Building a WhatsApp Chatbot in 2024: Benefits, Steps, and Key Strategies

Chatbots are everywhere; they do it all, from streamlining your customer service to reducing almost 70% of the burden on your customer support executives. Thanks to artificial intelligence, they are not mere automated responders anymore. And they work 24x7 without any extra charge.

Think of chatbots within WhatsApp - a platform with over two billion people using it to chat, share, and connect. For businesses, WhatsApp isn't “just another app”; it's the place to meet customers where they're already hanging out, making every message a potential sale or a step towards loyalty.

This blog is intended to help readers understand everything about WhatsApp chatbots. From helping upsell and cross-sell products to collecting feedback within the platform, chatbots can do much more than just respond with the basic “Thank you for your query. Someone from our team will get back to you shortly” message. We'll look at the benefits they offer across different sectors, how they fit into the wider business machinery, and peek into the future of customer conversations.

What is a WhatsApp Chatbot

Chatbots talk on your behalf with your customers on WhatsApp, even when you're sleeping or busy finishing an important task. That's what a WhatsApp chatbot does. It's like a team member who’s always there, ready to chat, help out, or even sell stuff to your customers 24/7.

💡 Why do users love business messaging so much? A study by Kantar highlighted that about 66% of people are more inclined to buy from brands they can message. It's all about the convenience and the personal touch of messaging that makes chatbots so appealing.

Here's how they work: Someone sends your business a message on WhatsApp asking about, let's say, your opening hours or whether a certain product is in stock. Instead of waiting for a human to reply, the chatbot jumps in immediately with the answers. It's programmed to understand and respond to many common questions, making life easier for you and your customers.

Now, what makes WhatsApp chatbots stand out? First, they're on WhatsApp, where many of your customers probably already hang out. Second, they can send not just text but images, videos, and even documents. This means they can showcase products, explain how things work, or guide customers through a process, all within a chat.

WhatsApp Chatbot in Action

Let’s take the example of a customer named Riya. Late at night, she is looking for skincare products. She sends a message to your brand’s WhatsApp channel asking for recommendations for her sensitive skin. Instantly, your chatbot responds, engaging her in a conversation to better understand her needs.

It then suggests products specifically for sensitive skin, provides usage instructions, and links to purchase. This helps Riya make an informed decision and enhances her shopping experience, showcasing the chatbot's ability to provide personalized, 24/7 support.

Top 5 Benefits of Using WhatsApp Chatbots

So, why have a chatbot in the first place? Customers today aren't just hoping you'll get back to them quickly – they're counting on it. They're looking for that instant connection, whether to solve a problem or grab that product they've been eyeing.

1. Quick and 24x7 Support: It's the middle of the night, and someone's trying to find out if your store has those must-have sneakers in stock. Instead of waiting till morning, they get an answer immediately from your chatbot. Whether it's 2 PM or 2 AM, it's ready to serve, making sure your business is there for your customers anytime, anywhere.
2. Two-Way Communication: How annoying is it when you text a business, and all you get back is an automated "We've received your message" email? And then silence? Yeah, that's not how things work at WhatsApp. Here, it's all about the chat. You ask something like, "Hey, where's your nearest store?" instead of that dead-end reply, the chatbot hits you back with, "Sure, can you share your current location or pincode?" Just like that, you're having an actual convo. You share your details, and it tells you exactly where to find our nearest store.
3. Personalized Assistant: Using advanced Natural Language Processing (NLP), chatbots can understand and respond to individual customer preferences. Picture this: Ankit's gearing up for a backpacking adventure and looking for eco-friendly clothes. He drops a message to your chatbot, asking for some eco-friendly activewear. Thanks to being sharp with understanding conversations, your chatbot gets exactly what Ankit wants. It takes a quick dive into what you've got in your Shopify store and comes back with many options, like biodegradable jackets and pullovers made from recycled materials, all picked just for Ankit.
4. Tailored Recommendations: Your chatbot knows your inventory and your customers. It remembers what they've bought before, what they've liked, and even what they've looked at, using all that info to make spot-on recommendations. It's like having a personal shopper, but one that can instantly recall every item in your store.
5. User Profiling-Based Responses: Your chatbot can offer personalized advice by tapping into your CRM or other data sources. Imagine a customer with specific health needs, like diabetes, reaching out. Your chatbot can recognize this and adjust its recommendations accordingly, showcasing how much it 'gets' your customers.

Chatbot Use Cases For Different Industries

WhatsApp chatbots are doing much more than just answering questions; they're changing how businesses communicate with customers. From shopping online to booking a doctor's appointment, chatbots are making everything frictionless and more human. Here’s a quick look at how they are being leveraged in different industries:

E-commerce

Consider an online fashion boutique leveraging a WhatsApp chatbot. It’s more than just a tool; it’s like a personal shopper for each customer.

Back-in-Stock Alerts:Rahul had his eye on a particular jacket, but it was sold out. The chatbot messages him the moment it's back in stock. This prompt notification ensures Rahul doesn’t miss out and the boutique doesn’t miss a sale.

Sale Notifications:Priyanka, a regular customer, gets a message about an exclusive early-access sale thanks to the chatbot. It knows her purchase history and preferences, making her feel valued and more inclined to shop.

Personalized Fashion Advice:Karan is undecided about a pair of sneakers in his cart. The chatbot sends him a message with styling tips and a discount code for those sneakers. This personalized nudge helps Karan make a decision, enhancing his shopping experience.

Abandoned Cart Reminders:Anita added a dress to her cart but got distracted. The chatbot sends a gentle reminder with a small discount, making her reconsider. It's a win-win; Anita gets a deal, and the store secures a sale.

Customer Support in Retail

Chatbots are significantly impacting the retail sector by providing swift customer support. They're ready round the clock to tackle various customer inquiries, ensuring quick and accurate responses.

Store Hours and LocationsLet's say Priya needs to buy a last-minute gift and wants to know how late the store opens. A quick message to the store's chatbot, and she instantly learns not only the closing times but also gets a suggestion for the nearest location based on her current place. This immediate assistance motivates Priya to head to the store immediately, potentially leading to a purchase.

Product AvailabilityRohan is looking for a specific smartphone model. He asks the chatbot, which promptly confirms its availability at a branch convenient for him and even offers to reserve it. This saves Rohan the effort of calling or visiting different stores, streamlining his shopping experience.

Price Checks and PromotionsAnjali is considering buying a blender and is looking for a bargain. She inquires with the chatbot, which not only gives her the price but also informs her about an ongoing discount—an opportunity she was unaware of. This timely information helps Anjali make her purchase decision more confidently.

Example 4: Customer FeedbackAfter her shopping trip, Meera receives a message from the chatbot asking about her experience and whether she found everything she needed. This simple gesture of asking for feedback shows customers like Meera that the store cares about their shopping experience, fostering a sense of loyalty.

Healthcare Appointments

WhatsApp chatbots simplify interactions between patients and healthcare services, streamlining the process of managing health appointments.

Booking Appointments:Consider Sunita needing to schedule a check-up. Rather than calling and waiting, she sends a quick message to the hospital's chatbot. It shows her the available times with her preferred doctor, and she books immediately. This direct approach saves time for patients.

Post-Appointment Follow-Up:After his visit, Raj gets a chatbot message asking for his visit feedback and later receives a reminder for his next check-up. This ensures he keeps up with his health plan, enhancing patient support.

Health Nudges:Avinash, looking into stomach pains but hesitating to book, receives a chatbot message emphasizing the value of seeing a gastroenterologist. This targeted reminder could prompt him to prioritize his health issues.

Travel and Hospitality

WhatsApp chatbots are becoming a go-to solution for travel agencies and hotels, making travel planning and experiences smoother for customers.

Finding Deals:Consider Priya and Arjun, who are planning their honeymoon and looking for affordable travel packages. A travel agency's chatbot asks them about their preferences and quickly scans through options to suggest the best deals. It's like having a personal travel advisor available around the clock.

Travel Restrictions Info:Given how often travel rules can change, staying updated is crucial. A chatbot can provide the latest visa requirements or health guidelines for destinations like Goa or Jaipur, ensuring travelers like Suresh know what to expect before they set off.

Booking Made Easy:Organizing flights, hotels, and activities is a lot of work. Chatbots simplify this by managing bookings through WhatsApp. If Deepika wants to book a beach resort in Kerala for the weekend, she can just tell the chatbot, who handles everything, and the chatbot will send her a booking confirmation.

Services Upon Arrival:Arriving in a new place like Mumbai can be daunting. A chatbot messaging a traveler with options to book a taxi from the airport to their hotel can be a relief, making them feel cared for when they land.

Exploring Like a Local:Travelers often seek unique local experiences. A chatbot can suggest activities based on interests. If Rohan wants cultural experiences in Varanasi, the chatbot can recommend local museums, Ganga aarti, or boat rides on the Ganges.

Collecting Feedback:After the trip, the chatbot can ask for feedback on services like the hotel stay or the taxi service. This direct line for feedback helps businesses like tour operators or hotels improve and resolve any issues quickly.

Banking Services

WhatsApp chatbots are transforming banking services, offering convenience and enhanced security for routine financial tasks.

Immediate Reporting of Lost Cards:Rahul notices his missing credit card and immediately messages the bank's chatbot to report it. Within a few interactions, the card is blocked, and a request for a new one is processed. This swift action minimizes the risk of fraudulent transactions directly from his phone, any time of day.

Simplified Loan Applications:Anita is considering buying a car and contacting her bank's chatbot to inquire about auto loans. The chatbot walks her through the application process, asking for necessary details and providing instant preliminary approval based on her account history. This convenience speeds up the loan application process, making it less daunting for customers.

Balance Inquiries and Transaction History:Vikram sends a quick message to check his account balance before making a large purchase. The chatbot provides his current balance and offers a brief overview of recent transactions, helping him track his spending without logging into an app or visiting a branch.

Setting Up New Accounts or Products:Priya, interested in starting her investment journey, chats with the bank's bot about opening a mutual fund account. The chatbot outlines different fund options, expected returns, and how to set up a SIP (Systematic Investment Plan) directly through the chat, making financial planning more accessible.

Custom Alerts and Notifications:Karan opts in for notifications through the chatbot for large transactions or when his account balance drops below a certain threshold. This personalized alert system helps him better manage his finances and stay on top of potential issues.

Feedback and Support Requests:After interacting with the chatbot, Meena receives a prompt asking for feedback on her experience. She can also request a callback if her issue requires further assistance, ensuring no query is left unresolved.

How Does a WhatsApp Chatbot Work?

WhatsApp chatbots are reshaping customer service and marketing strategies by leveraging advanced technologies. This detailed breakdown of how these digital assistants operate is tailored for marketing and customer service professionals.

1. Foundation: AI and NLPAt their core, WhatsApp chatbots are powered by Artificial Intelligence (AI) and Natural Language Processing (NLP). This combination allows chatbots to understand and interpret human language, enabling them to respond to queries highly accurately and relevantly.

2. Keyword-Based TriggersFor simpler chatbot applications, keyword recognition plays a crucial role. When a user sends a message, the chatbot scans it for specific keywords (e.g., "business hours" and "vegan options") and triggers a predefined response based on those keywords. This method is efficient for handling common queries but may lack the depth of personalization possible with more advanced AI.

3. Utilizing NLP for DepthIn contrast, NLP-driven chatbots understand the context and nuances of a conversation. This allows for a more natural interaction where the chatbot can handle various queries beyond simple keyword matches. For instance, it can discern a user's intent even when phrased differently, such as "Do you serve plant-based food?" versus "Is there a vegan menu?"

4. Interaction Flow: Decision Trees and Machine LearningBehind every chatbot interaction is a decision-making process. Initially, chatbots may follow a decision tree—a structured plan of possible questions and responses. As they evolve, incorporating machine learning allows them to predict and decide on the best responses based on past interactions, enhancing their ability to handle varied conversations.

5. Human Escalation: The Safety NetWhen a query surpasses the chatbot’s capabilities or requires a human touch, the conversation is seamlessly escalated to a human representative. This ensures that complex issues are resolved satisfactorily, maintaining high customer service.

6. Continuous Learning: The Feedback LoopA key feature of WhatsApp chatbots is their ability to learn from every interaction. By analyzing conversations, they gradually improve their responses, becoming more efficient and personalized. This learning process is crucial for adapting to new customer behaviors and expectations.

7. Personalization and SegmentationAdvanced chatbots can tailor conversations to individual users by leveraging data integration. Chatbots can provide personalized product recommendations, reminders, and offers by accessing information from CRM systems, significantly enhancing the customer experience.

8. Compliance and PrivacyChatbots operate within WhatsApp’s framework and adhere to stringent data protection and privacy regulations, ensuring user data is handled securely. This is particularly important in regions with strict privacy laws, such as those under GDPR.

Integration into Business Systems and Processes

Integrating WhatsApp chatbots into business systems like Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) can significantly streamline operations and enhance customer experiences. Let's delve into specifics.

‍Connecting to CRM and ERP:Imagine a scenario where a customer inquires about a product's availability through a WhatsApp chatbot. The chatbot, integrated with the company's ERP system, instantly accesses inventory data to provide a real-time answer. Simultaneously, this interaction is logged into the CRM system, updating the customer's profile with their interest in this product. This integration ensures sales teams can follow up with tailored offers, enhancing the sales process.

Automating Business Operations:Sales: A chatbot can guide a customer through purchasing and recommending products based on past purchases logged in the CRM. For example, if a customer previously bought a laptop, the chatbot might suggest compatible accessories during their next interaction.

Customer Service: Automating customer service with chatbots can reduce response times and increase satisfaction. For instance, a chatbot integrated with an ERP system can automatically provide order status updates, reducing the need for customer service calls.

Marketing: Chatbots can send personalized promotions based on customer data from CRM systems. If customers frequently purchase skin care products, the chatbot can notify them about a new skincare line launch or exclusive offers.

Crafting Omnichannel Experiences:An omnichannel approach ensures a cohesive customer experience across all platforms. For example, the transition is seamless if a customer starts a conversation on WhatsApp and then switches to email or a phone call. Thanks to CRM integration, the customer service representative can access the entire conversation history from WhatsApp, allowing them to continue the conversation without asking the customer to repeat information.

This level of integration and automation enables businesses to provide personalized, efficient service across sales, customer service, and marketing. Companies can create a more connected, responsive, and personalized customer experience by leveraging WhatsApp chatbots with CRM and ERP systems.

How to Create a WhatsApp Chatbot Strategy

Thinking about adding a WhatsApp chatbot to your business toolkit? Here's how to get started, broken down into simple steps:

1. What's the Goal? First up, figure out what you want from your chatbot. Is it about answering customer questions fast, selling more products, or maybe both? Say you run a café; your chatbot could help customers book tables or order ahead.

2. Making It Feel Right: Your chatbot should sound like part of your team.

• How It Talks: Plan how your chatbot will handle questions. If you sell outdoor gear, your chatbot might need to advise on the best tent for rain. It's about guiding customers through their questions smoothly.
• Matching Your Vibe: The chatbot should match your brand's style. If your brand is about fun and energy, your chatbot shouldn’t sound like it’s wearing a suit and tie.

3. Getting Personal: Not everyone wants the same thing. Your chatbot can suggest products or answers based on what it knows about someone. For example, a bookstore might recommend the latest mystery novels to someone who loves a good whodunit.

4. Keeping It Legal: Ensure you know how you use data and respect privacy laws, especially if you're chatting with folks in places with strict rules like Europe.

5. Build or Buy? Decide if you need a custom-made chatbot or if a pre-built platform is sufficient. Small businesses might lean towards something ready-made, while larger businesses might want something more tailored.

6. Test Before You Go Live: Test everything to ensure it works as it should. You want to find any glitches before your customers do.

7. Keeping an Eye on Things: Decide how you'll know if your chatbot is doing its job. Maybe it's how many questions it answers or how many sales come through chat. Use this info to make tweaks and improvements.

8. Learn and Adapt: The best chatbots get better with time. They learn from their chats and get smarter about helping your customers.

Technical Development and Deployment of Chatbots

When you’re ready to implement a WhatsApp chatbot in your business, you have two options: building a custom bot from scratch or using a platform-based solution. Each has its perks and quirks.

Custom Builds vs Platform-Based Solutions:

When considering the incorporation of a WhatsApp marketing chatbot into your business strategy, weighing the advantages and disadvantages of developing a custom solution versus utilizing a platform-based service is essential. Each approach offers distinct benefits and challenges, depending on your business needs, technical resources, and budget constraints. Below is a comparative table that breaks down the key pros and cons of each option to help you make an informed decision:

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Custom-Built WhatsApp Chatbot

Pros:

• Tailored Experience: Allows for deep customization to fit specific business needs.
• Advanced Integration: Enables more sophisticated integration with existing CRM and analytics tools.
• Unique Functionality: Can develop unique features not available in platform-based solutions.

Cons:

• Higher Cost: Typically requires more financial investment.
• Technical Expertise Needed: Demands significant technical skills and resources.
• Longer Development Time: Custom solutions take longer to develop and deploy.

Platform-Based WhatsApp Chatbot Solutions

Pros:

• Cost-Effective: Generally more budget-friendly with lower upfront costs.
• Ease of Use: Comes with pre-built templates and user-friendly interfaces for quick setup.
• Faster Deployment: Allows rapid development and launch, getting your chatbot up and running quickly.

Cons:

• Limited Customization: While some customization is possible, it may not match the level custom builds offer.
• Potential Integration Limits: This may not offer deep integration capabilities with existing business systems.
• Generic Functionality: Features and capabilities may be similar to those other businesses use, offering less differentiation.

Integration Challenges and Technical Requirements:Integration is where the rubber meets the road. Whether custom or platform-based, your chatbot needs to play nice with your CRM, ERP, or any other system you’re using. This might mean ensuring your chatbot can access your inventory database to check product availability or integrate with your appointment booking system. The technical heavy lifting here varies; custom solutions might require more intricate integration work, while platform-based solutions offer plug-and-play integrations with popular business software.

Strategies for Effective Testing and Deployment:Testing is non-negotiable. Before your chatbot goes live, it must undergo rigorous testing to catch any hiccups. Scenario testing can be a lifesaver here. For instance, map a customer journey from inquiry to purchase and see how your chatbot handles it. Does it understand the queries? Can it pull the correct data from your systems?

Deployment strategy is also key. A phased rollout can help. Start with a limited set of features or a smaller customer segment, gather feedback, and adjust before going wide. This approach helps iron out any kinks and ensures your chatbot is ready to represent your brand.

Getting your WhatsApp chatbot off the ground involves choosing the right development path, carefully planning integrations, and rigorously testing before and during deployment. Nail these, and you’ll be well on your way to offering your customers a seamless, helpful chat experience.

Measuring the Impact of WhatsApp Chatbots

When you've got a WhatsApp chatbot up and running, it's crucial to understand how well it's doing. Here's how you can get a clear picture.

Key Performance Indicators (KPIs):

To effectively measure the success of your WhatsApp chatbot across different roles within your organization, it's crucial to establish specific Key Performance Indicators (KPIs). Below is a table that spreads these KPIs across various roles, offering a clear perspective on what metrics matter most depending on the focus of the chatbot:

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Customer Satisfaction and Engagement:

Focusing on feedback and engagement metrics is crucial to understanding customer sentiment towards your WhatsApp chatbot. Here's a breakdown into bullet points for clarity:

• Collecting Feedback:
  • Utilize surveys post-chat sessions to gather customer feedback.
  • Key metrics to watch include Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT), offering insights into overall sentiment.
• Measuring Engagement:
  • Track the rate of repeat interactions with the chatbot.
  • High rates of returning customers engaging with the chatbot suggest it's useful and enjoyable for users.

This approach helps assess how well the chatbot meets customer needs and identifies areas for improvement.

Return on Investment (ROI):Calculating the ROI of your chatbot involves looking at the costs versus the benefits. Costs include development and maintenance, while benefits can be quantified by looking at efficiency gains (like reduced customer service manpower needs) and revenue generated directly from chatbot interactions. For instance, if implementing the chatbot has led to a 20% reduction in customer service calls and increased sales by 10%, these figures would be critical in assessing your chatbot's ROI.

By monitoring these aspects, you can tweak your strategy, improve your chatbot, and ensure it’s truly serving your business goals.

Future Directions and Innovations in Chatbot Technologies

WhatsApp chatbots' evolution closely follows advancements in AI, machine learning, and natural language processing (NLP), shaping a future where interactions are more nuanced and responsive.

Evolving AI and NLP:These technologies refine how chatbots understand and engage in conversations. A WhatsApp chatbot could detect sentiment in messages, adjusting its responses accordingly. If a customer shows frustration, the chatbot might change its tone or alert a human team member.

Predictive Personalization:Chatbots anticipate customer needs based on historical interactions. For example, a chatbot might notice a pattern in a customer's purchases and suggest a reorder at the perfect time with a message like, "Looks like it’s time to restock your coffee beans. Shall I place the order?"

Leveraging Customer Insights:WhatsApp chatbots provide valuable data on customer preferences and behavior. This information can refine marketing strategies, product development, and customer service approaches. Detecting frequent queries about a product feature might highlight the need for clearer information or tutorials.

Emerging Trends:Integration with other technologies within WhatsApp is a key trend. Chatbots could offer real-time order updates by connecting directly with courier systems. Another development is voice recognition within WhatsApp chatbots, which allows users to conveniently interact through voice commands.

As technology advances, WhatsApp chatbots are set to offer more personalized, intelligent, and seamless customer experiences, becoming an integral part of digital engagement strategies.

QuickReply.ai’s Chatbots

Now, let's explore the types of chatbots QuickReply.ai offers across its different plans, each tailored to suit your business's evolving needs.

Starter Plan: Getting Started

Say you've just opened an online shop that sells unique lamps. As you get some traction, people ask questions over WhatsApp. In the Starter plan from QuickReply.ai, you get a chatbot equipped to handle basic interactions. For instance, when someone asks a question, the chatbot can acknowledge their inquiry with responses like, "Thank you for your query." It's a straightforward yet effective way to ensure that every customer feels heard immediately.

Standard Plan: Making Conversations Smoother

Now, your lamp shop's buzzing. You're getting questions like, "Do you have any lamps made from recycled materials?" The Standard plan chatbot introduces responses for these kinds of specific inquiries. Say someone asks about eco-friendly lamps; the chatbot can guide them directly to your green selections. If a question isn't quite a direct hit for the chatbot's set keywords, it'll still respond to keep the customer engaged, asking for more detail or offering to connect them with a human for more complex questions. This level of automation is great for growing businesses and needs to manage an increasing volume of customer interactions efficiently.

Plus Plan: Customizing the Customer Experience

Imagine your store is now a go-to spot for unique, handcrafted lamps. You're fielding many inquiries, from specific product features to customization options. This is where the Plus plan comes in handy. It lets you build custom chatbot flows that understand what your customers are looking for.

Here are the things possible with custom chatbots:

• Third-Party Integrations and Natural Language Processing (NLP): Personalized Shopping Assistant: Utilizes NLP to understand customer preferences and inquiries, offering product recommendations that align with individual customer needs.
• Timely Updates and Tailored Recommendations: Delivers up-to-the-minute information on product availability, sales, or updates, personalized to the shopper's interests and past interactions.

1. Dynamic Product Catalogs: This feature automatically updates and personalizes product offerings in chat conversations, ensuring customers see the most relevant and current selections based on their preferences.

1. In-Chat Payments and Promotions: Allows customers to make purchases or take advantage of promotional offers directly within the chat interface, streamlining the buying process for a frictionless shopping experience.

1. Informational Journeys: Guides customers through detailed narratives about products or services, enhancing their understanding and building a deeper connection with the brand through informed choices.

1. User Profiling-Based Responses: This feature leverages customer data to tailor chatbot responses, ensuring that each interaction is personalized based on the customer's history, preferences, and needs.

1. Source Attribution: Identifies and utilizes the source of the customer's inquiry (such as a specific marketing campaign or website visit) to provide contextually relevant responses and suggestions.

1. Store Locator: Offers customers immediate assistance in finding the nearest physical store location by requesting and using their geographic information, bridging the gap between online browsing and in-store visits.

Wrapping up

It's evident that WhatsApp chatbots are more than a fleeting tech trend; they're changing how businesses interact with customers. With the ability to enhance sales and customer service and streamline operations, chatbots are becoming integral across various industries.

Chatbots are set to become even smarter, thanks to AI and machine learning advancements. This evolution will further personalize customer interactions, making chatbots an indispensable tool for businesses aiming to stay ahead in the digital landscape.

If you are looking for mature and sophisticated WhatsApp Chatbots,  has many pre-trained bots ready to plug and play, and you can even quickly create custom chatbots.

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