The debate between AI and human in customer service roles will rage for years, even as AI takes over more of the workload. New research from Ventrica shows that UK companies can’t afford to replace humans with AI in customer service enquiries, with an emotive experience unlocking repeat purchasing value and more revenue
The research from Ventrica reveals the revenue benefits for brands investing in providing emotive customer experiences (CX) that consumers want.
The company commissioned OnePoll to survey over 2,000 UK consumers and found that over the last 12 months, only 4% of positive experiences were delivered by AI. Only 18% were a combination of AI and human interaction. Furthermore, only just over half (53%) found chatbots to be a successful means of resolving enquiries, significantly lower than calls (87%).
This leaves UK brands at risk of losing out on potential revenue opportunities, with the survey finding consumers would be willing to spend up to £100 more on a brand in the future, following a positive experience. That figure doubles among 18- to 34-year-olds, with the median additional spend being between £100 and £199.
Good service for brand loyalty and repeat purchasing
The research also shows that positive customer experience can often result in repeat purchasing with 53% of consumers making a repeat or multiple repeat purchases following a positive human experience.
According to the study, consumers say they would potentially spend more in retail (29%), marketplaces (23%), and financial services (20%) after a positive experience with a customer service team. Also, consumers make an average of five customer service enquiries a year. If brands invest in delivering positive customer experiences, consumers could spend up to £500 more a year on average.
The human touch is still critical to positive experiences
If you listen to the technology providers in the space, you’d believe customers want more self-serve options and chatbots for customer enquiries. But that is just not the case according to Ventrica’s study. There’s clearly value in the human touch, with 76% of positive experiences delivered solely by people. And of 72% of all interactions, whether they started via chatbot or any other means, were eventually resolved by a person.
These findings reinforce the importance of empathy and emotional intelligence in customer interactions. When asked what makes an experience positive, 69% of respondents said speed to resolution was the most important factor. The second highest was clear and easy-to-understand communication (45%) and empathy rounded out the top three factors, selected by almost a third (31%) of all respondents.
Over half of 18 to 44-year-olds had used social media or messenger applications (like WhatsApp) to communicate with customer service teams, suggesting that this demographic is more open to new ways of handling customer service enquiries.
On average, it takes consumers 24 minutes to have their issues resolved by a customer service team. According to the research, the most successful channels for resolving enquiries quickly are calls and emails.
From problem to profit
The research found that almost half (41%) of all the positive experiences related to an issue such as a faulty or lost product. While these experiences can often leave a sour taste in the consumers’ mouths and damage brand reputation, an empathic and speedy resolution can often lead to a positive experience and improved loyalty. Download the “Turning customer interactions into revenue-generating opportunites” whitepaper to see more insights.
Rather than seeing customer service as just a cost centre, brands should recognise it as a powerful driver of revenue and loyalty. Our research highlights that when customers receive fast, empathetic, and emotionally engaging support, they develop a stronger connection to the brand, leading to increased loyalty and higher spending.” Said Iain Banks, CEO of Ventrica.
“The human touch is essential – consumers value authentic, emotional connections that create positive experiences, especially when resolving issues. By focusing on emotionally intelligent, high-quality service, businesses can turn every customer interaction into a revenue-generating opportunity, fostering stronger relationships and increasing lifetime value. In an era where consumers reach out to customer service teams an average of five times a year, brands have a golden opportunity to build trust and differentiate themselves,” Banks finished.
As AI begins to dominate consumer and service interactions, it will be interesting to see how these figures change, especially as AI gets smarter and can deliver empathy-as-a-service to consumers who won’t notice the difference.