Chatbots: Is comparing the unit price of retained service enough?

According to a study by Infobip, one in four people have already used chatbots for customer service in banking apps, stores, or e-commerce. Of these, 69% stated that their experience was excellent or very good.

In other words, customer service bots have become popular with customers, as well as with companies, who have realized benefits such as cost reduction, increased service speed, and higher customer satisfaction.

As a result, organizations of all sizes and from various sectors are turning to the market in search of bot providers.

However, this search is not easy, given the number of companies specializing in the development of customer service bots, each with a different pricing model.

For example, if a provider claims a high retention rate, you need to evaluate whether it is actually a case of false retention. In other words, it may be that the user is getting tired of the bot’s incorrect responses and, in fact, is abandoning the conversation, switching to another channel, and resolving the issue with a human agent. Thus, false retention leads to double payments: (a) for the bot with false retention; (b) for the agent who actually resolves the user’s problem.

Read more: Customer service bots: What is the ideal outsourcing business model?

 

In the article above, we discussed the main business models and emphasized that payment per resolved service is, perhaps, the option that offers the best cost-benefit for companies when hiring an outsourced bot.

Payment for services completed without a callback within 24 hours, on any channel, is a model that encourages good resolution, i.e., it “motivates” the bot provider to continuously improve their service delivery.

But how do you account for when:

– One bot provider promises an NPS of 50% and another promises 20%?

– One provider promises 80% retention and another promises 50%?

– One provider promises delivery in 6 months and another in 12?

The answer is simple: ask for proof of these claims. And more, ask the provider to send, if possible, success stories from some of their clients.

Some companies may offer aggressive pricing for resolved service, but not all guarantee high resolution rates or a high NPS…

Tip: A bot provider with a high NPS, for example, is likely a good provider because this score is given by the end-users of the customer service bot.

To make the best decision, you need to do a more detailed and thorough analysis to avoid falling into traps.

Therefore, the answer to our title’s question is no! Comparing the unit price for resolved service is not enough.

When it comes to the delivery time of the bot, it is ideal for the provider to show success stories from their clients, i.e., projects where the bot development had a reduced time to market.

And of course, it’s not enough to evaluate only the delivery time, but also the quality of the final product. Was the bot delivered ready for launch? Was the bot delivered without flaws? In the first few months, what was the customer’s experience with the bot?

Behind a serious project, there is always a supporting business case. Perhaps the best way to gain confidence that the business case will be respected is to conduct a relevant, limited pilot lasting 30 days with the best-qualified provider from the RFP of the bot… If expectations are not met, then simply call the second-best provider after the 30-day chance with the first one…

To learn more about conversational bots and success stories from BlueLab, send an email to [email protected] or call (21) 99661-4800 to verify these numbers and find out more about our chatbot.

 

Thank you for reading. See you next time!

Also read: Customer service bots: How to coexist and collaborate with human agents?

Customer service bots: how to coexist and collaborate with human agents?

Some companies, attentive to changes in consumer behavior, are moving away from the traditional customer service model.

Accelerated by the Covid-19 pandemic, which promoted remote work, the rigid model (and outdated) with large rooms, desks, chairs, phones, and endless attendants, is no longer the only option.

Companies have seen in customer service bots an economical alternative to reduce costs and also improve the customer experience, while always collaborating with human agents.

 

What are customer service bots?

 

Customer service bots are conversational robots capable of interacting and conversing with customers through text messages (chatbots) or voice (voicebots) in an automated way, and can be integrated into websites, apps, CRMs, IVRs, ERPs, etc.

These service bots, equipped with Artificial Intelligence and Computational Linguistics, are dominating platforms like WhatsApp, Messenger, and Telegram.

Bots usually handle the first customer service interaction and, when necessary, transfer the contact to human agents, i.e., when the conversation requires decision-making or judgment, which are uniquely human skills.

This practice, which has become common among companies, is known as hybrid service. Below, you’ll understand its concept and how to offer this service in your business.

 

What is hybrid service?

 

Hybrid service combines the work of human agents with customer service bots. In this model, customer service bots are on the front lines, responsible for resolving simple issues that do not require human intervention.

 

How does hybrid service work?

 

Just as self-service kiosks in physical stores came to ease the workload of “in-person” attendants, bots have emerged to free up time for “remote” agents (call center agents).

When a customer contacts the company, through the website, social media, or mobile app, the bot is the first to be activated to respond to the customer’s inquiries.

The bots handle the most frequent demands, functioning like an FAQ, which is ideal for companies with a high volume of service requests.

At this point, the bot uses its knowledge base with vocabulary, persona, and responses, all pre-programmed by a multidisciplinary team with extensive and deep knowledge of the business.

If it’s a common question, the bot can continue its conversation flow without major issues. However, when it comes to a more complex topic, the service is transferred to a human agent.

 

What are the best practices?

 

First of all, your bot should always offer the customer the option to speak with a human agent. This option makes sense because we know that some people simply prefer to talk only to human agents.

Additionally, it’s the bot’s responsibility to make the first contact and “convince” the customer to accept automatic service. Failing at this initial point can mean losing 30% to 50% of retention without giving the bot a chance to answer the first question.

All of this should happen within seconds to prevent the customer from feeling frustrated and abandoning the channel. Moreover, this transition should be smooth, and it should happen on the same platform used by the customer.

If the customer started their service with the bot on WhatsApp, the contact with the human agent should continue on WhatsApp. This way, the customer avoids wasting time switching channels, even if the conversation history is available for the human agent to continue the service, whether or not the customer switches channels.

 

How to offer this service?

 

Here are some tips to put hybrid service into practice in your business.

 

Conduct a financial analysis

It’s essential to know how many services your team handles per month on average, as well as the time and money that will be invested in the bot compared to a human agent. In addition to measuring the financial return, this analysis can encourage other areas of the company to invest in the solution.

Understand your customers

After the financial feasibility analysis, it’s essential to understand your customers, especially regarding their needs and preferred channels.

Define your purpose

Your bot should have a very well-defined purpose to operate only within its scope. Even when the scope is broad, it’s always possible to define priorities and start with the top 3.

Organize your systems

An informational bot (which only responds with static or generic text, such as accepted payment cards) usually achieves retention between 20% to 50%. To reach 90% retention, a transactional bot (which queries a system and responds with dynamic or specific text, such as the customer’s balance or account status) is generally required. Therefore, the existing systems must provide documented interfaces (APIs) for the bots to perform secure queries and/or transactions (complying with LGPD).

Count on a specialized partner

Choose a provider with success stories, particularly in the same sector as your business. If necessary, run a small 30-day pilot to learn from the suppliers.

 

Thank you for reading. See you next time!

Also read: How chatbots increase your customer retention

How chatbots increase your customer retention

According to a 2016 study by Botanalytics, around 40% of users don’t continue after the first message, while 25% drop off after the second. In the end, the retention rate of chatbots is around 7%. Currently, this situation seems to have changed little in most implementations worldwide.

In other words, there is still much room to increase retention in chatbots for companies, as long as they are implemented with well-defined strategies.

According to a study by Juniper Research, global retailer spending on AI will reach US$ 7.3 billion per year by 2022, compared to US$ 2 billion in 2018.

Companies, from small businesses to large corporations, know that investing in chatbots for customer service is a good idea. However, for many, there’s a lack of planning before, during, and especially after deployment.

In this article, you will discover what chatbots are, their importance, and how to increase customer retention with these service robots. Enjoy the read!

 

The simplified concept of chatbots

 

A chatbot is a conversational robot capable of interacting and conversing with humans through text messages, in an automated manner.

These robots can be integrated into websites, communication platforms such as WhatsApp, Facebook Messenger, Telegram, and various chat systems.

 

The role of chatbots in customer service

 

Chatbots usually solve simpler issues, forwarding only the cases that require human intervention to the attendants.

Thus, chatbots free up the time of customer service teams so they can focus on more strategic activities that add value to the business.

This helps companies reduce personnel costs, increasing employee productivity as well as customer satisfaction, as customers can have their questions answered and problems resolved more quickly.

Additionally, chatbots can take a proactive stance, instead of just responding when users initiate contact.

These service robots can be programmed for sales and customer retention actions. Below, we will explain how.

 

The importance of customer retention

 

You’ve probably heard that acquiring a new customer is much more expensive than retaining an existing one. But maybe you’ve never had access to a survey that proves this.

Now you do. According to a study by Frost & Sullivan with NICE Latin America, acquiring a customer can be up to 25 times more expensive than retaining one that’s already in your base.

Furthermore, instead of investing all your money in acquiring new customers, companies can focus on retaining their existing base, and these customers will recommend others.

Once they’re loyal, these customers will become advocates and even promoters of your brand, without charging anything for it, which isn’t too bad, right?

 

7 steps to increase retention with chatbots

 

Now that you’ve refreshed your memory on the concept and role of chatbots, as well as the importance of customer retention, let’s go through the tips to “hook” consumers with these service robots.

 

1. Understand your customers

 

Before you start developing your chatbot, it’s essential to know and understand your customers regarding their wants and needs, as well as their preferred platforms.

Do they shop more on e-commerce or in-app? Do they prefer service via WhatsApp or phone? Do they engage more on Facebook or Instagram? Answering these questions is the first step to increasing your retention.

 

2. Pay attention to onboarding

 

Customer onboarding, which is the process of introducing and adapting the user to your chatbot service, should be unforgettable. Modern consumers seek experiences, and yours should be the best possible.

Here, the less effort the customer has to make to talk or buy from you, the better. Simplify your purchase journey, provide agile and efficient service, and you will make the experience more pleasant.

 

3. Boost conversion

 

Chatbots allow you to increase your database to understand your customers’ needs, behaviors, and preferences, and with this information, you can boost your conversion.

From the first contact, on your business website, for example, chatbots can already collect information to optimize your marketing campaigns and sales strategies with more assertive and personalized actions.

 

4. Shorten the sales cycle

 

Chatbots can be a great tool for lead generation and qualification. They can filter a lot of information and thus reduce the sales cycle, delivering a well-educated customer to the human attendants.

This way, the customer gets what they need more quickly, and the customer service team becomes more productive, closing more deals in less time.

 

5. Invest in cross-selling and up-selling

 

Intelligent chatbots can make personalized and highly assertive recommendations to customers, increasing the average ticket and offering a more diverse product mix. The end result of this is an increase in the company’s revenue and profitability.

 

6. Make your customer come back, always

 

Give your customer reasons to come back, using your chatbot to send special offers, promotions, and discounts, as well as using it to send notifications, updates, and tips about your products and services. Make your chatbot proactive, creating, in fact, a relationship with the customer.

 

7. Always optimize your strategies

 

Finally, it’s essential to revisit your strategies, including the knowledge base, vocabulary, and tone of voice of your chatbot, as well as each step of the process. Collect and analyze data to identify gaps and areas for improvement. This way, you will be able to evolve your chatbot, constantly.

That’s it! With this step-by-step, we’re sure you’ll be able to increase customer retention through your chatbot, along with your human attendants’ performance.

 

Thank you for reading. See you next time!

Also read: Customer Centric: What it is, advantages, and how to apply it to your business

Customer Centric: What it is, the advantages, and how to apply it to your business

Is the customer always right? No! Is the customer the top priority? Yes! Should the customer be at the center of all organizational strategies? Absolutely! And this is the concept of Customer Centric, the topic of our article today.

According to a study by Infosys, 86% of users cite exclusive and personalized service as a key factor in their purchase decision-making process.

Another survey, by Vonage, shows that 58% of users do not return after a poor experience with a particular company.

But, in addition to being important for the customer, especially, a Customer Centric strategy also improves employee experience and satisfaction.

According to a research by SurveyMonkey, 74% of people who consider their jobs customer-oriented find their work meaningful. Moreover, 83% of people working for companies that prioritize customer satisfaction are almost certain they will still be there in two years.

In other words, companies that put the customer at the center also manage to improve their image and attract the best talent in the market for their job openings.

So, after all, what is Customer Centric?

 

What is Customer Centric?

 

The literal translation of Customer Centric means “centered on the customer,” and it can be defined as an approach that treats the customer as the central element of all company actions.

Businesses that practice Customer Centric centralize their strategic planning around the wants and needs of the customer in order to offer the best experience throughout the entire buying journey, including post-sale.

The main goal of a Customer Centric strategy is to offer the most relevant solutions to the customer, thereby increasing their satisfaction and contributing to greater customer retention and loyalty.

To put this concept into practice, organizations must prioritize the customer at every stage of conversion so they feel comfortable with the brand, generating empathy and admiration.

Customer-centric companies use this approach to optimize and also launch new products and/or services, allowing them to be more assertive in their offers.

 

What are the advantages for companies?

 

We’ve already mentioned some, but you need to know all the advantages of applying a Customer Centric strategy in your business.

 

Cost reduction

A customer-centric company spends less on staff, infrastructure, marketing, and also reduces costs with rework, which often happens when the business doesn’t know or educate their customer.

 

Revenue increase

Satisfied customers buy more and also recommend others who may become clients. This way, your business can create advocates and promoters who will spread the word about your company to more and more people, increasing your revenue.

 

Increased attraction, retention, and loyalty

Acquiring a new customer is much more expensive than retaining an existing one. A company that focuses on the customer can attract people’s attention while retaining and nurturing the customers already in its base.

 

Reduction of churn

Stop losing customers! Put them at the center of all your actions and prevent them from switching to competitors.

 

Optimized service

With the right technologies, such as chatbots and voicebots, companies can collect, store, and analyze customer service data to continuously optimize these processes.

 

Strengthened brand

Put the customer at the center and improve your image, becoming a company that does everything to meet the desires and needs of consumers.

 

Increased competitive advantage

While many companies still focus only on their products and/or services, you can stand out by focusing on customer pain points and preferences.

 

How to apply Customer Centric in your business?

 

Let’s get practical! Here’s how to apply this strategy in your company.

 

Study and understand your customer

The first step is to understand your Ideal Customer Profile (ICP) and define who your buyer personas are. Identify the challenges, wants, and needs of your customers, as well as each step of their buying journey. This way, you’ll be able to offer the right solution, to the right person, at the right time. And yes, we understand that Customer Experience (CX) and Customer Journey (=CJ) are components of Customer Centric.

 

Create a customer-oriented culture

This customer-oriented culture should start with the owner or CEO of the company and the senior management down to the managers, coordinators, analysts, and interns. Everyone should have in mind that the customer is the reason for the business and practice this daily by treating people with empathy and kindness.

 

Invest in service

Offering an omnichannel service, present on multiple platforms where all channels speak the same language, is essential for a Customer Centric strategy. For this, you can rely on service bots like chatbots and voicebots to automate your customer relationship processes.

 

Track performance

A Customer Centric strategy should be revisited regularly. To do this, you can use metrics such as churn rate, Lifetime Value (LTV), and Net Promoter Score.

The Churn Rate measures customer loss compared to acquisition. A high rate is a sign that something is wrong in your operation. Lifetime Value (LTV) identifies how profitable a customer has been for your business over a given period.

And Net Promoter Score (NPS) is a survey that consists of the question: “On a scale of 1 to 10, how likely are you to recommend us to family/friends?”

Scores of 9 to 10 are considered promoters, who will promote your brand, 7 to 8 are neutral, and 1 to 6 are detractors, who will likely spread negative feedback.

That’s it! We’ve reached the end of this article and we hope that with this content, you can apply a Customer Centric strategy to your business and take advantage of all its benefits.

 

Thank you for reading. See you next time!

Also read: Chatbot for WhatsApp: Everything you need to know

Chatbot for WhatsApp: Everything you need to know

If your company, in 2021, still doesn’t use a WhatsApp chatbot, we can guarantee that it’s missing out on reducing costs and also losing various business opportunities.

This is because WhatsApp is the most widely used instant messaging app in the world, being a unanimous choice among smartphone users.

According to WhatsApp itself, 2 billion people use the app daily. Approximately 100 billion messages are exchanged via the app every day. And in Brazil, 99% of smartphones have the messaging app installed.

With its simple design and intuitive interface, WhatsApp allows users to send and respond to messages quickly, share images, videos, and audios, as well as make audio and video calls.

Until 2018, these features were theoretically available only to users. However, in that year, WhatsApp Business was launched, a version exclusive for businesses.

In addition to WhatsApp Business, the WhatsApp Business API was also created, which, as the name suggests, offers an API for automating conversations between bots and humans.

In this article, you will learn what a WhatsApp chatbot is, why use it, how WhatsApp Business works, examples of use, and how to create your customer service bot within the messenger.

 

What is a WhatsApp chatbot?

 

A chatbot is a conversational robot capable of interacting and conversing with humans through text messages, in an automated way.

Through APIs, these customer service robots can be integrated into websites, e-commerce chats, CRMs, and communication platforms like WhatsApp, for example.

 

Why use it?

 

Chatbots usually solve simpler issues, forwarding only the more complex or critical cases to human agents, that is, those that need a human touch.

Thus, chatbots free up the time of customer service teams so they can focus on more strategic activities that add more value to the business.

This helps companies reduce costs with personnel, increasing employee productivity as well as customer satisfaction, as customers are able to get their questions answered and resolve issues more quickly.

A WhatsApp chatbot also allows for greater brand reach, helping companies strengthen their digital presence on the app most preferred by consumers and customers.

Not to mention that, with a WhatsApp chatbot, companies can respond to their customers 24 hours a day, 7 days a week, even if it’s just a message like, “We’ll get back to you shortly.”

Before WhatsApp Business, companies were already using the app, but the new version came to professionalize the message exchange between businesses and people.

 

How does WhatsApp Business work?

 

For businesses, there are WhatsApp Business and WhatsApp Business API. Although similar, they have particularities that you need to understand to make the best decision for your business.

 

WhatsApp Business

 

WhatsApp Business allows you to create a business profile with information such as address, email, website, hours of operation, and more, along with an exclusive authenticity verification badge.

It is also possible to create automatic responses for cases when a customer sends a message outside of business hours, in addition to other pre-defined responses for frequently asked questions.

Additionally, you can tag conversations or contacts with labels for easier organization and also view information on the number of messages sent, delivered, and read.

All these are useful features, if your business doesn’t handle a high volume of customer service and doesn’t require chatbots.

However, if your company receives a large number of messages daily, including questions beyond business hours, open accounts, and other simple issues, the best option is the WhatsApp Business API.

 

WhatsApp Business API

 

This version includes all the features of the first mentioned, but with the advantage of allowing API integration with the business’s WhatsApp account.

With the integration of a conversational API, companies can automate more complex conversations.

Thus, the chatbot can be programmed to answer customer inquiries, send documents like billing statements, and perform more complex interactions.

Additionally, with WhatsApp Business API, companies can include human agents in the process when chatbots are unable to resolve the customer’s issue.

 

What are the best practices?

 

WhatsApp does not allow businesses to use chatbots for direct sales. Instead, the company encourages businesses to use this resource for customer interactions.

 

Post-sale: you can answer questions about products and/or services sold, send tips, and also provide updates on order status, situation, delivery estimate, and conduct satisfaction surveys.

 

Lead qualification: you can also create a conversational flow to identify your customers’ desires and needs, as well as offer products and/or services that may be relevant to them.

 

Guidance and instructions: show yourself available to guide and instruct your customers on how to make the best use of your solutions, with tips and usage examples from other customers, for example.

 

Content promotion: educate your customer and keep them informed about your business’s objectives and differentiators to always align expectations.

 

How to create your WhatsApp chatbot?

 

For small businesses, WhatsApp Business is a viable option that meets moderate service demand. Now, for medium and large businesses, WhatsApp Business API is the best alternative.

If you fit the latter case, the ideal is to seek a specialized company that simplifies the integration of your API with WhatsApp Business.

That’s because these providers can obtain your approval and implement your chatbot more quickly.

Thus, you won’t need to worry about the bureaucratic part related to documentation and the technical aspect, which will be fully managed by the supplier.

 

Thank you for reading. See you next time!

Also read: Learn everything about First Call Resolution (FCR)

Learn EVERYTHING about First Call Resolution (FCR)

Companies don’t spare any effort to optimize their customer service and thus increase their sales, as well as satisfaction, retention, and loyalty.

In this context, First Call Resolution (FCR), as one of the most important customer service metrics to be evaluated by organizations seeking excellence, stands out.

Here, you will learn what it is, its importance, advantages, influencing factors, how to measure, and how to increase your business’s FCR rate. Enjoy the read!

 

What is FCR?

 

First Call Resolution (FCR) is a metric used to measure the company’s ability to solve customer problems on the first contact.

One of the most commonly used indicators by call centers and contact centers, FCR measures the efficiency of the company’s service channels, including phone, website, email, and social media.

FCR also reveals the autonomy and capacity of the service to resolve issues in a short period of time.

 

Why is it important?

 

Every company must know if their customers’ problems are being solved, and how quickly this is happening.

By improving FCR, companies reduce the effort the customer needs to make to get their problem resolved, and thus achieve more satisfied customers, who will likely recommend others to get to know the brand.

Calculating FCR also helps organizations identify bottlenecks and areas for improvement in their customer service processes, benefiting both customers and employees.

 

What are the advantages?

 

By calculating and analyzing FCR, companies can optimize their service processes, leading to cost reduction in rework, infrastructure, and personnel.

Besides the savings, companies with high FCR increase customer satisfaction, retention, and loyalty, and often even create customer delight, turning these customers into advocates and promoters of the business.

 

What are the influencing factors?

 

Experience, knowledge, technical skills, and turnover rate of attendants, as well as the level of preparation and training of the customer service team, are the main factors that can influence FCR, alongside wait times and the company’s customer service processes.

Other influencing factors include the availability of information to customers, the complexity of the requests, and also the products and/or services of the company.

The lack of autonomy or expertise of the attendant to resolve the issue is another factor that can impact FCR.

In other words, there are many points that need to be considered when trying to improve your FCR rate. However, the calculation is simple.

 

How to measure this metric?

 

Ideally, to calculate your business’s FCR, you simply divide the number of resolutions on the first contact by the total number of requests.

For example, if you received 100 requests in one month, and resolved 70 of them on the first contact, your company’s FCR rate would be 70%.

But how do you know if the customer’s issue was resolved on the first contact? One idea would be to ask the customer in the satisfaction survey at the end of the service whether their issue was resolved. But what if most customers tend to disconnect before answering the satisfaction survey?

Assuming a person doesn’t rest until their problem is solved, and based on our practical observations, most call centers measure FCR by the callback within 24 hours. That is, if the customer doesn’t call back within 24 hours through any service channel, it’s considered a resolution on the first contact.

With all this information, you will have a real scenario of your FCR rate.

 

How to increase your FCR?

 

Now that you know what it is, why measure it, the advantages, the influencing factors, and how to measure it, here’s how to increase your FCR.

 

Invest in self-service

Constantly update and revisit your FAQs and also your website and social media with explanatory content to make it easier for customers to access information and understand your products and/or services. Investing in conversational bots like chatbots and voicebots can also speed up service and avoid the need for human intervention.

 

Train your attendants

Your human attendants should have a comprehensive understanding of the purpose, products, and/or services offered by the company. No matter how complex the customer’s problem or question is, the team should be prepared. Additionally, attendants should understand that, if the bot can’t resolve the issue, they are the last stop for the customer.

 

Map unresolved contacts

After at least a month of analysis, it’s essential to identify the requests that couldn’t be solved on the first contact and the reasons why. With this information, you can feed your human attendants and also your service bots.

 

Track results

Analyze the results monthly and make the optimizations and changes necessary to constantly improve your FCR rate. Remember, new and unexpected customer issues may arise. If that doesn’t happen, it means you’ve succeeded in your strategy, and it’s time to not only serve but delight your customers.

What do you think of our article? We hope you enjoyed it!

Now, let’s get to work! Use our valuable tips to measure and optimize your business’s FCR rate, for exceptional customer service.

 

Thank you for reading. See you next time!

Also read: Bots for customer service: Why add a voicebot to your business?

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Chatbots: Is comparing the unit price of retained service enough?

According to a study by Infobip, one in four people have already used chatbots for customer service in banking apps, stores, or e-commerce. ...

Read more

Customer service bots: how to coexist and collaborate with human agents?

Some companies, attentive to changes in consumer behavior, are moving away from the traditional customer service model. Accelerated by th...

Read more

How chatbots increase your customer retention

According to a 2016 study by Botanalytics, around 40% of users don’t continue after the first message, while 25% drop off after the second...

Read more