The ability to converse is nature’s gift to humans. We can connect with anyone, speak what we want to, understand what others want to talk & that’s how we drive social & business conversations. As the human as advanced, we have been successfully able to transfer this gift to machines & have them do this for us. This prevalent technology is known as Conversational AI!
Conversational AI has taken a big leap forward from the last few years & been a driver of digital adaption during the pandemic specifically for use in sales, marketing & support capacity.
According to Markets & Markets, use of chatbots is set to account for $15 billion by 2024, with a Total addressable market of $1 trillion. Enterprises across verticals such as Retail, BFSI, Healthcare, Media, etc. are adopting Conversational AI across their key functions. ValueFirst, an Indian Pioneer in digital communications have automated key customer engagement processes for big multinationals like exide, P&G etc with their conversational AI solution, Surbo!
Organizations worldwide are looking forward to building a digital ecosystem for customer acquisition & communications. In this blog, we will walk you through the value proposition which enterprises can drive by integrating conversational AI into their ecosystem. The calculations are based on market accepted estimates & our inhouse engagement data.
The ROI Metrics
Sales & customer support are two of the most promising departments under Conversational AI. All major enterprises worldwide spend heavily in building infrastructure so they can scale up their sales & support. Building a supported infrastructure demands high cost of recruiting, training, and maintaining large teams of customer service & sales agents. An automated AI-powered conversational interface & a live chat solution can automate the resolution of routine repetitive queries and FAQs, which typically comprise 80% of incoming query volume. This means that human intervention is only required for the remaining 20% of more complex queries.
Modern engagement prompts and conversational interfaces have proven to be effective in converting visitors over digital platforms into active buyers, boosting lead conversion rates by as much as 30%. The responses possessed by virtual agents have the ability to simulate human like conversations thanks to Natural language processing & sentiment analysis. This helps in creating a virtual ecosystem where customers can get their queries resolved like better than before & companies can save costs. Exciting isnt it?
So lets check what is the estimate of ROI for companies if we comprise the numbers into this simple ROI formula and fill in the blanks.
(Additional attributed Sales + HR savings) – Conversational AI Investment
Conversational AI Investment
So let’s assume the following i) the average cost of hiring good sales executives is INR 600,000 per annum ii) the additional HR cost in hiring & maninting the human resources is INR 200,000 per annum iii) the cost of an AI powered army of agents is INR 350,000 per annum.
(INR 600,000 + INR 200,000) – INR 350,000
_______________________________ =ROI of 128%
Looking at huge returns enterprises can enjoy, it only makes sense to make a shift towards digital engagement solutions & conversational AI to be specific. Juniper research, a british research house predicts that chatbots will deliver $11 Billion dollars in savings for core industries every year by 2023. Make your brand conversational today & win ever lasting customers every quarter!