How Chatbots can reduce cost of customer service by 30%?

Today all companies are looking for savings, especially in customer service and sales area. One of the methods to achieve these savings is to automate these areas. Most popular tools of automation are chatbots, which  are capable of reducing labor costs as well. Automating a part of customer service and sales would result in considerable savings for businesses. It can be achieved by using chatbots and other automation technologies.

Why use chatbots in customer service?

Chatbots can save up to 30% in customer support services

265 billion customer support requests are made every year, and it costs businesses $1.3 trillion to service them. Chatbots have the potential to automate 30% more of the tasks done by today’s contact center staff, which  means that a potential savings of $23 billion can be achieved in the U.S. only.

Source: BI Intelligence, The Chatbots Explainer, 2016

Faster response times and first call resolution, service 24/7 x 365

Autodesk is a global leader in 3D computer-aided design. The company has a customer service chatbot, AVA, that responds to queries around the clock, so a customer can get help with routine queries like address changes, login issues, payment issues, and other frequently asked questions all the time.

Thanks to this virtual agent that delivers significant productivity and efficiency service, company achieved:

– A 99% improvement in response times: Cutting resolution from 38 hours to 5.4 minutes for most popular inquiries
– A drop in per-query cost from $15-$200 (human agents) to $1 (virtual agents)
– A virtual agent that answers and resolves an average of 30,000+ customer support queries per month
– A virtual agent that recognizes 40+ distinct use cases to quickly resolve simple requests

Better customer experience

…91 percent of unsatisfied customers will not return for a repeat purchase or service…

80% of the customer queries are one-type. If these questions are answered by chatbots, it will make things easier for support members, enabling them to focus on more complex issues. Also when a new user links to the chat, the chatbot immediately responds with a greeting and a set of buttons for quick answers to the most popular questions.

Chatbots definitely take customer support to new level of performance and effectiveness, ensuring that they are satisfied and served fast and with the best quality, and it is just a beginning of this evolution.

The Future

Chatbots can help reduce business costs by more than $8 billion per year by 2022, according to new research which is anticipating a surge in automated customer service programs.

Regarding to the study by Juniper Research, most beneficial from the new technology are healthcare and banking industries which manage large volumes of human interaction. The company predicts that between three-quarters and 90 percent of queries in these areas will be dealt with by chatbots within the next five years, resulting in cost savings of up to $0.70 per interaction.

Chatbots currently account for business cost savings of $20 million globally, but their ability to deal comprehensively with human problems is limited.

All customers wants are quick answers and their problems solved. If a robot is helping that to happen faster and smarter they actually enjoy that experience.  So is your company ready to use chatbots and start benefit from sustained savings?