New Vonage Research Highlights Continued Rise of AI and Its Impact on CX

Rhea-AI Summary

Vonage, part of Ericsson (NASDAQ: ERIC), has released its 13th annual Global Customer Engagement Report 2025, highlighting increased adoption of AI-powered customer interactions. The study reveals growing comfort with AI-enabled communications, with notable increases in planned usage: chatbots (32%, up from 23%), video chat (28%, up from 26%), and voice personal assistants (26%, up from 22%).

The report, based on over 7,000 participants across 17 global markets, identifies key customer frustrations: long wait times (65%), multiple contact attempts (65%), and repeated issue description (63%). After poor experiences, 75% of customers consider switching providers, while 52% become more loyal after positive experiences. Regional variations show APAC leading in AI adoption, with the US and EMEA showing moderate interest while maintaining traditional communication preferences.

Positive

• Increasing adoption rates across AI-powered communication channels
• 52% of customers become more loyal after great customer experience
• 35% of customers make additional purchases after positive experiences
• Strong global market presence with survey covering 17 markets

Negative

• 75% of customers likely to leave after bad customer experience
• 48% of customers leave after just 1-2 bad experiences
• 65% of customers frustrated with long wait times and multiple contact attempts

As demand for and adoption of AI-fueled capabilities grow, annual Global Customer Engagement Report data reveals opportunities to enhance CX and address common customer challenges

HOLMDEL, N.J., Feb. 20, 2025 /PRNewswire/ -- Vonage, a global leader in cloud communications helping businesses accelerate their digital transformation and a part of Ericsson (NASDAQ: ERIC), has released its Global Customer Engagement Report 2025. Now in its 13th year, this year's annual report outlines data and insights into customer communications preferences with businesses, highlighting emerging trends in artificial intelligence (AI) that are having a direct and positive impact on customer experience and engagement.

This year's data builds on last year's report, showing a continued increase in comfort with AI-powered interactions.

Commenting on the report, Reggie Scales, Global Head of Applications for Vonage said: "This year's findings really underscore the power of emerging technology and how AI in particular continues to elevate the way today's consumers expect to engage with their favorite brands. A highlight of this year's results is the reinforcement on the importance of layering AI over existing programmable communications vehicles - voice, video, messaging and so many more. Engaging with customers on their channel of choice with features and capabilities that are more personalized, more automated and more meaningful will continue to set businesses up for success."

The Power of AI in CX

This year's data builds on trends from last year's report, showing a continued increase in comfort with and adoption of AI-powered interactions. The new data suggests a growing demand for these interactions across a wide offering of communications vehicles to meet customers on their channels of choice. For example:

• Chatbot: 32% will increase usage in next 6-12 months (up from 23%)
• Video chat: 28% will increase usage in next 6-12 months (up from 26%)
• Voice personal assistants: 26% will increase usage in next 6-12 months (up from 22%)
• Automated phone support: 25% will increase usage in next 6-12 months (up from 21%)
• Webpage/in-app calling: 25% will increase usage in next 6-12 months (up from 22%)

By automating and personalizing the customer experience with AI, businesses today can elevate everyday transactions to create real-time, more meaningful conversations embedded directly into the applications they already use to connect with their customers.

A Global Perspective on AI

The Global Customer Engagement Report 2025 also uncovers global preferences when it comes to AI-enabled communications channels. In APAC, AI is core to connecting across messaging via non-SMS apps (31%), phone calls via messaging apps (30%), as well as live chat via mobile app (25%), and video chats (14%).

In the U.S., consumers are focused on SMS text messages, mobile phone calls, and email, showing moderate interest in moving toward more AI-enabled channels, such as messaging via non-SMS apps (26%), push notifications (23%), and phone calls via messaging apps (20%).

Preferences for traditional methods like mobile phone calls and email remain strong in most EMEA markets, with some emerging interest in moving more toward AI-enabled channels, such as messaging via non-SMS apps (28%), phone calls via messaging apps (22%), and live chat or messaging from a mobile app (16%).

AI and the Road to Resolution

This year's findings also reiterate some of the common customer challenges and frustrations that are paving the way for AI-powered solutions with respondents reporting the highest level of frustrations with:

• Long wait times to speak to agent - 65%
• Contacting customer service multiple times - 65%
• Describing issue to multiple agents/being transferred multiple times - 63%

By enhancing these connections through the power of AI, a virtual assistant, chatbot, or smart IVR can eliminate long hold times or respond to inquiries around the clock, while skills-based routing can transfer to the right agent when a human touch is required. This can go a long way toward mitigating the risk of customer attrition as the study shows that, after a bad customer experience, 75% of customers are likely to take their business elsewhere and 48% of customers only need one or two bad experiences before they leave for good.

Conversely, after a great customer experience, 52% of customers will become more loyal to a company or provider and 35% of customers will make additional purchases.

The Global Customer Engagement survey included more than 7,000 participants across 17 global markets. Conducted in September 2024, the survey explored the varied channels customers use for communicating with friends, family, and businesses — including voice, messaging apps, email, social media, chat, and more — and the immense value of delivering excellent customer service.

Read the full Vonage Global Customer Engagement Report 2025 for more insights.

About Vonage

Vonage, a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage's Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging, AI and Verification into existing products, workflows and systems. The Vonage conversational commerce application enables businesses to create AI-powered omnichannel experiences that boost sales and increase customer satisfaction. Vonage's fully programmable unified communications, contact center and conversational commerce applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or remotely - providing the flexibility required to create meaningful engagements.

Vonage is headquartered in New Jersey, with offices throughout the United States, Europe, Israel and Asia and is a wholly-owned subsidiary of Ericsson (NASDAQ: ERIC), and a business area within the Ericsson Group called Business Area Global Communications Platform. To follow Vonage on X (formerly known as Twitter), please visit twitter.com/vonage. To follow on LinkedIn, visit linkedin.com/company/Vonage/. To become a fan on Facebook, go to facebook.com/vonage. To subscribe on YouTube, visit youtube.com/vonage.

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SOURCE Vonage

FAQ

What are the key findings of Vonage's 2025 Customer Engagement Report for ERIC stock?

The report shows increased adoption of AI-powered interactions, with chatbot usage expected to rise to 32%, video chat to 28%, and voice assistants to 26%. Customer service issues remain significant, with 75% of customers likely to switch providers after poor experiences.

How does AI adoption vary across regions for Ericsson's Vonage (ERIC)?

APAC leads in AI adoption with 31% using messaging apps, while the US shows moderate interest at 26% for non-SMS apps. EMEA maintains traditional communication preferences with emerging interest in AI-enabled channels at 28% for messaging apps.

What are the main customer service challenges identified in Vonage's 2025 report for ERIC?

The report identifies three main challenges: 65% of customers frustrated with long wait times, 65% with multiple contact attempts, and 63% with describing issues to multiple agents.

How does customer experience impact customer retention for Vonage (ERIC)?

The report shows that 75% of customers are likely to switch providers after bad experiences, while 52% become more loyal after positive experiences. 48% leave after just 1-2 negative interactions.