A study conducted by Chatbots Magazine revealed that businesses could reduce customer service costs by 30% by executing conversational AI solutions like virtual agents and chatbots.
What’s the secret behind chatbots’ impressive savings?
The implementation of chatbots frees up human agents at customer care centers, who can then address more complicated inquiries and provide a better service. It also reduces the total number of agents required at the call center, which leads to significant cost savings.
Taking over routine tasks
Staffing a 24/7 call center with human agents can be very expensive for companies.
“According to the Human Resource Institute, the cost of replacing one front line employee is around $10-$15k.”
For most companies, half of the calls received are for routine requests, which are resolved very quickly. The conversational AI platform acts as the first line of defense, and only the more complex, non-routine inquiries are handled by human agents. Chatbots can be used to handle the following requests:
To answer general questions, for example — Office timings, office locations, etc.
Basic operations, for example- Returns or exchanges, taking orders.
Handling frequently asked questions- Chatbots can be programmed to offer the user a predefined set of questions and provide a standard response.
Retrieval of information, for example- about any current or previous orders.
Assisting users in shopping/ searching for any product, or in the absence of the desired product, provide similar products as alternatives
Apart from these general operations, chatbots can be personalized according to the company’s needs.
Cheap 24/7/365 availability
This is considered as one of the most significant benefits of chatbots. A chatbot is always available to service the customer at any point of time without any delay, without the need for involvement of any human intervention. Support agents cannot work throughout the day as well as night. If there are teams taking different shifts to provide 24/7 assistance, it’s going to cost a ton of money in wages and overheads.
“64% of consumers claim that 24/7 service is the most useful chatbot functionality.”
It requires careful staff planning for ensuring 24 hours operation so that each staff member gets proper rest between their shifts. The involvement of chatbots in the picture significantly reduces the number of employees required to cover each turn, thus reducing the salary costs effectively, especially since the night shifts are paid higher. With 7 day availability, the number of staff required on weekends reduces too. An additional benefit of chatbots is that they don’t require breaks or vacations and can provide the same level of customer service throughout the year.
Better Customer Satisfaction
Chatbots provide businesses a convenient and inexpensive digital medium to resolve customers’ issues. Customers appreciate the self-service nature of conversational AI solutions. They don’t have to hold and wait while a customer service agent looks up information. According to a study, 69% of consumers prefer to use chatbots because they deliver quick answers to simple questions.
Customers usually get upset if they don’t feel valued or appreciated by the agent. In this regard, chatbots are a safe bet as they are objective- free from the judgment and biases that affect human communications and decision-making. Chatbots are also error-free, unlike human agents, who might give incorrect advice upon encountering a situation similar to one they had encountered earlier.
“A poor online customer experience will prevent 3 out of every 5 customers from making a future purchase from a brand.”
As for chatbots, there is no waiting time, and immediate resolutions are provided to the customers. This allows for faster response time, which results in faster resolutions to customer support issues. Businesses can quickly engage their customers before they get frustrated. An Accenture study found that chatbots could resolve 80% of chat sessions without the need to involve a human agent over chat or phone. As a result, agents are free to handle the issues that require human involvement.
Chatbots can also be personalized according to the needs of the business. Being machines, they have the ability to process mountains of data in the blink of an eye. They automatically collect customer details and purchase history from the CRM, instantly providing them with a personalized response that’s relevant to their previous experience. This is an important time-saving benefit of chatbot since human agents have to spend time sieving through the customer database and finding the required information. This helps minimize the need for the customer to go through the whole process of providing their order number to an agent and then to wait for them to look it up and provide a resolution.
Source of Analytical data
The conversations that the chatbot has with customers can be used to produce a vast amount of analytical data for free. This eliminates the need to conduct individual surveys or approaching customers through online or offline mediums. With the right tools, chatbot activities can produce a lot of information regarding the customer service situation of the company. Customer analytics can be costly, but chatbots significantly reduce these costs.
Chatbots can also be utilized to measure user engagement and customer retention, tracking user flows, and identifying patterns and trends. Apart from generating a complete user statistic, this information can also be used for the assessment of the performance of the chatbot itself. This lets the developers fill in the shortcomings of the chatbots to produce maximum efficiency.
If yours is a business that involves direct contact with the customers, using a chatbot is highly recommended for improving the customer service quality, as well as cost-saving. Depending on the type of business, you can get personalized chatbots with a different set of functionalities and features to align with your business objectives.
Feel free to contact us for a professional consultation on chatbot development, and we’ll be delighted to help you design the chatbot that suits your purposes best.