A Guide to Virtual Agents

Jonathan Redsell at Netcall explores what a virtual agent is, virtual agents vs chatbots vs conversational agents, types of virtual agents, tips for creating a virtual agent and how to make a chatbot sound more human.

Virtual agents, such as chatbots, are transforming how businesses connect with customers and streamline operations.

At their best, these digital assistants create seamless experiences, answering questions instantly, processing requests 24/7 and freeing up your human team for more complex interactions. The potential is huge. From boosting customer satisfaction to reducing operational costs.

But, let’s be honest, we’ve all encountered bots that left us feeling frustrated rather than helped. The good news?

With the right approach, your bot can be one that users genuinely appreciate and maybe even prefer for certain tasks.

What is a Virtual Agent?

A virtual agent is a software application that uses artificial intelligence (AI), natural language processing (NLP) and robotic process automation (RPA) to provide information and respond to user requests. Most commonly, this technology takes the form of a chatbot.

Virtual agents are often used by organisations to support customer services, as they can handle routine questions, assist with simple requests and complete basic tasks.

By automating these interactions, businesses can free up human agents to focus on more complex or high-priority issues.

This not only helps improve efficiency but can also lead to quicker response times and a better overall customer experience.

Virtual Agents vs Chatbots vs Conversational Agents

While these terms are often used interchangeably, there are differences between virtual agents, chatbots and conversational agents in terms of their capabilities.

A chatbot is typically a rules-based tool designed to respond to specific keywords or pre-programmed inputs. If a recognised input is triggered, the chatbot will trigger a scripted response.

The nature of chatbots means that they are typically used for straightforward tasks like answering FAQs or responding to simple requests.

A virtual agent, on the other hand, is usually more advanced. It is a software application that uses technologies like AI, NLP and RPA to understand context, manage more complex queries and carry out automated tasks. Unlike chatbots, they are able to continuously improve.

Conversational agents refer to any system designed to engage in a dialogue with users, whether that is through a chatbot or virtual agent.

Tips For Creating a Virtual Agent

Conversational agents refer to any system designed to engage in a dialogue with users, whether that is through a chatbot or virtual agent.

Whether you call them virtual agents, virtual assistants or chatbots, these digital helpers are popping up everywhere. The big question is: How do you create one that delivers real value to both your users and your organisation?

Conversational agents refer to any system designed to engage in a dialogue with users, whether that is through a chatbot or virtual agent.

Define the Purpose of Having a Virtual Agent

There’s no magic formula for the perfect virtual agent, but to get it right, we recommend starting by asking yourself some basic questions before you dive in:

• What problem is your bot solving?
• How will it make life better for your customers (and your business)?
• What are people already contacting you about that a bot could handle?
• If your bot isn’t going to make something easier or better, why build it at all?

The Value-Irritant Matrix

The Value-Irritant Matrix from Bill Price (Amazon’s former Customer Service VP) can help identify the purpose of your virtual agent. It uses a grid format to highlight 4 use cases:

• “Please Don’t” – These are things that frustrate both your customers and your business. Don’t automate these headaches – fix the underlying problems first!
• “Make It Simpler” – Your business needs these processes, but customers find them annoying. Focus on making these interactions smoother rather than just automating the pain.
• “Human Touch” – These are the golden interactions that both your organisation and your customers value. Keep these with your human agents when possible.
• “Bot Sweet Spot” – Things customers need but are tedious for your business. This is your automation bullseye! Think balance checks, appointment scheduling, status updates and returns.

Use Your Data to Your Advantage

Before you build anything, look at what your existing data is telling you, from contact centre stats to website behaviour. By analysing your data, you can build a bot that has meaningful interactions with your customers.

It’s important to consider whether you’re interacting with people who might find technology intimidating. Keeping it simple is generally always good advice.

For voice bots, consider: Will regional accents be an issue? Do you need to offer multiple languages?

Be Realistic With the Functionality

This is a big one. Before you promise your bot can change a customer’s address, make sure it can actually:

• Verify who they are
• Access their current details
• Update your systems.

Too many chatbot projects crash and burn because someone promised functionality that the underlying systems couldn’t support. If integration isn’t possible, be honest and direct people to alternatives.

Test, Fix, Repeat

Once your bot is built:

• Get a diverse group of colleagues to try to break it
• Make a clear list of requirements it needs to meet
• Fix what’s not working and enhance what is
• Test again (and again).

Remember, your virtual agent is never really “done.” Keep an eye on what questions trip it up and where people abandon ship. Whether those abandonments are good (they got what they needed quickly) or bad (they gave up in frustration).

Treat Your Bot Like a Team Member

When done right, your virtual agent becomes an integral part of your customer service team. Think about it like you would a new employee:

Give it a clear job description, train it properly and equip it with the right tools. And don’t forget to review its performance regularly and help it to continually grow its knowledge and skills.

By focusing on solving real problems instead of just implementing flashy tech, your bot will become a valuable team member that both your customers and agents appreciate.

How to Make a Chatbot Sound More Human

One trick for making a chatbot sound more human is through role-play!

Get two people in a room, one plays the customer trying to complete a specific task, the other plays the bot, limited to what the bot would actually know and be able to do.

For chatbots, use Teams or WhatsApp to simulate the experience. For voice bots, do it over the phone or sit back-to-back (no cheating with visual cues!).

Try this with different “types” of customers, including people who don’t know your business well. You’ll be amazed at how many edge cases and natural conversation flows you’ll discover.

Click to download the Guide: Getting Started with Bots

Reviewed by: Jo Robinson