How deeply does Effective Conversational AI cover return on investment?

Links business goals to measurable metrics and continuous improvement, without detailing a financial ROI calculation.

Return on investment

As explained in Effective Conversational AI

Return on investment is the financial return produced by an investment relative to its cost.

A conversational AI system can handle many interactions without proving that it creates value. Return on investment (ROI) measures the financial return produced by an investment relative to its cost. For a chatbot, connect performance metrics to revenue growth or cost reduction rather than tracking activity alone. section 3.3.1

Translate business goals into measurable signals:

Measure revenue growth through conversion rate, average order value, or customer lifetime value. section 3.3.1
Measure cost reduction through average handling time, operational costs, first-contact resolution, call-center deflection, or routing accuracy. section 3.3.1
Review the metrics continuously to determine whether the system supports its intended business outcomes. section 3.3.1

From chatbot activity to business value

A booking chatbot should not be judged only by the number of conversations it handles. Track automated booking confirmations alongside reduced support costs. PharmaBot demonstrated the value of this approach by combining appointment-scheduling automation with cost savings and revenue growth. section 3.3.1

How Effective Conversational AI covers it

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Think Like a CTOA financial metric comparing the value or savings generated by an initiative with the money spent on it.
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The Art of AI Product DevelopmentReturn on investment is the financial or economic gain produced by an investment relative to its cost.
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Financial AI in PracticeReturn on investment is the ratio of gain or loss from an investment to its cost, typically expressed as a percentage.
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Think Like a Software Engineering ManagerReturn on investment is a financial performance measure comparing the benefit or return generated with the resources invested.

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Related concepts

startup pitchused by · A startup pitch is a concise, persuasive presentation of a young company’s product, market, business model, and growth prospects to potential investors or customers.
costcontrasts with · Cost is the monetary expenditure, computational or other resource consumption, effort, or burden incurred in acquiring, producing, operating, or performing something.
automationcontrasts with · Automation is the execution of tasks or processes by machines or software with reduced direct human intervention.
valuemeasures · A value is the content, quantity, information, or worth attributed to an entity, property, expression, or outcome.

This explainer was generated by Manning's knowledge graph from the text of Effective Conversational AI. The section links point to the parts of the book it draws on.