Will Chatbots Replace Humans Any Time Soon? HIGHLIGHTS FROM THE STARTEK U.S. CUSTOMER ENGAGEMENT SURVEY

Transcription

1 Will Chatbots Replace Humans Any Time Soon? HIGHLIGHTS FROM THE STARTEK U.S. CUSTOMER ENGAGEMENT SURVEY SEPTEMBER 2017

2 Will Chatbots Replace Humans Any Time Soon? HIGHLIGHTS FROM THE STARTEK U.S. CUSTOMER ENGAGEMENT SURVEY With the rise of digital channels and self-service technologies such as chatbots and other artificial intelligence (AI)-based technology, are we seeing the end of human interaction with the engagement center (contact center)? Likewise, does the availability and adoption of digital channels mean that engagement centers can begin reducing their investment in human engagement specialists (agents)? These were the questions STARTEK set out to answer in its inaugural 2017 STARTEK U.S. Customer Engagement Survey. We surveyed more than 500 U.S. consumers about their recent experiences, preferences, and expectations for customer service and technical support. In no uncertain terms, consumers told us that they prefer human interaction not just with any human though; they specifically want to interact with people who are empathetic. Interestingly, it wasn t just one or two age groups that express the desire for human contact, but every age group reports a preference for a human. This desire is also not limited to just certain industries, but is expressed for customer service interactions in every sector in the survey. Read on for more highlights and insight into consumer preferences from the 2017 STARTEK U.S. Customer Engagement Survey as well as what the results mean for companies and their customer service strategies. Key Finding: Customers Prefer Interacting with Humans Regardless of Channel Many surveys and anecdotal reports have shown that consumers are increasingly turning to digital channels for customer service. It was no surprise that our survey reflects this as well, with significant portions of customer service communications taking place in digital channels: 24 percent use 22 percent use online chat 11 percent use social media However, this doesn t mean that consumers don t care whether or not there is a human on the other end of the digital interaction. In fact, it appears to be just the opposite. When asked about potential customer service contacts either online or by phone, 85 percent of survey respondents said they prefer a customer service representative versus a chatbot/ai or IVR (interactive voice recognition) experience (see Figure 1). Figure 1: Survey question: Thinking about potential customer service contact experiences, if you contacted a company by telephone or online, which of the following would you prefer? Base: 502 2

3 The preference to interact with a human was consistent across all industry sectors (see Figure 2). However, speaking to a human is particularly preferred in energy and utilities (90 percent), healthcare (88 percent), and cable and media (87 percent). Figure 2: Contact preference by industry The findings were consistent across all types of customer experiences as well, with the exception of answering a simple inquiry such as an account balance or payment status. For these types of simple inquiries, 67 percent preferred to use an IVR. For multi-step or more complex problems such as resolving technical issues, missed payments, or billing issues, consumers overwhelmingly preferred human interaction to IVR or chatbot/ai (see Figure 3). 3 Figure 3: Survey question: Thinking about potential customer service experiences, in which instances would you prefer to interact with IVR, a chatbot or a customer service representative? Base: 502

4 Key Finding: What Customers Want Most is a Human Who Cares When asked to choose what their ideal customer service interaction would look like, 57 percent of respondents want to speak with an individual who cares about me personally and both answers my questions as well as offers insights (see Figure 4). Figure 4: Survey question: When thinking about your ideal customer service interaction, which of the following best describes your ideal interaction? Base: 502 Thinking back to our original question about whether engagement centers can begin reducing their investments in engagement specialists, the answer is clear. Despite the adoption of digital channels and technologies, only a human can care about a customer. When consumers interact with self-service technologies, no connection happens. This is acceptable for simple questions and transactions. But when it s more complex, empathetic humans are the best solution for customer satisfaction because even the most advanced artificial-intelligence (AI) software can t convey true human empathy. Further, 66 percent of consumers prefer to interact with a human who cares about them and cares about resolving the issue even if it takes longer (see Figure 5). 4

5 Figure 5: Survey question: Thinking about potential customer service contact experiences, which of the following two statements is most true? Base: 502 Key Finding: Millennials Want Human Interaction, Too Millennials have overtaken Baby Boomers as the nation s largest living generation according to the Pew Research Center and population estimates from the U.S. Census Bureau. 1 With more millennials starting to reach their prime working and spending years, companies of all types are viewing millennials as the top target audience as this age group s collective buying power grows to exceed that of other generations. Much has been reported about millennials and their digital-first lifestyles and preferences. According to Ted Nardin, president of the STARTEK Science Lab, While millennials might prefer different modes of communication, they certainly are no different than other humans in their desire to interact humanly, particular in times of need. Our research confirms that belief. In the millennial age group (18 to 34 years), an astounding 76 percent preferred to speak with a human. A slightly higher preference was shown by the 35 to 54 year old group at 82 percent, while 91 percent of the 55 and over consumers in the survey preferred human interaction (see Figure 6). If a highly efficient machine could care or connect with a human, a machine might be preferred. However, until that day, humans fulfill human needs more effectively than a machine. Ted Nardin, President, STARTEK Science Lab 5 1 Richard Fry, Millennials overtake Baby Boomers as America s largest generation, Pew Research Center, April 25, 2016

6 Figure 6: Thinking about potential customer service contact experiences, if you contacted a company by telephone or online, which of the following would you prefer? Base: years n=90, years n=171, 55+ years n=166, refused to provide age=75 Key Finding: A Small Number of Consumers are Satisfied with Chatbots The industry is abuzz with the discussion of chatbots for delivering customer service at a lower cost. Chatbots (when executed well) can enable customers to self-serve for straightforward answers to questions as well as simple transactions. However, while artificial intelligence and machine learning have made significant progress in understanding human language and enabling chatbots to hold a human-like conversation, our survey showed that only a small percentage of consumers (5 percent) want to interact with chatbots or AI software instead of humans. At the same time, 85 percent of those who have interacted with chatbots in the past were somewhat to very satisfied with the interaction (see Figure 7) and 85 percent were also somewhat likely or very likely to use them again in the future (see Figure 8). 6

7 Figure 7: Survey question: Thinking about your most recent customer service contact experience when you interacted with a chatbot, how satisfied were you with the assistance provided specifically by the chatbot? Base: 65 (all using chatbot) Figure 8: Survey question: Thinking about your most recent customer service contact experience when you interacted with a chatbot, how likely would you be to desire to interact with a chatbot in the future in order to resolve a customer service issue? Base: 65 (all using a chatbot) Clearly for a small percentage of consumers, chatbots and AI software deliver the self-service experience that customers are looking for, particularly when the issue is simple and straightforward. What These Findings Mean for Your Contact Center Strategy To an industry outsider, the preference to interact with a human may appear to be completely at odds with the increased adoption of digital channels. Yet, there is a logical explanation: we are increasingly more comfortable with technology as it s becoming ubiquitous in nearly every aspect of our lives, and we use that technology to access all types of information about the products and services we purchase. At the same time, technology is increasing the complexity of many products, even those that have been around for decades such as refrigerators or thermostats. Therefore, even though consumers increasingly turn to digital self-service for straightforward help and interactions, they can t always resolve the issue on their own. At that point, they want to engage with a human to help them best handle it. An earlier study of customer satisfaction conducted by STARTEK highlights this situation: 78 percent of customers have diligently tried to solve issues on their own before contacting an engagement specialist. Basic transactions are always more of a candidate for automated response systems. In fact, by replacing transactional conversations with automation, we are increasing the complexity of the remaining human-to-human conversations. Ted Nardin, President, STARTEK Science Lab 7

8 Not only do engagement centers need humans more than ever, but they also need engagement specialists who are better prepared to handle complex issues. This requires the right training and coaching around proven communication skills so that engagement specialists can: Respond to concerns optimistically and with emotional understanding Educate customers in ways that reduce their anxiety Anticipate customer needs and build rapport Create an engaging and effortless experience The communication skills of engagement specialists are critical because they have the opportunity to frame a customer s situation in ways that impact the customer s perception of the brand. In a post-call study of customers of a large healthcare company, STARTEK analysis shows that the engagement specialist s communication skill (friendliness, helpfulness, effectiveness, and impact) mitigates the relationship between issue resolution and willingness to recommend the brand. Conclusion The results of the inaugural STARTEK Customer Engagement Survey contradict common industry thinking that digital channels and technology reduce the need for human engagement specialists. Instead, the survey shows that humans remain the essential component in customer service, and that it takes a human with empathy to meet today s consumer expectations. Not only are humans still essential for communicating with customers, but skilled and professional humans are needed to design the customer experience, including the digital customer journey and seamless hand-offs to a human when needed. To deliver the kind of human and digital experience that your customers expect, look for a partner with proven success mapping customer journeys across all channels, deploying an omnichannel strategy, and using proven communication research to improve engagement specialist conversations with customers. To learn more about improving conversations with customers, read our white paper, Designing the Ideal Customer/ Engagement Specialist Conversation, at About the Survey In April and May of 2017, STARTEK engaged a third-party research firm to conduct a survey of 500 U.S. consumers 18 years of age or older who had contacted either customer service or technical support at one or more companies within the previous 12 months. Survey respondents reported interactions with companies in retail, healthcare, cable and media, financial services, technology, telecommunications, and energy and utilities. 8 Why do individuals actively seek out human connection? To suggest that technology is either too frustrating or too impersonal is dodging the question. Instead, we should ask: what does human connection provide that technology lacks? When two individuals engage in conversation, a diverse array of human needs can be addressed. Some people, for example, may desire human contact because others can serve as our advocates by anticipating our needs and acting on our behalf. Others may want human contact because they need to be reassured about their choices, such as their role in a technology problem, the merits of a purchase, or the implications of a common mistake. Yet other individuals may choose to tell their story and engage in rapport building, allowing two individuals to make sense of a recent experience. In short, people seek human communication because our conversations are much more than the simple exchange of information. Dr. James Keaton, Chief Science Officer, STARTEK 2017 All rights reserved.