Podcast Summary: The Home Service Expert Podcast – Staying Competitive by Adopting AI to Optimize Efficiency

Episode Details:

• Title: Staying Competitive by Adopting AI to Optimize Efficiency
• Host: Tommy Mello – $200 Million Founder | Forbes, Inc., Entrepreneur Columnist
• Guest: Boris Vakov – Co-founder and CEO of Lace AI
• Release Date: February 28, 2025

1. Introduction to the Episode and Guest

In this episode of The Home Service Expert Podcast, host Tommy Mello welcomes Boris Vakov, the co-founder and CEO of Lace AI. Boris brings over 20 years of experience in software engineering, AI, and machine learning, having held leadership roles at Facebook and VMware. The discussion centers around leveraging artificial intelligence to enhance the efficiency and competitiveness of home service businesses, particularly focusing on call centers.

Notable Quote:

[00:00] Boris Vakov: "The way for you to become really, really sophisticated and be able to overcome and beat the competition is just to embrace technologies because that's such an unfair competitive advantage."

2. The Critical Role of Call Centers in Home Services

Tommy and Boris delve into the significance of call centers within the home services industry. Unlike other sectors where call centers primarily handle support, in home services, a substantial portion of revenue—up to 90%—is generated through these interactions. This makes optimizing call center operations vital for business success.

Notable Quote:

[09:37] Tommy Mello: "the contact center is the majority of where the money's made."

3. Enhancing Call Center Efficiency with AI

Boris explains how Lace AI transforms call centers by providing comprehensive analytics and automation. The software analyzes 100% of incoming calls, eliminating the reliance on manual monitoring of a mere 1% of calls. This allows businesses to understand true booking rates, identify cancellation reasons, and optimize CSR performance with data-backed insights.

Notable Quotes:

[04:27] Tommy Mello: "We've increased our booking rate by 2%, which is about five and a half million dollars of additional revenue per year."

[13:08] Boris Vakov: "We make sure that every coaching and every aspect that you do in the call center has a direct correlation to the booking rates and the revenue."

4. Practical Impact: Booking Rates and Revenue Growth

The implementation of Lace AI has led to tangible financial benefits for businesses. By accurately identifying true booking rates and uncovering hidden revenue opportunities, companies have seen significant revenue increases. For instance, Tommy shares that Lace AI helped his team identify additional revenue streams by uncovering reasons behind cancellations and unqualified calls.

Notable Quotes:

[16:45] Boris Vakov: "You might be thinking you're 95%, actually you're 85."

[25:03] Tommy Mello: "contact center is the majority of where the money's made... you're getting a real person."

5. Addressing Common Call Center Challenges

Boris outlines several key challenges in traditional call center operations:

• Inaccurate Booking Rates: Relying on manual dispositioning leads to significant errors.
• Cancellations: Understanding why customers cancel after booking.
• Unqualified Calls: Differentiating between genuine leads and non-qualifiers to optimize lead management.

Lace AI addresses these issues by providing precise data analysis and automated workflows that allow businesses to act on comprehensive insights rather than superficial metrics.

Notable Quotes:

[17:47] Boris Vakov: "Once you start using technology, you actually start making much smarter decisions."

[20:13] Boris Vakov: "Coaching is not the same for everyone. Every person needs a different coach."

6. Integration of AI and Human Management

While AI significantly enhances efficiency, Tommy emphasizes the continued importance of human managers and effective coaching. Lace AI does not replace human interaction but rather augments it by identifying specific areas where each CSR can improve, allowing for targeted and effective coaching.

Notable Quotes:

[13:55] Tommy Mello: "You still need great managers... service time is not going to make the sale for you."

[21:43] Boris Vakov: "AI is so good at scale and understanding of what's going on in the conversations... it's time to take action."

7. Future Innovations in AI for Home Services

Looking ahead, Boris highlights that Lace AI will continue to integrate cutting-edge technologies to further streamline call center operations. Innovations include more sophisticated automation, deeper data analytics, and enhanced real-time decision-making capabilities, ensuring that businesses remain at the forefront of technological advancements.

Notable Quotes:

[32:35] Boris Vakov: "We're going to have all those features... everything is clear... just need to take the action right now."

[34:54] Tommy Mello: "What does the future look like?... it's about pulling all the software together efficiently."

8. The Competitive Edge of Adopting AI Technologies

Boris argues that embracing AI provides small and medium-sized businesses with an "unfair competitive advantage." By rapidly implementing advanced technologies, these businesses can outpace larger competitors who may be slower to innovate due to their size and established processes.

Notable Quotes:

[37:13] Tommy Mello: "If you're a small company, the advantage is that you can move fast... catching up with technology gives you the edge."

[38:33] Boris Vakov: "Move fast. If you're not fast and innovative, someone else is going to take over the market."

9. Concluding Insights and Final Thoughts

The episode wraps up with reflections on the pivotal role of AI in transforming call centers and, by extension, the entire home services industry. Both Tommy and Boris agree that while AI is a powerful tool, its effectiveness depends on proper implementation and ongoing human oversight. They encourage listeners to adopt AI technologies like Lace AI to unlock hidden revenue opportunities and stay competitive.

Notable Quotes:

[41:37] Tommy Mello: "AI is real. This is happening. You got to coach... you got to give a lot of tender loving care to your CSRs."

[40:31] Boris Vakov: "Book a demo from the website and one of our high-trained team members will show you how you can improve your business profitability in call center."

10. Key Takeaways

• Adopting AI: Implementing AI technologies in call centers can lead to significant improvements in booking rates, revenue, and operational efficiency.
• Data-Driven Decisions: Comprehensive data analysis replaces inefficient manual processes, enabling smarter decision-making.
• Human-AI Synergy: Effective call center management still requires human oversight and targeted coaching, complemented by AI insights.
• Competitive Advantage: Small and agile businesses can leverage AI to outpace larger competitors by moving quickly and innovating continuously.
• Future-Proofing: Staying updated with the latest AI advancements ensures long-term competitiveness and growth in the home services industry.

Final Thoughts

This episode underscores the transformative potential of AI in optimizing call center operations for home service businesses. By embracing technologies like Lace AI, companies can unlock new revenue streams, enhance customer interactions, and maintain a competitive edge in a rapidly evolving market.

For more insights and detailed strategies on optimizing your home service business, stay tuned to The Home Service Expert Podcast and visit elevateandwin.com/podcast to grab a copy of Tommy Mello's book, Elevate.