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Zendesk launches outcome-based pricing model for AI agents

Fri, 30th Aug 2024

Zendesk has introduced an outcome-based pricing model for its AI agents, marking a significant shift in how businesses pay for customer service automation.

The new model ties costs directly to the performance of AI agents, specifically charging only for issues resolved autonomously by the artificial intelligence, thereby aligning expenses with actual outcomes.

This change comes amid the prediction that up to 80% of customer interactions will soon be automated. The pricing model aims to address the evolving needs of businesses seeking to optimise customer service through automation. With a focus on flexibility, transparency, and scalability, Zendesk's initiative reflects its ongoing commitment to innovation in the customer experience (CX) industry.

Nikhil Sane, Senior Vice President of Go-To-Market Strategy and Pricing at Zendesk, commented on the development. "Zendesk's commitment to innovation has always been driven by a deep understanding of our customers' evolving needs. As the industry moves toward more transparent, results-oriented business models, we are proud to lead the way with a solution that ensures companies can confidently invest in AI," Sane said.

He added, "Our Outcome-Based Pricing Solution is more than just a pricing model—it's a reflection of our dedication to driving real, measurable success for our customers. As we continue to innovate and lead in AI-powered CX, Zendesk remains committed to listening to our customers and evolving all aspects of our offerings to meet their needs."

The newly introduced pricing structure is designed to be simple and transparent. A starter usage level will be included at no additional cost, allowing companies to scale automated resolutions as their needs grow. An in-product dashboard will provide visibility into automated resolution usage and automation rates, enabling businesses to track performance effectively and manage their budgets. This approach is intended to prevent unexpected costs and provide predictability as companies integrate AI solutions more deeply into their operations.

The model also emphasises customer flexibility. Recognising that each business has unique requirements for integrating AI, Zendesk's approach allows companies to incorporate AI agents in ways that align with their specific objectives. Businesses that still require human agents will retain the option to utilise them where necessary. This flexibility includes the ability to monitor automated resolution usage and forecast future needs, enabling a customised deployment of AI agents.

This strategic move positions Zendesk as a leader in AI-powered customer service. The company argues that outcome-based pricing is a forward-thinking approach, particularly as AI continues to transform customer service dynamics. By basing costs on the success rate of the AI agents, Zendesk aims to ensure that investments in AI yield tangible returns for businesses.

As automation becomes increasingly crucial for managing the scale and pace of customer interactions, Zendesk is making AI agent capabilities accessible across all its Suite and Support plans. This includes a complimentary starter usage level for businesses, reflecting the company's belief that all businesses should benefit from the efficiencies and improvements AI technology can provide.

The introduction of outcome-based pricing is aligned with Zendesk's mission to simplify business complexities and foster meaningful relationships between companies and their customers. By ensuring that costs mirror the value provided by AI agents, Zendesk aims to empower businesses to deliver more intelligent and efficient customer experiences.

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