiency. But, using AI chatbots can be tricky as they often lack the human touch. So, what’s the alternative, and why would you consider one? Let’s dive in.

Why virtual agents and chatbots aren’t the same 

Many businesses use chatbots to provide 24/7 customer support, which can increase user engagement and satisfaction. Despite their popularity, chatbots are not always reliable. Errors can easily slip through, and human oversight is often limited.

For instance, a chatbot from an English parcel delivery company once wrote a poem about its own failure when responding to a dissatisfied customer—a PR nightmare. This incident highlights the vulnerability of such systems. Now, let’s explore the key differences between chatbots and virtual agents. 

What are the key differences between virtual agents and chatbots? 

While both solutions can provide answers, automate interactions and tasks, and are cost-efficient, there are significant nuances between them.

What are chatbots?

A chatbot is a software application designed to engage in simple, scripted conversations with users, often handling basic queries. They excel at tasks like scheduling callbacks or answering common questions.

The first chatbots weren’t built with AI and were rule-based, but today, many chatbots combine AI and machine learning technologies to understand customer inquiries. 

What are virtual agents?

A virtual agent is an AI-powered tool capable of understanding and processing more complex interactions, providing personalized and adaptive responses. They are more sophisticated than chatbots and function more like co-workers. 

Virtual agents use technologies such as natural language processing, artificial emotional intelligence, machine learning algorithms, and deep learning to perform their tasks.

3 major benefits of virtual agents for e-commerce businesses

Currently using a chatbot and seeking a better way to serve customers, boost satisfaction, and build loyalty? Or perhaps you’re exploring both options and unsure which is best? Virtual agents might be the next step. Let’s explore the biggest benefits of employing virtual agents.

1. More personal conversations with a human touch

AI colleagues can make conversations more personal. They remember user information, such as names and contact details, to tailor interactions. Because AI colleagues understand the context of conversations, they communicate naturally, much like humans. Additional human oversight ensures the quality of interactions and prevents errors.

While chatbots follow predefined instructions, AI co-workers create a more equal relationship, fostering trust and a sense of enjoyment for the user.

2. Tailored and relevant answers

A key difference from standard chatbots is that virtual agents can offer tailored and relevant answers. Because they understand a company’s culture and anticipate customer needs, they are more reliable and provide more accurate responses.

AI colleagues, trained on large datasets, can identify patterns and relationships, generating insightful feedback. They improve their responses as they process more data, making them highly effective in handling complex and dynamic user interactions.

3. Valuable insights to various departments

Virtual agents can analyze customer contact data to provide valuable insights for different departments, helping them adapt their strategies. Marketing teams can use these insights to fine-tune campaigns, while CRO teams can identify trends and customer preferences to guide store improvements for instance.

Customer service teams can benefit from this data to improve training and the overall customer experience. By sharing these insights across the organization, virtual agents help ensure that all departments are aligned and working towards common goals.

Use cases chatbots vs virtual assistants

Why would you choose a chatbot, and when might a virtual agent be the better option? Let’s explore the use cases for each.

Use cases for chatbots in e-commerce

Chatbots are ideal for straightforward tasks and quick responses. Some key capabilities and use cases include:

• Handling simple support questions like order status, return policies, and shipping information.
• Offering product recommendations based on user input or browsing history.
• Providing quick answers to frequently asked questions.
• Assisting with tasks like finding a product and directing users to the right page.

Use cases for virtual assistants in e-commerce

Virtual co-workers are better suited for personalized and complex interactions. Key capabilities and use cases include:

• Guiding customers through complex purchase decisions.
• Managing difficult customer issues such as delivery or product-related problems.
• Assisting customer support teams by suggesting answers in the appropriate tone of voice.
• Humanizing automated responses.
• Offering support across various platforms, integrated into the company's environment.
• Providing multilingual support.

Virtual agents receive training similar to that of their human colleagues, enabling them to understand their employer's operations and act as genuine representatives of your business. 

Which tasks can a virtual assistant do that a chatbot cannot? 

A chatbot’s primary function is to provide automated, scripted responses to user queries, while virtual agents can perform a variety of tasks and assist users with different needs. Virtual agents can learn, adapt, and improve with each interaction. Chatbots, on the other hand, are usually rule-based or rely on simplified AI models.

Virtual agent or chatbot, which one to choose?

Several factors determine the best virtual agent software or chatbot solution for your e-commerce business. Both tools can be powerful, but it depends on your specific use case and business needs.

• Business needs: If you need simple customer support to reduce tickets, a chatbot might be right for you. If you want to scale support while maintaining or improving quality, a virtual agent is a better choice.
• Scalability: For small businesses, a chatbot is a cost-effective support option. If you have a support team and want to improve it with AI, a virtual agent is ideal.
• User experiences: Chatbots handle quick, simple responses, while virtual agents offer personalized experiences. Your choice depends on your desired customer interaction level.

Scale e-commerce support and improve the customer experience

The rise of AI colleagues represents a significant step forward for e-commerce businesses aiming for authentic customer service and communication. The collaboration between humans and AI allows companies to engage customers effectively while collecting and analyzing valuable data

AI colleagues contribute to improving work processes, learning actively, and seeking feedback, which boosts productivity and fosters a dynamic learning environment. This mutual growth enhances customer satisfaction and operational efficiency.

With virtual agents, customer service becomes more efficient and enjoyable, benefiting customers, employees, and the company as a whole.

Interested in hiring a virtual agent that improves with every interaction? Request a free demo today, and we’ll show you how Max, Emily, or Bob can help you scale support.