Chatbot for SMEs: Integrating customer and business owner perspectives

Abstract

PurposeChatbots have been widely adopted to create more positive customer experiences as customers now spend more time in digital environments. Despite the technological advancement and benefits of chatbots for customer service, research on chatbot applications for Small and medium-sized enterprises (SMEs) is limited. The absence of research explaining the struggles faced by SMEs contributes to the gap of SMEs' chatbot adoption. This research determines the features and elements that fit with SMEs’ characteristics and their customers with chatbots. Design/methodology/approachA mixed-methods approach is used to understand SMEs' needs. Study 1 uses interviews with SME business owners and its customers; it aims to explore the features that should be provided by chatbots for SME by identifying combinations between chatbots' generic features and SMEs' customer characteristics. Study 2 tests features identified in Study 1 and surveys 315 SMEs customers to empirically test featured chatbots' influence to anthropomorphism, perceived enjoyment, perceived ease of use, perceived usefulness, and how they affect SMEs’ customer intentions to use chatbots and their shopping intentions. Findings –The findings suggest four combinations of chatbot features that match SME customer characteristics: responsive; simple steps to trigger customer actions; humanized conversations; and personalized recommendations. An experimental survey was designed by creating a chatbot prototype based on these features. The results show that the featured chatbot prototype affects higher anthropomorphism, perceived enjoyment, and perceived usefulness, compared to the standard chatbot. We also find that perceived enjoyment and usefulness positively affect customer's intention to shop and intention to use the chatbot. While anthropomorphism only affect customer's shopping intention to SMEs. OriginalityThis paper contributes to the emerging service literature on the use of chatbots service interactions, particularly for SMEs. This research provides robust explorations from the perspective of both SME owners and customers. For practice, the research provides guidelines on how to design a chatbot for SMEs that meet customers’ needs.