How do you calculate ROI for an AI chatbot and voice bot?
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How to determine if your business would benefit from conversational AI
Considering the implementation of an AI chatbot or voice bot for customer service, sales and marketing, or HR? Evaluating the return on investment (ROI) for chatbots is more straightforward than you might imagine.
Businesses are increasingly deploying AI chatbots to complement human agents, a move that can enhance customer satisfaction while managing workforce growth amid rising demand. AI-driven chatbots address specific and measurable issues such as reducing resolution time and enhancing key performance indicators (KPIs) in customer service. Post-integration of a chatbot or virtual assistant, companies have reported a notable decrease of up to 70% in calls, chats, or emails necessitating human agent intervention, resulting in potential savings of up to 30% in customer service expenses. This efficiency stems from AI-powered chatbots autonomously handling up to 80% of routine inquiries, such as order status queries and refund requests for retailers, early check-ins and flight updates for travel agencies, and troubleshooting and account updates for streaming platforms.
Wondering if the investment in building AI chatbots and voice bots is worthwhile?
Factors that drive customer service costs
Before delving into the calculation of chatbot ROI, it’s crucial to understand the reasons behind the high costs associated with customer service. Annually, an estimated 265 billion customer support requests are handled, amounting to a staggering $1.3 trillion in expenses. According to the Help Desk Institute, the average cost per minute for live chat support is $1.05, with the average cost per chat session standing at $16.80. Several key factors contribute to the elevated costs of customer service:
1. Agent Salaries: While the adoption of bots might not heavily impact rationalizing company headcount, it does assist in curbing additional workforce expansion as ticket volume rises. The average hourly wage for customer service agents is $21, and considering employee benefits, optimizing salary expenditures can lead to significant savings, potentially amounting to hundreds of thousands of dollars, contingent upon the size of the agent team.
2. Day-to-Day Expenses: These encompass various operational costs such as licensing fees for human agent desk platforms, overhead expenses, hardware maintenance, paid time off, sick leave, and more.
3. Recruitment and Training: Customer service roles frequently experience high turnover rates, averaging at 45% annually. The expenses associated with recruiting, onboarding, and training new employees can reach approximately $4,000.00 per agent.
Utilize our new calculator to assess Your Chatbot ROI
In order to calculate your chatbot’s return on investment (ROI), you’ll only need a few key pieces of information:
1. Number of agents
2. Agent salaries
3. Customer service ticket volume (chats and calls)
4. Average resolution time
Let’s illustrate this process with an example. Consider a business that has 10 support agents whose salary is $2,900 a month. $1,300(support requests)/10 agents = 130 requests per agent.
If a chatbot takes on 260 requests per month then this is the equivalent of two agents with a total cost of $5,800 ($2900*2)
That’s $5,800 spent on questions a chatbot could take over in a month. Our AI solution costs just 10-20% of that.
How to maximize AI chatbot ROI
Companies aiming to optimize their return on investment (ROI) through a chatbot platform can employ five key strategies:
1. Address the Right Challenges: Utilize AI to automate high-volume, expensive tickets that can be fully resolved by AI. Instead of guessing, identify the most suitable use cases for automation by analyzing historical tickets and data.
2. Enhance Training: If leveraging a modern AI platform incorporating deep reinforcement learning, expect improvement over time. Monitor conversations to reinforce positive outcomes and provide additional training if the chatbot misinterprets user intent.
3. Choose Appropriate Channels: Avoid the common pitfall of launching a chatbot on the wrong channel. Chatbots can operate across various mediums including email, social media, messaging platforms, and even voice interfaces. Select channels with high volume and resolution times for optimal deployment.
4. Scale Across Channels: After successful deployment on a high-volume channel and subsequent improvement from real interactions, expand the chatbot’s presence to other channels.
5. Integrate with Backend Systems: Empower the AI chatbot to fully resolve tickets and deflect queries from other channels by integrating with backend systems such as CRM, order management, and e-commerce platforms. Enable the chatbot to access personal data to address issues on a personalized level.
Find out what your ROI will be if you build an AI chatbot or voice bot
Our team at Born Digital understands the unique needs of every business. Our flexible pricing structure is designed to align with your specific goals, ensuring you get results without the one-size-fits-all approach.
Get in touch with our team of experts dedicated to mapping the fastest path to a strong ROI. Ready to transform your conversational AI journey? Fill out this form and we’ll be in touch as soon as possible.