How to Calculate Chatbot ROI for your Enterprise
Artificial intelligence (AI) is the most powerful innovation of our times. It transforms the way human life is facilitated and how corporations are kept running together as a whole. AI is especially useful when dealing with your clients as these days people expect instant responses when reaching out to a business to whom they are giving their patronage, and as such it has become imperative to offer them that on-demand service anytime they need it.
Gartner predicts that by 2027, chatbots will become the primary customer service channel for roughly a quarter (25%) of organizations. Gartner adds that various AI technologies will help service agents respond faster and more efficiently. Additionally, AI digital assistants will become the front line of service desks.
“If you don’t embrace the bots, you won’t survive,” said Muddu Sudhakar, founder, and CEO of AI-powered customer service and IT solution platform, Aisera. “It makes economic sense to do rather than having a human answering the most mundane tasks.”
According to Fortune Business Insights, the global Chatbot Market size is projected to reach USD 1,953.3 million in 2027, at a CAGR of 22.5% during forecast period; Presence of Large Companies in North America to Facilitate Growth.
Cost Savings & Revenue Generation from Implementing a Chatbot
Chatbots are known for positive business cost savings in operational costs while increasing revenue and having a valuable impact to the bottom line for enterprises. Round the clock customer care has resulted in a surge of interest in conversational AI platforms that build on the strengths of NLP NLU, AI and automation. Delays in handling time and follow-ups are eliminated for a smooth customer experience.
Bots are also used for sales conversions and lead generation. Here are the most noteworthy benefits of chatbot platforms:
- Cost savings via efficient services
- Reduces costs of repetitive support inquiries
- Cost savings via live chat agent hand-off by the AI chatbot
- Revenue generation from high online ratings
- Revenue generation from upsell
- Saves time by automating the business process
Calculating the ROI for Chatbots
You need to identify the eligible series of queries and form a database of what your clients are coming to you often for. To take stock of how many chat inquiries a AI bot can assist with, you demarcate a system that collects all the eligible questions. You can check the details in the dashboard and the result provides a clear picture of your potential for automation.
Then it becomes easy to anticipate the major pain points that could be resolved by a chatbot.
Bifurcate your queries into:
- Simple inquiries (what a bot could deal with)
- Complex queries (some which the bot can handle, and then hand off to an agent)
- Escalation requests (which should directly be managed by an agent)
The 80:20 rule usually applies – which is that 80% of client tickets are usually all repetitive queries, while the remaining 20% may require human assistance.
Calculate the average handle time for various types of simple inquiries, and then estimate the annual cost of handling eligible chats. Multiply your agent’s pay by the hours spent on these daily tasks, then to get a roundabout figure for annual expenses multiply it year-round by 12.
Let’s use Aisera’s AI Customer Service ROI calculator to determine how your company can save $3,125,000 in a year with an example using a hypothetical situation where you have 50 service agents.
Evaluating your savings from Aisera’s chatbot ROI calculator:
Agent salary – $80,000
Team size – 50 service agents
Tickets in a year – 200,000
Price per ticket – $20
User cost per hour – $30
Chatbots Minimize Human Errors and Delays
The improvement is visible in the speed of response but also in removing some of pain points in customer support. The cost of errors can be tricky to estimate but it is a given that mistakes may lead to a drop in the number of customers due to misinformation, delays or dissatisfaction.
These pain points include:
- Over 5-10 minutes of waiting time in a queue to be connected
- Being transferred between agents with no resolutions
- Having to use a system where the desired option isn’t covered or the options are ambiguous
- Having the call dropped and requiring to rehash the details all over again
- Following up multiple times
Reducing mistakes saves your organization millions of dollars. Furthermore, switching to a chat based approach ensures that the agents are able to deal with more complex issues and multiple conversations, saving a lot of time and increasing agent productivity.
AI Chatbot for an Elevated Employee Experience - Dartmouth's Success Story
With long user wait times and high ticket volumes, Dartmouth was searching for a virtual assistant that provided instant IT support to students and faculty on the channel of their choice. The total ticket volume was over 4,000 tickets per month, severely taxing the 12 support agents tasked with managing the campus service desk.
By implementing Aisera AI service desk, Dartmouth was able to autonomously increase self-service, and realized an 86% improvement in auto-resolution of support requests and saved over $1 million in annual service desk costs.
Book a demo with Aisera to learn how you too could supercharge your business strategies for this year with AI and automation.