From January 2019 to January 2020, the online B2C sales in the UK increased from 20% to 33% and more than 15% of all B2B enterprises are adopting online conversational commerce and customer care this year.
SMEs want to implement conversational commerce and customer care, but their needs have yet to be adequately addressed.
In-house implementation of conversational platforms can be costly and time-consuming. Alternatively, there are over-the-top (OTT) vendors offering one-size-fits-all solutions with rates varying from 20 EUR to 80+ EUR per agent/month. But enterprises are often wary of entrusting sales and customer data to unregulated vendor clouds located outside of their country. For these reasons, the needs of small and medium-sized enterprises (SMEs) have yet to be adequately addressed. This market represents an important immediate opportunity for CSPs.
What are conversational platforms?
CSPs have all the communications channels for conversational services and guarantee scalability, compliance, reliability, as well as local data storage with iron-tight data security.
Basically solutions for customer engagement via chatbots and live chat with agents, sometimes with advanced features, like integration of third-party AI, video playback, voice and video calling, as well as co-browsing with live agents.
Why are CSPs well positioned to succeed with conversational services?
Considering the addressable market, this is indeed good business for CSPs. Commercially, you can achieve up to an 80% gross margin while charging monthly agent fees 20% below the pricing of competing OTT alternatives as mentioned above.
lower pricing fees than OTT alternatives
Moreover, conversational products provide after-sales to your existing customer base as well as a means of gaining new customers at low acquisition costs. They also strengthen customer retention.
Achieve higher margins by realizing higher value products directly in your reliable and secure CSP network.
Introduction to Conversational Services
This is the first of a series of ECT e-books on the topic of conversational AI platforms (CAIP) and its significance for CSPs. It introduces you to application conversational platforms, their architecture, the relevant use cases as well as the market opportunities for CSPs.