The real costs of human support: why e-commerce brands are switching to AI phone calls

E-commerce brands are increasingly adopting AI phone systems to significantly cut costs and enhance customer service efficiency.

Published on

February 19, 2025

Maurizio Isendoorn

Co-Founder

The rising costs of human customer support - up to $60,834 annually per agent - are driving e-commerce brands to adopt AI phone systems. Here's why:

Cost Savings: AI cuts support costs by up to 60%, handling 80% of routine queries and reducing staffing, training, and infrastructure expenses.
Improved Performance:
- 40% shorter handle times
- 15% higher first-call resolution rates
- 27% better customer satisfaction
Multilingual, 24/7 Support: AI supports over 50 languages with real-time translation, eliminating the need for costly bilingual agents.
Scalability: Easily manages seasonal spikes with 10,000+ simultaneous interactions, maintaining fast response times.

Switching to AI phone support not only reduces expenses but also improves customer service quality and scales effortlessly for global businesses.

How A.I. is slashing time and costs in the customer service industry

Hidden and Direct Costs of Human Support Teams

Human support teams come with expenses that go well beyond just salaries. Here's a breakdown of the typical costs involved:

Expense Category	Annual Cost per Agent
Base Salary	$36,920
Benefits (25% of Salary)	$9,230
Training	$4,800
Equipment & Software	$2,500
Management Overhead	$7,384
Total Annual Cost	$60,834

For specialized roles, such as bilingual agents, salaries are typically 5–20% higher, along with increased training requirements^[10].

Staff Replacement and Hiring

High employee turnover in customer support - ranging from 30–45% annually^[8] - adds another layer of expense:

"The total cost of replacing a single customer service representative can range from $60,000 to $80,000 when considering recruitment, hiring, and training expenses. This represents roughly 1.5 to 2 times the employee's annual salary"^[8].

It often takes 3–6 months for new hires to reach full productivity^[8], which can disrupt service quality and efficiency. These staffing challenges are especially pronounced in operations requiring multilingual or continuous support.

24/7 Coverage and Language Support

Providing 24/7 multilingual customer service significantly increases costs - by as much as 40–60%^[9]. This is due to several factors:

Night shift differentials, which add 10–15% to base wages
Overtime pay, typically 1.5× the standard rate
Additional management layers for supervising round-the-clock teams
Infrastructure expenses, which can range from $10,000 to $50,000 annually^[9]

Operating in multiple languages adds even more to the bill. Supporting five languages, for example, can raise costs by 30–50% compared to single-language support^[10]. Translation tools alone can cost between $5,000 and $20,000 annually^[10].

These rising costs underscore why many businesses are turning to AI-driven solutions, which provide consistent, scalable support across languages and time zones without the same financial burden.

AI Phone Support Benefits for E-Commerce

AI phone support can drastically reduce costs. According to industry data, using AI-driven phone solutions can cut customer service expenses by up to 60% ^[12].

Cost Savings and Improved Performance

AI phone support isn't just about saving money - it also boosts key performance metrics. Here's how:

Performance Metric	Improvement with AI
Average Handle Time	40% reduction ^[1]
First Call Resolution	15% increase ^[12]
Customer Satisfaction	27% improvement ^[11]
Error Rate	50% reduction ^[11]
Call Capacity	1000% increase ^[11]

For example, one mid-sized e-commerce company reported a 60% reduction in costs, including:

Cutting staffing expenses by about $450,000
Eliminating $100,000 in training costs
Saving $50,000 on infrastructure

Multilingual Support and Global Reach

Modern AI phone systems bring more than cost and performance improvements - they also provide multilingual support, perfect for businesses with global customers. Many advanced systems support over 50 languages at no extra cost ^[11]. Features like real-time translation and the ability to understand different dialects and accents ensure consistent service quality.

Handling Seasonal Spikes

AI phone support shines during peak seasons when call volumes soar. These systems can:

Handle a 500% increase in call volume, managing over 10,000 simultaneous interactions
Maintain steady response times
Streamline queue management
Reduce inbound call demand with proactive communication

A great example is Ringly.io, which integrates seamlessly with e-commerce platforms while providing detailed call analytics. This makes it an effective tool for monitoring and improving customer service performance.

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Results from E-Commerce AI Phone Support

Call Volume Decrease Through Automation

AI phone support is helping e-commerce brands significantly cut down on call volumes, with up to 80% of routine queries handled by AI systems ^[5]. For instance, Levi Strauss & Co. reduced calls handled by human agents by 25% and saved $1.5 million in just six months, thanks to AI-led initiatives spearheaded by their Chief AI Officer, Katia Walsh.

Here’s how key metrics improved:

Metric	Average Change
Total Call Volume	35% decrease
First Contact Resolution	40% improvement
Average Handle Time	35% decrease
Support Costs Per Contact	30% decrease

Beyond reducing call volumes, AI also delivers smart recommendations that drive sales.

Sales Growth from AI Recommendations

AI doesn’t just streamline support - it also helps boost revenue. Intelligent product recommendations integrated into AI phone systems are proving to be a game-changer. In Q3 2023, Zappos implemented AI-driven product suggestions during customer service calls. Within 90 days, their average order value went up by 27%, generating an extra $3.2 million in revenue for the quarter. Rob Siefker, Director of Customer Loyalty at Zappos, highlighted this as a major success.

Personalized AI recommendations have shown to:

Increase conversion rates by 15–25%
Boost customer lifetime value by up to 20%
Improve cross- and upselling rates by 5–10%

"The integration of natural language processing and personalization in AI phone support led to a 25% increase in customer satisfaction scores and a 30% reduction in call escalations to human agents."

The data shows that AI phone support isn’t just about cutting costs - it’s a tool for improving customer experience and driving revenue. Many businesses see ROI in as little as 6–12 months, with some reporting returns as high as 280% within the first year ^[1]^[2].

Implementing AI Phone Support

Combining AI and Human Agents

Using a mix of AI and human agents can create a more efficient support system. AI can handle routine questions, while more complex issues are escalated to human agents. This approach can cut support costs by up to 30% without compromising customer satisfaction^[13]. To make this work, set up clear handoff protocols that ensure a smooth transfer of customer information.

Data Security and Regulations

When adding AI to your support system, protecting customer data is critical. For e-commerce businesses, this means using end-to-end encryption for all interactions and setting strict access controls^[4]. Key compliance steps include:

Following GDPR rules, such as limiting data collection and allowing customers to request data deletion.
Meeting PCI DSS standards to securely manage payment information.
Running regular security audits to find and fix vulnerabilities.

Once security measures are solid, you can move on to platform-specific setup.

Setting Up Ringly.io

Ringly.io

Ringly.io is a platform designed for easy integration with e-commerce systems. It offers features like automated support, order tracking, and personalized product suggestions. Supporting over 7,000 tools and 18 languages, it’s an excellent choice for global retailers.

Here’s how to get started:

Initial Setup
Load your AI agent with essential information like product details, pricing, policies, and documentation.
Integration Phase
Link Ringly.io to your e-commerce platform and CRM using its built-in integrations and automation features.
Optimization
Use AI-powered call analytics to monitor and improve performance. Review call data, categorize interactions, and adjust processes based on insights.

Start with a pilot program targeting common customer inquiries. This will help you fine-tune the system before rolling it out on a larger scale.

Conclusion

Switching from human support teams to AI-driven phone systems is reshaping e-commerce by significantly reducing costs and cutting down on staffing expenses ^[3]. But it’s not just about saving money - AI phone solutions are proving to be game-changers for day-to-day operations. For instance, e-commerce companies using AI for customer service have seen a 35% boost in customer satisfaction scores ^[6] and a 40% reduction in average handle times compared to human agents ^[7].

The benefits are clear in real-world examples. Shopify’s adoption of AI voice support in 2022 highlights these advantages. Their AI system reduced average handle time by 45% and improved first-call resolution rates by 28%, saving them $3.7 million annually in support costs. These results emphasize the importance of a well-thought-out implementation strategy.

For brands looking to make this transition, here’s what matters most:

Start with a pilot program focused on common customer inquiries.
Ensure strict security and compliance measures are in place.
Set up clear pathways for escalating complex issues to human agents.
Keep AI knowledge bases up-to-date.
Track key metrics like resolution rates and customer satisfaction.
Use reliable platforms (like Ringly.io) for multi-language and multi-tool integration.

By following these steps, businesses can blend AI efficiency with human support to create a future-ready customer service model.

Looking ahead, the future of e-commerce support lies in hybrid systems that merge AI capabilities with human expertise. Tools like Ringly.io, which integrates with over 7,000 tools and supports 18 languages, make it easier for businesses to scale their operations while staying cost-effective and customer-focused.

The data makes it clear: AI phone support isn’t just about cutting costs - it’s about building a smarter, more scalable, and customer-friendly support system that keeps up with the demands of modern e-commerce.

FAQs

What is multilingual support?

Multilingual support enables e-commerce businesses to assist customers in their native languages. Research shows that 75% of consumers prefer shopping in their own language, and 40% avoid purchases in other languages entirely ^[5]. This makes multilingual support a crucial tool for businesses operating globally.

AI systems make this possible with features like:

Feature	Benefit
Real-time voice translation	Handles customer calls in multiple languages instantly
Cultural context understanding	Recognizes regional expressions and idioms for smoother interactions
Consistent brand messaging	Ensures uniform communication across all languages
Easy language scalability	Adds new languages without requiring native-speaking hires