New Research Uncovers Customer Service Inflection Point Sparked by Pandemic Challenges

Rhea-AI Summary

Pegasystems Inc. (NASDAQ: PEGA) released a study revealing that businesses face increased customer dissatisfaction due to inconsistent service quality across digital channels. Conducted by Savanta, the survey of 12,700 respondents highlights that 77% of customers would switch businesses due to poor service. While businesses improved omnichannel service from 55% to 68% since 2019, 80% acknowledge service quality varies. Key priorities include enhancing resolution capabilities across all channels, improving self-service, and investing in AI technology, with 85% of businesses planning AI investments in the coming years.

Positive

• 68% of businesses now offer some form of omnichannel service, up from 55% in 2019.
• 85% of businesses plan to invest in AI technology within the next few years, signaling growth in digital service capabilities.

Negative

• 80% of businesses admit service quality varies across supported channels, indicating significant inconsistencies.
• 77% of customers reported they would switch providers due to poor service, highlighting potential revenue losses.

CAMBRIDGE, Mass., May 19, 2021 /PRNewswire/ -- Businesses risk losing customers due to inconsistencies in the efficiency and quality of service across channels, according to new research by Pegasystems Inc. (NASDAQ: PEGA), the software company that crushes business complexity. The global study, conducted by research firm Savanta, recently surveyed 12,700 business leaders, agents, and customers to understand how the pandemic is impacting the current and future states of customer service. Businesses are making progress by adding more digital service channels to keep up with customer demands; however, this progress often comes at the expense of service quality by creating more inconsistencies and increasing customer frustration.

For many businesses, the pandemic created extraordinary challenges that exacerbated longstanding customer frustrations, such as having to repeat the same information to multiple agents and being passed to different departments to resolve a single issue. Bad service can be so irritating that nearly 27% of consumers surveyed felt it had ruined their day and even caused one in 10 to cry or nearly cry. But their most consequential reaction is often expressed through their wallets: 77% of customers said they would take their business elsewhere if they received poor service. The pressure is on executives to address these service issues before they do any further damage to their businesses, many of which are still in pandemic recovery mode.

In some ways, businesses are already responding. Compared to a similar study in 2019, the number of businesses providing some form of omnichannel service today has increased from 55% to 68% - a 24% increase. But even as organizations invest in or explore new technologies to enhance service, 80% admit the quality of service varies across the channels they support.

The survey identified three areas that will be a priority as organizations continue to strive for optimal customer service:

• Service needs to offer final resolution on all channels: The main issue with service today is the lack of consistency; 67% of customers think businesses need to improve service quality on non-traditional channels, such as web, mobile app, and chatbot/intelligent virtual assistant. This lack of consistency results in customers repeating information across channels (the top frustration amongst surveyed customers and agents) and resorting to less desirable channels, such as the phone, to achieve final resolution – half of customers cited a phone call as the only way to solve an issue. If they've tried and failed with other channels, by the time customers resort to the phone, they are often frustrated, angry, or both. Organizations need to equip all service channels to be equally effective, saving customers and agents time and improving their experiences.
• Self-service is gaining in popularity, but mainstream approaches fall short: The desire for self-service is stronger than ever – 45% of customers surveyed are more likely to use self-service today than before the pandemic. And while 82% of consumers are willing to use self-service, almost half (46%) still don't expect it to work. With 75% of customers wanting businesses to improve self-service and 56% visiting a business' website before calling, there is a massive opportunity for business leaders to improve self-service capabilities. And as customer bases grow to include younger, digital-native generations, organizations must meet new service preferences and expectations to maintain loyalty and draw new customers in.
• AI and automation are crucial to achieving high levels of service: Once life begins to return to normal, customers will still expect the same – if not better – levels of service, which require the right infrastructure and tools. Eighty–five percent of businesses expect to invest in AI technology in the next few years, while 57% will increase investments in self-service and automated customer service technology within the next two years. Additionally, 53% of business leaders plan to use technology to proactively monitor customer data to predict problems before they arise, and almost two-thirds of customers agree companies should provide this service. These investments will help enhance both agent-assisted and non-agent-assisted channels for faster resolution – sometimes even before a problem arises.

The impact of the pandemic has long-lasting implications for customer service, both today and in the future. As businesses adjust, having the right solutions in place will help provide the level of service customers have come to expect.

To download the full report, "Resolution Revolution," visit http://www.pega.com/resolution-revolution.

Quotes & Commentary:
"The pandemic served as an accelerator for many organizations to fast-forward their customer service strategy deeper into digital," said Jeff Nicholson, global leader, CRM Strategy, Pegasystems. "Today's challenge, however, is that many traditional approaches still lack the journey-centric technology needed to achieve fast resolution via a customer's preferred point of contact. Just being present on a range of channels is no longer enough. The next great opportunity is to up-level the quality of service on all channels so they can consistently resolve the same critical customer issues."

Supporting Resources:

• Full report: Download Resolution Revolution
• eBook: 6 steps to simplifying service

Notes to Editors
The survey canvased 12,700 individuals, including business leaders (~2000 respondents), employees (~3600 respondents), and customers (~7200 respondents) within the healthcare, government, financial services, manufacturing, telecoms, transportation/logistics, travel/hospitality, insurance, and utilities industries. They represent companies that operate in the Asian-Pacific region, Europe, and the Americas.

About Pega
Pega delivers innovative software that crushes business complexity. From maximizing customer lifetime value to streamlining service to boosting efficiency, we help the world's leading brands solve problems fast and transform for tomorrow. Pega clients make better decisions and get work done with real-time AI and intelligent automation. And, since 1983, we've built our scalable architecture and low-code platform to stay ahead of rapid change. O

FAQ

What did the Pegasystems survey reveal about customer service in 2021?

The survey revealed that many businesses struggle with inconsistent service quality, leading to 77% of customers likely to switch providers if dissatisfied.

How much has omnichannel service increased according to Pegasystems' study?

The study shows that businesses offering omnichannel service increased from 55% in 2019 to 68% in 2021.

What investment trends were identified in the Pegasystems customer service survey?

The survey found that 85% of businesses plan to invest in AI technology in the next few years to enhance customer service.

How do customers feel about self-service options according to the Pegasystems report?

While 82% of consumers are willing to use self-service, 46% do not expect it to work effectively.

What emotional impact does poor customer service have on consumers according to the Pegasystems study?

Nearly 27% of consumers reported that poor service ruined their day, and 1 in 10 felt it made them cry or nearly cry.