48 Key Customer Service Statistics in 2024
Table of contents
Customer service is evolving in more ways than one. But from where I stand, the biggest change seems to be a mindset one. Customer service has gone from being just another function to the cornerstone of organizational success. It is no longer just a nice-to-have; it is a necessity for businesses that aspire to stand out and thrive.
With customers having more options than ever to choose from, it’s crucial for businesses to invest in a capable support team and provide them with the right tools to ensure excellent customer experiences.
In this article, I’ll be talking about important customer service statistics as well as the latest trends in customer support to consider in 2024 and beyond. It’ll help you keep your finger on the pulse on the increasing expectations of customers and how you need to strengthen your support offerings.
Let’s dive in.
Table of Contents
- 48 Customer Service Statistics You Should Know in 2024
- A Quick Rundown of the Top Customer Service Trends in 2024
- Final Word
48 Customer Service Statistics You Should Know in 2024
Here are the most important statistics that can help you understand the landscape of customer support in 2024.
Impact of Customer Service on Business Performance
Customer service plays a pivotal role in shaping business performance. A strong customer service team not only enhances customer satisfaction but also fosters loyalty, leading to repeat business and positive word-of-mouth referrals. Let’s look at some numbers that show just how important strong customer service is for your bottom line:
- 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. [HubSpot Research]
- 83% of customers agree that they feel more loyal to brands that respond and resolve their complaints. [Khoros]
- Consumers who report a good customer service experience are 38% more likely to recommend that company than consumers who received bad customer service. [Qualtrics]
- 80% of customers say the experience a company provides is as important as its products and services. [Salesforce Research]
- 88% of customers say good customer service makes them more likely to purchase again. [Salesforce Research]
- Companies with a reputation for excellent customer service gain a competitive edge, with 73% of consumers stating they would choose a business based on its customer service reputation alone. [AmplifAI]
- 77% of business leaders recognize that offering personalized support experiences leads to increased customer retention. [Zendesk]
- 80% of companies use customer satisfaction scores to analyze customer experience and improve it. [Harvard Business Review]
- Businesses that prioritize customer service can grow revenues by 4% to 8% above their market average. [Wavetec]
The Consequences of Poor Customer Service
Poor customer service can have a detrimental impact on your business, leading to lost revenue and a damaged reputation. Customers who experience inadequate service are more likely to switch to competitors, share their negative experiences, and deter others from engaging with the brand.
This loss of customer trust and loyalty can significantly harm a company’s bottom line. In this section, I’ll be sharing some findings on the negative impact of poor customer service on your business.
- 72% of customers switch companies after a single negative experience [Hiver]
- 45% of customers will break a business relationship with a company within the same day of experiencing poor customer service. [Saufter]
- 78% of customers have backed out of a purchase due to a poor customer experience. [Glance]
- 65% of customers said they have changed to a different brand because of a poor experience. [Khoros]
- After more than one bad experience, around 80% of consumers say they would rather do business with a competitor. [Zendesk]
- Only one in five consumers will forgive a bad experience at a company whose customer service they rate as “very poor.” [Qualtrics XM Institute]
- Poor customer service costs businesses $300 billion every year! [Saufter]
- 72% of shoppers trust online reviews as much as personal recommendations. [Saufter]
- 85% of consumers share their experiences interacting with brands as online reviews. [Saufter]
Recommended Read: Download and read Hiver’s detailed research on the State of Customer Support in 2024
Role of Technology and AI in Customer Service
The role of technology and AI in customer service has been rapidly expanding, fundamentally transforming how businesses interact with customers. Advanced technologies like AI-powered chatbots and machine learning algorithms enable companies to provide real-time support, automate routine inquiries, and offer personalized customer experiences.
These innovations not only improve response times but also allow customer service teams to focus on more complex issues. As consumer expectations for quick and accurate service rise, the integration of AI and technology has become essential for delivering high-quality customer experiences.
Let’s look at some of the data that sheds insight into the role of AI and technology in customer service:
- 79% of businesses consider automation to be essential in their customer experience strategy, indicating a strong shift towards automated solutions. [Kaizo]
- 43% of companies are either evaluating AI tools or have already made investments in some. [Hiver]
- 68% of support teams observe that AI is directly influencing customer expectations, demonstrating the growing impact of technology on service delivery. Kaizo
- 60% of support professionals see value in AI. [Hiver]
- McKinsey’s analysis reveals that an AI-powered omnichannel contact center could manage nearly two-thirds of customer service tasks and up to 70% of contacts, highlighting the vast potential of automation. [McKinsey]
- 63% of retail organizations use AI to improve customer service, reflecting its growing adoption across industries. [CMSWire]
- 67% of support leaders believe they are already seeing value from their automation efforts (chatbots, automatic routing, etc.) [Intercom]
- 52% of support experts note that customers prefer a ‘human-only’ approach to get their queries resolved. This tells us that while AI has transformed the day-to-day work of an agent, it still hasn’t won over customers’ trust. [Hiver]
Recommended Read: Download and read Hiver’s detailed research report on the future of customer service and the role of AI in it – AI vs Human.
Customer Preferences for Customer Service Channels
In the following section, I’ll be sharing statistics about customer preferences in seeking help from businesses.
- 37.4% of customers prefer to contact a business via email for customer service issues, making it one of the most popular channels for communication. [DMG Consulting]
- 41% of customers prefer live chat for quick inquiries, reflecting the growing trend towards digital communication channels. [Omdia]
- 60% of customers prefer web self-service for sales transactions, highlighting the demand for self-service options in the purchasing process. [DMG Consulting]
- 52% of customers reported an increase in their use of chat for customer service interactions. [Omdia]
- 48% of customers prefer using phone for complex inquiries, emphasizing the need to talk to support staff for resolving complicated issues. [SQM Group]
- 34% of customers prefer social media for customer service interactions, indicating people want to interact with brands on platforms where they like to hang out. [DMG Consulting]
- 1 in 5 Gen Z, Millennials, and Gen X say social media DMs are their preferred channel to get customer service from a company. [HubSpot]
- 78% of customers who interact with chatbots say that they end up needing to connect with a human agent anyway. [Zendesk]
The Importance of Personalization
Personalization in customer support is crucial as it enhances the customer experience by tailoring interactions to individual needs and preferences. Personalized service helps in building stronger relationships with customers, making them feel valued and understood. It involves using customer data to provide relevant solutions, anticipate needs, and create a more engaging and efficient service experience.
Here are some statistics that reflect the importance of personalization in customer support.
- 71% of consumers expect companies to deliver personalized interactions, highlighting the growing demand for tailored customer experiences. [McKinsey & Co.]
- 76% of customers get frustrated when they don’t receive personalized experiences, indicating the negative impact of generic service. [McKinsey & Co.]
- 78% of consumers are more likely to make repeat purchases from companies that provide a personalized experience, demonstrating a strong link between personalization and customer loyalty. [McKinsey & Co.]
- 83% of marketers believe that personalization is a key differentiator from the competition. [Comm100]
- Companies that excel at personalization generate 40% more revenue from their activities than average players. [McKinsey & Co.]
- 93% of customers are more likely to engage with brands that offer personalized experiences. [Ameyo]
- 90% of customers are inclined to buy more from companies that provide personalized recommendations, indicating that tailored suggestions can drive sales. [Ameyo]
Customer Service Challenges in 2024
In this section, we’ll be looking at the most common challenges plaguing customer service teams in 2024. This will give you a good idea of what your team needs and areas where you can take measures to help your team perform better.
- 86% of agents and 74% of mobile workers say customer expectations are higher than they used to be. This highlights the increasing pressure on customer service teams to meet rising demands. [Salesforce]
- 65% of customers expect a faster response time than they did five years ago, highlighting the pressure on businesses to improve response rates. [Zendesk]
- 77% of agents report that their workload has increased over the past year. This indicates that customer service professionals are having to handle more complex and bigger tasks. [Salesforce]
- Only 22% of organizations report having unified customer data, leading to fragmented customer experiences. This is a significant challenge in providing consistent and seamless service. [Sprinklr]
- 78% of agents say customers seem more rushed than they used to. This suggests that customers are increasingly impatient, which can complicate service interactions. [Salesforce]
- 79% of agents say they offer support for more products/services now than they did a year ago. This shows that customer service representatives are required to handle a broader range of inquiries. [Salesforce]
- 54% of support teams still lack the tools they need to personalize their support at scale. [Klaus]
A Quick Rundown of the Top Customer Service Trends in 2024
Now let’s talk about the most significant trends in customer service for 2024 and beyond.
1. Increased Use of AI and Automation
AI and automation are becoming integral to customer service, allowing for faster response times and efficient handling of routine inquiries. Companies are leveraging AI to provide 24/7 support through chatbots, which can handle a large volume of simple queries. Another popular use case for instance is AI summarizers. AI Summarizers help compress long emails into concise notes for seamless agent hand-offs, ensuring continuity and reducing lag. You no longer need to scan through entire email threads to figure out what’s going on or what you need to do.
2. Personalized Customer Interactions
Personalization remains a key trend, with businesses increasingly using customer data to tailor their interactions. This approach helps in providing relevant recommendations and addressing specific customer needs. For instance, a travel agency might use previous booking data to suggest destinations and offers that align with a customer’s preferences.
3. Omnichannel Support
Providing a seamless customer experience across multiple channels—such as email, chat, social media, and phone—is essential. Customers expect to be able to reach your brand through their preferred channels. It lets them choose how they want to seek help based on the severity of their issue. For instance, complex technical issues may email support while basic queries can be addressed with the help of self-service portals.
Hiver brings all the different customer support channels together under one centralized location. This makes it easy for your agents to offer support from just one tab.
4. Real-Time Support and Instant Gratification
With rising customer expectations, real-time support is becoming more critical. Customers expect quick responses, often within minutes. Businesses are employing live chat, social media, and other instant communication tools to meet these expectations. For example, a food delivery service may use live chat to instantly address issues like order delays or incorrect deliveries.
5. Focus on Customer Experience (CX) and Empathy
Beyond solving problems, customer service is increasingly focused on delivering a positive overall experience and showing empathy. This involves understanding customer emotions and providing thoughtful, compassionate responses. A healthcare provider, for instance, may train staff to handle sensitive health-related queries with empathy and care.
“The most important customer service skill is empathy. When our customers are experiencing issues they are usually coming to us with some amount of frustration or anxiety. Being able to authentically acknowledge those elevated emotions helps customers feel seen and heard, which not only paves the way forward for a resolution (you can’t help someone who is emotionally elevated),but helps establish a human connection.”
– Justin Bonar-Bridges, Customer Support Technician Level II, Verisk Property Estimating Solutions (Xactware).
6. Integration of Advanced Analytics
Advanced analytics and data-driven insights are being used to enhance customer service strategies. By analyzing customer interactions, businesses can identify pain points and areas for improvement. For example, a telecom company might use analytics to discover frequent customer complaints about billing and proactively address them.
7. Sustainability and Ethical Values
Customers are paying more attention to the ethical practices of companies, including their sustainability efforts. Businesses are increasingly being transparent about their values and incorporating them into their customer service. For example, a fashion brand might highlight its sustainable sourcing practices in customer interactions to align with the values of eco-conscious consumers.
Consider Patagonia for instance. Patagonia has built its brand around environmental activism and sustainability. The company uses organic cotton, recycled polyester, and other sustainable materials in its products. This reduces the environmental impact of their manufacturing processes. Patagonia also pledges 1% of its sales to environmental causes, supporting grassroots organizations that work to protect the planet. This commitment reinforces their dedication to environmental stewardship.
Final Word
By now you’ve got a sense of how the dynamic world of customer service is evolving. In essence, customer expectations have increased simply because there are brands who are doing a stellar job of providing them the help they need and making them feel valued. The bar is much, much higher than before. And if you don’t want to get left behind, you need to step up your customer service game.
