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ServiceNow Research Shows Changing Consumer Brand Loyalty in Canada, Reveals Potential for AI-Powered Customer Service

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ServiceNow's Consumer Voice Report 2024 reveals that 74% of Canadians are less loyal to brands, emphasizing the need for improved customer service. Canadians desire quick, real-time support and personalized interactions, with 53% wanting 24/7 customer service by 2025. The report highlights the potential for AI to enhance service delivery and the importance of balancing AI with human connection.
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Understanding customer preferences is pivotal for businesses aiming to retain market share in an increasingly competitive landscape. The ServiceNow Consumer Voice Report 2024 indicates a significant shift in consumer behavior in Canada, with a notable decline in brand loyalty. This shift is primarily driven by the demand for enhanced customer service experiences, which includes the integration of AI-powered solutions.

From a market research perspective, this trend suggests an opportunity for companies to invest in customer service technologies that can provide real-time support and 24/7 availability. The emphasis on personalization and flexibility in customer interactions is a clear signal to businesses that a one-size-fits-all approach is no longer viable. The adoption of AI, such as chatbots and intelligent search engines, must be balanced with human interaction to avoid alienating customers who value personal touch.

The report's insights can guide businesses in reshaping their customer service strategies to meet these new expectations, potentially leading to increased customer satisfaction and loyalty. Companies that successfully implement these changes may see a positive impact on their brand reputation and financial performance, as improved customer service can lead to repeat business and positive word-of-mouth referrals.

The findings of the ServiceNow Consumer Voice Report 2024 underscore the importance of a nuanced customer service strategy that balances technology and human interaction. The data reveals a consumer base that is increasingly comfortable with AI-driven solutions but still values the human element, especially for complex issues.

Strategically, businesses must consider how to integrate AI in a way that enhances, rather than replaces, human customer service agents. The report suggests that AI can handle routine inquiries efficiently, allowing human agents to focus on complex or sensitive issues. This approach could lead to reduced wait times and improved customer satisfaction.

Additionally, the preference for personalized experiences and tailored recommendations indicates that businesses should invest in technology that can analyze customer data to provide a more customized service. This could involve leveraging AI to understand past purchasing habits and preferences, thereby offering a more individualized approach that could enhance customer loyalty.

The ServiceNow Consumer Voice Report 2024 has profound implications for technology investment within the customer service domain. With the report highlighting a potential $3.7 trillion loss due to poor customer experiences, there is a clear financial incentive for businesses to optimize their customer service operations.

Investments in AI technology can be justified not only by the potential for cost savings through increased efficiency but also by the revenue growth opportunities associated with improved customer satisfaction and loyalty. The demand for 24/7 customer service and quick resolution times presents a strong case for businesses to allocate resources towards AI solutions that can operate continuously without the constraints of human work schedules.

However, the investment strategy must be carefully planned to ensure that AI enhancements do not come at the expense of the human connection valued by consumers. The technology investment must be aligned with the goal of creating a harmonious blend of AI and human expertise, to provide a customer service experience that is both efficient and empathetic.

74% of Canadians are less loyal to brands than they were two years ago

Majority (92%) want quick, real-time support and more than half (53%) want 24/7 customer service by 2025

85% want flexibility to choose how they interact with a brand’s customer service

TORONTO--(BUSINESS WIRE)-- ServiceNow (NYSE: NOW), the leading digital workflow company making the world work better for everyone, today released the ServiceNow Consumer Voice Report 2024, which reveals a staggering 74% of Canadians surveyed are less loyal to brands than they were two years ago, emphasizing the need for businesses to enact changes to drive customer retention. Key insights emphasize Canadians’ desire for improved customer service experiences including quick, real-time customer support, choice of engagement method, and personalized interactions, highlighting the potential for AI-powered customer service.

Poor customer experiences are estimated to cost organizations $3.7 trillion annually worldwide. To sustain market share and relevance, brands must meet customers’ evolving preferences. Canadians want to purchase from companies that offer a seamless experience that combines the personalized human element with the convenience and speed of technology. The report shows nearly all Canadians (92%) want quick, real-time support, with more than half (53%) wanting 24/7 customer service by 2025. But despite immediacy and availability being a top priority, Canadians today are spending a significant amount of time with customer service. The report highlights the potential for AI to play a critical role in improving service delivery, addressing customer frustrations over prolonged call times, and meeting the demand for always-on customer service.

“In a competitive market, businesses must deliver standout service to capture and maintain customer attention. Seamless experiences are paramount,” says Chris Ellison, vice president and general manager, ServiceNow Canada. “This report reinforces that Canadians not only want a personalized experience, they want it as quickly and effortlessly as possible. To strike this balance, companies need to embrace AI-powered tools that can help deliver quick and seamless experiences, while freeing up agents to focus on the complex issues requiring a human touch.”

Key findings from the ServiceNow Consumer Voice Report 2024 report include:

Balancing AI and Human Connection

The report shows that consumers are increasingly more receptive to using AI in customer service – as long as it leaves some room for human interaction. By strategically integrating AI with human expertise and personal interactions, businesses can offer a seamless and powerful customer experience.

  • Humans are best suited to solve complex problems. When looking to solve a complex issue or troubleshoot, 61% of Canadians will prioritize turning to customer service agents, whether by phone, chat, or in-person. However, 44% would choose to use AI-powered services such as a chatbot or intelligent search engine.
  • Consumers want to self-serve. Most Canadians (72%) want a company to offer self-service options. Consumers especially want to self-serve when looking for general information, preferring self-help guides (34%) or an intelligent search engine (35%).
  • Chatbots are a must when interacting with brands. Having a good chatbot service is deemed important by more than half (55%) of Canadians, with this number increasing to 70% for those ages 18-34. Some (7%) even prefer to use chatbots for all their customer service needs.
  • Preserving the human connection. Nearly half (49%) would never want to see fully autonomous, AI-driven customer service. Additionally, 36% of Canadians hold back from engaging with AI for customer service because they do not like the lack of personalization, further underscoring the need for a balanced approach. While 73% of those ages 55+ want to see a return to human-based customer service by 2025, less than half (47%) of those ages 18-34 say the same.
  • Personalization is paramount. 87% of Canadians say it’s important to be offered their choice of engagement method (e.g. online vs. in-person, chatbot vs. human) while 61% want companies to know their past purchasing habits and offer tailored recommendations. For those that are hesitant to engage with a company using AI, leading reasons are due to disliking the lack of personalization (36%) and wanting a genuine rather than formulaic response (35%).

Customer Service Needs to be Fast and Flexible

Canadians (95%) prioritize swift customer service responses, yet many are facing prolonged call times across industries. In good news for businesses, AI can help speed up issue resolution. ServiceNow has found that its own customer service agents are closing incidents in half the time (from 6 minutes to 3 minutes) thanks to GenAI-enabled case resolution notes, enabling personalized, quick, and effective support to help drive higher levels of customer satisfaction and loyalty.

  • Canadians on the line for 30+ minutes. Canadians are facing prolonged customer service calls with nearly half (46%) saying they are on the line for at least 30 minutes or more regardless of the industry.
  • Government services lead in lengthy call times. Canadians experience the longest average call times for federal government services with 61% of Canadians spending an average 30.5 minutes on the line.
  • Industry rankings: retail prevails, fintech trails. Canadians have the best customer service experience with retail companies (35%), followed closely by traditional banking (34%) and healthcare (30%). At 4%, financial technology (fintech) companies have the most room to improve.
  • Demand for always-on customer service. More than half (53%) of consumers expect all companies to be offering full 24/7 customer service by 2025.

For more information about the ServiceNow Consumer Voice Report 2024: Tackling the brand loyalty crisis, please visit here.

Methodology

The study was commissioned by ServiceNow, the leading digital workflow company, and conducted by Opinium in January 2024. The sample consisted of 1,000 Nat Rep adults in Canada.

About ServiceNow

ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud‑based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make work flow. So, employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNow. For more information, visit: www.servicenow.com.

©2024 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.

Media

Emily Scher

+1 (408) 916-6566

press@servicenow.com

Source: ServiceNow

FAQ

What does the ServiceNow Consumer Voice Report 2024 reveal about Canadian loyalty to brands?

The report shows that 74% of Canadians are less loyal to brands than they were two years ago.

What are Canadians' preferences for customer service?

Canadians want quick, real-time support, personalized interactions, and 24/7 customer service by 2025.

How can businesses improve customer service according to the report?

Businesses can enhance customer service by embracing AI-powered tools to deliver quick and seamless experiences while maintaining a human touch.

What role does AI play in customer service according to the report?

AI can help improve service delivery, address customer frustrations, and meet the demand for always-on customer service.

What are Canadians' views on using AI in customer service?

Consumers are receptive to AI in customer service as long as it includes human interaction and personalization.

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ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.