In a recent McKinsey & Company study, customer service leaders were asked:what is your highest priority?

The answer at the top of the list was improving customer experience.

This goal has become the driving change of many aspects of the customer service industry, from the tech we use to how we design omnichannel experiences and even response times.

To highlight the different aspects of customer service and their importance, we have collected 66 key customer service statistics that talk about rapid changes like AI, chatbots, and automation that are helping customer service teams meet these expectations.

These statistics can help you see the direction the customer service industry is heading in—and what you need to do to prepare your business in 2024.

Let’s take a look 👇

Table of Contents

     
• The Evolving Role of AI in Customer Service
     
• The Power of Chatbots in Customer Satisfaction
     
• How Poor Customer Service Drives a Negative Experience
     
• The Positive Impact of Excellent Customer Service
     
• How Omnichannel Customer Service is Evolving
     
• Predictions For The Future of Customer Service
 

The Evolving Role of AI in Customer Service

Artificial Intelligence (AI) is changing everything we do, from how we write to how we program and yes—how we talk to customers.

Forbes labeled AI as a new industrial revolution, and a 2022 IBM survey found AI adoption rates are steadily increasing across the globe.

For the customer service industry, the emergence of AI has led to some monumental shifts:

 
• Globally, the AI customer service market was worth $308 million in 2022, and that figure is set to explode to $2.8 Billion by 2030. (Generative Research)
 
• 78% of support leaders expect AI to transform customer support careers in the next five years and create new opportunities and job roles. (Intercom)
 
• 79% of customer service professionals say AI and automation tools are important to their overall strategy, while some 49% say these tools will be able to do most customer service-related tasks completely independently. (HubSpot)
 
• 73% of support leaders believe customers will expect AI-assisted customer service within the next five years. (Intercom)
 
• Customer service centers using AI can handle over twice as many calls, and 74% say AI helps save them time. (Dialpad)
 
• Businesses that have invested in AI and automation are beginning to see the benefits. 61% have seen improvements to their customer experience over the past year, while 58% have improved their CSAT scores. (Intercom)

According to HubSpot, AI is making customer service teams more efficient across the board:

But there is a gap in how business leaders are investing in AI, and how much customers want to interact with it.

 
• 56% of customer support leaders are concerned about how to balance investment in AI and existing customer support resources. (Intercom)
 
• 68% of support leaders struggle to implement a baseline report or success metrics to measure cost savings thanks to AI and automation. (Intercom)
 
• 44% of customers still prefer to talk to and interact with a human over AI. (HubSpot)
 
• 53% of support teams are worried about the potential negative impact of AI on the customer service industry. (Intercom)

The worries of such disruptive tech are not new. The same thing happened when computers were put into workplaces in the 1980s—many people feared they would lose their jobs. But just as those computers still require a human to run them, Intercom found AI and automation tools will need people to develop chatbots, design AI conversations, and create strategies.   The future of customer service and AI looks different—but the progression looks promising.

The Power of Chatbots in Customer Satisfaction

Customer demands have changed rapidly as support tech has improved. Gone are the days when businesses can get back to customers in 3-5 working days.

Customers want answers. And they want them quickly.The main driver of this change? Chatbots 🤖

 
• The chatbot market is predicted to grow 23.3% annually and reach a worth of $15.5 billion by 2028. (MarketsandMarkets)
 
• 88% of people had at least one conversation with a chatbot in 2022. (Tidio)
 
• 64% of internet users say 24-hour service is the best feature of chatbots. (Drift)
 
• Chatbots can handle up to 80% of routine customer service tasks. (IBM)
 
• Live chat is used by 67% of B2C businesses solely for customer support. (Source: Finance Online)

The other big bonus of chatbots is they are incredibly beneficial for a company’s budget. Not only can chatbots cut customer service costs by up to 30% (IBM), but:

 
• Chatbot conversion rates in some industries can reach up to 70% (Tidio)
 
• 47% of consumers would happily buy items via a chatbot. (Smart Tribune)
 
• 40% of customers don’t care if they speak to a human or a chatbot—as long as their query gets resolved. (HubSpot)

However, there is also a generational divide around chatbot preferences. While 20% of Gen Z customers want to start a customer service experience with a chatbot, that figure drops to just 4% for Boomers. (Simplr)

It also depends on what type of issue the customer has.

 
• 74% of customers will choose a chatbot over a human to answer simple questions (PSFK).
 
• 60% of consumers prefer to wait in queue for an agent to reply than receive an instant response from a chatbot. (Userlike)
 
• 80% of consumers will talk to a chatbot if there’s an opportunity to quickly switch to an agent. (Simplr)

Chatbot use is definitely increasing, and more customers are happy to use them. But the stats are clear—a large portion of customers out there still want to talk to a real human 🙋

How Poor Customer Service Drives a Negative Experience

In the early 90s, the White House Office of Consumer Affairs commissioned a study into customer service and what made customers tick. As HuffPost reminisced, the results were… humbling.

An unhappy customer doesn’t stay quiet. In fact, they will tell nine to 15 other people about their bad customer service experience with your company. Some customers tell 20 people or more. And for every customer who complained to you, there were another 26 others who kept quiet about their dissatisfaction.

Yikes 🥴

Further research from Qualtrics and ServiceNow found that 80% of customers have switched brands because of a poor customer experience, and US companies risk losing $1.9 trillion in spending because of it.

What’s interesting is just how unwilling customers are to give a business a second chance if they receive poor customer service 👇

 
• An eye-watering 96% of customers will cut ties with a company if they receive bad service (Hyken)
 
• The top reason customers switch companies is because they feel unappreciated.
 
• 64% of customers say they can’t get help or solve their problem through their provider’s customer service. (Airkit)
 
• 65% of customers will go back to a competitor if they have a negative customer experience. (Forrester)
 
• Only 34% of customers felt they were consistently treated with empathy when interacting with customer service. (Qualtrics)
 
• 54% of customers say customer service feels like an afterthought for businesses. (Zendesk)

Interestingly, this sentiment was shared across age brackets. A Propel Software study found a majority of Millennials (57%) will cut ties with a brand after one bad encounter, while 54% of all survey respondents said they would do the same.

What is perhaps most alarming for brands is how unforgiving customers are unless the customer service team can save the day.

 
• Only 15% of consumers will forgive a “very poor” experience with a brand, but almost 80% of consumers will forgive if they rate the service team as “very good.” (Qualtrics XM Institute)

These statistics couldn’t be more clear: customer service teams can not only win people back, but they can do it even if a customer has had a rotten experience.

The Positive Impact of Excellent Customer Service

The goal of any customer service team is to deliver a five-star experience to their users. But what does that look like? 🤔

 
• 90% of customers say issue resolution is their top concern. (KPMG)
 
• Customers want service reps to act quickly. 90% of customers say an "immediate" response to a question is very important to their experience, and 60% say the response time should be 10 minutes or less. (HubSpot)
 
• A third of customers say the most critical aspect of a good customer service experience is for their problem to be solved in one single interaction. They even said it didn’t matter how long it took. (Statista)
 
• An overwhelming 83% of customers feel more loyal to brands that respond to and resolve their complaints. (Forrester)
 
• 94% of American customers will recommend a company if they rate their customer service as “very good.” (Qualtrics XM Institute)

What’s interesting is brand loyalty can be achieved through great customer service. Propel Software found that brands can win over customers for life if they remember their birthday, service reps call customers by their name, and are swift to make changes when complaints are made.

How Omnichannel Customer Service is Evolving

Take a look at these and see if they look familiar:

🤖 Chatbot: “Shoot an email across to the support team so we can get this sorted.”

📞 Phone call: “I will transfer you to another department that can help.”

🐦 Twitter: “Send me a DM so I can get this sorted for you!”

These are all responses from a customer service agent to an angry customer. While there is nothing wrong with each response, there is a risk that when the customer jumps from one channel to another, they will have to repeat their problem to another agent… and that's where the problem begins.

Customers want a painless support experience. In fact, 9 out of 10 customers expect a seamless omnichannel experience no matter what communication method they use. (CX Today)

 
• 76% of customers expect consistent interactions across departments. However, 54% feel like service, marketing and sales teams don’t share information. (Salesforce)
 
• Over 70% of consumers think customer service teams should collaborate so they don't have to repeat information to different representatives. (Zendesk)
 
• Chatbots can play a crucial role in omnichannel support. They have a 75% resolution rate for routine questions and can integrate with other communication channels to connect customers with a live support agent. (Microsoft)

Brands must decide what communication channels to prioritize, depending on customer preferences.

 
• 40% of customers say having multiple communication options is the most important part of a customer service department. (TCN)
 
• Phone and email are still the most preferred customer service options for older generations, while younger customers prefer channels like online chat, social media and text. (Qualtrics)
 
• Despite online chat being ranked the third channel across all age groups, it was the second most effective channel for resolving issues quickly. (Qualtrics)

However, some brands struggle to meet these customer demands.

77% of companies struggle to create a cohesive customer experience across devices and channels, even when 62% of customers say they want to engage over multiple digital channels. The good news is there is a huge opportunity for businesses to let customers self-service a problem 👇

 
• 88% of customers want the option of an online self-service portal. (Statista)
 
• 92% of customers are open to using a knowledge base, with 83% saying they would also use a community forum for help if it was available. (Vanilla Forums)
 
• 39% of customers say resolving issues with a self-service option is quicker than other customer service channels. (Freshdesk)

But be warned—self-service doesn't mean forgetting about your customers. 77% of customers say a poor self-service option is worse than not offering any support at all, as it wastes their time!

Predictions For The Future of Customer Service

There is no doubt the way we approach customer service is changing at a rapid pace.

Gartner predicts that by 2025, customer service teams that use AI in their multichannel customer strategy will boost operational efficiency by 25%. And 84% of companies think AI chatbots will become a crucial communication tool for talking to customers (CCW).

What’s interesting is how these changes will come about. Research by Boston Consulting Group (BCG) predicts generative AI will be embedded and rolled out across customer service functions until it can provide continuous assistance across all customer journeys:

If this predicted rollout becomes a reality, BCG expects Generative AI to increase customer service productivity by anywhere from 30% to 50%.

Gartner also expects that by 2027, chatbots will become the main customer service channel for a quarter of all businesses. If this happens, it will lead to a major shakeup of the entire customer journey, and businesses must start to plan for how AI will work alongside customer service representatives.

According to McKinsey research, an estimated 75% of customers use multiple channels in their ongoing experience. It has offered a vision of what a future customer service model could look like if AI was introduced at every customer touchpoint:

While the statistics we have talked about highlight that customers are not quite all in on AI and automated support experiences, they are getting more comfortable.

The best thing your business can do to prepare for these developments in 2024 is to embrace the new tech in customer service. The bottom line is: customers don’t care how they get good service, but they expect good service. And brands that win in 2024 will leverage every tool in their toolkit to satisfy customers.

Use chatbots to speed up customer service. Share information across your team to improve every omnichannel experience. And use AI to optimize every touchpoint in your customer’s journey.

Follow these trends in 2024—and your customer service team will thrive 🥳