Vonage Research Reveals 80% of APAC Customers Are Likely to Take Their Business Elsewhere Following Poor Experiences

Rhea-AI Summary

Vonage, a part of Ericsson, has released its Global Customer Engagement Report 2024, highlighting the need to use AI for customer engagement. The report reveals customer communication preferences, frustrations, and the potential of AI to enhance customer experiences. With 7,000 consumer responses from 17 countries, the report emphasizes the role of AI in reducing frustration and delivering great customer experiences. It also shows that businesses leveraging AI across communication channels can facilitate meaningful conversations, strengthen loyalty, and boost sales.

Insights

Market Research Analyst

The integration of artificial intelligence (AI) into customer experience (CX) strategies is a transformative move for businesses. The data from Vonage's Global Customer Engagement Report 2024 indicates a growing consumer preference for AI-enhanced communication methods. The anticipated doubling in the use of chatbots and video chats signifies a shift in customer service dynamics. Companies that effectively incorporate AI tools can expect to see improvements in customer satisfaction and operational efficiency. This trend is particularly relevant for businesses in the technology, telecommunications and customer service sectors, as it suggests a direct correlation between AI adoption and competitive advantage.

From a market research perspective, the report's findings suggest that businesses should prioritize investment in AI technologies to meet evolving consumer expectations. The potential for increased brand loyalty and customer retention rates, as highlighted by the report, could translate into higher lifetime value per customer. As such, companies that are early adopters of AI in their CX strategies may experience a positive impact on their market share and revenue growth over time.

Financial Analyst

The financial implications of the Vonage report are significant for investors and stakeholders in the technology and communication sectors. The report suggests that businesses which do not adopt AI into their customer service operations may fall behind their competitors. This could impact their stock valuations negatively due to the potential loss of market share and diminished customer loyalty. Conversely, companies that are integrating AI into their CX strategies could see an uptick in their financial performance due to increased efficiency and customer satisfaction.

Investors should monitor the adoption rates of AI in customer service closely as a key indicator of a company's future performance. The report's indication of a 'turning point' in 2024 for AI acceptance in CX suggests that the upcoming fiscal periods could be critical for companies in this space. Those that are able to report tangible benefits from AI integration, such as reduced operational costs and improved customer retention, may present attractive investment opportunities.

Customer Experience Expert

The Vonage report highlights the critical role of AI in enhancing the customer experience. The dissatisfaction expressed by consumers over issues such as long wait times and lack of 24/7 support can be addressed through AI solutions like virtual assistants and smart IVR systems. These tools can provide immediate, personalized support, which is increasingly expected by modern consumers. The shift towards AI-driven CX represents a paradigm shift in how businesses interact with their customers.

For businesses, the benefits of AI adoption in CX are not just about resolving customer issues more efficiently. They also include the potential to deepen customer relationships and transform satisfied customers into brand ambassadors. The report's findings indicate that a positive customer experience can lead to increased brand loyalty and additional sales, which is an essential aspect of sustainable business growth in the digital age.

Data highlights ways AI brings 24/7 immediacy, with automation and personalisation, for continuous engagement across diverse communications channels

SINGAPORE--(BUSINESS WIRE)-- Vonage, a global leader in cloud communications helping businesses accelerate their digital transformation and a part of Ericsson (NASDAQ: ERIC), has released its Global Customer Engagement Report 2024. The 12th annual report outlines data and insights into customer communications preferences with businesses, highlighting emerging trends that emphasise the need to augment these interactions with artificial intelligence (AI) to enhance customer engagement. The 2024 report is based on nearly 7,000 consumer responses from 17 countries, including Australia, China, India, Indonesia, Japan, Singapore and South Korea.

AI’s Role to Reduce Frustration and Deliver Great CX

The global data revealed consumers continue to prefer a range of channel options when communicating with businesses, with mobile phone calls (36%), messaging/non-SMS apps (31%) and phone calls via apps (29%) ranking high in preference. However, less than half (42%) indicated they are “very satisfied” when communicating with businesses.

In APAC, consumers revealed that mobile phone calls (73%) are the most common method used by customers to communicate with businesses, followed by phone calls via messaging apps (60%), messaging via non-SMS apps (64%), emails (50%) and social media posts (47%).

Consumers cited multiple frustrations such as long wait times to speak to an agent (63%), no way to speak to customer service via voice/phone (59%), lack of 24/7 support availability (48%) and lack of self-service support (46%).

The report found that (80%) of APAC customers are likely to take their business elsewhere as a result of poor experiences, and 61% of consumers will not tolerate bad experiences and will walk away after just one or two bad encounters.

These findings underscore opportunities to leverage AI. With tools like AI-based virtual assistants, businesses are equipped to provide quick resolution, reduce frustrations and ultimately provide a more targeted and personalised experience for the user, including the ability to:

• Triage urgent customer inquiries
• Provide smarter self-service at scale
• Deliver smart IVR (interactive voice response) and skills-based routing to connect customers with an agent best suited to handle their query, preventing and mitigating a bad customer experience

Report findings demonstrate that consumers are embracing AI to make their experiences better. In fact, responses show a likelihood that chatbot and video chat usage will more than double within the next year, with 10% using chatbots today and 23% expected usage in the next six to 12 months. Additionally, 13% indicate they’re using video chat today, with 26% expected usage in the next six to 12 months.

Commenting on the report findings, Joy Corso, Chief Marketing Officer at Vonage, highlights the significance of these results in shaping customer experience (CX): “This data underscores that, to differentiate on customer engagement, businesses need an omnichannel communications strategy that allows customers to contact them seamlessly across their preferred channels. Those that do will also benefit from the ability to leverage the powerful capabilities of AI across communication channels, such as voice, video, messaging, and chat, enabling them to augment live customer support. This goes a long way to ensuring personal and real-time customer engagement at every touchpoint.”

“Metrigy’s upcoming AI for Business Success study shows significant growth for AI-enabled technologies, with 38% of CX leaders saying 2024 will be their turning point for acceptance of AI in CX, up from 17% in 2023,” says Metrigy CEO Robin Gareiss. “Companies that adopt and integrate AI and automation into their CX processes have documented compelling success metrics, with improvements in customer satisfaction and loyalty, as well as agent efficiency. Companies not using AI on an omnichannel environment are already at a competitive disadvantage, so it’s imperative to establish a targeted AI strategy now.”

Positive CX Creates Loyal Brand Ambassadors

With 56% of consumers indicating they are likely to offer positive survey feedback after a great experience with a business and 55% noting they would share their experience with friends and family, it’s clear that great experiences create valuable brand ambassadors. Even better, more than half (52%) of customers report heightened brand loyalty following such an encounter, and more than a third (36%) go as far as purchasing additional products.

Added Corso, “This report emphasises that businesses that leverage AI across communications channels have the ability to facilitate the kind of meaningful, intelligent conversations that strengthen loyalty, build long lasting customer relationships and ultimately boost sales.”

The Global Customer Engagement survey was conducted in October 2023, and explored the varied channels customers use for communicating with friends, family, and businesses - including voice, messaging apps, email, social media, chat, and more - and the immense value of delivering excellent customer service.

Read the full Vonage Global Customer Engagement Report 2024 for more insights.

About Vonage

Vonage, a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage's Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging, AI and Verification into existing products, workflows and systems. The Vonage conversational commerce application enables businesses to create AI-powered omnichannel experiences that boost sales and increase customer satisfaction. Vonage's fully programmable unified communications, contact center and conversational commerce applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or remotely - providing the flexibility required to create meaningful engagements.

Vonage is headquartered in New Jersey, with offices throughout the United States, Europe, Israel and Asia and is a wholly-owned subsidiary of Ericsson (NASDAQ: ERIC), and a business area within the Ericsson Group called Business Area Global Communications Platform. To follow Vonage on Twitter, please visit www.twitter.com/vonage. To become a fan on Facebook, go to facebook.com/vonage. To subscribe on YouTube, visit youtube.com/vonage.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124838299/en/

Vonage Media:

Nicola Brookes

+44 (0)207 785 8888

nicola.brookes@vonage.com

Source: Vonage

FAQ

What is the Global Customer Engagement Report 2024?

The Global Customer Engagement Report 2024 is a report released by Vonage, a part of Ericsson, highlighting the need to use AI for customer engagement.

What are the main communication preferences revealed in the report?

The report reveals that consumers prefer mobile phone calls, messaging/non-SMS apps, and phone calls via apps when communicating with businesses.

What are the frustrations mentioned by consumers in the report?

Consumers cited frustrations such as long wait times, lack of 24/7 support availability, and lack of self-service support when communicating with businesses.

How does the report emphasize the role of AI in customer engagement?

The report emphasizes that businesses leveraging AI across communication channels can facilitate meaningful conversations, strengthen loyalty, and boost sales.

What is the significance of the report findings in shaping customer experience (CX)?

The report findings underscore the significance of an omnichannel communications strategy that allows customers to contact businesses seamlessly across their preferred channels, leveraging the powerful capabilities of AI across communication channels.

What is the expected increase in chatbot and video chat usage according to the report?

The report shows a likelihood that chatbot and video chat usage will more than double within the next year, with 10% using chatbots today and 23% expected usage in the next six to 12 months.

What are the findings related to AI adoption in CX processes according to the report?

The report states that companies adopting and integrating AI and automation into their CX processes have documented compelling success metrics, with improvements in customer satisfaction and loyalty, as well as agent efficiency.

What are the potential benefits of leveraging AI across communication channels?

Businesses that leverage AI across communication channels have the ability to facilitate meaningful conversations, strengthen loyalty, build long-lasting customer relationships, and ultimately boost sales.