Juan Seoane – February 27th, 2024
It’s common to find executives interested in exploring how implementing a Virtual Assistant or Chatbot with Artificial Intelligence can positively impact their companies, whether by enhancing the customer or employee experience, boosting sales, or cutting operational costs.
The public launch of ChatGPT by OpenAI in November 2022 has certainly stirred significant interest, raising expectations regarding the level and quality of conversational experience expected from such solutions.
The results achievable by complementing the Natural Language Understanding (NLU) capabilities inherent in many existing Chatbot platforms with the power of Generative Artificial Intelligence (e.g., GPT-4) are nothing short of astonishing.
According to a recent Tidio study, Chatbot adoption by companies will significantly increase in the coming years: 43% of micro-enterprises, 60% of small businesses, 80% of medium-sized businesses, and 71% of large enterprises plan to implement Chatbots, according to the survey.
This high level of enthusiasm generated when witnessing a demonstration of the benefits that these technologies offer can lead to quickly frustrated expectations.
While incredible results can be achieved, we must not lose sight of the fact that technology should be understood as a potential enabler of benefits for your business, but having it is not a benefit in itself. Technology generates a benefit when it efficiently addresses a relevant business need.
On the other hand, it’s important to note that, although this type of technology may have many applications in your industry, you may not necessarily be able to justify its application in your company. Why? Because for a project to be viable for YOUR company, you must ensure that these 3 conditions are met:
- It solves something relevant that your customers, employees, or company need.
- It is feasible to carry out.
- The investment is justified.
This is the point where, beyond all the benefits that technology proposes, before making any decision about implementing a Chatbot in your company, it is essential to understand why exactly you need it. To do this, I propose that you formulate and answer the questions you will find below. For each of them, you will find some reflections based on experience that I hope will be useful.
1. What problem needs to be solved?
The starting point for designing a solution is identifying the problem that needs to be addressed. This problem must be relevant enough and be on the radar of executives who have the authority to approve the project. Some typical problems that arise include:
- Improving customer or employee experience.
- Increasing sales.
- Expanding customer service coverage.
- Providing immediate information.
- Automating repetitive processes.
- Reducing operational costs.
- Expanding service through new channels.
If there isn’t a problem relevant enough for the executive committee to justify the project, then there is no project.
2. Do I have resources available to plan and implement the solution?
In addition to the team you plan to implement the solution, the effort required for proper planning and preparation of the project is often ignored or underestimated. These activities are related to researching the problem, collecting data to support financial justification, identifying and engaging participants, selecting the provider, approving the budget, among others.
Sometimes, the information needed to present a project for approval is scattered across different areas of the company, making it difficult to obtain and consolidate. In other cases, this information simply does not exist, and it is necessary to estimate it. For example, conversation volumes per month and per channel, the number of queries that are not resolved on time, the most frequently asked questions, response times, and customer satisfaction.
Due to an underestimation of the time and dedication required for proper planning, many interesting initiatives are postponed or never approved.
3. What is the economic impact?
In the current market, there is a wide range of products and platforms available, each with its own features and variable costs. These costs are usually determined based on the volume of interactions expected in a specific period. For companies facing a high volume of interactions or needing to solve complex problems, investing in a Chatbot can be significant and often require board approval.
To justify the need for a project of this nature, it is essential to assess the positive impact that will be obtained by adopting the product. This involves analyzing the problem to be solved and the expected results.
For example, in the customer service field, if agents are overwhelmed by calls, increasing wait times and decreasing customer satisfaction, it would be prudent to compare the cost of hiring additional agents with the total cost of acquiring a Chatbot platform.
In the case of sales, the cost of lost leads due to late responses, lack of attention on the appropriate channels, or lack of responses outside of business hours could be estimated.
Experience shows that when there is a relevant problem and awareness at the executive level, justifying the investment becomes a straightforward task.
Conclusions
The implementation of a Virtual Assistant or Chatbot with Artificial Intelligence represents a significant opportunity for companies in terms of improving customer experience, increasing operational efficiency, and generating positive impacts on business results. However, it is essential to approach this process with a clear understanding of business objectives and specific organizational needs.
The public launch of technologies like ChatGPT has generated growing interest in these solutions, raising expectations about the quality and performance expected. It is essential to recognize that while these technologies can offer surprising results, they should be considered as enabling tools to obtain business benefits, not as standalone solutions.
When evaluating the feasibility of implementing a Chatbot, it is crucial to ensure that three fundamental conditions are met: addressing a real need for customers, employees, or the company; having the resources available for planning and implementation; and justifying the necessary economic investment.
Clear identification of the problem to be solved, proper planning and preparation of the project, and evaluation of the economic impact are critical steps to ensure the success of implementing a Chatbot in a company. This involves a deep understanding of business processes, collecting and analyzing relevant data, and making informed decisions based on expected results.
In summary, adopting Chatbot technologies can be a valuable strategy to drive digital transformation and improve a company’s competitiveness. However, its effective implementation requires a strategic approach, careful planning, and a rigorous evaluation of its economic and business impact.
———————————-
Interested in exploring further the future of business interaction with Artificial Intelligence? Download now my free ebook titled ‘The Future of Business Interaction with Artificial Intelligence – Guide to Choosing your Chatbot’! In this guide, you will find detailed information on how AI Chatbots are transforming the way companies interact with their customers and employees, as well as practical tips for selecting the best solution for your business. Don’t miss this opportunity to gain valuable insights on how to make the most of this emerging technology. Download your free copy now by clicking here!”
#Chatbot #VirtualAssistant #ConversationalAI #ArtificialIntelligence #DigitalTransformation #CustomerExperience #CustomerEngagement #Technology #Strategy #Digitalization