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How is the Agent Labor Rate Estimated?

How is the labor rate for agents estimated?

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In order to estimate the cost savings from the work done by Zoko's bots and AI assistants, we provide a robust framework to quantify the potential cost savings achieved through automation. A critical component of this framework involves understanding the hourly rates of customer support representatives across different countries. The rates used are provided in the table below:

To help our customers make informed decisions about implementing Zoko’s automation features, we have undertaken a detailed analysis to estimate the hourly wages of customer support agents worldwide. The methodology behind this analysis, outlined below, demonstrates our commitment to providing accurate and actionable data.

Methodology Overview

The foundation of our analysis is the concept of Purchasing Power Parity (PPP). PPP is an economic theory that allows us to standardize income levels in different countries to a common currency, providing a more accurate comparison of economic indicators across borders. This approach is essential for Zoko's global customer base, ensuring that our cost savings calculations are relevant and tailored to each market.

  1. Data Collection: We began by gathering data on annual and hourly wages for customer support representatives from a variety of sources, including international salary databases such as Glassdoor, Payscale, and local job boards in each country. This data provides a snapshot of the compensation landscape for customer support roles globally.
  2. Adjustment for PPP: We converted annual salaries to hourly rates based on a standard calculation of 2,080 working hours per year (40 hours per week for 52 weeks, accounting for holidays and vacations). To adjust these figures for PPP, we utilized the latest currency exchange rates and PPP conversion factors from the International Monetary Fund (IMF) and the World Bank. This step ensures that the wages reflected in our analysis are comparable in terms of purchasing power across different countries.
  3. Calculation of Average Rates: For simplicity and clarity in our SaaS product, we computed a single average hourly rate from the adjusted range for each country. This average provides a straightforward metric that our customers can use to estimate potential cost savings when activating automation features in Zoko.
  4. Final Compilation: The resulting data was compiled into a comprehensive table listing the PPP-adjusted hourly rates for customer support representatives in over 30 countries and regions. The choice and grouping of countries mirrors the rate list provided by WhatsApp used for computing messaging costs. This table serves as a key reference point for our customers, helping them understand the cost-effectiveness of implementing customer support automation.

Application in Zoko

Zoko utilizes this data within our SaaS platform to dynamically calculate the cost savings associated with using our automation tools like bots and AI. When a customer activates these features, the platform estimates the amount of labor potentially replaced by automation and calculates the corresponding cost savings based on the hourly rates provided in our analysis.

This approach not only enhances transparency but also empowers our customers to make data-driven decisions about their customer support strategies. By understanding the specific financial benefits of automation, businesses can optimize their operations and allocate resources more effectively, leading to significant cost reductions and improved customer satisfaction.

Zoko remains committed to providing cutting-edge tools and accurate data for operational excellence. Our analysis of hourly rates for customer support representatives by country is just one example of our dedication to empowering businesses with the knowledge to harness the full potential of AI and automation for sales, marketing and customer support on WhatsApp.

How is the Agent Labor Rate Estimated?

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