• Yashika

How Chatbots can help reduce customer service costs

Updated: Jun 28

There is no surprise to the fact that customer service holds great importance in the success of any business and considered an integral part of business operations. Investing in top-notch customer service helps retain customers and attract new customers as well. It is paramount for business growth as it generates more sales opportunities. Thus, excellent customer service is imperative for businesses to gain a competitive edge, increase customer base, and customer loyalty.

A great Customer Service is the new marketing strategy

In today’s challenging scenario, business owners are constantly in search of ways to make the business all the more productive and deliver substantial customer service experience. It is also because more than 50% of customers turn to customer service with higher expectations.

Often, the common perception arises that great customer service requires huge costs, customer service teams, and intensive human handling of cases. It is surely one of the options to provide better customer experience but to some extent, it also drains resources.

However, there are ways to offer more creative and efficient customer service experience while managing the cost. It is possible with the advent of AI programming and automating customer service. The most popular tool of automation is chatbots, which are capable of reducing costs with considerable savings for the business. Artificial Intelligence is indeed a mainstream customer experience investment for businesses.

What is a Chatbot?

Chatbot is an artificial intelligence (AI) based program that can stimulate a conversation or a chat with a customer in natural language. The AI bots or intelligent bots are designed using natural language processing and machine learning for information acquisition. Bots can interpret, understand, and process customer requests or queries to give relevant answers. It can help improve business availability without disrupting work productivity and hence is a great opportunity for your business growth.

The bot can help customers easily navigate through the process of purchase of products or services. It offers customers personalized solutions to their queries and real-time communication makes customers realize that they are heard which leads to customer satisfaction.

AI chatbots learn from each customer interaction. So, where human interaction is necessary, the data gathered by virtual AI assistants can be intelligently routed to an appropriate representative. In this way, agents and chatbots help each other deliver better customer service, which promotes customer trust and loyalty towards a business.

Gartner predicts that by 2022, 70% of all customer service interactions will be handled by AI and involve Machine Learning applications.

Benefits of a chatbot that help reduce customer service costs

Businesses have to struggle to keep up with the growth of customer insight data. The speed and precision of AI technologies help provide the intelligence needed for the customer experience. The rising chatbot trend is transforming the way businesses communicate with their customers. More and more industries like eCommerce, health, and real estate are using chatbots to automate the business processes.

Businesses can reduce customer service costs significantly if they implement these conversational solutions. AI for your customer service can even be a business continuity strategy.

Chatbot significantly contributes to saving on customer service costs by speeding up response time, thus, freeing up agents for more important and complex tasks. It reduces the number of agents required because the maximum of the routine calls can be instantly resolved by a chatbot, which leads to cost savings.

It acts as the first line of contact for customers and complicated inquiries are escalated to agents. It helps solve most of the regular FAQs at the first level call that saves time. Businesses must plan to invest in AI chatbots as the investment can support and improve multi-channel interactions, therefore, handling a vast set of customers at the same time.

  • 24/7 presence- The best aspect of a chatbot is availability at the customer’s convenience. As customers waiting for a response can be a great loss but, chatbots have a positive impact on customer satisfaction and experience. It engages the customer with immediate answers while stimulating the conversation with potential customers. The virtual agent helps deliver efficient service with significant productivity.

  • Instant response- The ability to reply immediately through an automated chatbot reduces the chances of losing a customer. The wait time for assistance is the last thing your customers are looking for. Chatbots are a suitable way to ensure that customers receive instant responses. It saves time, reduces operational costs, and benefits in the business functioning.

  • Personalized experience- The key role is to provide better customer service experiences at a lower cost. The AI Chatbot is capable of understanding customers and analyzing responses to provide relevant data instantly. Based on the customer details and previous conversation you can conveniently gather data to deliver a more personalized customer experience.

  • Scalability- Bots can be the best way to handle multiple conversations at a time, which is not possible with live support agents. Also, hiring more agents require additional costs and only a loss of time. Therefore, chatbots are the best way and easily scalable to manage a large volume of conversations.

  • Cost optimization- With instant responses to a large set of customers, the rate of converting visitors into buyers is higher. It helps to automate an end-to-end business process that gives improved customer experience as well.

At a Glance

It cannot be denied that the vital part of any business is to serve its customers the best while maintaining its cost. The unnecessary usage of resources is certainly not anyone’s business strategy. Do you know most of the time customers end up buying products and services from your competitor because of inefficient customer service?

But the evolution of AI Chatbots not only escalates the customer support to a new level of performance and efficiency but also ensure saving resources. Chatbots are an integral part of customer engagement as they systematically assist them. It enhances customer satisfaction and saves in customer support costs with instance responses maintaining quality service. It is the best way to address your customer’s queries.