LivePerson Inc. (NASDAQ:LPSN) Q3 2020 Earnings Conference Call - Final Transcript
Oct 29, 2020 • 05:00 pm ET
agent efficiency, increase sales conversions and fuel higher customer satisfaction, brands are turning to our Conversational Cloud and deploying personalized consumer carer and sales journeys over mobile messaging endpoints. All this being led by the ability to use AI automation instead of human agents.
As a result, we've seen volumes on our platform served since the pandemic started in February, now up nearly 50% and led by a nearly 60% increase in AI-based conversations. We expect this strong tailwind to only intensify over the next five years as traditional retail shopping, web and in-app based e-commerce shifts to c-commerce or conversational commerce. The shift to conversational commerce requires a new set of technologies beyond web, social and other traditional e-commerce type platforms. The shift from e-commerce to c-commerce has arrived. And because LivePerson took an early bet on this massive change four years ago, we're clearly the leader in transforming some of the largest brands in the world. Conversational commerce is powered by a consumer's ability to have an always-on asynchronous connection which can be delivered over messaging platforms like WhatsApp, Apple Business Chat, Facebook Messenger, Instagram and SMS. Over that messaging connection, we run rich conversations, either automated with the use of AI or live agent or both at the same time. We started out with a focus on customer care use cases with the goal of reducing contact center cost, and we are now expanding into sales, marketing in brick-and-mortar retail with the goal of driving sales and commerce. In order to drive a better commerce journey for consumers, we're also introducing digital payments platform that enables users to conveniently make purchases with any brand or any messaging endpoint. For example, a consumer enters their credit card information to purchase a ticket from an airline, and then we securely tokenize that credit card so that it can be used at a later date with some other company. Similarly, consumers can make purchases across different endpoints, for example, use a website for one purchase and then use WhatsApp for the next and then in-app for another without reentering their credit or debit cards.
Our first few brands are now live, and we'll steadily expand this program into 2021. Adoption trends confirm that our vision of conversational commerce is resonating more clearly than ever. Nearly every single enterprise customer is now using our AI capabilities within our platform. Automations power 2/3 of our messaging conversations today, and our goal is to automate over 80% of the conversations at scale. Our AIs have eliminated the need for any human involvement in approximately half of all conversations where they are deployed. And in other words, our customers can use the Conversational Cloud to power a virtually unlimited number of conversations at a fraction of the costs required by human agent-based conversations. Another testament to the transformational power of the conversational cloud is the first of a global strategic partnership we just signed with Infosys, a world leader in next-generation digital services and