Home by NB: How AI Chatbot Achieved 587% ROI and Transformed E-commerce Customer Service

Situation

Home by NB - a well-known singer Natalija Bunkė's e-commerce store, selling home decor elements and accessories. Previously, they had neither an AI chatbot nor live chat.

Average monthly load

• Active website visitors: 119,000
• Messenger conversations: 63
• Instagram conversations: 52

Due to the large flow of followers on social networks and the website, Home by NB received numerous questions about promotions, product features, warranty duration, and return policies. Some buyers would leave the site without paying for items placed in their cart because they didn't receive timely answers to their questions.

Implementation

Home by NB implemented Parnidia's AI chatbot solution to address their customer service challenges. The AI assistant was deployed to handle customer inquiries 24/7, provide product recommendations, and offer consultative search capabilities.

Key Capabilities

• Answer common questions about promotions, product features, warranty, and returns
• Provide personalized product recommendations based on customer preferences
• Offer consultative search to help customers find products based on specific needs
• Be available around the clock to prevent cart abandonment due to unanswered questions

First Month Performance

During the first 30 days, the AI chatbot had 707 conversations with the following metrics:

Visitor ratings: 88.58% (194 likes out of 219 reactions). The visitor satisfaction significantly exceeds the average for AI chatbots on e-commerce sites, which ranges between 69-80%.

Response accuracy: 81.72% (1,887 accurate answers out of 2,309). The accuracy slightly exceeds the market standard of 80%.

Sales Impact: The AI chatbot generated 32 sales from its recommendations, with a total value of €445.39 (From February 19 to March 26.). The sales funnel showed:

• Product page visits: 453
• Added to cart: 123
• Sales: 32

Overall, the majority of conversations (62.37%) are related to the website visitor's intention to purchase a product (asking about product characteristics, discount codes, gifts for specific people).

Return on investment through time saved - 587%

Conversation data

• Total monthly conversations: 704 + 63 + 52 = 819
• Projected accurately answered conversations: 819 x 81.72% = 669
• Average conversation duration: 11 minutes

Time saved

• Time saved per month: 669 x 11 min / 60 = 122.65 hours
• Time saved per year: 122.65 hours x 12 = 1,471.8 hours

Cost savings

• Customer service specialist salary (gross average in Lithuania): €2,298.57
• Customer service specialist hourly rate: €2,298.57 / 160 = €14.36
• Saved per month: 122.65 x 14.36 = €1,761.25
• Saved per year: €1,761.25 x 12 = €21,135

Return on investment

• Annual AI chatbot cost (€1,995 + €300 x 12): €5,595
  
• First year return on investment: €21,135 / €5,595 = 3.77 (377%)
• Subsequent years return on investment: €21,135 / €3,600 = 5.87 (587%)

Growth in customer service quality

I think your calculation is logical. Without Parnidia AI chat, we wouldn't have and didn't have that many conversations.
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It's not just about saving time, but also about better customer service, because information is provided quickly and instantly, which is impossible to achieve with a human service agent. I think this is an even bigger advantage than time savings.

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Value of product recommendations

We asked the client how he evaluates Parnidia AI chatbot's product recommendations.

I would mention the added value for the customer, who can both consult and receive specific product recommendations.

A great example is with home fragrances. A person writes their preferred scent, and the AI provides options based on fragrance notes. I haven't seen such a search or filter system that could provide options so accurately. Plus, answers are available 24/7.

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Overall opinion

Client wrote us a testimonial a few months after successfully integrating AI chatbot

From the very first steps, we felt the team’s commitment, quick responsiveness, and genuine effort to understand our needs and find the best solutions.
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The AI solution wasn’t just technologically advanced. It was perfectly tailored to our customer service needs. It helped us enhance the user experience on our website while managing inquiry flow more efficiently. We especially appreciate the team’s flexibility, thorough consultations, and speed. Every question was resolved quickly, and the recommendations were always clear and valuable.

We’re happy to have chosen Parnidia as our technology partner and confidently recommend their services to anyone looking for innovative solutions and a trustworthy team!

Conclusions

1. The solution pays off immediately

Even the first year's ROI reaches 377%, and the upcoming years' return on investment reaches 587%. We calculated pessimistically without considering these factors:

• The AI chatbot's response accuracy indicator increases over time;
• The AI chatbot's product recommendations encourage sales.

2. E-commerce users love artificial intelligence

9 out of 10 website visitors who rate the AI chatbot evaluate the conversation positively. The Home by NB business analyst sees the most value precisely here, as the AI chatbot enables fast customer service around the clock.

3. Consultative search gains momentum

Standard product search on the website works great if the website visitor knows what they want. But how many customers do you have who need help deciding or choosing? It's precisely these people that the AI chatbot helps, accurately recommending products based on expressed needs. Just like consultants help in physical stores. This model generated 32 additional sales.