Resolve - Saving 30% on Customer Support
Resolve is an interesting Low-Code software development automation company, with some of their clients being companies such as for instance:
- Deutsche Telekom
- Virgin Media
- Etc ...
Resolve have about 15 full time employees working exclusively on support, from a total stock of roughly 70 employees. This implies that roughly 22% of their operational costs originates from technical support. Resolve came to us because they wanted to optimise the way they provide support by leveraging our AI chatbot technology as first line support.
Built to scale
No sane company would ever lay off technical support staff having years of experience almost impossible to replace unless they absolutely have to, but Resolve thinking ahead realised if they could automate 80% of their technical support, their existing team of 15 support agents could deliver technical support to 5 times as many clients as they've got today - Without hiring additional resources.
So far we've been able to reduce their support tickets by 30%, but the long term goal is 80%
Doing some rough estimates on the math of this, implies that these 15 support technicians can deliver support equivalent of 75 employees if they could somehow automate 80% of their first line support, resulting in savings of 60 employees multiplied by whatever the average monthly salary for a technical support agent is these days.
Saving €240,000 per month
For the record, I have no idea what the average support technician earns today, but if we imagine €4,000 per month which is probably not too far away from the actual cost in North America and North West Europe, we end up with 60 employees multipled by €4,000 per month, resulting in a total saving of €240,000 per month. They are currently saving $240,000 per year, but the goal is to bring it up to $240,000 per month.
€240,000 saved per month for something that costs them some few hundred bucks per month
AI chatbots as first line support
If you've ever worked on any type of customer service operation, you already know that 80% of every single question you answer is repetetive in nature, and can easily be answered by an AI chatbot. The additional benefit of having an AI chatbot is that customers gets instant answers.
Research conducted by IBM on AI chatbots concluded with that 69% of your users actually prefers an AI chatbot, since it provides them with instant answers. Another study also showed us that giving your technical support agents access to AI chatbots internally dramatically increased customer service quality, allowing newly hired support technicians to outperform even senior personel having worked for 6 months in your company within some few hours.
After some few hours newly hired resources would outperform senior employees having worked for 6 months by 14% on quality if given access to AI chatbots
Needless to say of course, but the above facts obviously significantly reduces volatility and vulnerability of your company. Resolve being arguably the masters of automation obviously are also aware of these numbers, and would want to leverage similar results in their own organisation.
Doing some rough math on the above numbers, implies that Resolve can save up to 18% of their total operational costs of delivering their product, once they succeed with automating 80% of their technical support. For a company with millions of dollars of annual revenue, with customers such as Deutsche Telekom and Virgin Media, saving 18% is basically 18% more "net profit" at the bottom line.
Implying the shareholder's profits literally increases by an additional 18% of their total annual revenue, multiplying probably 5x assuming they're doing the industry average on profitability
9 million dollars in additional annual profit
Yet again, I have no idea what Resolve's profitability is, but if we imagine they're doing 50 million dollars in revenue each year, having 10% paid out in dividends, increasing their profitability by 18% of their total revenue increases dividends from 5 million dollars annually to 14 million dollars annually.
Implying if my above math is correct, the company as a whole makes 9 million additional dollars in annual profits each year, from something that costs them "some few hundred bucks" per month
Basically, Resolve have ROI in seconds after having installed the chatbot, assuming it can automate 80% of their customers' support queries. Below is a YouTube video where I demonstrate the chatbot if you'd rather want to see me interacting with it than trying it out for yourself.
How it works
Resolve had some unique challenges. First of all they couldn't use one chatbot, they actually needed three chatbots, one chatbot for each of their products. Earlier today we wrote about how to use different models dynamically, and the client I am talking about in that article is actually Resolve.
That little "trick" allows us to dynamically exchange what model we're querying according to the base URL of the page the user is visiting. Watch the video above to understand what I am talking about.
If you want to try out Resolve's AI chatbot you can find it below.