Zoom’s new research with Morning Consult reveals AI alone won’t fix customer service.
According to the study, Australians may take more convincing to accept AI agents than any other region, with more than half (51%) of Australians surveyed reporting being frustrated with the inability of customer service bots they’ve dealt with to resolve their issues. Lack of resolution emerged as a significant dealbreaker, with 86% of Australian respondents saying they were likely to stop purchasing from a brand if customer support failed to resolve their queries.
The Zoom-commissioned report – AI alone won’t save CX. Resolution will – surveyed 3,509 consumers across seven countries to identify the connection between customer service and brand loyalty and how AI, when used correctly, can be instrumental in resolving issues and retaining customers. It revealed the extent to which chatbots and agentic AI are meeting customer expectations, the ripple effect an experience can have on purchasing behaviour and referrals, and the pivotal moments in the sales process businesses must get right to retain customers.
“The report uncovered opportunities for businesses to evaluate and improve their contact centre processes and systems to exceed expectations and build brand advocates,” said Bede Hackney, Head of Zoom, ANZ.
“Our customer experience research found Aussies were most frustrated (51%) with the resolution capabilities of customer service bots, even more so than those in the UK and Germany. It’s crucial that businesses get this right by investing in fit-for-purpose and secure solutions, especially with the majority (86%) agreeing they were likely to abandon a brand if they can’t get a resolution. And, with most Australian consumers (77%) sharing negative experiences via word of mouth, there’s serious potential for reputational damage.”
Customer experience plays a vital role in shoring up brand loyalty and referrals. Just under nine in ten (89%) of Australian respondents said they are more loyal to brands that have fast, effective customer service, while 83% will share positive experiences with others.
“Across the countries we surveyed, we found that older generations are more loyal to brands they like. However, as generations progress, there’s a sharp decline in brand loyalty. That said, Gen Z is more forgiving when brands mess up. Winning the hearts of all generations by meeting their needs will help businesses ensure a competitive advantage,” continued Hackney.
Read more: Imperfect you is better than impersonal AI
When Baby Boomers find a brand they like and trust, 60% will stick by them for 10+ years. For Gen X, this share is 61%; Millennials drop down to 45% and just 25% of Gen Z say the same. Only 13% of Gen Z would drop a brand after just one bad customer service experience, compared to 21% of Gen Xers. However, after a second poor experience, the generational gap closes, with 42% of Gen Z and 40% of Gen X saying they would cut ties with the brand.
Interestingly, customers don’t seem to care how their issues get solved; they just want them fixed. When asked what they thought was important when it comes to customer support, a smaller number of Australian respondents selected speaking to a human compared to factors like speed, knowledge of agents and satisfactory resolution.
Data security and privacy was also highlighted as a core issue for consumers, with 91% of Australian respondents rating it as “very” or “somewhat” important. Australians are also less trusting of AI, with more than half (59%) saying they expected human customer service agents to perform better on data security, compared to just 14% who said virtual agents would do a better job.
“Privacy concerns typically increase with the amount of information that’s required to be shared in a customer service interaction,” said Hackney. “Designing streamlined customer journeys and delivering rapid resolution helps ease those concerns and build loyalty and trust.”
Businesses are falling short in key areas where customers expect AI to perform. While 86% of Aussies expect AI to escalate issues to a human when needed, only 38% have experienced this regularly. Just 25% of Australian consumers say they’re regularly seeing businesses using AI to remember past interactions, despite 76% expecting it. And only 28% of Australian customers have always or often experienced AI anticipating their needs or issues, falling well short of the 74% who expect it.
“Businesses that leverage smart AI agents and sophisticated CX solutions that are truly engineered to solve customer issues, can minimise wait times, maximise response accuracy, and resolve common questions,” said Lukas Carruthers, Head of CX for APAC, Zoom.
“While some AI solutions can handle common and repetitive queries easily, for more complex issues, it’s essential the tech can integrate smoothly with human agents, with full context and history, so customers don’t have to repeat themselves. With the right systems in place, agents can respond faster, collaborate in real time, and resolve issues more efficiently, leaving a lasting positive impression on the customer,” added Carruthers.
Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.
