How Kommunicate AI Increased Profitability and Average Revenue by 40%

Kommunicate is one of the world’s leading AI-powered customer service automation platforms. With its stack of generative AI-powered chatbots and live chat solutions, it enables customer service and product leaders to automate support queries, optimize support costs, and deliver memorable customer experiences.

Kommunicate’s solutions are trusted by leading global brands such as Amgen, Rakuten, Bridgestone, Bluestar, and Malaysia Airports. It’s known for its plug-and-play generative AI-powered chatbots, loved by customers for their ease of use and the ability to deploy across web, in-app, mobile, and major messaging platforms like WhatsApp, Messenger, Telegram, Instagram, and more. Kommunicate has also been selected in the 2024 Class of Google for Startups AI First Accelerator.

The Challenge: Unlocking Profitability & Growth While Balancing Revenue Predictability

Kommunicate uses advanced Generative AI Large Language Models (LLMs) like OpenAI, Anthropic, and Gemini to deliver its AI solutions to customers. Kommunicate’s costs were usage-based since the LLMs charge based on token volumes, however Kommunicate’s pricing was based on a flat seat-based model.

This resulted in scenarios where Kommunicate was leaving money on the table, reduced profitability and not maximizing the revenue potential from its customers.

Kommunicate required a robust and scalable billing solution to address the following key needs:

• Improve the customer experience through pricing transparency and simplicity

• Increase profitability & growth through Usage Based Pricing

• Boost revenue predictability

• Optimize automation in billing operations

The Solution: Chargebee’s Gen AI Hybrid Pricing Solution

After careful consideration, Kommunicate partnered with Chargebee to transition from a flat, seat-based subscription model to a hybrid pricing structure. Within just 6 weeks, Chargebee’s hybrid pricing model was seamlessly integrated into Kommunicate’s financial operations.

The key features of Chargebee’s comprehensive hybrid pricing solution were:

• Usage-Based Pricing: This allowed Kommunicate to charge its customers based on the number of customer support chat interactions.

• Seat-Based Pricing: This enabled Kommunicate to also charge customers a base price depending on their estimated number of seats thereby ensuring revenue predictability for their finance team.

• End-to-end Billing Automation: Chargebee’s flexible and responsive billing system ensured that Kommunicate could automatically adjust subscriptions whenever a new support agent was added to a customer’s account. Chargebee provided a comprehensive solution with its plug-and-play widget and robust backend APIs, enabling End-To-End Billing Automation.

• Billing Transparency & Insights: Chargebee’s robust reporting engine provided valuable insights through integration with subscription analytics tools like ChartMogul. This not only simplified the billing processes but also empowered Komunicate’s team to make data-driven decisions, ultimately driving better business outcomes.

The Results: Improved Profitability, Customer Experience & Billing Efficiency

• Increased Profitability: By implementing a pricing model that charges customers based on the volume of support interactions along with a base seat fee, Kommunicate successfully boosted its Average Revenue Per Customer (ARPU) and profitability by 40%.

• Improved Customer Experience: Kommunicate improved its customer experience by providing transparent invoicing with detailed breakdowns of usage charges resulting in Net Promoter Score (NPS) improvement by 5%.

• Upgraded internal productivity: By using Chargebee's low-code platform, drop-in widget, and robust reporting engine, Kommunicate significantly boosted internal productivity by saving 30 man-hours each month. This allowed their team to redirect efforts toward strategic priorities like developing new features and expanding integrations, thereby enhancing product value and increasing customer satisfaction.

Kommunicate is thriving by consistently providing exceptional customer experiences. With Chargebee as a trusted partner, the company is poised to craft the next chapter of its growth journey.

Ready to harness the power of subscription billing and management to drive revenue growth for your subscription business? Get a demo