Human vs. AI Answering Services: Which Is Right for You?
As a business owner, missing a call is missing an opportunity. Whether that call is a new client, an existing client, or an emergency call in the middle of the night, missing it means missing opportunities. There are dozens of solutions you can turn to, but an answering service is one of the most cost effective ways to solve this problem. But with so many AI advances in this field, the question isn’t should you get an answering service (that answer is most certainly yes); the real question is: which type is best for my business, human or AI?
This isn’t exactly an easy question to answer. Different things work for different people, and it’s going to depend on some factors you need to consider. I want you to think about your industry, your customers, and the experience you want them to have as we go over this.
Let’s go ahead and touch upon the elephant in the room, and maybe the whole reason you’re here: pricing. We get it, computers are cheaper because they don’t have a family to feed. But when push comes to shove, we all know that pricing isn’t the only cost in the decision-making process. Right now, we’re going to take price and put it to the side (we’ll revisit it later). Let’s discuss the real costs of the decision between human and AI services.
The Case For AI
AI has changed a lot over the last few years. It’s gone from a fun party trick to an actual tool, something that you, as a business owner, likely use every single day. An AI answering service might seem like the natural next step. It’s more affordable than a traditional answering service, has easy integration, etc. However, there are some serious pitfalls to be aware of. While AI can be incredibly useful, it’s not a popular tool for customer service. According to recent industry reports, up to 79% of callers dislike calls answered by AI, and 70% of callers are likely to change brands due to AI customer service . Those numbers make the customers’ preferences clear.
To double down on this, much like us, AI is far from perfect. AI can’t empathize with an upset customer, and won’t know what to do with a crying caller. It also struggles to understand nuance. If a customer needs to reach you ASAP for a true emergency, AI is locked into how it was programmed, and can’t make the judgement call to transfer your customer or send an urgent message.
AI Pros and Cons
So, let’s take a look at our AI pros and cons list.
Pros
- Lower cost: Typically very affordable
- Consistent responses: Delivers the same messaging and procedures every time.
- Fast call handling: Efficiently routes calls, collects info, etc.
- Scalable: Easily handles high call volumes without needing additional staff.
Cons
- Lack of empathy and limited judgement: Cannot genuinely comfort upset customers and may struggle with nuance situations.
- Customer frustration: 78% of customers dislike interacting with AI.
- Risk of losing customers: 70% of customers will switch to another company due to AI answering.
- Dependent on programming: If the system isn’t trained properly, it can mishandle calls.
The Case For Humans
Traditional answering services are still handling thousands of calls each day. They offer something that AI simply can’t, which is real human-to-human connection. A live human answering service can handle your customers with care and empathy when it’s needed. They’re able to understand the nuances of an urgent situation and hear the changes in your customer’s tone.
But a live answering service also isn’t perfect. People make mistakes, phone numbers are mistyped, and calls might even be screened incorrectly; but with a well-trained answering service these issues are few and far between. Another tradeoff is the price tag, since human answering services do tend to be pricier. However, these risks can outweigh the benefits if your goal is for your customers to feel cared for and heard whenever they call in.
Human Pros and Cons
And here’s our pros and cons list for using a human answering service.
Pros
- Real human connection: Customers feel heard, understood, and cared for.
- Emotional intelligence: Live operators can respond appropriately to upset, stressed, or emotional callers.
- Better emergency and unusual call handling: A live operator can recognize a nuanced situation and act accordingly.
- Builds customer trust: Positive human interactions can strengthen customer relationships and brand reputation.
Cons
- Higher cost: Live answering services cost more than AI. [CH2] [MM3]
- Human error: Just like any other person, mistakes happen.
- Staffing limitations: Hold times could increase during busy times
- Less consistency: Different operators may communicate differently with callers.
Pricing
So, we said we’d talk about the elephant in the room; pricing. We’ve broken down the true cost of this decision, but what’s the actual fiscal cost? That depends on a few factors, like company, billing practices and industry, but let’s look at the averages.
AI Answering Service
- Budget/Low call volume: $15-$50/month
- Standard/Mid-high call volume: $50-$300/month
- Per minute: $0.10-$1.75 per minute
- Per call: $0.33-$2.00
Human Answering Service
- Basic/Low call volume – $25-$135/month
- Standard/Mid call volume – $150-$300/month
- High call volume – $400-$1,000/month
- Per minute: $0.75-$3.50
- Per call: $1.10-$4.50
Answering Specialists
- Basic/Low call volume – $80-$135/month
- Standard/Mid call volume – $150-$300/month
- High call volume – $400-$8,825/month
- Per call: $0.88-$1.10
Yes, AI is cheaper. That can’t be denied. But is it truly cheaper if you lose customers? Does the cost truly shake out if your customers are so frustrated and over it, that they find a different electrician, doctor or lawyer? That’s a question for you to answer, and your decision to make, but we think the actual cost is clear. And if you decide that your customers deserve a real person on the other end of the line? Well, that’s what we’re here for.
If you decide that a real person is what your callers deserve on the other end of the line, let’s talk. Reach us at (866) 503-7025 or head to https://answeringspecialists.com. We’re here for you. Just real people handling your calls as if they were our own.
