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A recent study has shown more than half of Australians have been frustrated by the inability of AI customer service chatbots to resolve their issues, but Gen Z consumers are likely to be more forgiving as a one-off if the technology doesn't work.
Research commissioned by Zoom (NASDAQ: ZM) and conducted by Morning Consult surveyed 3,509 consumers across seven countries in an attempt to better understand the link between customer service and brand loyalty, and how this can be shaped positively or negatively by AI.
"The report uncovered opportunities for businesses to evaluate and improve their contact centre processes and systems to exceed expectations and build brand advocates," says Zoom head of Australia and New Zealand, Bede Hackney.
"Our customer experience research found Aussies were most frustrated (51 per cent) with the resolution capabilities of customer service bots, even more so than those in the UK and Germany."
Hackney says it is crucial that businesses get this right by investing in fit-for-purpose and secure solutions, especially with the majority - 86 per cent - agreeing they were likely to abandon a brand if they can’t get a resolution.
"And, with most Australian consumers (77 per cent) sharing negative experiences via word of mouth, there’s serious potential for reputational damage," Hackney adds.
In contrast, brands that have fast, effective customer service garner loyalty from 89 per cent of Australian consumers, while 83 per cent are likely to share positive experiences with others.
"Across the countries we surveyed, we found that older generations are more loyal to brands they like," Hackney says.
"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."
This is reflected in 61 per cent of Gen X respondents saying they would stick to a brand they like for more than a decade, just ahead of Baby Boomers at 60 per cent while Millennials and Gen Z care less with 45 per cent and 25 per cent respectively claiming this brand commitment.
Only 13 per cent of Gen Z would drop a brand after just one bad customer service experience, compared to 21 per cent of Gen Xers. However, after a second poor experience, the generational gap closes, with 42 per cent of Gen Z and 40 per cent of Gen X saying they would cut ties with the brand.
The researchers found that customers don’t seem to care how their issues get solved. 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 per cent of Australian respondents rating it as "very" or "somewhat" important.
Australians are also less trusting of AI, with more than half (59 per cent) saying they expected human customer service agents to perform better on data security, compared to just 14 per cent 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," says Hackney.
"Designing streamlined customer journeys and delivering rapid resolution helps ease those concerns and build loyalty and trust."
While 86 per cent of Aussies expect AI to escalate issues to a human when needed, only 38 per cent have experienced this regularly. Just a quarter of Australian consumers say they’re regularly seeing businesses using AI to remember past interactions, despite 76 per cent expecting it.
Only 28 per cent of Australian customers have always or often experienced AI anticipating their needs or issues, falling well short of the 74 per cent 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," says Zoom head of CX (customer experience) for ANZ, Lukas Carruthers.
"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," says Carruthers.
"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."
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