Conversational AI can help build customer loyalty
80% Would talk to a machine to avoid hold-time
Poor customer service is looking pervasive these days, according to a survey from AI-enabled customer contact center provider Replicant, which found that 91% of consumers had experienced poor customer service in the past six months, and one in three saying customer service is worse than before the Covid-19 pandemic.
The problem in contact centers is especially dire, the company warned. The most common form of poor customer service, according to 56% of those surveyed, was long wait times, and 70% of respondents said it's harder to reach a real person now than it was during the beginning of the pandemic. Of consumers who report customer service is worse than before the pandemic, 82% blame staffing issues.
But the survey found that consumers are open to speaking to conversational machines (an AI-powered machine that can hold human-like conversation and respond to questions quickly and accurately in a natural sounding voice). Nearly 80% of consumers indicated they would speak to a machine to avoid long hold times. Moreover, 57% of consumers would speak with a conversational machine even if the hold time was only five minutes.
The majority of consumers said they are willing to talk with a conversational machine instead of a real person when making typical customer service requests like scheduling an appointment, starting or stopping a service, or making a reservation.
Consumers also reported that:
- Time is money - 74% of consumers surveyed said they would be willing to lose US$15.72 on average to avoid waiting on hold or dealing with poor customer service.
- Longer hold times than before the pandemic - 32% report the average time they spend waiting on hold has doubled compared to before the pandemic; half of people waited on hold more than 15 minutes during their most recent customer service experience.
- Hold times are a liability for brands - 70% of consumers are irritated or angry with a hold time of more than 30 minutes. One in five consumers reported waiting on hold at least 30 minutes during their most recent customer service experience.
- Reevaluating travel due to poor customer service - 25% of summer travelers said they've rethought future travel plans because of poor service.
- Brands that don't address gaps in customer service are at risk - Some 76% of consumers said a poor customer service experience negatively impacts their perception of a brand and one in three saying it affects loyalty.
"This data shows that customers are looking for better service, notice when it's poor, and voluntarily switch brands as a result," said Gadi Shamia, CEO and co-founder of Replicant. "Spikes in call volume and challenges in staffing call centers worsened during the pandemic and are now the new normal, so companies must think of a new path forward. For companies, AI Thinking Machines are providing a first line of support for overburdened contact centers to give customers quicker and more efficient customer service."
Sources: Replicant / The Marketing Factbook.
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