Channel Corporation, which claims to be ‘Customer Driven’, is now expanding beyond Korea and Japan into the North American market!

Jehong Kim-Siwon Choi, Co-CEOs of Channel Corporation ⓒPlatum

Channel Corporation(채널코퍼레이션), the operator of Channel Talk, an all-in-one AI messenger, held the ChannelCon 2024 conference at the Grand InterContinental Seoul Parnas GRAND BALLROOM, Gangnam, Seoul on the 3rd, and announced plans to launch ALF and Command features that dramatically reduce the complexity of CS requests.Channel Talk, an all-in-one AI messenger offering chat support, customer relationship management (CRM), team messenger, AI telephony and video calling, is used by more than 160,000 businesses in 22 countries around the world and continues to grow rapidly with annual recurring revenue (ARR) of $26.7 million (KRW 3.6 billion), 40% customer growth and 95% paid channel retention.

At the event, Jehong Kim-Siwon and Choi, co-CEOs of Channel Corporation, spoke about the past, present and future of Channel Talk, sharing the story and direction of how Channel Talk was created after three failed startups. They also shared the results of the closed beta test of new features ALF, a generative AI chatbot, and Command, an action call feature, and revealed plans for global expansion.

ChannelCon2024 conference held at Grand InterContinental Seoul Parnas Grand Ballroom, Gangnam, Seoul on the 3rd ⓒPlatum

Generative AI chatbot ‘ALF’ and action call feature ‘Command’ … capable of answering 70% of simple CS queries.

Channel Corporation has been operating Channel Talk for the past six years and has found that simple and repetitive queries, such as shipping dates and order cancellations, account for 70% of all CS in online commerce. In response, the company developed a solution to improve the overall quality of CS by allowing AI chatbots to handle simple inquiries and agents to focus on important ones.

Channel Corporation established an AI team in May last year and developed ‘ALF’, a generative AI agent that recognises natural language based on OpenAI GPT; ‘Command’, which provides actions to respond to simple and repetitive queries through API integration with Channel Talk customers and external solutions such as Cafe24; and ‘WAM’ (Web Application Module), which provides actions in UI-UX form so that customers can solve problems directly in the chat room.

When customers leave questions about delivery dates, order lists and cancellations in the Channel Talk chat, ALF analyses the intent of the question. It then uses the command function to retrieve the data required for the question from the partner’s administrator and provides a screen to take action on the query, resolving the question immediately without leaving the chat room.

It also allows users to edit their own answers via the Knowledge Management System (KMS) or call an agent if required. The feature is scheduled for general availability in the first half of this year.

ALF achieves 55% resolution rate on simple questions in closed beta test

Today, Channel Corporation also announced the results of a closed beta test with an existing customer. LAROOM, a fashion e-commerce brand with annual sales of $18.52 million (KRW 2.5 billion), has been using Channel Talk to handle customer enquiries since 2021. For the past month, LAROOM has been in a private beta test with ALF and has seen significant results, including a 30% reduction in overall customer inquiries, a 55% resolution rate for simple inquiries through ALF, and an 80% resolution rate through commands.

Another fashion e-commerce brand, YOURMEMO, participated in a private beta test and experienced first-hand the effectiveness of the new features, including a 44% reduction in total enquiries, a 72% resolution rate for simple enquiries via ALF and a 76% resolution rate via Command.

Rebranding: Expanding beyond Korea and Japan to focus on North America

Finally, Channel Talk has announced its rebranding and ambitions to become a global B2B SaaS. Channel Corporation has recently revamped its BI, including changing the ‘eye’ of Channel Talk’s existing speech bubble icon to a ‘mouth’, in order to effectively deliver on its mission of ‘bringing businesses and customers closer together’ in global markets.

Channel Corporation launched in Japan in 2018 and generates more than 25% of its revenue in the country, with a total of 16,000 customers in the country, including leading brands such as BAYCREW’S and BEAMS. With these new capabilities, the company plans to enter the global market in earnest, with a focus on the North American market, and opened an office in New York in June last year.

Siwon Choi, co-CEO of Channel Corporation, said, “With the rapid growth of the e-commerce industry amid growing concerns about the demographic cliff, the importance of CS and customer relationship management is higher than ever.” “Channel Corporation’s technology will lead a paradigm shift in the global CX industry by handling simple inquiries and helping humans focus on more important consultations to increase conversion rates and strengthen customer relationships.”