Businesses are revamping customer interaction with digital channels like CRM, chatbots, and social media. This shift raises a question: do customers prefer human interaction or digital experiences? Businesses benefit from AI-powered solutions to handle complex customer needs, while customers expect faster responses and personalization through digital channels.
Here’s the crux: despite businesses’ efforts, many struggle to balance digital and human interaction effectively while agreeing that human interaction has a role in customer communications. Studies show low digital channel (chat, Email, Social media, Chatbots, SMS, Video chat, Phone calls, Contact forms, Internet forum and messaging apps) adoption and high call volumes at customer service centers across industries such as BFSI, retail, food, consumer goods, telecom etc. This suggests a gap between customer expectations and the reality of digital transformation.
Customer Preferences in Brand Interaction
Customers prefer social media for communication with brands. The pandemic accelerated the shift to digital channels, raising customer expectations for faster responses and personalization. However, businesses struggle to bridge the gap between these expectations and the reality of low digital adoption and persistent call volumes.
Human Vs. Digital
The human vs. digital challenge remains a difficult one to judge. At a global level, studies such as the “Global Study: Consumer Channel Preferences – 2024” by XM Institute have studied customer preference for interaction channels.
The study that found most consumers prefer human interaction over digital interaction. This preference is especially strong for complex tasks like getting medical advice or resolving billing issues. However, consumers are more open to using digital channels for simpler tasks, like booking airline tickets. Overall, the study suggests that companies should prioritize providing human customer service options.
Human interaction is preferred when scheduling a medical appointment (61%), applying for a new bank account (60%) and selecting a new mobile phone plan (59%). However, preference shifts to digital service interactions when getting an order status update (54% preferring digital interaction) and booking an airline ticket (62%).
The India Story
Indian consumers are similar to global trends, preferring human interaction for complex tasks like customer support and returns. However, unlike some, a study found Indian women especially value AI for its motivating and personalized aspects. Despite this openness, there are concerns about lack of human touch (66%), privacy (23%), and accuracy (27%).
Value of Purchase and Multi-touchpoints
When it comes to big-ticket items, customers crave human interaction. A global study shows 62% prefer talking to a real person for complex purchases like medical advice. But digital channels aren’t out of the picture. Customers expect a seamless experience, wanting to connect with brands through social media, messaging apps, and self-service options. Beyond convenience, personalization is key. Businesses are leveraging data and AI to deliver customized experiences across both digital and human interactions. This tech revolution includes chatbots offering instant support, AR/VR for immersive product exploration, and even connected devices using the Internet of Things (IoT) to automate tasks. The message is clear: for high-value purchases, it’s all about a personalized approach that combines the best of human touch and digital innovation.
A comparison and Deep dive- Global Vs. India
Customer interaction preferences differ globally and in India, with a mix of digital and non-digital channels:
Global:
- High-value purchases (TVs): Human interaction preferred (65%).
- Lower-value transactions (flights): Digital channels preferred (62%).
- Banking: Human interaction for new accounts (60%), digital for updates (54%).
- Healthcare: Human interaction overwhelmingly preferred for medical advice (81%).
India:
- Retail: Concerns exist about lack of human touch in AI (66%).
- Telecom: Operators want more customers using digital channels.
- AI adoption: Indian consumers are more open to AI than global trends, especially younger demographics. However, Indian brands lag in adopting AI innovations.
Overall, for complex or sensitive interactions, human interaction remains preferred globally and in India. Simple transactions lean towards digital channels. Interestingly, India shows openness to AI, but lags in implementation.
Investment and Innovation in Contact Point Solutions
Companies globally prioritize customer experience (CX) but there’s a gap between focus and investment:
- Globally, 88% prioritize CX in contact centers, 65% compete on CX (up from 36% in 2010), but only 44% plan to increase CX investment.
India shows promise in CX adoption but struggles with execution:
- Ranks 3rd globally in CX maturity (62% report real-time metrics), but only 17% deliver “exceptional” service (despite 79% acknowledging CX’s revenue potential).
- Leads in chatbot usage (90% use them) and resolving chatbot queries without human intervention (12% more than average).
- However, lags in generative AI (GenAI) adoption for CX compared to the global average (15% vs 18%).
Here’s a glimpse into the Indian customer interaction landscape:
- 41% of Indian brands see CX as a business priority.
- 87% prioritize CX enhancements over other goals.
- 76% plan to use GenAI for CX, with 53% aiming to improve GenAI capabilities soon.
In short, Indian companies are enthusiastic about CX and leveraging technologies like chatbots, but delivering exceptional customer experiences remains a challenge. This recent Aroscop Research survey on Indian customer interactions on digital platforms highlights some interesting points.
Aroscop’s Survey on Customer Interaction
- Banking leads digital: Banking & Finance topped the list of industries customers interact with digitally, across languages.
- Human touch for big purchases: Over half prefer a live representative for purchases exceeding ?10,000.
- Mobile apps and chatbots rule: These are the most popular tools for pre and post-purchase interactions. Hindi speakers prefer social media & email, English speakers use websites more before buying. English speakers prefer phone support, Hindi speakers use chatbots/apps for post-purchase help.
- Nearly half of all respondents expressed high levels of dissatisfaction and less than 5% indicated satisfaction with digital touchpoints for customers.
Takeaways and Strategic Pointers for Businesses
Customer experience (CX) is crucial in India’s growing digital landscape. Overall, businesses need to:
- Balance human and digital: Offer both options while personalizing experiences.
- Consider language and comfort: Hindi speakers prefer different digital channels than English speakers.
- Focus on seamless digital experiences: Invest in data, AI, and mobile tech to improve interactions.
While customers prefer human interaction, they also use digital channels. Businesses need to address concerns about:
- Lack of human touch with digital: Focus on solutions that bridge this gap.
- Data privacy and security: Implement strong measures to build trust and loyalty.
Indian businesses should invest in CX technologies to:
- Improve agility: Respond faster to customer needs.
- Gain data insights: Understand customer behavior better.
- Automate tasks: Free up resources for complex interactions.
The Way Forward
Customers rarely complain directly (only 34%) but bad experiences spread easily online (80%). This highlights the need for a deeper understanding of customer needs.
The best approach combines human interaction with reliable digital channels. Businesses can bridge the customer experience gap by using data analysis, AI, and personalized service solutions.
Prioritizing customer focus, investing in innovative contact points, and striving for exceptional interactions across all touchpoints are key. This holistic approach fosters customer satisfaction, loyalty, and business growth. Since customer service directly impacts buying decisions, businesses must offer hybrid service options that align with customer preferences. Aroscop, on its part, plans to study in detail the customer interaction patterns, expectations and opinions across different industry verticals, amidst the larger global picture.
