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Conversational AI Data and Powerful Customer Insights

By Mandy Reed, Global Head of Marketing

These days it can be easy to feel like we’re in a constant state of information overload. The 24-hour news cycle combined with social media and the ability to Google anything always at our fingertips makes it difficult to escape the relentless barrage of information. This can also make it difficult to discern what information is genuinely important and worthy of our time.

The same is true when it comes to your organisation’s customer experience (CX). There is information floating around everywhere on customer behaviours, preferences, and sentiments. However, it can be a struggle to gather and identify the customer insights that are meaningful and most important for your CX strategy.

In fact, Gartner analyst Augie Ray identified ‘looking in the wrong places for customer insight’ as one of the key mistakes that kill CX programmes in their infancy. He points out that you can’t expect customer-centric results from a strategy that is not based on real customer insight and understanding. Likewise, you won’t be able to measure the impact of your programme if you aren’t gathering and analysing customer feedback, sentiment, and experiences.

Conversational AI is growing in popularity among businesses and their customers because of the positive self-service experience high-quality virtual agents and chatbots are delivering. However, organisations should never overlook the added benefits they gain by analysing the conversational data these tools can collect.

In a chatbot vendor selection guide, conversational AI expert Ridhi Mathur explains:

“In this era of data, a sophisticated virtual agent can play a very significant role for many businesses. The conversational data collected is very rich. It can be analysed and mined to understand your customers’ views, identify developing trends and make informed predictions, which can in turn contribute to areas such as product or service innovations and marketing.”

As you are developing your CX programme and selecting tools, be sure to keep this in mind. You want to implement a conversational AI solution that is not only built based on a deep understanding of your customers but will enable you to gather valuable customer data as well. You also want to ensure that you are properly analysing that data to assist with ongoing improvements to your CX and inform other areas of your business, such as product development and marketing programmes.

The customer insights that can be provided by chatbots and virtual agents are too beneficial to overlook when you are selecting a technology to implement. Consider this as you are reviewing conversational AI pricing options. Purchasing a chatbot without the right tools for data collection and reporting functionality never pays off, no matter how much money you might think you are saving. It is also key to work with a provider that has the expertise to assist you with mining and analysing the conversational data to maximise your benefit.

If you need some help cutting through the information overload when it comes to selecting a conversational AI vendor, check out the ISG Provider Lens™ Intelligent Automation – Solutions & Services. This report provides an independent, market-driven evaluation of the industry and comparison of 19 conversational AI providers.

How Much Does it Cost to Make a Chatbot that Actually Works?

By Paulo Barrett, Chief Operating Officer

Ask any seller of a highly complex and customizable chatbot or virtual agent system about cost and you’re likely to get an evasive answer. ‘There’s no one-size fits all.’ ‘I’d need to talk to you on the phone to give you an accurate quote.’ Increasingly, in this ever-saturating market, it’s easy to find elements of chatbot pricing (i.e., API request fees) or flat monthly subscription costs for low-end systems, but who is giving the educated bot buyer a clear, top to bottom view of what it costs to build a system that will really work?

By ‘really work,’ I mean one that will materially contribute to cost savings, improve customer satisfaction, and maybe even generate new revenue. In other words, how much is it realistically going to cost to build a bot your customers will actually want to use.

The truth is, building a successful chatbot is not purely a question of technology. Whether you are buying a platform to BYOB, getting something cheap and cheerful off the shelf, or looking for a bot consultancy to support your internal efforts, your work is really just beginning once you have the system configured and deployed. The ongoing work to improve the chatbot’s performance and to get the best out of self-service in your unique deployment is what makes the difference.

It can be difficult to predict exactly what actions your customers will want to take in the beginning. That means being able to take an informational system and swiftly evolve it as desired customer outcomes become clear is key for success. This is enhanced by using great technology, of course, but ultimately, you need the right experts (internal or external) to separate your deployment from the crowd of others (often failures) which are flooding the support world.

Think of it like buying an instrument. No matter how expensive or special it is, either you learn to play it, or you get someone else to play it for you (alternatively, it ends up gathering dust and doing absolutely nothing for anyone). One way or another, this expert training costs time and money. You have to weigh this investment against the return.

Now to the million-dollar question … pun intended. What will a chatbot that your customers actually want to use cost for a large enterprise? While it’s true that most deployments are unique to every client and require some customization, there are some standard pricing building blocks you can expect to see.

The first cost to nail down is the pilot fee. How much am I gonna spend to test this thing out and see if it works for me? The financial risk associated with a pilot should be shared by the customer and the vendor and typically runs around $50,000 (USD). While the client assumes some risk via the initial cost, you should expect this to be credited against the cost of the full production-level deployment if you choose to move forward. This fee will cover all hosting, software deployment, content development, technical consultancy, and transactional fees for the agreed period. Typical pilots run 30-60 days from go live to give you enough time to see material results and make a decision about the ongoing plan.

Once you convert from pilot to full system (we pride ourselves on a +90% conversion rate!), you have some choices to make about how you pay for the tools and ongoing consultancy. Some customers wish to be purely pay-for-performance. Often, they go with a tiered model based on volume with session costs starting at a dollar (i.e., a single interaction with a user, with unlimited question/integration calls in that session). This per session cost may fall based on meeting certain volume thresholds. With any variable pricing model there are pros and risks for both the customer and the vendor.

If you prefer not to have a variable rate in your forecasting, you can purchase a more traditional software/services package. A standard production system should include integration with a live chat platform as well as your CRM. This will ensure your customers get personalized answers to their questions and are able to complete transactions with the bot online, rather than just receiving flat, informational content. The cost to provide the software and ongoing consultancy, along with an adequate knowledgebase of 100-200 solutions, will generally cost somewhere between $150,000 and $250,000 (USD) per annum, depending on the number of sessions.

While this may seem like quite the investment, you have to ask yourself: What is the cost of deploying a support tool that my customers don’t want to use and delivers a negative, frustrating experience?

Ready to learn more? Our team is always on hand to arrange a personalized demo with you and answer any questions you may have about getting started with your pilot.