How to Calculate the ROI of AI-Driven Customer Service

We've all heard about the benefits of AI - whether it's providing personalised customer service, boosting customer loyalty or reducing your agents' workload. But how does AI impact your bottom line? And is it possible to calculate the hard ROI of AI-driven customer service?

After all, if you're going to invest in AI, you need to ensure it's a profitable decision. Follow this comprehensive guide to calculate the tangible, quantifiable benefits of implementing AI in customer service.

Step 1: Define Your Goals and KPIs

Before delving into the world of AI platforms, it's crucial to have a clear understanding of what you want to achieve. Typical goals might include reducing response times, increasing customer satisfaction scores, or decreasing the cost per ticket.

Your Key Performance Indicators (KPIs) could be average handle time, Customer Satisfaction (CSAT) score, and cost per interaction, respectively.

These are the factors you will measure each month to determine whether AI is working for your business. Your goals and KPIs should align with the wider business objectives so you can ensure your department is moving in the right direction.

Step 2: Look at Your Current Performance

To measure improvement, you need a baseline. Take your KPIs and document your metrics for each one over the last year. This might involve tracking the average time to resolve a ticket, the number of tickets each agent can handle, or the current expenditure on customer service operations.

Step 3: Implement Your AI Solutions

AI-driven solutions in customer service typically revolve around automating routine tasks, assisting human agents' responsibilities, and enhancing the overall customer experience. There is a broad spectrum of AI solutions available today, and choosing the right tools for your business is crucial.

For example, Zendesk's AI & automation platforms are designed to meet customer needs effectively while managing costs. Their features include AI-powered bots that resolve common queries (like password resets or billing issues) and AI-assisted insights for agents, which can speed up your customer service operations.

Step 4: Calculate the ROI

To calculate the ROI, you'll need to assess the gains from AI implementation against the cost of the AI tools and related expenses. Use the formula:

You also need to consider:

• Cost Savings: Factor in savings from reduced headcount or lower training costs due to AI efficiency.

• Revenue Increase: This could be from higher customer retention rates or increased sales through improved customer service.

• Time and Productivity Gains: Measure the reduction in ticket handling time and the increased number of tickets an agent can handle.

Between the formula and additional considerations, you can get a better idea of the ROI of your AI platform and whether it's benefiting your customer service operations.

Step 5: Keep a Close Eye on Your Results

Once you've implemented AI and calculated the initial ROI, it's important to monitor the performance continually. Set a meeting with your team every three to six months to review your KPIs and look out for any interesting finds. For example, are customers getting their issues resolved faster? Has the CSAT score improved? Are agents able to handle more tickets efficiently?

Step 6: Make Improvements to Your Automation Strategy

Based on your analysis, tweak your AI strategy. You could reach out to your AI provider to get their opinion on your results and what you can do to improve.

AI is not a 'set it and forget it' solution; it requires continuous refinement. 

If you're struggling to make AI work in your business, contact the redk team and get some insight from our 15 years in the industry. We work with numerous digital partners, from Salesforce to Zendesk, who can help you achieve your goals and take the next step towards success.

By following these steps and utilising robust AI solutions, businesses can transform their customer service operations into efficient, cost-effective powerhouses.

Interested in learning more about AI in customer service? Check out our report on How AI is Reshaping Customer Service Operations to learn more.