June 8, 2023 Akash Kumar Case Studies

Case Study: How Osmosian Reduced Operational Costs by 70%

Case Study: How Osmosian Reduced Operational Costs by 70%

In today's competitive business landscape, companies are constantly seeking ways to reduce operational costs while maintaining or improving service quality. This case study examines how GlobalRetail, a multinational retail corporation with over 500 stores worldwide, implemented Osmosian AI phone agents and achieved a remarkable 70% reduction in customer service operational costs.

Client Background and Challenges

GlobalRetail was facing significant challenges with their customer service operations:

  • High operational costs from maintaining large call centers across multiple time zones
  • Inconsistent customer experiences depending on agent availability and training
  • Long wait times during peak periods leading to customer frustration
  • Difficulty scaling operations during seasonal demand spikes
  • High employee turnover in their call centers (>40% annually)

These challenges were not only affecting their bottom line but also impacting customer satisfaction and loyalty. GlobalRetail needed a solution that could address these issues comprehensively while providing a clear return on investment.

Traditional retail customer service call center

GlobalRetail's traditional call center setup before implementation

Implementation Strategy

After a thorough analysis of GlobalRetail's needs, our team developed a phased implementation strategy:

  • Phase 1: Initial deployment handling basic inquiries (order status, store locations, hours)
  • Phase 2: Integration with inventory and CRM systems for personalized customer interactions
  • Phase 3: Implementation of complex issue resolution capabilities (returns, complaints)
  • Phase 4: Full deployment with human agent collaboration model for escalation cases

The implementation was completed over a six-month period, with careful attention to training, integration with existing systems, and continuous optimization based on performance data.

Technical Integration Details

A key factor in the success of this implementation was the seamless integration with GlobalRetail's existing technology stack:

  • API integration with SAP ERP system for real-time inventory and order information
  • Connection to Salesforce CRM for customer history and preference data
  • Custom knowledge base development with industry and company-specific information
  • Secure authentication protocols for handling sensitive customer information
  • Analytics dashboard for real-time performance monitoring and optimization
Technical integration architecture diagram

Architecture diagram showing Osmosian AI integration with GlobalRetail's systems

Results and ROI Analysis

The implementation of Osmosian AI phone agents delivered exceptional results across multiple dimensions:

  • 70% reduction in overall customer service operational costs
  • 85% of customer inquiries successfully handled by AI without human intervention
  • 64% decrease in average handling time for customer inquiries
  • 42% improvement in customer satisfaction scores
  • 95% availability with zero downtime during implementation

The financial impact was substantial. GlobalRetail's annual customer service budget decreased from $24 million to $7.2 million, resulting in $16.8 million in annual savings. With an implementation cost of $3.5 million, the ROI was realized in just under 3 months.

The implementation of Osmosian's AI phone agents has been transformative for our business. Not only have we dramatically reduced costs, but we've also improved customer satisfaction and gained valuable insights from the conversation analytics.

VP of Customer Experience, GlobalRetail

Human Resource Transition

An important aspect of this case study was GlobalRetail's approach to transitioning their human customer service workforce:

  • 35% of agents were upskilled to handle complex cases and AI supervision
  • 25% were transitioned to other customer-facing roles within the company
  • 20% were trained for AI training and optimization roles
  • 15% chose voluntary retirement packages
  • 5% attrition through normal turnover

This thoughtful transition plan ensured that the implementation didn't result in mass layoffs, maintaining company morale and public perception.

Lessons Learned and Best Practices

Through this implementation, several key lessons and best practices emerged that can benefit other organizations considering similar transformations:

  • Start with simple use cases and gradually expand to more complex scenarios
  • Invest in comprehensive integration with existing systems for maximum effectiveness
  • Develop clear escalation paths for cases requiring human intervention
  • Create a detailed plan for transitioning and upskilling human agents
  • Implement robust analytics to continuously monitor and improve performance
  • Maintain transparent communication with all stakeholders throughout the process

Conclusion

The GlobalRetail case study demonstrates the transformative potential of AI phone agents in reducing operational costs while improving service quality. By implementing Osmosian's solution with a thoughtful, phased approach and attention to both technical and human factors, GlobalRetail achieved remarkable results that have positioned them as a leader in their industry.

For organizations facing similar challenges, this case study provides a blueprint for successful implementation and a clear illustration of the potential return on investment.

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