Today’s consumer demands instant, personalised service available around the clock. For businesses keen to deliver, this often means scaling customer operations, prioritising top-tier staff training and investing in automation. However, there often comes a trade-off between offering the speed and accuracy of artificial intelligence tools or the warm, human touch of real-life customer service. With customers craving both efficiency and empathy, which way should businesses go? Digital avatars, and specifically digital humans, take away the need to choose. By combining time-saving AI and relatable human-like holograms, digital avatars represent the future of smart business. Here are some of the ways that this emerging technology can save your business money.
1. Reduce Customer Support Costs
Research from McKinsey found a 50% reduction in operational costs for brands utilising digital avatars compared to traditional customer service methods. The most obvious boost comes from having 24/7 support for customers without having to hire human workers around the clock. Digital avatars also drive efficiency by handling the most routine and repetitive customer service tasks. By shifting these simple yet time-consuming tasks away from the human customer experience teams (customer support, marketing, sales), those individuals are freed up to focus their time and energy on more complex, business critical tasks; tasks that are more valuable to the bottom line.
2. Reduce Errors and Returns
A study by the IT Governance Institute found that UK businesses experience a huge loss of £98.6 billion per year due to human error. Research by Whistl discovered that British retailers lose £60 billion per year to returns. There are considerable savings to be made by addressing these concerns – and digital avatars present a compelling solution. It’s a well-established fact that, when implemented effectively, artificial intelligence achieves higher accuracy rates than human workers, directly translating to reduced losses from errors. According to Vogue Business, the use of digital avatars by fashion retailers increases consumer confidence and reduces returns. Digital humans in customer service, operational and assistance roles could mean substantial and sustained savings for innovative businesses.
3. Reduce Staff Training Costs
According to research by the Department of Education, UK companies spend, on average, £1,800 on training for each new employee. Add to this staff turnver rates of 34% and the cost of maintaining a high standard of customer service continues to creep up. Digital avatars in business can reduce this cost in two ways. Firstly, by employing 3D avatars as customer service agents – available 24/7 and able to serve customers in multiple languages – businesses eliminate the need to have a full customer service workforce on-site (or online) at all hours. But perhaps a more innovative way to tackle the issue is through placing digital humans in the role of staff trainers. 3D avatars can provide consistent and standardised training for employees, available on demand not just for initial education but also for much-needed refreshers. Whether as teammates or trainers, digital avatars present a sound investment that continues to pay off over time. Beyond direct cost savings, digital avatars also represent an opportunity to increase earnings…
BONUS: Increase Sales and Conversion Rates
As well as saving you money, digital avatars in business can make you more money too. By delighting customers with highly personalised, engaging service, 3D avatars can lead to higher conversions and a higher average order value. By guiding customers through checkout processes, they prevent drop off, increasing order completion rates. Digital humans in physical retail environments also deliver a sense of novelty, creating a unique, immersive shopping experience for consumers. It’s no wonder that 80% of consumers are more likely to make a purchase from brands who offer immersive experiences.
Is Your Business Ready For The Future?
Implementing digital avatars in your business is undoubtedly a significant investment; in terms of finances, logistics and education. However, it is a smart and necessary one for businesses who want to stay relevant and keep up with customer demands. While the digital avatar industry is still in relative infancy, it is seeing lightning speed growth, so now is the time for businesses to step into the future. Above are just a few of the cost savings that can be enjoyed from working with 3D avatars – there are many more! To explore how digital humans could elevate how you do business, book a demo now.
