A template reply won't be directly triggered by an expression which makes it perfect for drafting dialogue flows without pushing them live to the your production environment. In addition, it is great for saving/archiving existing replies for later.
Examples of scenarios where Template Replies can be used include:
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Drafting and testing new dialogues without going live into production
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Making changes to dialogues that are live
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Saving a dialogue for later/ retiring a dialogue
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Copying templates between bots within the same organization
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OOH replies
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Repetitive transfer flows. e.g. escalation flows, CSAT flows
To learn more about creating template replies, have a look at Template Replies explained.