Few terms have been more topical in the last five years than digital transformation. An ongoing process for decades, its importance was further magnified when COVID-19 disrupted life virtually overnight, forcing businesses to go virtual overnight.
Though some aspects of life have returned to the pre-pandemic “normal,” the way consumers interact with brands and their expectations for those interactions has shifted: and continues to evolve almost daily.
As businesses continue to lag behind consumer expectations, with little change in the status quo, it’s time for action.
Though businesses are keenly aware of the need to meet and exceed customer expectations, many of them continue to fall short, leaving consumers frustrated with subpar experiences and looking elsewhere for better options.
In our 2024 Global Customer Engagement Report, (our 12th) only 42% of consumers indicated they’re “very satisfied” when communicating with businesses. That number has actually dropped since 2022, when 45% were satisfied with the options for business communication.
As businesses continue to lag behind consumer expectations, with little change in the status quo, it’s time for action. We’ll look at evolving consumer habits and how businesses can make impactful adjustments to be proactive, rather than reactive, in addressing consumer preferences.
Engagement Preferences by the Numbers
From the pre-pandemic to the present, we’ve seen some significant shifts in how consumers interact with businesses, but we’ve also seen continuity.
In 2019, consumers’ top three preferred channels to communicate with companies were email (61%), mobile voice call (58%), and SMS (54%).
However, with the arrival of COVID-19, those preferences shifted, and a new channel, messaging apps (like Facebook Messenger and WhatsApp), entered the picture.
In 2021, mobile phone calls (56%) overtook email (48%), while the rise of phone calls through messaging apps signaled an evolution towards digital engagement.
As a result, in 2024, messaging (31%) and calls (29%) via non-SMS apps soared past email (20%) as two of the three most used channels, falling just behind mobile voice calls (36%).
Interestingly enough, video chat and chatbots – two channels long heralded as the next frontier of business-consumer interaction – lag significantly behind most other channels in 2024 at 13% and 10% respectively. However, video (+26%) and chatbot (+23%) are poised to grow in the next year.
Pain Points and Sources of Frustration
“The more things change, the more they stay the same.” —Alphonse Karr
Consumers continue to cite the same frustrations when communicating with businesses, but improvements aren’t happening. Issues seem to be more frequent and a significant source of frustration: even though companies have more tools at their disposal.
These issues include long wait times, contacting customer service multiple times, being transferred multiple times, agents who can’t answer questions but offer no other option, and limited communication channels.
A single mistake threatens consumer loyalty; multiple slip-ups could cause them to leave for good. And the cost of churn can make or break a business. But unfortunately, many businesses still fail to meet and exceed rising consumer expectations.
Consumers demand quick, accurate, and personalized services on whichever platform they choose...
In 2022, 75% of consumers were somewhat or very likely to stop buying from a company because of repeated communication issues. Across the board, consumers were even more frustrated by the same problems:
- 61% could not get an answer or speak to the right person.
- 63% had to sit through long wait times.
- 61% had to endure multiple transfers.
By 2024, historical issues have become endless frustrations: 74% will jump ship after repeated problems, and the underlying metrics from 2022 haven’t budged.
Unfortunately, customers have developed low expectations for customer service, so when they have great experiences, they’re usually likely to talk about them with friends and family.
In 2022, nearly half (46%) were likely to complain about a frustrating experience, while only 27% would complement the business after a great one.
But 58% would tell friends and family about positive experiences (versus 46% with negative ones), 57% give positive feedback on surveys (40% negative), and 34% post positively on social media/online reviews (24% negative).
The 2024 consumer is similar: they complain (44%) more often than they offer compliments (25%), but they’ll share positive experiences with others (55%) more often than negative feedback (42%). And, in even better news, 36% will purchase additional products.
AI + CX = Business’s Best Friend
Businesses know where the frustrations lie and know it’s imperative to alleviate consumer concerns, but with tight budgets and resources spread thin, where can they turn?
The answer lies in artificial intelligence (AI). While it’s not a new concept, AI use cases and applications continue to grow, most notably with the recent release of Generative AI (Gen AI).
Now, it’s not just a tool for automating tedious manual processes: its ability to mimic human-like conversation makes it a valuable new digital coworker.
Consumers demand quick, accurate, and personalized services on whichever platform they choose, and AI and Gen AI can augment human employees to take customer experience (CX) offerings to the next level.
Let’s look at some examples of powerful AI platforms in action. Virtual AI assistants are available 24/7/365 to triage problems for customers previously frustrated by long hold times.
These AI assistants are adept at notetaking and contextualization. They can:
- Connect to business systems (e.g. CRM, ordering, support, etc.) to handle repetitive tasks (e.g., rescheduling an appointment or delivery) automatically.
- Use skills-based routing to connect callers with the best agent to resolve the issue and populate the CRM with accurate, updated information, so there’s no need to ask the customer for information they have already provided.
Today’s Gen AI chatbots differ from those of the past because they use reinforcement learning from human feedback (RLHF).
In this process, humans use a reward system to train AI systems to learn from and eliminate mistakes, understand follow-up questions, and more. These chatbots can often even converse in the consumers’ preferred language.
There are four to five generations of consumers in the market today...making it necessary, yet challenging, to meet the demands of a highly diverse buyer population...
In 2024, consumers have many non-negotiable demands: 49% demand a variety of communication channels, 47% want 24/7 customer support, and 49% look for virtual agents who can resolve questions quickly.
The good news is that AI is revolutionizing omnichannel CX with enhanced personalization, efficient issue resolution, and even predictive capabilities that give customers what they want before they know they need it.
Its ability to provide consistent, high-quality communication and adapt to evolving consumer needs is unmatched. The great news: 61% of consumers have a somewhat or very positive attitude toward businesses using AI tools to enhance CX, and 80% have used AI-powered tools recently.
Unlocking Potential with AI
There are four to five generations of consumers in the market today, from Gen Z to Boomers, making it necessary, yet challenging, to meet the demands of a highly diverse buyer population wherever they arise.
The consequences of falling short continue to be severe. Channel preferences will remain fragmented, but a high-quality communications strategy goes beyond what channels consumers prefer; it’s crucial to understand how they prefer to communicate.
Leveraging AI helps facilitate those conversations, assisting companies to better service and anticipate consumer needs. AI frees human employees from simple, monotonous tasks and allows them to focus on more valuable work.
The technology ensures companies never miss a beat, even when human employees go offline. And it’s always working in the background to uncover previously unseen insights — the “a-ha!” moments — that turn organizations from reactive to proactive and from conventional to revolutionary in customer engagement.