Chatbot vs. Knowledge Base: What is best for Customer Support?

When it comes to customer support, the decision to use a chatbot or a knowledge base isn’t always easy.

Both tools have strengths, and what works best sometimes depends on the type of business and the specific needs of customers. 

To help answer this question, we’ll explain how each tool works, where each excels, and for what situations it’s best suited. 

By the end of this guide, you’ll have a clear idea of which support tool—or combination—is worth investing in to boost customer satisfaction.

Chatbots: Instant and Interactive, But Limited by Design

For many businesses, chatbots have become a go-to solution for providing fast assistance, especially for simple questions.

You’ve probably encountered one while ordering online or contacting a company’s customer service—those little pop-up windows that offer help. But chatbots aren’t just simple Q&A machines. 

A recent study by Misischia et al. (2022) in Procedia Computer Science highlights how chatbots are becoming more important by helping improve service and meet customer expectations.

The latest ones use AI-powered technologies like Natural Language Processing (NLP) to understand and respond naturally.

Let’s take a look at where chatbots excel, as well as their limitations:

Pros of Chatbots:

  1. 24/7 Availability- Chatbots don’t sleep. This is a massive advantage if you aim to be available to customers around the clock without hiring more staff.

  2. Real-time Assistance- When customers ask basic questions like “Where’s my order?” or “What are your business hours?” a chatbot can respond instantly. 

  3. Personalized Conversations- Some chatbots now have features to personalize responses based on customer history or previous interactions.

Cons of Chatbots:

  1. Limited Knowledge- While chatbots are great with common questions, they can struggle with complex or unique issues that don’t fit into their programming.

For example, if a customer is dealing with a technical issue, the chatbot might only offer basic troubleshooting steps, like refreshing the page or clearing the cache. 

However, if the issue requires adjusting account settings or checking for system compatibility, the chatbot may be unable to answer.

  1. Potential Frustration- Chatbots can’t read emotions or sense a customer’s frustration. Imagine a customer waiting for a delayed package and feeling understandably annoyed. 

For example, you may receive a generic response like, “Please check back tomorrow for an update,” instead of a more empathetic reply or a tailored solution. This can turn off customers who are already upset.

Knowledge Bases: A Self-Serve Resource for In-Depth Support

A knowledge base is like the ultimate reference library for your business, filled with answers, guides, and resources that customers can access anytime. 

This includes FAQs, step-by-step tutorials, troubleshooting guides, and in-depth articles covering almost anything a customer might need. 

Knowledge bases are designed to let customers help themselves, which is why they are so popular with companies that offer complex products or services such as SaaS, tech products, or financial services.

McKinsey Global Institute report  on the use of Knowledge Base

A McKinsey Global Institute report shows that an effective knowledge management system can cut search time by up to 35% and increase overall productivity by 20-25%.

Pros of a Knowledge Base:

  1. Comprehensive Resource- A well-designed knowledge base offers in-depth answers that customers can access whenever they need. Unlike chatbots, which tend to provide quicker, surface-level answers, a knowledge base can give customers all the details they need in one place.

  2. Scalable- Once set up, a knowledge base can serve one customer or a million without any extra work. It’s perfect for handling high volumes because it doesn’t need more staff to grow.

  3. Control and Customization- With a knowledge base, you precisely decide what customers see and how it’s presented to match your brand’s voice. For instance, a financial services company can include everything from account setup to security tips.

Studies show that customers increasingly prefer self-service, with 70% expecting companies to offer it on their websites. Millennials, in particular, favor FAQs, and 75% of customers find self-service convenient. 

However, poor navigation and lack of information in FAQs leave 43.5% of issues unresolved, and 61% of customers will switch to a competitor after a bad support experience.

Cons of a Knowledge Base:

  1. Can Be Hard to Navigate- A knowledge base can feel like a maze if it's not well-organized. Customers looking for a quick answer might end up in the wrong section, which can be frustrating.

  2. No Real-Time Interactiom-A knowledge base is static, so it’s not ideal for customers who need help right away. For urgent questions, some customers may feel disconnected compared to a chatbot's instant feedback.

Example Use Case:
If a software company releases regular updates, they can add detailed release notes and how-to guides to their knowledge base instead of updating a chatbot every time a new feature rolls out. 

This gives customers a comprehensive overview they can refer to without relying on the chatbot for explanations.

When to Use a Chatbot vs. a Knowledge Base

Choosing between a chatbot and a knowledge base often comes down to your business's and your customer's specific needs. Both tools offer unique benefits, but they excel in different scenarios. 

Use a Chatbot When

You want Instant Answers to Simple Questions

A chatbot is ideal if your customers often ask simple, repetitive questions—like “What are your hours?” or “How do I track my order?”. 

For example, an e-commerce store can set up a chatbot to handle these basic queries quickly, speeding up support.

You Onboard New Customers

Chatbots are great for welcoming new users and helping them get started. Say you run a fitness app, and new users need guidance on setting up their profiles or finding workout programs. A chatbot can guide them through these steps.

You Provide 24/7 Support

A chatbot is a chef's kiss if you have customers worldwide or simply want to offer support outside regular hours. No matter the time of day, a chatbot is ready to answer questions.

Use a Knowledge Base When

You want In-Depth Help with Technical Questions

For businesses with complex products or services, a knowledge base is a fantastic resource. A software company, for example, might create a library of how-to guides that walk users through setup and troubleshooting. 

Customers can go at their own pace and find detailed solutions without waiting for support.

You want to Reduce Repeated Questions.

A knowledge base is a great way to scale support by covering commonly asked questions. For instance, a healthcare platform might use one to guide patients in accessing lab results or managing appointments. 

This can reduce the number of tickets your team needs.

You want to Offer Evergreen, Self-Serve Content.

For businesses with information that doesn’t change much, like educational sites or financial services, a knowledge base provides reliable content customers can return to anytime.

The Power of Using Both

Chabots do have strengths that are valuable for businesses, but so do knowledge bases! But what if you don’t have to choose because you can actually use them both?

In fact, using both together can create a smooth experience that covers a lot of customer needs, making support feel more efficient and complete. 

Here’s how combining a chatbot and a knowledge base can deliver superior customer support:

Directing Customers to the Right Resources

The chatbot can act as a guide, linking customers to relevant knowledge base articles. For instance, if a customer asks about resetting their password, the chatbot can quickly provide the link to the exact article in the knowledge base for a fast, in-depth answer.

Handling Basic and Advanced Inquiries

Chatbots can handle routine questions and then direct complex ones to the knowledge base or a live agent. In tech support, for example, the chatbot can answer simple troubleshooting questions but direct more complicated issues, like software compatibility, to detailed articles or a human.

Offering Backup When Articles Aren’t Enough

When customers need real-time help, a chatbot can step in to escalate to live support. If a customer has checked the knowledge base about billing but still needs assistance, the chatbot can confirm their steps and easily transfer them to an agent.

So, what’s the Verdict? 

Should you choose a chatbot, a knowledge base, or both?

Ultimately, the right setup depends on your business goals, the nature of your customer inquiries, and your support strategy. 

If you get a lot of simple questions, start with a chatbot.
A chatbot is ideal for handling repetitive inquiries, like order tracking or return policies. It saves your team time and improves customer satisfaction. You can add a knowledge base later for more detailed topics.

If your product is complex, build a knowledge base first.
For detailed support needs—common in SaaS, finance, or healthcare—a knowledge base with organized articles and guides lets customers find answers independently. Later, you can add a chatbot to help direct customers to the right content.

For a well-rounded support setup, use both.
Combining both gives the best of both worlds: the chatbot handles quick questions, and the knowledge base provides in-depth answers. Make sure the chatbot can link to relevant knowledge base articles to create a seamless support experience.

Want to learn more about using a knowledge base in customer support? Check out Frequentli.ai to learn how our solutions can help you build an easy-to-use, efficient support system that keeps customers coming back.

© 2023 Frequentli. All Rights Reserved.

© 2023 Frequentli. All Rights Reserved.

© 2023 Frequentli. All Rights Reserved.