Cutting Costs by Investing in Customer Service Bots

Customer service bots can help businesses save up to 30% on their customer support costs


Do you have a team of customer service agents to manage?

Then, you should know that customer service representatives perform tons of routine tasks every day.

Isn’t that a huge waste of time and money to spend all day on requests like: “How do I make an order?”, “Where can I find the closest store?”.

And don’t you find that having to answer the same basic questions over and over again is frustrating as hell? I would say it can drive anyone crazy, and your agents aren’t an exception.

Customer service bots are a way for customer service to automate and boost the workflow and create better CX.

While your team of agents could be tackling complex issues, customer service bots can spend most of their working time providing info about working hours, pricing, and password recovery, etc. 


10 main moments when you should consider implementing customer service bots inside your team: 

#1 When you are looking for ways to reduce customer service costs

Customer service bots help to reduce support costs.

Let’s say you have a team of 15 customer support agents. The average customer service rep salary in the US is around $35k per year. So, your customer service team salaries cost you near $525k/year. By implementing chatbots, you can save up to 30%, which will give you $157k savings per year

Using customer service bots, you can eliminate the routine work that takes valuable time from your team. Less mundane tasks mean your employees are happier, and they stay longer with the company, so eventually, you’ll save time and money on hiring employees.

How to calculate the estimated ROI of customer service bot?

1. Analyze your customer service queries. Identify simple, repetitive questions that can be handled by a customer service bot. (this can be smth like: “How do I recover my password, Where can I get delivery details, Are your stores open on Sunday?”).

2. Calculate the percentage of chats that are made up of these simple queries.

For example, your support gets 10,000 queries monthly, and you identified that 80% or 8,000 questions are eligible for a chatbot to take over.

3. Calculate the agent time spent on those basic, repetitive requests.

After you identified that you have 8,000 tedious, repetitive queries, you can calculate how much agent time goes to these questions.

For example, on average, your agent answers the question in 4 minutes. So, 8,000 queries x 4mins = 32,000 minutes or 533 hours of your teams’ time goes to FAQ’s. Wasteful, huh? 

If you say that customer service bot answers the questions twice as fast as agents, then you’ll have: 8,000 queries x 2mins = 16,000 minutes or 267 hours of bot’s time. 

4. Estimate the annual costs of handling these requests by multiplying the hourly salary of the agent by hours spent monthly on these requests. Then, multiply the number by 12, and you’ll get the annual costs of answering FAQs by your agents. 

Let’s say your agent earns 15$/hour. So, 15$ x 533 hours = 7 995$. And that’s how much costs to answer FAQs monthly. Now, let’s calculate the annual spendings: 7 995$ x 12=  95 940$ per year!

5. Now, compare the annual costs with quoted customer service bot cost. Don’t forget to count set up, integration, and any additional chatbot fees.  

“The healthcare and banking providers using bots can expect average time savings of just over 4 mins per inquiry, leading to average cost savings in the range of $0.50-$0.70 per interaction,”.


#2 When you hate those repetitive customer service queries 

How many times a day do your customer service agents answer questions like: 

“How do I reset the password for my account?”, “What is the status of my order?”, “When will I receive my parcel?”.  

Well, the studies say that around 80% of the time of the customer service reps goes to repetitive queries. Nobody likes to do the same thing over and over again every day, and nor do your agents. 

Customer service bots are superheroes of answering clients’ FAQ.  Bots automate simple queries while your customer service agents perform more complex tasks. 

#3 When your customers expect multichannel support

Customers want to reach the company on a convenient platform. While baby boomers might still contact support via phone and email, millennials expect brands to be available on social media. So, it’s no surprise that to provide great CX, clients demand multichannel support, and business has to adapt. 

Keeping up to date with all communication channels can be challenging. Moreover, just being available on different channels isn’t enough. You have to keep your support consistent and fast from channel to channel. 

Chatbots run on different platforms and devices, ensuring that you deliver consistent support to every client.

74% of millennials say social media responsiveness improves their perception of a brand.”


#4 When you can’t provide 24/7 support

Today, if a brand wants to provide excellent CX, being available 24/7 is not an option, it’s a must. So, the company needs to have customer service reps working at night, weekends, and even holidays.

But, there is another way around. 

Implement customer service bots to answer clients’ questions while your agents are at home relaxing and enjoying their weekends. So there will be no more those exhausting night shifts and holidays spent at the office for your customer service team. The chatbot help customers have their issues solved at day and night.

#5 When you don’t understand the customer

The customer service bot is an excellent decision if your clients are across the globe.

Instead of looking for customer service agents that speak many languages, you can train chatbots to learn those. Bots are brilliant students and can learn new words, expressions, and different languages.

TechInStore chatbot

#6 When you don’t answer fast enough 

Modern customers are impatient, and they want instant replies and rapid solutions to their problems. Otherwise, they will go to your competitors if they require less effort to get in touch with and provide faster support. That puts a lot of pressure on customer support representatives.

Customer service bots provide immediate support. Bots don’t need time to think about the question to answer it, and they offer on-the-spot responses to customer requests. So, they’ll meet simple questions in seconds while customer service agents can take the time and think about more complex queries that require more time to solve. 

60% of customers expect an immediate response, and if they don’t get, they’ll find a company that will offer one.” 


#7 When you want to help customers solve their problems on their own

Did you know that more than half of the clients that contact you have already tried to find answers on their own? 

According to Microsoft, 75% of respondents have used a search engine to find answers to service-related questions before calling an agent, and 74% have used a self-service support portal.

So, if the customer wants to find the information on his own, why not help him. Bots can act as a knowledge base, providing information, answering basic questions, and giving your customers the data they need to solve their issue. Using customer service bots, you can create an interactive self-help portal for your clients, reducing the need to contact your customer support and improving their overall CX. 

#8 When you need more context on each customer

Sometimes, a customer request is more complex and requires multi-department support. The customer might have to go from one of your customer representatives to others to solve his issue. So, there is no surprise that the context of previous or even current conversations can be lost. 

There is nothing worse than making your customers repeat their issue multiple times to your different customer service reps. And chatbots offer a solution here as well. 

You can use customer service bots to communicate with your clients, collect required information, gather it in reports, and even route the call to the right agent. The customer can explain the problem to the chatbot. Next, the bot will collect notes, and based on criteria, will decide who is the best agent for this person to talk to. Bots will make notes and assign different tags to clients in your CRM, so next time a client contacts your company, you’ll be able to get the full history of your communication.

80% of customers say that companies do not have the context of their last conversation” 


#9 When you don’t want to stop the conversation with customers

Customer service bots are one of the most flexible communication channels. When chatting with the chatbot, customers can stop and then resume the conversation from where they ended. 

For example, if the client got distracted from the conversation with your bot, they can come back later and continue the same conversation without having to start over and explain the same thing again.

So, your customer service agents can breathe out. With customer service bots, there is no need for your support team to recall all the details and context of the previous conversation. The chatbot keeps the conversation with the client open, so the customer service reps don’t need to keep in mind the chat history and remember at what point of the conversation the client dropped off.  

#10 When you need to understand the emotion of the customer 

Using speech recognition, chatbots can understand customers’ emotions and take actions based on that. For example, if an angry customer contacts the support, the chatbot can recognize the emotion and connect the client to the support agent faster. The chatbot can give customer service reps “hints” of customers’ moods and emotions to help agents understand the context and give customers a more personal approach.