The Hidden Cost of Poor Customer Service: A Drain on Time and Loyalty

ServiceNow report finds poor service costs consumers 10.8 hours yearly, with 44% ready to switch brands. AI adoption aims to streamline workflows and restore human touch.

A new study from ServiceNow highlights a critical challenge for businesses in India: inefficient customer service processes are eroding consumer patience and threatening brand loyalty. The company's latest Customer Experience (CX) Report, its third such publication released yesterday, identifies fragmented technology and a lack of human touch as the core issues.

The Loyalty and Productivity Toll

The findings reveal a significant time cost for consumers, who lose an average of 10.8 hours annually due to service gaps and inefficiencies. This is more than a minor inconvenience; it has direct business consequences. A substantial 44% of surveyed consumers stated they would consider switching brands following a negative service interaction.

For service teams, the problem is rooted in complex digital environments. The report indicates that, on average, support staff must navigate four separate platforms to resolve a single customer inquiry. This constant system-switching slows down workflows, extends resolution times, and increases the likelihood of errors.

The Human Element in a Digital Process

Technology is only part of the equation. Nearly half (48%) of consumers cited a lack of empathy during service interactions as a primary complaint. This presents a dual challenge for organizations: they must streamline and automate processes while simultaneously preserving, or even enhancing, the quality of human customer engagement.

Artificial Intelligence as a Potential Solution

Despite these friction points, the report notes a clear shift toward AI adoption as a remedy. Over half (52%) of service professionals surveyed reported that AI implementations have already succeeded in reducing their workload.

AI is positioned as a tool to reclaim productive time. Currently, service teams spend only 48% of their workday actually assisting customers. The remainder is consumed by internal coordination, switching between systems, and administrative tasks—precisely the areas targeted for improvement through automation and intelligent workflow management. The report suggests a growing corporate belief that AI can recapture a meaningful portion of this "lost time."

Market Trends Favor Continued AI Investment

This strategic direction is reinforced by broader market trends. A separate study by Lenovo and IDC found that an overwhelming 99% of Indian companies plan to increase their investments in AI over the next 12 months. On average, these budgets are projected to grow by 19% compared to the previous year.

The ServiceNow CX Report is based on surveys of 5,000 consumers and 425 customer service professionals across India.