Stellar customer service is no longer a differentiator but a ‘default’ for Australian consumers, according to new research released by global technology company, Zoho Corporation. Small businesses must keep up with demand for rapid, 24/7 customer service.
The research sought to understand how customer expectations are changing in the age of AI and automation. It found that almost 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.
Almost one-quarter (22%) expect instantaneous responses from small businesses, 37% expect a reply within 30 minutes, while a further 13% expect a response in 30 to 60 minutes. The vast majority (86%) say that 24/7 customer service is either extremely or somewhat important.
Almost nine in 10 Australians believe small businesses should offer a combination of human and automated customer service, reflecting a growing reliance 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.
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.
Zoho chief strategy officer, Vijay Sundaram said, “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.
“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, and those expectations extend to small businesses. Failure to meet these expectations could reduce conversions and increase churn. Better customer service is an important driver of both acquisition and retention.”
As data breaches increase in both regularity and severity, privacy has become a key focus for consumers, businesses, and policymakers. Proposed changes to the Privacy Act – which would’ve increased the requirements for 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 among the 79% of consumers who value personalised marketing and the tailored customer experience it provides.