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AI investments clash with Singaporeans’ phone preference

A recent survey by ServiceNow has highlighted a significant gap between customer service preferences and business strategies in Singapore. Despite substantial investments in digital channels, 80% of Singaporean customers still prefer phone support when interacting with organisations. However, only 9% of businesses plan to prioritise phone channels over the next three years.

The survey, conducted by ThoughtLab, involved 1,485 Singaporeans and revealed that customers spend more time resolving issues via phone than any other channel. CK Tan, APJ Innovation Officer at ServiceNow, emphasised the need for businesses to offer “fast, effective, and empathetic support” to meet customer expectations.

The findings indicate that 52% of customers would switch brands after a poor experience, and 31% of organisations have reported revenue loss due to inadequate service. Despite these insights, many companies are set to focus on digital-only channels like self-service portals and chatbots, potentially neglecting customer preferences.

The survey also found that empathy is crucial in customer interactions. Whilst only 28% of executives acknowledged empathy as a challenge, 48% of customers cited it as a top frustration. This disconnect could lead to increased customer churn and financial losses.

ServiceNow’s research underscores the importance of aligning digital investments with customer needs, especially as Singaporean businesses continue to invest in AI and digital transformation under the national $37b Research, Innovation, and Enterprise plan. Tan noted that whilst AI offers opportunities to enhance customer experiences, it is essential for organisations to unify systems and data to truly understand and meet customer needs.

This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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