From Yahoo Finance: 2025-06-05 12:03:00

Companies are shifting towards outcome-based pricing for automated customer service. Zendesk CEO Tom Eggemeier discusses the value of resolution pricing and the importance of defining what a resolution actually is. The model aligns costs with results, offering flexibility and predictability in pricing for clients.

Eggemeier shares a personal experience of using a chatbot for flight rescheduling. Despite the AI not resolving the query, the airline was charged $2 for the interaction. Zendesk’s resolution-based pricing would not charge for unresolved queries, reflecting a unique approach in the industry for AI-driven customer service.

Zendesk’s hybrid pricing model combines traditional SAS seats with resolution pricing to adapt to the varying needs of clients. Eggemeier emphasizes the importance of flexibility and predictability in pricing to drive automation and maximize ROI. The model balances the equation of value between resolutions and human interactions.

Automation in customer service not only boosts ROI but also increases customer satisfaction. Eggemeier predicts an 80% automation rate in interactions within five years, varying by industry complexity. However, challenges like AI reliability and customer resistance highlight the need for transparent and brand-consistent AI agents.

Despite fears of job displacement, Eggemeier notes that companies are maintaining or increasing human customer service roles with AI adoption. Automation savings can be reinvested to enhance customer service quality and address issues at the root cause. Companies have a choice to reduce costs or differentiate through improved service.

As automation in customer service rises, overall query volumes increase. Eggemeier sees this as breaking down barriers in service delivery, not job displacement. Companies are seeking meaningful value in AI projects, with evolving pricing models like resolution-based pricing playing a crucial role in balancing costs and outcomes.

Read more: Zendesk CEO on how resolution pricing is revolutionising AI agent value