Articles/Measuring the ROI on your Conversational AI Strategy

Measuring the ROI on your Conversational AI Strategy

Introducing Conversational AI can be daunting for many businesses, particularly those that have familiarised themselves with the customer service benefits and financial gains. Not only is it a time-consuming process, the adoption of CAI technologies also means companies are taking a great many risks, both internally and externally. 

As risky as the change process goes, CAI is inevitable in today’s competitive market. It’s pivotal to understand what digital solutions will enhance your operational strategy, how long the process will take, and aim for the ultimate goal that is return-on-investment (ROI).

Once you have taken the plunge and implemented CAI across your business how do you measure its success?

The ROI Calculator

This is the simplest method of calculating how much CAI agents generate ROIs. Combining the following metrics helps to provide a simple overview of how much your business will save:

  • Average Agent Cost: The average industry cost to resolve a customer support request
  • Average Number of Requests: What type and how many requests your business receives
  • Number of Agents: The number of agents employed, their average hourly salary and compensation. 

AI-Specific Metrics - A Customer-First Approach to Accelerate Revenue

To properly measure your CAI agents using AI-specific metrics, it’s important to check how accurate they are in-action. This approach is designed to be evaluated case-by-case, to accelerate profits using conversational marketing. These metrics include:

  • Number of common questions: The number of questions the CAI agents are capable of answering.
  • Number of Variations: How many variations of these questions they are able to respond to.
  • Level of Accuracy: How accurate and helpful their responses are. The recommended rate is around 80% or more.

Operational Efficiency Metrics

Effective CAI transcends its traditional usage and helps accelerate the overall operational efficiency. To see where it stands in the business strategy, and assess its ability to generate ROIs, here are several useful metrics:

  • First Contact Resolution: How long it takes the CAI application to resolve an issue.
  • The average spend of the customer. This can be measured monthly or annually.
  • Customer retention: In this case, how long it takes to convert a potential lead to a new customer.

Strategising your ROIs Strategy

CAI-based technology is constantly improving, and your ROIs strategy is more likely to change constantly. The more effort we take to accommodate our customers, and make their user experience (UX) as seamless as possible, the better we stand a chance in generating a return on investment.