How to Build a FAQ Chatbot? (Step by Step)

For years, FAQ pages and customer support teams have been the solution for many businesses to handle customer queries. However, since the introduction of FAQ chatbots, these options have become less favorable for businesses.

In today's fast-paced digital environment, customers expect quick and efficient service, and FAQ chatbots can be a huge game-changer to help you handle a large volume of customer queries. But the question is; are they worth using?  Read this guide and find out all you need to know about FAQ chatbots. From what it is to the types, why you should use it, and more.

Let’s dive right in!

Part 1. What is a FAQ Chatbot?

FAQ chatbots are chatbots used by businesses or individuals to answer frequently asked questions. These bots can be integrated into websites, e-commerce platforms, instant messaging apps, and mobile medical applications, providing quick responses to user inquiries and facilitating 24/7 self-service customer support.

In the past, FAQ chatbots typically responded to various questions based on predefined scripts. When users asked a question, the chatbot would provide fixed answers according to these scripts, thus reducing the cost of human customer service.

Today, with advancements in technology, these script-based FAQ chatbots have gradually become obsolete. They no longer meet the needs of most people. Chatbots powered by AI capabilities have emerged, offering more dynamic interactions. As a result, FAQ chatbots have evolved into different types to keep up with the times. Below, we will explore 4 types of FAQ chatbots that remain popular in the market.

1. Rule-based Chatbots

Rule-based chatbots are FAQ chatbots designed to answer questions based on specific rules. These types of chatbots are trained using specific commands that enable them to solve simple tasks using the right response, making them extremely useful to many online businesses looking to deliver their clients with reliable self-service options.

When these types of chatbots are developed, they’re programmed with a set of rules that are mapped out like a decision tree, where each user input triggers a specific response. However, they cannot learn from over-time interactions since they are confined to the rules they've been programmed with. They follow strict predefined rules and provide responses based on specific input patterns. Therefore, if users do not input their questions according to these predefined rules, they will not receive the correct answers.

2. Keyword-based Chatbots

Keyword-based chatbots, just as the name suggests are FAQ chatbots that use keywords within their system to analyze customer questions and generate responses automatically.

Unlike rule-based chatbots, keyword-based chatbots analyze questions to find specific “keywords” or “phrases” and match them with preprogrammed responses to provide an appropriate answer. For example, if a user asks “What are Amazon customer service business hours?”, the chatbot might recognize the keyword “business hours” to provide the company’s operating time.

What's more, since these types of FAQ chatbots rely solely on the presence of specific keywords to generate answers, they can be improved over time to provide a response as long as the user’s query contains the specific keywords they’re trained with.

Although it is more flexible than a rule-based chatbot, it is still limited by predefined keywords and associated responses.

3. Conversational AI

Conversational AI is an AI-powered robot that uses Machine Learning (ML) and Natural Language Processing (NLP) algorithms to facilitate human-like conversations through text or voice inputs. This type of bot, unlike the previously mentioned FAQ chatbots, cannot only provide appropriate answers but can also maintain the context within a conversation.

Conversational AI makes interactions feel more natural. It has the unique ability to easily adapt to a system and analyze past conversations within a system, allowing it to provide more relevant answers to future interactions. This makes it very useful to handle different aspects of a business, including virtual assistant, real-time customer support, sales, marketing,  and lots more.

4. Hybrid Chatbots

Hybrid chatbots can handle both simple tasks and complex context-driven conversations. For example, if you enter a query like “Which Toyota car can I buy for Uber?” into a hybrid chatbot, the bot will analyze the query to understand your intent. Then, it’ll suggest Toyota cars that you can buy. You can even proceed to ask if there are discounts on the Toyota cars it recommends.

These types of chatbots use a combination of rule-based chatbots and conversational AI to provide automated and personalized responses that match the intent of users. There are two types - “Scripted Hybrid Chatbots” and “Context-aware Hybrid Chatbots”.

Part 2. Why Use FAQ Chatbots?

FAQ chatbots have become essential tools for businesses looking to improve their customer service. Let’s take a look at some of the benefits of using FAQ chatbots below.

Cost-effective

According to Master of Code , chatbots can decrease customer service costs by 30%. With FAQ chatbots,  businesses reduce the workload on their customer support team and handle a large volume of queries on their websites and online apps simultaneously without any hassle.

Moreover, these bots not only allow businesses to improve response rates but also enhance customer interactions on their platform at less cost. They are also very easy to set up, so no technical skill is usually required to operate them.

Increased Sales

An FAQ chatbot can be used to recommend products to customers to help them make informed purchases. Besides, over the past few months, there has been a spike in the number of consumers who use chatbots for online purchases. A report from Drift shows that about 33% of customers prefer to use chatbots to book a reservation at a restaurant or hotel. And according to Smart Tribune blog, consumers are projected to spend over $ 140 billion via chatbots by the end of 2024.

Reduces Risk of Human Error

FAQ chatbots are robots. So, they can’t make decisions based on emotions or feelings. These boots are prone to always provide consistent, accurate responses to queries based on a predefined knowledge base or learned information. Even in situations where customers may express dissatisfaction or complaints, they will always respond with accurate answers, which is important for maintaining trust and satisfaction in business. More than 89% of customers are likely to purchase after a satisfied customer experience - SaleForce 4th edition STATE of the CONNECTED CUSTOMER.

Improves Customer Engagement

Lately, many consumers prefer to begin their customer service experience with chatbots before switching to human support. This is because of the quick response they get from using bots. A recent report from Zendesk CX Trends shows that 71% of customers believe AI chatbots can help them get responses faster. So, by integrating FAQ chatbots across your business platforms, you can easily handle multiple conversations simultaneously in real-time, giving your customers a more tailored experience.

24/7 Availability & Response

In today's fast-paced digital environment, customers expect quick and efficient service. In fact, not responding to a customer query for more than 5 minutes can negatively impact their experience.

By utilizing FAQ chatbots, businesses can provide customers with all-around 24/7 self-service regardless of time zones or holidays, and this continuous availability ensures that customer needs are met promptly, enhancing satisfaction and loyalty. Chatbot analysis reveals that 64% of consumers find 24/7 availability to be the most helpful feature of a chatbot.

Integrates With Multiple Channels

Many businesses face challenges in terms of communication. However, Since FAQ chatbots can be integrated across multiple platforms (including websites and mobile apps), businesses don't need to worry about handling multiple user queries simultaneously.

With FAQ chatbots, businesses can ensure a seamless and consistent communication experience with their customers regardless of the platform they interact with.

Part 3. How to Pick the Right FAQ Chatbot Provider?

If you’re looking for an FAQ chatbot for your business, there are some factors you need to consider. In this part, we'll share some of these factors to help you make the right choice.

Figure Out Your Business Goals

Before acquiring an FAQ chatbot for your business, you need to have a clear idea of your goals. Do you need the chatbot to automate customer support? Do you need a chatbot to increase customer interactions that will lead to more sales? Only by determining what is to be achieved can you determine the features that the FAQ cahtbot builder you want to buy must have.

Weigh Price against Features Offered

There are numerous FAQ chatbots available online, and their pricing varies depending on their features. We recommend you compare different FAQ chatbot prices and the features they offer to make an informed decision. Note that it is important to look not only at the initial cost, but also the cost of maintenance and updates over time.

Industry Relevance

The industry you operate in is also an important factor that must be considered for you to choose an FAQ bot provider. For instance, if you're in the travel business sector, you need an FAQ chatbot builder that can assist customers with booking flights and learning about hotels, restaurants, and other activities related to traveling. Your chatbot provider must be able to respond to customer queries within your sector.  

Integration with Multiple Channels

Make sure you verify that the potential FAQ chatbot provider you want to acquire offers third-party integration. This is to ensure that it can seamlessly integrate with all your platforms, from websites to CRM systems, messaging apps, and lots more, preventing any kind of communication gaps.

Part 4. 3 Top FAQ Chatbots

Finding the right FAQ chatbot for your needs can be overwhelming. However, after reviewing several FAQ chatbots online, we’ve curated a list of a few reliable FAQ chatbot providers you can use to build an FAQ bot for your business.

1. ChatInsight

ChatInsight is one of the leading FAQ chatbot platforms, leveraging machine learning and natural language processing technologies to understand contextual nuances and engage in personalized conversations just like a human.

Unlike other general-purpose chatbots, ChatInsight allows users to upload their own knowledge base. It can retrieve precise answers from the knowledge base in response to user queries, rather than generating broad and unhelpful content.

Additionally, ChatInsight has the capability to understand and generate responses in multiple languages. Even if you provide a knowledge base in just one language, it can learn and respond according to the user's language.

2. Chat360

Chat360 is a no-code chatbot builder that offers tools for managing businesses' marketing efforts efficiently. This tool allows you to create chatbots that can be integrated into different platforms, including websites, WhatsApp business, Instagram, etc.

Whether you’re looking to improve your customer support response speed, provide 24/7 support to customers, or more, you can rely on this platform to build FAQ chatbots to help you achieve your objective effortlessly.

Moreover, Chat360 AI chatbot features a seamless redirection to live agents, allowing you to configure your FAQ chatbots to redirect direct chat that your bots can’t respond to directly to agents without requiring them to explain their queries all the time.

3. Lyro AI Chatbot

Another chatbot provider you can use to develop a reliable FAQ chatbot is the Lyro AI Chatbot by Tidio - one of the most efficient chatbot providers that boasts a response time of less than 15 seconds.

Lyro AI Chatbot allows businesses to transform how customers experience their assistance. Thanks to its conversational AI, it can easily engage in conversation with customers and answer their questions using a natural flow.

Also, this chatbot provider can help you reduce repetitive questions by up to 70%, and it supports multiple languages, making it a great choice for creating FAQ chatbots for users in different countries worldwide.

Part 5. How to Build an AI FAQ Chatbot without Any Coding?

The easiest way to create an AI chatbot without coding skills is by using the powerful ChatInsight software. Follow the steps below to learn the process;

Conclusion

There you have it! Our guide has covered everything you need to know about an FAQ chatbot before investing in it.

We believe FAQ chatbots can be an excellent game changer for your business because they can positively transform how you handle customer queries without requiring huge investments of capital or human resources.

Part 5. Is AI-Based Chatbot Right for Your Business?

Check these commonly asked questions by users on an AI-based chatbot to answer FAQs.

Q 1. What Questions Can I Ask a Chatbot?

Isabella

Depending on the chatbot, you can ask product-specific or general-based questions. Rule-based chatbots can only provide answers to specific questions. At the same time, AI chatbots can proffer answers to both general-based and specific questions. However, their ability is dependent on the database they are trained on.

Q 2. What Is the Difference between a Chatbot and a FAQ Page?

Isabella

A chatbot performs conversational functions. These functions can exceed questions specific to a product or service. Also, it can collect data and interpret user queries. In comparison, FAQ pages are web pages that contain a list of specific answers to possible questions by customers.

Q 3. When to Use a FAQ Chatbot?

Isabella

FAQ chatbot can be used for customers and employees. It can be implanted to reduce repetitive questions asked internally or by users, especially those using the product for the first time.