The business case for going conversational
Conversational AI increases revenue growth, improves customers satisfaction, and reduces operating costs. Use our ROI calculator to see the potential impact to your business.
How much could you improve revenue growth or reduce operating costs with Conversational AI and messaging?
Sales increase:
Sales average order:
Care fcr:
Care ai scale:
Care efficiency:
Total savings Y1:
Total growth Y1:
Total benefit Y1:
Total savings Y2:
Total growth Y2:
Total benefit Y2:
Total savings Y3:
Total growth Y3:
Total benefit Y3:
Estimated Total Benefit
- Cost savings
- Revenue growth
EXECUTIVE SUMMARY
Enormous opportunities for cost savings
Based on the inputs provided, LivePerson projects an opportunity for your brand to bank about in benefit over three years, driven by a reduction in contact center operating expenses. This benefit will be delivered via a conversational program that allows your customers to simply state what they need from your brand in the same messaging channels they already use to communicate with friends and family, and get answers from a conversational AI that is available to help them 24/7. LivePerson can help build, deliver, and optimize a purely digital and remote contact center model that focuses on automation, all managed on LivePerson’s enterprise-grade Conversational Cloud.
Through peer analysis of LivePerson customers using the Conversational Cloud, LivePerson has detailed the financial impact that would be realized, assuming your brand achieves similar results. This opportunity would produce an annual financial benefit to your brand of in year one, in year two, and in year three, while ensuring high customer satisfaction.
LivePerson experts across the globe have led some of the world’s largest enterprise brands through the transformation to becoming an intent-driven business, leveraging our industry-recognized conversational AI product suite.
Convenience is KING
Consumers today favor brands who make it easy for them to do business with, while simultaneously
providing personalized experiences. A study by McKinsey & Company found that upwards of 80 percent
of consumers want personalized experiences from brands.
But delivering both convenience and
hyper-personalization can be difficult as both have traditionally required devoting large amounts of
your employees’ time on handling customer inquiries. Conversational AI can help you scale these
hyper-personalized experiences across your entire customer base.
Rather than hunting on a
website for product info, Conversational AI enables consumers to simply state their intent, while
being able to personalize each consumer’s digital journey, at scale.
And messaging is the
best medium to employ Conversational AI, as messaging apps are already the preferred communication
channel that we all use today with family and friends. Consumers no longer have to call an 800 number
and wait on hold, just to speak to a person for simple requests like checking if a product is in stock
or changing a billing address.
How we drive value
01. Double your online sales with messaging
Give consumers on your website the ability to ask product questions or get help completing a purchase
through messaging. Then integrate bots in order to offer 24/7 support, reducing cart abandonment and
improving sales conversion rates.
E-commerce websites and apps are great for housing
information, but it is often time-consuming and cumbersome for customers to find the exact product
information they are looking for. A conversational interface solves this by allowing customers to
immediately state their intent, skipping the process whereby a customer would need to search for the
answers they need before making a purchase.
LivePerson customers using messaging and
automation for sales use cases are seeing conversion rates up to 10 times
higher than when consumers are left to self-serve. Applying a similar conversion rate
improvement would yield in incremental revenue.
02. Improve average order value by 20%
A key metric for most brands is the average order value or average revenue per customer. Getting
customers to spend more with you on a per-transaction basis is an important health indicator of a
brand’s projected revenue. Even in the early stages of a sales-focused conversational program, average
order values have been reported up to 20% higher compared to
customers who self-serve.
The increase in average order value is primarily driven by the
ability of sales agents to show consumers product benefits or features regardless of a product’s
price. Sales agents can also recommend popular add-on items to an order, driving up the number of
products per order as well as the total revenue per order.
01. First contact resolution skyrockets
Going conversational also presents a significant opportunity to improve the contact-center experience
for both consumers and contact-center staff. LivePerson is the leader in operationalizing large scale
messaging implementations, and we’ve built the playbook on how to successfully transform your contact
center. One critical metric for measuring the health of your conversational program is first contact
resolution.
First contact resolution is the % of inquiries that are resolved for the
consumer on their first outreach to your contact center. Even in the early stages of a conversational
program, LivePerson customers have seen a reduction in contacts per customer, and increases in first
contact resolution rates by as much as 15%.
This
improvement in first contact resolution is driven primarily by the asynchronous aspect of messaging.
In traditional voice contact-centers, background noise, hang-ups, and long hold times all lead to
consumers having to contact your brand again, repeating their same issue to a new agent. Whereas with
messaging, the connection is continuous, with history always available in case a connection is lost.
This history also provides useful context to agents, enabling them to better resolve consumers’
inquiries.
02. Conversational AI enables scale
Integrate conversational AI into your messaging conversations to automatically detect consumer
intent, and begin automating an increasingly larger share of these conversations over time.
LivePerson’s AI toolset makes it easy, with a simple point-and-click bot building interface, as well
as robust analytics that make tuning your bots a breeze.
On average, LivePerson customers
have automated 50% of their inbound conversations. Applying a similar automation rate at your brand
would yield $28.73K in savings.
03. Agents become twice as efficient
Not only will Conversational AI help reduce overall volume to your contact center, but messaging is
also a more efficient channel than voice, which will further reduce your cost per conversation by as
much as 50%. This would bring your current cost per conversation of $4.55 with voice calls down to about $2.28 per messaging engagement — representing $19.66K in operating savings.
There are multiple factors
that LivePerson customers report as causes for these efficiency gains. Routing bots that can better
direct consumers to the right agent or department best suited to handle specific questions, the
ability for agents to handle multiple conversations concurrently, and other bots that may be helpful
in partially resolving a consumer’s inquiry, but requires a human to fully resolve, all play a role in
enabling your agents to handle more conversations in a given time period.
ROI Analysis
Conversational sales
Baseline
Year 1
Year 2
Year 3
Annual website traffic
500,000
500,000
500,000
500,000
Baseline conversion rate
0.67%
0.67%
0.67%
0.67%
Baseline digital orders
3,350
3,350
3,350
3,350
Remaining web traffic exposed to messaging
496,650
496,650
496,650
496,650
Conversion acceptance rate
0.0%
1.0%
3.5%
5.0%
Total messaging conversations
0
4,966.5
17,382.75
24,832.5
Sales conversion rate
0.67%
1.34%
3.35%
6.7%
Total messaging-assisted sales
$0.00
$66.55
$582.32
$1,663.78
Average order value increase
0.0%
10.0%
15.0%
20.0%
Average order value
$120.00
$132.00
$138.00
$144.00
Conversational care
Baseline
Year 1
Year 2
Year 3
Shift to messaging
Total number of conversations
19,836
19,836
19,836
19,836
Shift rate to messaging
0.0%
10.0%
30.0%
50.0%
Conversations shifted to messaging
0
1,983.6
5,950.8
9,918
First contact resolution
0.0%
70.88%
74.25%
77.63%
Repeat conversations eliminated by FCR improvement
0
66.947
401.679
1,004.197
Resolution bots (full containment)
Baseline
Year 1
Year 2
Year 3
Remaining messaging conversations
0
1,916.654
5,549.121
8,913.803
Bot containment rate
0.0%
10.0%
30.0%
50.0%
Bot contained conversations
0
191.665
1,664.736
4,456.901
Labor efficiency (partial containment/agent-assist)
Baseline
Year 1
Year 2
Year 3
Remaining agent conversations
0
1,724.988
3,884.385
4,456.901
Baseline cost per conversation
$4.55
$4.55
$4.55
$4.55
Messaging efficiency ratio
–
1.40
1.70
2.00
Cost per messaging conversation
$0.00
$3.25
$2.68
$2.28
Total
Baseline
Year 1
Year 2
Year 3
Total benefit
–
$12.20K
$97.04K
$274.57K