La Room, an online South Korean women’s apparel brand, encountered an increasing challenge with customer service as its client base expanded over the past decade.
The internal customer service staff was responsible for addressing 350 to 500 customer inquiries per day, primarily regarding the anticipated delivery time of an ordered item. These inquiries covered a broad spectrum of subjects. It was becoming increasingly challenging to respond to all of the inquiries in a timely and rewarding manner.
This is no longer the case for La Room, a retail brand worth $18 million, as it has implemented Channel Talk’s ALF, an AI-powered chatbot, this year.
According to Woora Ko, the CEO and co-founder of La Room, the technology is ideal for addressing straightforward recurrent inquiries, such as transportation inquiries.
Ko stated in an email interview that the apparel brand is known for its “simple cool” aesthetic. She and her sister established the brand because they both shared a passion for clothing.
“We wanted to introduce simple but stylish fashion to the world,” she indicated.
She stated that it is equally crucial to offer exceptional customer service to both regular customers and potential new customers.
In the domain of customer service, the ALF chatbot is enabling La Room to engage with its customers in the manner that they prefer, as the majority of customers are now more at ease with text than with phone calls.
The rationale behind channel talk
La Room pursued a platform that would facilitate client interaction through text and conversation as a result of this realization.
“We selected Channel Talk due to its customizable features and user-friendly interface.” Ko stated, “We have the ability to modify the logo, colors, and design of the support bots.”
In the event that ALF is unable to provide a customer with an answer, the customer is subsequently directed to a customer service agent.
“Ultimately our goal with AI was not to avoid talking to customers but to prioritize the conversations that needed more attention,” Ko emphasized.
The return on investment
ALF deployment resulted in a 30% decline in the total number of inquiries to internal customer service agents at La Room, as well as a decrease in the number of order cancellations. A substantial reduction in time and resources is the result of the 30% decrease. In addition, the technology enables the customer service team to concentrate on more critical customer conversations.
“The decrease in the volume of inquiries significantly contributed to our cost reduction efforts.” We were able to concentrate on our regular consumers as a result of this reduction. Our response time for our regulars was an hour prior to Channel Talk; however, it has since been reduced to under five minutes. Ko stated that this substantially increased the time available to address more complex inquiries from consumers who purchase from us on a regular basis.
The capacity to devote additional time to consumers regarding inquiries that pertain to the “higher level” is associated with the establishment of a robust relationship and an improved customer experience through e-commerce. Ko emphasized the importance of this capability.
“I initially established La Room as an offline store because I derive great pleasure from engaging in conversations with individuals.” Additionally, offline, you have the opportunity to address all inquiries from your consumers. This ensures that your consumers have a positive experience, which increases their likelihood of returning.
“Consequently, it is imperative that we guarantee that the online experience is equivalent to that of the offline.” The utilization of AI has enabled us to establish robust relationships with our customers, which has been a significant advantage.
Suggestions and counsel
Ko provided a variety of recommendations to other retailers who are interested in implementing AI technology in customer service.
She initially asserted that AI is indispensable.
“Engaging with unfamiliar tools can be intimidating; however, AI is here to stay and should be.” She stated that it can significantly simplify the process of completing routine tasks, which in turn frees up time to concentrate on more significant and beneficial endeavors.
Second, retailers and brands should take the time to investigate and test out AI solutions, she said.
Third, inform your customers about the advantages of AI.
“Initially, we only offered phone support so when we shifted to chat, our clients complained. Ko stated, “However, I was resolute in my goal to enhance customer service efficiency and alleviate the stress on my customer service team. Consequently, we developed a pop-up message that informed our customers that they would receive a more rapid response via chat, which facilitated the transition.”
Josh Kim, Channel Talk’s co-founder and CEO, has stated that the company’s primary objective is to enable clients to serve consumers more effectively and efficiently in real time.
“Our AI-powered platform helps solve the biggest pain points plaguing e-commerce businesses today: Consolidating fragmented communication channels into a unified platform,” he stated in a telephone interview. “With Channel Talk, businesses can consolidate communication channels, streamlining the management of customer inquiries and support across various platforms.”
The platform transforms inefficiencies into efficient and expeditious customer service. Kim stated that it optimizes efficiency by ensuring timely responses, minimizing lost messages, and providing centralized communication management. Additionally, it enhances customer support processes.
“Channel Talk enables businesses to deliver personalized communication to customers, ensuring each interaction is tailored to individual needs and preferences, thereby enhancing customer satisfaction and loyalty,” according to Kim.