How Conversational AI can Automate Customer Service while Lowering Costs

Yellow Messenger

Every year, 265 billion customer support requests are made, and it costs businesses a whopping $1.3 trillion to service them. Artificial intelligence and machine learning-based technologies are expected to offer an automation solution to these challenges. AI Chatbots can reduce these costs with the ability to handle routine and all documented queries and freeing up the human agents for limited calls which needs an entirely fresh approach. With the advent of Natural language processing, the conversational chatbots can understand your intent, emotions and sentiments based on how you are talking and what words you are using. Yellow Messenger’s natural language processing engine is considered one of the best available technology in the market, able to give most coherent answers with the least bit of input. In customer service, most of the calls are routine calls which are repetitive work and can be automated by AI-powered assistants. Using these recorded calls as the examples for Machine learning algorithms, the machine will learn the fresh approaches over time and using natural language understanding; conversational AI will deliver the most humanoid answers.

Why adopt Voice virtual assistants?

  • Reduction in query resolution time

We at Yellow Messenger observed that the service time for many of our clients has come down to 2 minutes post-deployment. Conversational AI can offer much faster response times and first call resolution, 24x7x365 along with the ability to understand unstructured human queries and use probabilistic models like neural networks to identify the motivation behind a question. 

These insights, along with customer history, context and clickstream data, help in identifying the customer query and associated intent with emotions to deliver faster solutions to customer queries. This switch from human agents to virtual agents or virtual voice agents that recognise multiple use cases to resolve simple requests quickly has the potential to decrease query resolution times, even for the basic.

Yellow Messenger deployed Captain Asian Paints chatbot on WhatsApp business to help our client Asian Paints. Here is the snapshot of impact achieved by Captain Asian Paints 

asian paints customer service chatbot
advantages of customer support chatbot for asian paints
Asian Paints customer support chatbots result in 25% less call to contact center, speedy query resolution time, and options to scale their services to other platforms.
  • Improved customer service at a lower cost

There is an opportunity to upgrade from obsolete, inefficient IVR technology to AI-enabled chatbots, intelligent virtual assistants, business messages, and other new technologies that are rapidly transforming call centres across the world. Conversational Chatbots have shown to save up to 30% in customer support services agent's annual salaries in the US alone, reducing the number of customer service employees that are required for the same volume of calls along with retaining high performing employees to attend many complex needs.

The newer ai-powered virtual assistants also reduce the customer service cost per call due to a reduction in call resolution time. The customer doesn't wait to be connected to a customer service agent, and the average number of calls per employee decreases.

reduced customer service cost per call due reduction in call resolution time by chatbots
  • A personalised experience for customer engagement

Marketers see an average increase of 20% in sales when using personalised experiences. The ML algorithms can be used to generate training data for different intents and can be used to predict the needs of every user. Machine learning algorithms are combined with an intuitive approach to human-supervised validation that improves your intent matching over time and hence provides a much-personalised experience.

Automating customer experience by delivering a personal experience to the customers across touchpoints like voice calls, chats etc. enables them to understand customer needs and then offer personalised solutions to increase sales and ensure customer satisfaction making 80% of shoppers more likely to buy from your company.

ai chatbots offer personalised experience for customer engagement
  • Better engagement through conversational solutions

As most customers are gen-Y and gen-Z who are self-reliant, technical dependent and expect instant gratification. That’s why customers are averting from support phone calls and opting assistance via messaging and other self-service channels. According to a Deloitte study, 56% of companies in the multimedia and technology industries are planning to invest in contact centre AI shortly. Yellow Messenger’s Voice and Video Bot is the best example of this. Bot can answer all the repetitive questions, but when an agent’s presence is required, the user can opt for video or call assistance and talk to the agent with no qualms Along with that, it's easier to switch to a human user in a text chat, which is also significantly less expensive than a call with live agents and presents a real opportunity to deploy conversational solutions.
  • Improvement with every customer interaction

The AI chatbots use NLP with the capability to understand user intent and emotions in a call. We can use the complicated or non documented unique situations as examples for the AI for future use, so every new call that AI couldn’t resolve can become an example for the AI. It is always learning. Hence, AI Chatbots learn from unique examples, making itself better over time and much more adaptive to specific business cases.

  • Omni-Channel Support

A channel is a medium through which brands can communicate with their customers. Multi-channel approach uses multiple channels to support the customers, although working in isolation of each other and helps the brand to expand its reach towards the customers. On the other hand, omnichannel support provides integration of all the channels available to a brand and makes better customer experience. 

It helps them continue their conversation exactly where they left off, on whatever channel they choose for their communication. Conversational AI is changing customer service and bringing it closer to the demands of customers. It can help with personalising the customer's experience and making it more convenient while simultaneously saving companies a lot of time and money.

omni channel support by conversational chatbots
  • Reduction in call centre attrition rates

The biggest challenge in customer service centres is the problem of high attrition rates. According to the QATC report, call centre attrition rates are twice the average of all other industries combined. It is due to the repetitive and mundane nature of the business which forms the majority of the customer service queries. The customer service chatbots can handle the repetitive customer support queries reducing the ordinary from the company and allowing human agents at customer service centres to address complex inquiries. It also increases the quality of those complex service requests by giving appropriate time to provide the service.


Conversational AI not only provides substantial cost savings, but Artificial Intelligence could also be leveraged as a business continuity strategy for customer service centres in the near future. When agents and chatbots work in tandem to deliver better service, it builds customer trust in the brand as well as technology and by bringing human-in-the-loop and creating a closed feedback system, the scalability of AI over time can be achieved at an accelerated pace.

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