Rethinking Customer Experience in the Brand Loyalty Crisis

Fears around rising costs, combined with evolving consumer values, means brand loyalty is facing a significant challenge in 2024. The ServiceNow Consumer Voice Report 2024 highlights that 87% of customers in Ireland say they are less loyal to brands now than they were two years ago, a further fall from last year’s stark figure of 82%. While Irish consumers may be more price sensitive, brands cannot compete in a race to the bottom. Focus must instead be on building loyalty through intelligent experiences which seamlessly combine technology with human input.

To take steps towards earning their customer’s loyalty, the report, which surveyed 15,000 consumers across ten EMEA markets, shows results will come from finding the balance and flexibility in the face of constantly changing preferences.

High-tech meets high-touch

In the world of customer experience (CX), all eyes are on Generative AI, with Gartner predicting that by next year, 80% of organisations will use the technology. However, our latest research indicates that while consumers embrace the transformative potential of Generative AI, they strongly desire a balance with human touch. For example, 79% of Irish customers are happy to deal with generative AI in some capacity, but more than a third (37%) want to deal with humans for on complex issues.

Faced with demands both for instant responses, and for the problem-solving powers of a human customer service agent, business leaders need to blend automation and human support – delivering hyper personalised experiences to rebuild brand loyalty. It’s a balancing act of ‘high tech’ vs. ‘high touch’, and those that master it will become the winners.

Advancements such as generative AI chatbots have raised the bar for customer service speed and responsiveness but maintaining human collaboration remains equally important for customer satisfaction. In fact, a fifth (21%) of respondents in Ireland said they actively choose to avoid customer facing AI such as chatbots. This, combined with the growing demand for multi-channel access (information, questions and instant responses), adds a layer of complexity to the customer experience landscape. It requires businesses to constantly evaluate and refine their approach.

Our research pinpointed a company’s “ability to resolve a problem” as the most important part (95% agree) of customer experience for consumers. Therefore, a variety of problem resolution channels, which will not necessarily have the same role, are critical to win loyalty. For businesses to deliver this, a seamless blend of automation and personalised touch is the answer. So, a customer could begin speaking to a chatbot, but if further assistance is needed, a human agent can seamlessly take up the conversation. All of this is possible by investing in a unified customer experience platform.

A blend of AI and human-led customer experience can deliver semi-automated yet highly personalised services to meet the needs of today’s choosy consumers.

AI – authentic intelligence

The research shows that consumers do see Generative AI as an important part of their customer experience, with almost all Irish consumers (92%) wanting quick, real-time support, and 60% happy to use their personal data to improve CX. But AI within customer experience is still on a journey of continuous improvement, focusing on ethical considerations, responsible implementation, and most importantly, prioritising the human touch in the customer experience.

AI should not – and cannot – replace human interaction entirely. After all, more than a third of consumers also want authentic, human generated answers. Instead, it should act as a complement, providing efficient support for simple tasks and seamlessly transferring complex issues to human agents when needed.?By strategically integrating Generative AI with human expertise, businesses can create a seamless and powerful authentic intelligence, ultimately enhancing the customer experience.

The CX of the future

According to the Consumer Voice Report, the purchase experience of the future will be very different to what we see today. 30% think artificial intelligence will foresee every problem before it happens; with many also expecting virtual reality allowing consumers to ‘try before they buy’; and ‘smart’ products replacing themselves before they run out.

Consumers are confident that such a future is on the way, and many believe it will arrive sooner than you’d think. This appetite for change highlights the importance of investing in the right technology now. Brands need to be ready to deliver the CX of the future as a service differentiator, before this becomes a standard requirement for every business.

The rapid drumbeat of innovation in the AI space means that businesses must move quickly to keep pace. Within the next year, as AI in CX improves, 13% of consumers in Ireland are interested in interacting with fully autonomous, AI-driven customer service, with this figure rising to nearly half (46%) by 2050. Brands that move quickly to embrace the opportunities of AI will entice happy customers, eager for futuristic experiences, which may become standard expectations.

Round the clock CX

One of the key requirements of today’s consumer is that help should be available round the clock. By next year, our research shows almost half (45%) of Irish consumers will expect 24/7 service, and by 2050, four-fifths of consumers (83%) imagine this will be a standard offering. This presents a significant opportunity for companies to invest in the deployment of smart technology to underpin round the clock CX.

The vast majority of consumers in Ireland (95%) already value customer service response times extremely highly. Speed and availability are incredibly important for users, raised on a diet of digital tech. This is only going to grow in the future, highlighting the need for brands to embrace technology to deliver rapid, timely customer service.

Reacting to today, preparing for tomorrow

With the report showing that consumers envision a high-tech future for customer experience, one which maintains human interactions, it’s imperative for businesses to achieve a harmonious balance between technology and the human element. When it comes to technology, it is key for companies to move beyond legacy tech and siloed approaches.

On the human side of things, now more than ever companies must keep investing in upskilling their workforce. By doing so, they can deliver customer experiences which will entice today’s choosy consumers, as well as tomorrow’s, with hyper personalised, semi-automated services delivered both by AI and human beings.

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