AI Revolutionizing Pricing Models: How It’s Disrupting Business Communication Services

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AI set to disrupt pricing models for business communication services

Shifting Paradigms in Call Centre Pricing: The AI Impact

Mumbai: Companies that provide call centre and business messaging services are anticipating a transformative shift in their pricing models, driven by advancements in artificial intelligence (AI). As AI begins to dominate both voice and text conversations, traditional pay-per-message or pay-per-seat pricing structures are expected to be replaced by more outcome-based and bundled options.

An Executive Perspective

“Call centres are still charging pay-per-seat, but the reality is that this model is at significant risk of disruption,” remarked Ivan Ostojic, the Chief Business Officer at London-based Infobip, which specializes in cloud-based communications tools for marketing, sales, and support.

The Emerging Pricing Structures

Ostojic discussed the potential of a telco-type pricing model where companies could predict consumption per user and offer customized bundles. He elaborated, “This could range from Software as a Service (SaaS) or AI solutions to various communication channels, ensuring that businesses receive secure pricing against fluctuations.”

CPaaS Companies Experimenting with Bundles

Communication-platform-as-a-service (CPaaS) providers like Infobip are exploring new pricing strategies aimed at justifying the costs associated with implementation against the benefits gained. Industry experts suggest that as AI agents automate workflows, multi-channel communications across SMS, voice, WhatsApp, Rich Communication Services (RCS), and in-app notifications may soon be offered in bundled pricing formats.

Understanding Pricing Complexity

“Our pricing models vary based on multiple factors, including the complexity of the use case, the degree of AI integration, and the backend systems involved,” explained Deepak Goyal, Chief Business Officer at Tanla Platforms, a Hyderabad-based firm that provides various communication tools for businesses.

The Value of AI Implementation

Despite the higher initial costs associated with AI-driven use cases, many customers are willing to pay a premium, as the overall value often outweighs these additional costs. Goyal cited an example where Tanla executed a campaign for a retail brand, encouraging users to upload images of damaged appliances via WhatsApp in exchange for exclusive coupons. This multimodal AI image recognition campaign achieved redemption rates as high as 30 times, demonstrating high engagement.

GenAI and Its Financial Implications

“Generative AI use cases are still nascent, and the sector is yet to find a consistent pricing model,” noted Gautam Badalia, CEO of Route Mobile, another prominent CPaaS provider. He acknowledged the significant costs associated with generative AI interactions, which vary across different engines currently available.

Moving Toward Outcome-Based Models

As AI technologies unveil new possibilities in customer service, pricing models are expected to increasingly reflect outcome-based structures. “Currently, pay-per-message remains the most common pricing model, particularly for AI agents,” Badalia stated.

Streamlining Insurance Communications

Route Mobile has enabled an insurance company to utilize an AI agent that engages users on WhatsApp. This AI agent assesses user profiles and needs, suggesting the most suitable insurance policy. Badalia emphasized that such a solution is designed to minimize human error in policy suggestions, helping avoid potential instances of mis-selling.

Conclusion

The call centre and business messaging landscape is poised for a significant transformation as AI takes center stage. With evolving pricing structures focused on outcomes, companies can expect to adapt their services to cater to a more technology-driven market.

FAQs

1. What factors are driving the change in pricing structures for call centre services?

The advent of AI in communication technology is leading companies to explore outcome-based and bundled pricing models, moving away from traditional pay-per-message or pay-per-seat structures.

2. How are CPaaS companies responding to these changes?

CPaaS companies like Infobip and Tanla Platforms are experimenting with various pricing strategies and bundles that account for the complexities and benefits of AI integration.

3. Why are customers willing to pay more for AI-driven solutions?

The enhanced value and efficiency generated by AI solutions often outweigh the incremental costs, making them appealing to businesses.

4. What examples illustrate the successful implementation of AI in customer service?

One example includes a campaign by Tanla Platforms, where users submitted images of broken appliances via WhatsApp in exchange for coupons, achieving high redemption rates.

5. What is the role of generative AI in altering pricing models?

Generative AI is in its early stages, and as its use cases expand, companies are exploring how to integrate these technologies effectively into their pricing strategies.

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