How did Meesho used AI to cut customer call costs by 75%?
Meesho used AI to cut customer call costs by 75%
In the field of e-commerce, a lot of Startups are expanding every day. Quick commerce is also coming the landscape of e-commerce. A lot of e-commerce giants are trying to optimise and enhance the experience of a customer using AI. Meesho is also revolutionising it’s game using AI. This e-commerce giant is becoming prime example of e-commerce startup in India. This startup has replaced humans with AI-powered bots to improve the efficiency. By replacing humans with AI-powered bots, Meesho has successfully used AI to cut customer call costs by impressive 75%.
Although, this use has become common in west. But, now a lot of companies in UK are also working on this concept. AI bot tries to solve most of the human queries.
These AI powered bots try to give solutions to wide array of customer queries. This is a sort of instant support of those customers whose queries are not complex. The instant support gives a positive impact to the mind of customer. As this has helped Meesho to cut customer call costs by 75%, so this can also be beneficial to Meesho in terms of accounting. The startup can use the saved costs in some more productive manner. The market of AI bots has increased a lot from 2021 and is expected to become more than double by 2025. The bots are capable of understanding and responding to customer requests. Meesho used AI powered bots that are capable of offering solutions to common problems.
ARE AI BOTS USED BY MEESHO GOOD?
These type of AI bots can solve a lot of queries simultaneously. According to sources, Meesho has a lot of it’s customer base in Tier-II and Tier-III cities. As of now, these voice bots used by Meesho currently handle 60,000 calls daily. This number is less than half of Meesho’s total daily call volume. The company maintains a human layer for complex queries. We donot think that the company plans to handle all customer queries through AI, further reducing reliance on human agents. This strategic shift towards AI-driven customer support has also resulted in faster query resolution times, improving the overall customer experience. The average turnaround time for resolving queries has been cut in half, from 3-4 minutes to 1.5-2 minutes. As per our experience, these type of bots can make customer feel miserable also. According to a survey by Gartner, nearly 2/3rd of customers prefer that companies don’t use AI for customer service. Moreovor, the voice of these AI powered bots by Meesho(or other companies) are less human. Hence, these bots can lower the emotional trust of the customer.
Although these bots are good to use. But, they have discrepancies which needs to be resolved before hand.
Cost effectiveness of AI bots used by Meesho
Although, the startup has taken various initiatives to upskill the workforce. The startup is good when it comes to workforce utilization. To improve work-life balance, Meesho also gave “Reset and Recharge break” to the employees. A lot of people on Social media applauded Meesho. People said that Meesho has set an example. But, on the other hand, Meesho also lays off it’s employees. Meesho also used AI to cut customer call costs by 75%.
One more thing, when we have a dire need to talk to a person, these AI bots become a hurdle. This success of Meesho to use AI is not an isolated incident. But cutting these costs is a big thing for a startup in India. This trend underscores the growing adoption of AI in customer service.
CONCERNS OF EMPLOYMENT VS COST-SAVINGS
However, the increasing capabilities of AI also raise concerns about the long-term impact on human employment. These AI models are continuing to evolve and are becoming sophisticated day-by-day. They require human intervention now. But they might not require human intervention in time to come. These bots have a big potential to disrupt white collar jobs in future. Government and startups in India need to take various steps to prevent jobs of the growing population. Startups can also help workforce to upskill and help them to do smooth transition instead of doing greedy layoffs. However, Meesho is focusing on upskilling its workforce to adapt to new roles.
CONCLUSION- Meesho cuts costs by 75%
Meesho acts as a classic example of how AI can be effectively utilized to optimize business operations and reduce costs. The adoption of AI in the workplace presents both opportunities and challenges. Businesses that embrace AI and adapt to its evolving capabilities will be well-positioned in the increasingly competitive marketplace.
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