IBM estimates businesses spend $1.3 trillion on 265 billion customer service calls each year.
With businesses spending mostly on their infrastructure budget, rather than investing in innovation, there’s clearly a need to lower down the infrastructure costs.
Are you looking to reduce your infrastructure expenses after exhaustively devising cost optimization strategies? Let’s have a look at how chatbots can be a solution to cut down costs while improving customer experiences.
Utilizing Powerful Cost Reduction Strategy
As per Gartner, businesses should indulge in strategies to reduce IT expenses by 10% in 12 months.
The savings on reducing the IT infrastructure cost per worker per year by 10% can be utilized for growth and business innovation opportunities. With efficient budgeting techniques, you can gain a competitive edge and revitalize your financial plan.
Gartner’s report suggests, approximately only 16% of an organization’s IT budget is spent on innovation. The idea is to focus on innovation by utilizing cost-cutting techniques. Chatbots prove to be the smartest way to reduce infrastructure costs for enterprises who are moving to the most advanced technologies.
Chatbots enhance the customer experience in a way that customers become your brand’s marketers.
Robotic Process Automation
Robotic Process Automation (RPA) is providing a path-breaking solution to change the course of how business is done by automating mundane tasks.
With almost 75% of the applicants reporting that recruiters seldom respond to queries related to their selection/rejection, bots have the potential to transform a candidate’s experience. More than 67% of the candidates had a positive impression of companies that kept them updated.
Now look at an example below:
A chatbot could easily automate repetitive tasks. Outsourcing tasks to chatbots has proven to be the best way to reduce the costs of an IT Infrastructure and reduces the hiring cost by half or even more.
Cutting Labor Costs
Chatbot reduces the need of hiring a team of representatives to respond to your customers. Script-based chatbots manage to answer customer’s trivial queries and prove to be an efficient and cost-effective solution.
As per a report, chatbot reduces expenses on customer services by 30%.
It fulfils the need of hiring a personal assistant to manage daily schedules and booking.
On average, a company which doesn’t outsource ends up spending about 25-40% more.
Self-service is the best way to conserve resources and reduce related costs.
Expenses of an organization on a help desk are 13%, out of which 85% of that expense is consumed by its staff.
On average, 60% of the calls received at the help desk are usually the ones which people can solve themselves (through FAQs). Chatbots offer a means of great self-service, which prove to be a great cost-cutting strategy.
Chatbots are the best solution for offering round the clock service with a faster and apt response with the ability to never be off work. Equipped with Natural Language Processing (NLP), they can chat with customers to understand, analyze and reply to their queries. With chatbot’s easy integration into organizational websites or applications, customers get instant access to the needed resources.
By 2020, chatbots should take over 85% of customer service interactions.
Eliminating the need for IVR
Interactive Voice Response (IVR), though are the most common methodology to interact with customers, can be quite frustrating for a user who is trying to reach to the right channel.
Chatbots are an enhanced version of IVR which involve lesser costs and prove to be better in being most natural and receptive as humans. They make the customers feel they are being understood and heard instantly.
With common reasons such as inadequate information, delay in getting solutions, communication gap, customers find it very tiresome to contact the support team. However, chatbots streamline the customer service procedure and make it more effective and fastened.
With proper IT budgeting, your company's infrastructure can be refactored to enhance your ability to respond to the competitive business environment.
Srijan can help you maintain the overall organizational budget by building custom-made chatbots. Contact us and our experts will get in touch.