Vonage Research Reveals Nearly Half of Consumers Expect 24/7 Customer Service Support, Nearly Three Quarters Will Switch Businesses Following a Subpar Experience

Rhea-AI Summary

Vonage, a part of Ericsson, releases its Global Customer Engagement Report 2024, highlighting the need for AI in customer communications. The report emphasizes the frustration of consumers with business communications and the potential of AI to reduce these frustrations. It also reveals the likelihood of increased chatbot and video chat usage in the next year.

Insights

Market Research Analyst

The findings from Vonage's Global Customer Engagement Report 2024 are indicative of a significant market trend towards the integration of AI in customer experience (CX). The report's emphasis on consumer preferences for omnichannel communication and their dissatisfaction with current customer service experiences suggests a growing market for AI solutions that can streamline and enhance customer interactions.

From a market perspective, businesses that successfully implement AI-driven customer engagement strategies may see increased customer satisfaction and loyalty, which can translate into higher revenue and market share. The report's data showing that 74% of customers may leave due to poor experiences and the potential doubling of chatbot and video chat usage, point to an urgent need for businesses to innovate in their CX approaches. Companies lagging in AI adoption risk losing competitive ground, as evidenced by the forecasted increase in AI acceptance among CX leaders.

Investors should monitor companies that are actively investing in AI for CX, as they may present growth opportunities. The positive correlation between good CX and customer loyalty, as well as additional purchases, further underscores the potential return on investment in AI technologies for businesses.

Financial Analyst

From a financial analysis standpoint, the data presented in the report could have material implications for companies like Vonage and their competitors in the cloud communications sector. The reported customer frustrations and the high likelihood of switching due to poor service experiences highlight the financial risk of not investing in AI and omnichannel strategies.

Companies that proactively adopt AI technologies to enhance CX are likely to see cost savings through improved agent efficiency and reduced customer churn. The potential doubling in the usage of chatbots and video chats within a year suggests a rapidly growing demand for these technologies, which could drive significant revenue for providers of AI communication solutions.

Investors should consider the potential upside for companies like Vonage that are positioned to capitalize on these trends. Conversely, companies that fail to adapt may face revenue declines as customers gravitate towards competitors with superior engagement capabilities.

Customer Experience Strategist

Analyzing the report from a customer experience strategy perspective, the integration of AI into CX is not just a technological upgrade but a strategic imperative. The data highlights that a seamless omnichannel approach, powered by AI, can address common customer pain points such as long wait times and lack of 24/7 support.

AI's ability to provide smarter self-service, smart IVR and skills-based routing not only improves customer satisfaction but also optimizes resource allocation within businesses. This strategic application of AI can enhance the customer journey at every touchpoint, creating more personalized and efficient experiences that foster brand loyalty and advocacy.

The significant growth in AI-enabled technology adoption among CX leaders, as mentioned in the report, signals a strategic shift in the industry. Businesses that are early adopters of such strategies can differentiate themselves and potentially achieve a sustainable competitive advantage in their respective markets.

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

HOLMDEL, N.J., Jan. 24, 2024 /PRNewswire/ -- 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 emphasize the need to augment these interactions with artificial intelligence (AI) to enhance customer engagement.

To differentiate on customer engagement, businesses need an omnichannel communications strategy.

AI's Role to Reduce Frustration and Deliver Great CX

The 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.

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, alarmingly, nearly three quarters (74%) of customers are likely to take their business elsewhere as a result of poor experiences, and for nearly half (46%), just one or two negative encounters are enough to prompt their departure.

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 personalized 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 emphasizes 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 included more than 7,000 participants across 17 global markets. Conducted in October 2023, the survey 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.

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SOURCE Vonage

FAQ

What is the significance of the Global Customer Engagement Report 2024 released by Vonage?

The report highlights the need for AI in customer communications and the frustrations of consumers with business communications.

What are the preferred channel options for communicating with businesses according to the report?

The report reveals that mobile phone calls, messaging/non-SMS apps, and phone calls via apps are the preferred channel options for communicating with businesses.

What are the frustrations cited by consumers when communicating with businesses?

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

What are the potential benefits of leveraging AI in customer communications according to the report?

The report suggests that AI can provide quick resolution, reduce frustrations, and provide a more targeted and personalized experience for the user.

What are the expected increases in chatbot and video chat usage according to the report?

The report indicates that chatbot usage is expected to 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.