The very idea of reaching out to a customer service number gives us the jitters. A new survey report by ServiceNow has proved this again. It revealed a staggering loss of time and money for Indians due to poor customer service.
In 2023, citizens collectively spent over 15 billion hours ‘on hold’, resulting in an estimated economic loss of $55 billion. This translates to the average person wasting more than a day each year waiting for their issues to be resolved.
The study, conducted in partnership with Lonergan Research, surveyed over 4,500 Indians and found that more than 50 per cent believe their time ‘on hold’ has increased compared to the previous year.
Slow service resolution times are a major pain point, with the average employee spending 3.9 days to resolve a single customer issue. This has led to a significant drop in customer satisfaction, with two-thirds of respondents considering switching brands if their issues aren’t resolved within three working days, it said.
“Indian businesses risk losing two-thirds of their customer base in 2024 due to slow service solutions,” Sumeet Mathur, Senior Vice-President and Managing Director of ServiceNow India Technology & Business Center, said.
“Consumers have made it clear: three days is their limit. Businesses that can’t meet this standard must adopt AI-powered self-service options,” he said.
The report also highlighted a growing trust in AI among Indians, with 66 per cent expressing confidence in Generative AI for customer service. This marks a shift towards AI-driven solutions, particularly among younger consumers who value efficiency, speed, and accuracy.
The study felt that structural problems are pushing wait times further with 48 per cent of the respondents identifying inefficient internal communication as a major issue for customer service delays, while 47 per cent say customer service staff lack decision-making power.
As many as 44 per cent of the respondents believe lack of ownership and responsibility between different departments, followed by 44 per cent believe - poor record keeping from the previous service and 41 per cent think issues with internal systems are some of the main reasons for delays in resolving their issues which can be easily fixed with strategic interventions.