As digital transformation accelerates, consumers are increasingly expecting brands to provide 24/7 customer service and rapid response times.
In fact, almost a quarter of consumers expect small businesses to respond to inquiries immediately. Stellar customer service is no longer a differentiator but a ‘default’ for Australian consumers, according to new research released today by Zoho Corporation, a leading global technology company, which found that small businesses must keep up with soaring consumer demands for rapid, 24/7 customer service.
The research comes as digital transformation – and particularly new technologies like AI and automation – disrupt industries and processes, and alter consumer expectations when it comes to customer service and access to brands. Almost a quarter (22%) expect instantaneous responses from small businesses, 37% expect a reply within 30 minutes, while a further 13% expect a response in 30-60 minutes. The vast majority (86%) say that 24/7 customer service is either extremely or somewhat important.
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The ‘Customer Insights and Perceptions’ research sought to understand how customer expectations are changing in the age of AI and automation. It found that one third (31%) of Australians believe that great customer service is the ‘default’ now, not a competitive advantage. However, one in four (24%) consumers will pay extra for superior service. Almost half (45%) said they’re influenced by customer service, but to a lesser extent than product price. Collectively, this emphasises the impact of customer service on acquisition and retention rates.
Instant gratification
The research comes as digital transformation – and particularly new technologies like AI and automation – disrupt industries and processes, and alter consumer expectations when it comes to customer service and access to brands. Almost a quarter (22%) expect instantaneous responses from small businesses, 37% expect a reply within 30 minutes, while a further 13% expect a response in 30-60 minutes. The vast majority (86%) say that 24/7 customer service is either extremely or somewhat important.
AI influencing expectations and decisions
Almost nine in 10 Australians believe small businesses should offer a combination of human and automated customer service, reflecting the growing reliance we have on apps and digital-first options. In fact, over four in ten (42%) believe it’s ‘essential’ to offer both human and digital services, and would not trust a brand that only offered automated support/chatbots – suggesting a combination of both isn’t a nice to have, but a necessity. The prevalence and influence of AI is growing, not only for handling inquiries but providing recommendations. When asked whether they trust suggestions from a friend or AI more when purchasing a product, 40% of respondents place more value on the recommendation of AI than a friend.
“Australians are unwavering in their support for local businesses, but their expectations are rising – and their tolerance for poor experience is dwindling. That’s particularly true for customer service today,” said Vijay Sundaram, Chief Strategy Officer at Zoho. “Influenced by so-called ‘appification’ of industries and processes – where we can order a product, book a taxi or receive the answer to a question in seconds – consumers have incredibly high expectations. According to our research, those expectations extend to small businesses. For the one in three consumers who believe great experience is the ‘default’, failure to meet their expectations could reduce conversions and increase churn. While for the one in four who would pay extra for better customer service and the four in ten who say it influences their decision-making, it’s an important driver of both acquisition and retention.”
“That’s why investing in customer service shouldn’t be seen as a cost but an investment in your customers and, therefore, your business,” continued Sundaram. “The great news is that many small businesses recognise the impact customer service has on both conversions and loyalty. In fact, Zoho Desk and Zoho CRM Plus – two apps predicated on improving customer experience – have some of the highest adoption rates across our suite of over 55+ business applications. As digital transformation increases customer expectations, small businesses who can combine the human connection with which they’re renowned and the convenience and instant access of customer support software, can meet and exceed the needs of their audience; reducing churn and maximising retention and revenue.”
Privacy and security
As data breaches increase in both regularity and severity, privacy has become one of the key focuses for consumers, businesses, and policymakers. Proposed changes to the Privacy Act – which would’ve increased the requirements on small businesses – have been delayed, but consumers are focusing on a brand’s policies and practices more closely than ever. One in three (33%) say they always read the privacy/security guidelines and data sharing terms and conditions before they make a purchase, while a further 42% do so often, but not always. Privacy is essential for building trust, particularly amongst the 79% of consumers who value personalised marketing and the tailored customer experience it provides.
“We have a core offering at our business, but it’s no longer ‘enough’ just to do that well. For us, it’s essential that our customers have a brilliant experience when they interact with us. That’s what persuades them to choose us over our competitors and recommend our business to others. For Inspired Business Solutions, customer service can – and does – impact acquisition, retention, and satisfaction,” said Sean Tak, Co-founder of Inspired Business Solutions. “Before Zoho, we’d answer calls, have a timer for each one, and then manually record and report on them. Now, with all the automation in our Zoho apps, we just enter the details in—every call gets audited, and reports are sent automatically. This not only streamlines our internal processes but also improves the experience for our customers. By providing faster, more accurate service, we’re able to improve our customer satisfaction, which is critical for the success of our work.
Taking advantage of all the Zoho apps and features has helped us scale up and onboard other clients with ease.” Craig Smith, Director of CASF, added: “For our business, customer service is not just a department, its an attitude. It shapes the experience and trust that we have with our customers. It helps us to build our brand, turning customer satisfaction into long-term loyal relationships. Combined with the smart technology solutions of Zoho CRM and Desk, we empower both our customers and staff with the right tools to streamline interactions, resolve issues faster, and create a more seamless experience.”
To read the full research, visit: https://www.zoho.com/en-au/tech-talk/consumer-insights-2024.html
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