{"id":56185,"date":"2024-04-11T09:25:58","date_gmt":"2024-04-11T16:25:58","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/?p=56185"},"modified":"2025-03-31T23:12:53","modified_gmt":"2025-04-01T06:12:53","slug":"can-ai-fix-bad-customer-service","status":"publish","type":"post","link":"\/us\/en\/blog\/can-ai-fix-bad-customer-service\/","title":{"rendered":"Customer service: How bad is it, really? Can AI save the day?"},"content":{"rendered":"

We\u2019ve all had bad customer service experiences, but since these occur in isolation, the path of least resistance is to just live with them and move on. With low expectations, we often feel resigned to accepting the status quo, especially if we really like the brand or the switching costs are just too high.\u00a0<\/span><\/p>\n

Well, data talks, and there\u2019s a lot of it in a recently completed research study that RingCentral conducted with <\/span>Opinium Research<\/span><\/a>. To be more precise, 6,000 adult consumers spread evenly across the US, UK, and France, with this analysis focused solely on US consumers.\u00a0<\/span><\/p>\n

The data was collected in late December\/early January, so it\u2019s quite current, and for many, it will be great I-feel-your-pain validation. That really doesn\u2019t solve anything, though, so the research also looked at the role AI can play in addressing some of those pain points and ultimately raise the bar for customer service. Interestingly, some advanced AI-powered systems even offer the option to get a custom phone number<\/a> that’s memorable and aligned with your brand, which can significantly enhance the customer experience from the first point of contact.<\/span><\/p>\n

What does bad customer service look like?<\/h2>\n

Customer experience (CX) is a highly subjective concept, and everyone has their own version of bad CX. Opinium\u2019s research didn\u2019t set out to comprehensively define this, but even just a few datasets make it clear that the current state of CX \u2013 broadly speaking \u2013 leaves a lot of room for improvement. That\u2019s not news, but it\u2019s always good to have solid metrics instead of general sentiments.<\/span><\/p>\n

Leading sources of frustration in customer service<\/h2>\n

Respondents were presented with a list of nine attributes, all of which are familiar forms of frustration when interacting with contact centers<\/a>. They were asked to choose their top three issues, so the table below isn\u2019t a relative ranking from high to low; rather, it shows the incidence for which attributes were chosen the most often. That said, the top three are clearly the leading factors for bad CX, and the underlying frustration drivers are poor forms of self-service, high effort to get anything done, and wasting the customer\u2019s time trying to get service.\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
Leading attributes \u2013 sources of frustration<\/b><\/td>\nPercent choosing top 3<\/b><\/td>\n<\/tr>\n
Automated systems that don\u2019t understand what you\u2019re saying or don\u2019t have the option you need<\/span><\/td>\n50%<\/span><\/td>\n<\/tr>\n
Having to explain the issue every time you\u2019re passed on<\/span><\/td>\n43%<\/span><\/td>\n<\/tr>\n
Time spent waiting to speak to or hear back from any agent<\/span><\/td>\n41%<\/span><\/td>\n<\/tr>\n
Not getting to the right person the first time<\/span><\/td>\n28%<\/span><\/td>\n<\/tr>\n
Not being able to connect using my preferred channel<\/span><\/td>\n22%<\/span><\/td>\n<\/tr>\n
Insincerity from an agent on the call<\/span><\/td>\n17%<\/span><\/td>\n<\/tr>\n
I don\u2019t have any frustrations when dealing with customer service<\/span><\/td>\n\u00a0 3%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At face value, each issue above is problematic, and collectively, the range of issues is quite broad. As such, customer frustration will not go away by fixing any one of these \u2013 even if it was possible to actually do that. With bad CX being the byproduct of many shortcomings, a more holistic approach is needed, and as we\u2019ll see later, AI has an important role to play.<\/span><\/p>\n

To further underscore how prevalent these frustrations are with customers, note the last data point in the table above. Only 3% don\u2019t have <\/span>any<\/span><\/i> frustrations with their customer service dealings. We could learn a lot by profiling those particular customers, but that wasn\u2019t the focus of this research. What we <\/span>can<\/span><\/i> learn here, however, is to accept the fact that customer service frustration is nearly universal, and until we better understand the drivers, CX may never improve.<\/span><\/p>\n

Length of wait time<\/h3>\n

This is actually a good starting point to build out that understanding, especially when considering how this is a prime use case for AI to address. Respondents were asked to \u201cgive their best estimate\u201d for how long they had to wait \u201con average\u201d when contacting customers \u2013 regardless of channel \u2013 phone, email, chat, etc.<\/span><\/p>\n

Practically speaking, this is a lot to ask of a respondent since this is not something we normally track in these situations. Contact centers actually have very accurate data about this \u2013 for good reason \u2013 but the research is with customers, and they can only estimate this in a general sense. That said, the overall average was 18.3 minutes, and to whatever extent that reflects reality, it\u2019s a long time.\u00a0<\/span><\/p>\n

Even if they really only ended up waiting half that long, their <\/span>perceived<\/span><\/i> wait time is what really matters. Bad experiences always seem longer than they really are, but clearly, long wait times are a key contributor to bad CX.<\/span><\/p>\n

Being passed on to other agents<\/h3>\n

This is another familiar customer service pain point, and the data below shows that it happens to just about everybody. With only 2% saying \u201cnever,\u201d this is not an isolated issue for complex problems that must be escalated. Rather, this is a systemic issue, where a holistic view is needed to address this at source and find a way to enable agents to handle inquiries without having to do all these handoffs.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Frequency<\/b><\/td>\nPercent<\/b><\/td>\n<\/tr>\n
Always<\/span><\/td>\n 8%<\/span><\/td>\n<\/tr>\n
Most of the time<\/span><\/td>\n31%<\/span><\/td>\n<\/tr>\n
Occasionally<\/span><\/td>\n41%<\/span><\/td>\n<\/tr>\n
Rarely<\/span><\/td>\n14%<\/span><\/td>\n<\/tr>\n
Never<\/span><\/td>\n 2%<\/span><\/td>\n<\/tr>\n
Don\u2019t know\/other<\/span><\/td>\n 4%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

But wait, there\u2019s more. While being passed on to other agents causes its own frustration with customers, this actually gives rise to a second \u2013 and arguably worse \u2013 form of frustration after that happens. That would be the very frustrating need to start over and repeat everything to the next agent. The data table below is based on those who report being passed along, and for them, what happens with the next agent.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Need to explain reason for calling again<\/b><\/td>\nPercent<\/b><\/td>\n<\/tr>\n
Yes, always<\/span><\/td>\n24%<\/span><\/td>\n<\/tr>\n
Yes, most of the time<\/span><\/td>\n40%<\/span><\/td>\n<\/tr>\n
Yes, occasionally<\/span><\/td>\n26%<\/span><\/td>\n<\/tr>\n
Yes, rarely<\/span><\/td>\n\u00a0 7%<\/span><\/td>\n<\/tr>\n
No, never<\/span><\/td>\n\u00a0 1%<\/span><\/td>\n<\/tr>\n
Can\u2019t recall<\/span><\/td>\n\u00a0 1%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

With almost two-thirds saying this happens \u201calways\u201d or \u201cmost of the time,\u201d it\u2019s easy to see how this bad-to-worse set of frustrations is very common. Conversely, if the root cause at the source can be addressed, CX would be much better, making it all the more important to learn what AI can do to help.<\/span><\/p>\n

Things people would rather do than contact customer service<\/h2>\n

Aside from compiling data about customer experiences, the study also addressed two behavioral indicators that should make the implications of bad CX more real for contact center leaders. The first one is an attention-getter, where respondents were asked about things they\u2019d rather do than contact customer service.\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
Rather do this<\/b><\/td>\nPercent<\/b><\/td>\n<\/tr>\n
Be without TV for an hour<\/span><\/td>\n53%<\/span><\/td>\n<\/tr>\n
Clean the bathroom<\/span><\/td>\n48%<\/span><\/td>\n<\/tr>\n
Be without Internet for an hour<\/span><\/td>\n43%<\/span><\/td>\n<\/tr>\n
Have a cold shower<\/span><\/td>\n33%<\/span><\/td>\n<\/tr>\n
Stand in a queue for an hour<\/span><\/td>\n23%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

While the above profile has some age-based generational differences in the raw data, not all are enjoyable activities, and for some, even these would be preferable to calling for customer service. Regardless of whether consumers would actually make those choices, the overall sentiment reflects the low expectations around the customer service experience.<\/span><\/p>\n

The impact of bad customer service on a business<\/h2>\n

This second behavioral outcome is more direct and, aside from contact center leaders, will likely resonate with C-level leaders more than any other finding from the research. The bottom numbers are the most important, as they show that 57% of those experiencing bad customer service are \u201cfairly\u201d or \u201cvery\u201d unlikely to buy from that company again.\u00a0<\/span><\/p>\n

By doing a bit more math around the business value of each customer, these data points can easily be extrapolated to show the \u201ccost\u201d of bad CX. From there, contact center leaders can now justify the investment in new technology like AI to make CX better.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Likeliness to buy from company again<\/b><\/td>\nPercent<\/b><\/td>\n<\/tr>\n
Very likely<\/span><\/td>\n 6%<\/span><\/td>\n<\/tr>\n
Fairly likely<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
Neither<\/span><\/td>\n24%<\/span><\/td>\n<\/tr>\n
Fairly unlikely<\/span><\/td>\n34%<\/span><\/td>\n<\/tr>\n
Very unlikely<\/span><\/td>\n23%<\/span><\/td>\n<\/tr>\n
Not sure<\/span><\/td>\n 3%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How AI can improve customer service<\/h2>\n

While AI is just one response to improve CX<\/a>, it can potentially have the greatest impact on the contact center. The data table below shows support for using it, which in turn should validate the readiness among contact center leaders to embrace AI.<\/span><\/p>\n

For this question, respondents were again asked to choose the top three from a list of attributes. Two things stand out from the summary table below, with the first being that the leading applications of AI align well with the issues and frustrations outlined earlier.\u00a0<\/span><\/p>\n

Whether engaging directly with agents or using automated forms of self-service, the outcomes below are critical to making CX better. That said, the last data point below shows that almost one in five customers are <\/span>not<\/span><\/i> receptive to AI for customer service. This speaks to the importance of taking a mindful approach with AI, not just with your agents and supervisors but with your customers as well.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Ways AI can enhance customer service experience<\/b><\/td>\nPercent choosing top 3<\/b><\/td>\n<\/tr>\n
Reduce average hold times<\/span><\/td>\n37%<\/span><\/td>\n<\/tr>\n
Enable single agent to access your full history<\/span><\/td>\n37%<\/span><\/td>\n<\/tr>\n
Expand availability to 24\/7 support<\/span><\/td>\n36%<\/span><\/td>\n<\/tr>\n
Increase first call resolution rates<\/span><\/td>\n29%<\/span><\/td>\n<\/tr>\n
Ensure security of personal data when using AI<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n
Provide clear estimates for solutions<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n
Make recommendations tailored to my situations<\/span><\/td>\n17%<\/span><\/td>\n<\/tr>\n
I don\u2019t want AI to enhance the customer service experience<\/span><\/td>\n18%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Bad customer service: Is AI the answer?<\/h2>\n

The title of this article asks if AI can save the day, and it\u2019s a fair question. AI is being explored across all lines of business now, and its broad nature makes it appear as a silver bullet for every business challenge. On the contrary, the best approach to AI is to focus on specific use cases and problem sets, and Opinium\u2019s study reflects that for the contact center.<\/span><\/p>\n

Other studies will be needed to address the best ways to deploy AI for improving CX, but contact center leaders cannot get there until they can build a strong business case. This research study provides a good starting point for doing that, both in terms of validating how problematically bad CX has become and the readiness of your customers to use AI to make things better.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

We\u2019ve all had bad customer service experiences, but since these occur in isolation, the path of least resistance is to just live with them and move on. With low expectations, we often feel resigned to accepting the status quo, especially if we really like the brand or the switching costs are just too high.\u00a0 Well, …<\/p>\n","protected":false},"author":251,"featured_media":56186,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43331,4],"tags":[2088],"class_list":["post-56185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-innovation","category-customer-experience","tag-support"],"acf":[],"yoast_head":"\nCustomer service: How bad is it, really? 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