Bad experiences are reducing brand loyalty
Posted: Mon Jan 20, 2025 5:35 am
Report released by ServiceNow highlights some of the main desires of consumers when dealing with service channels
According to data released in the ServiceNow Voice of the Consumer Report, 87% of Brazilians consider themselves less loyal to their favorite brands than they were two years ago. The reasons for this reduction in loyalty vary, but the survey highlights two main reasons. For 39%, competition between products and services is the trigger for switching, while 21% cite disappointing experiences as the main reason.
On closer inspection, the scenario described by the research reveals consumers’ desire to buy from companies that are able to seamlessly combine the personalized human element with the convenience of technology. That’s because poor experiences – in both physical and digital channels – cost organizations $3.7 trillion a year worldwide, according to the XM Institute.
Commenting on the outlook, Katia Ortiz, vice president dominican republic whatsapp data of ServiceNow in Latin America, says that Latin American consumers are rapidly and dramatically changing their expectations and loyalties as they demand fast, seamless, personal experiences. As such, brands that invest in digital transformation and AI to elevate experiences for both consumers and customer support agents will come out ahead.
Sympathy for AI
The Report points out that the use of AI in customer service channels has been gaining ground in recent years, but this acceptance is more effective when there is room for interaction with real-life agents. This is because 59% of consumers agree that humans are better suited to solving complex problems, whether by phone, chat or in person.
In this context, AI is taking on simpler customer service and interaction functions that can be performed by chatbots. 87% of consumers surveyed consider it important for companies to have a good chatbot service and, of course, there is still room for improvement: when thinking about their recent interactions with chatbots, 59% of respondents considered the experience satisfactory.
The balance between virtual and human agents in customer service can be the difference between companies meeting user demands. For example, 97% of consumers said that customer service response times and the ability of agents to resolve issues are of great importance.
Additionally, 55% of consumers expect all brands to offer full 24/7 customer service by 2025, while 90% of people aged 18-34 want companies to understand their shopping habits and offer personalized recommendations.
According to data released in the ServiceNow Voice of the Consumer Report, 87% of Brazilians consider themselves less loyal to their favorite brands than they were two years ago. The reasons for this reduction in loyalty vary, but the survey highlights two main reasons. For 39%, competition between products and services is the trigger for switching, while 21% cite disappointing experiences as the main reason.
On closer inspection, the scenario described by the research reveals consumers’ desire to buy from companies that are able to seamlessly combine the personalized human element with the convenience of technology. That’s because poor experiences – in both physical and digital channels – cost organizations $3.7 trillion a year worldwide, according to the XM Institute.
Commenting on the outlook, Katia Ortiz, vice president dominican republic whatsapp data of ServiceNow in Latin America, says that Latin American consumers are rapidly and dramatically changing their expectations and loyalties as they demand fast, seamless, personal experiences. As such, brands that invest in digital transformation and AI to elevate experiences for both consumers and customer support agents will come out ahead.
Sympathy for AI
The Report points out that the use of AI in customer service channels has been gaining ground in recent years, but this acceptance is more effective when there is room for interaction with real-life agents. This is because 59% of consumers agree that humans are better suited to solving complex problems, whether by phone, chat or in person.
In this context, AI is taking on simpler customer service and interaction functions that can be performed by chatbots. 87% of consumers surveyed consider it important for companies to have a good chatbot service and, of course, there is still room for improvement: when thinking about their recent interactions with chatbots, 59% of respondents considered the experience satisfactory.
The balance between virtual and human agents in customer service can be the difference between companies meeting user demands. For example, 97% of consumers said that customer service response times and the ability of agents to resolve issues are of great importance.
Additionally, 55% of consumers expect all brands to offer full 24/7 customer service by 2025, while 90% of people aged 18-34 want companies to understand their shopping habits and offer personalized recommendations.