How Storio Group reduced lost customer conversations by 40% with the help of Appamondo & Zendesk AI

Blending emotions, innovation, and customer service excellence with Zendesk

As Europe's leading digital photo printing provider, Storio Group serves customers in over 50 countries through well-known brands such as Hofmann in Spain or Fotoknudsen in Norway. The company, formed just three years ago in January 2022 through mergers and acquisitions, places special emphasis on trust and consistency in customer relationships. "Photo products are all about emotions," explains Wayne Grimshawe, Director of Customer Care & Shipping at Storio Group. "Our customer experience is heavily built on the trust relationship with our customers and the consistency of quality in our products."

Storio Group chose Zendesk as its central platform for customer communication to replace Oracle. The decision was based on Zendesk's core capabilities and its ability to incorporate various communication channels such as telephony, messaging, and email into a complete solution. "We wanted an out-of-the-box solution that we could deliver very quickly," says Grimshawe.

Recently, the company expanded its AI capabilities by switching to Zendesk AI Agents. "With the introduction of generative AI, we immediately saw an improvement," reports Grimshawe. "Customers are less likely to abandon conversations and more likely to get a solution to their issue."

Data-driven decisions for better service

In collaboration with Appamondo, Storio has been able to combine Zendesk’s advanced AI capabilities and Zendesk’s QA (quality assurance) tool to allow Storio Group to gain deeper insights into customer communication and make targeted improvements. "With the comprehensive data from the QA solution, we can not only reduce lost conversations but also decrease escalations to agents while increasing the resolution rate," explains Grimshawe. This creates a win-win situation: customers receive help faster while the company saves costs.

Storio’s data also shows an increasing resolution rate over the months, with a particularly strong increase in August and September, when the rate climbed to over 40% - well above the target value of about 33%. At the same time, the escalation rate remained stable, indicating a more efficient use of AI resources.

The AI solution is particularly effective with "how-to" inquiries in the pre-order process and provides contextual empathy for order status inquiries. "If a customer is worried about whether their order will arrive on time, the AI can respond empathetically and understand the context," explains Grimshawe. Additionally, the generative AI prevents so-called "doom loops," where customers are caught in a cycle of misunderstandings.

Optimizing resources during peak times

Storio Group's business is highly seasonal, with 80% of annual EBITDA generated between Black Friday and Christmas. Zendesk's flexibility supports the company in adjusting its resources accordingly and adapts swiftly to its seasonal fluctuations. "Outside of peak season, we have about 68 agents, while during peak times we increase to about 164," says Grimshawe.

Differentiated service strategy

"We distinguish between pre-order and post-order contacts," explains Grimshawe. "For pre-order contacts, we want to feel like a friend, helping the customer create the best possible product. For post-order, it's about speed - where is my order, how can I quickly solve a problem?" This differentiated approach is reflected throughout the communication strategy.

A particular challenge is the fact that customers often work on their photo products on Sundays between 8 and 10 PM. "We'll never be able to provide human support cost-effectively at that time due to scaling and language requirements," explains Grimshawe. Instead, the company has developed solutions where customers can book appointments with agents at a time that suits them.