Study also finds consumers are growing tired of poor communications, with two-thirds saying they’d switch to a competitor if expectations aren’t met – an increase of nearly 30% compared to 2023.
LONDON, July 23, 2024 (GLOBE NEWSWIRE) -- Smart Communications, a leading technology company focused on helping businesses engage in more meaningful customer conversations, released its 2024 “State of Customer Conversations” research reports today, revealing how consumers feel about Generative AI (GenAI) in customer communications. The report also analyses the link between personalised, clear communications and customer experience, trust, and loyalty, highlighting how consumers have less patience than in past years when their expectations aren’t met.
Smart Communications’ research, which surveyed 2000 consumers worldwide regarding their opinions on customer communications from financial services, insurance and healthcare companies, shows that most consumers want businesses to employ human oversight and establish guardrails for GenAI use. Over three-quarters (77%) of consumers feel it’s important for companies to explicitly call out when GenAI is used in their communications, and four in five (81%) say that a human should constantly be checking content that GenAI models suggest.
Consumers also have doubts and concerns about GenAI in customer communications. Two-thirds say they have ethical (63%) and security concerns (66%) about the use of GenAI in customer communications, while fewer than half (47%) agree that GenAI has the potential to improve the communications they are receiving.
“The reality is that while customers have concerns about GenAI in customer communications, there is significant value in using it to enhance operational efficiency and effectiveness,” said Leigh Segall, CEO of Smart Communications. “It's more important than ever to choose a CCM solution provider that safeguards these critical interactions and guides companies in the proper, high-value use of GenAI to drive superior customer engagement. Our Benchmark research reinforces our dedication to staying attuned to ever-evolving customer preferences and ensuring our solutions equip our customers for the future.”
Consumers are tired of complex communications
Beyond GenAI, The State of Customer Conversations report found that the risk of losing customers through poor communications and complex form processes is higher than ever. Compared to 2023, customers are 30% more likely to switch from a company if their communications did not meet expectations (51% in 2023 vs. 66% in 2024), and 26% more likely to end an interaction with a company if their information collection processes are too difficult (53% in 2023 vs. 67% in 2024).
This is especially true for younger generations, who are at higher risk of churning over poor customer communications as their market share grows. Three-quarters of Generation Z (74%) and Millennials (75%) said they would likely switch from a company if its communications did not meet expectations, increasing from 49% and 62%, respectively, from the previous year.
The report also found that good customer communications can be a driver of business, as Gen Z and Millennials are more likely than older generations to make a recommendation if the communications they receive exceed their expectations. More than four in five Gen Z (83%) and Millennials (81%) are likely to give a recommendation, compared with 64% of Silent Gen.
Overall, over three-quarters (77%) of consumers said they would likely recommend a company to a friend if its communications exceeded expectations, underscoring its ability to retain customers but also its role in driving referral business.
Clear, accurate and timely: consumers make their communications preferences known
The State of Customer Conversations asked what consumers value in the communications they receive from their institutions. A majority of respondents (71%) said that customer communications need to be straightforward and easy to understand, while over half (55%) valued accuracy and over a third (38%) valued timeliness.
Older consumers, 88% of Silent Generation and 79% of Baby Boomers, prioritised ‘clear and easy to understand’ communications in significantly greater numbers than their younger peers, 65% of Generation Z and 63% of Millennials.
For younger consumers, personalisation and delivery on a preferred channel ranked higher than their older counterparts. Over a quarter of Generation Z (28%) ranked personalisation as the most important compared to 23% of all respondents. Meanwhile, 25% of Millennials said that delivery on a preferred channel was their chief concern compared to 22% of all consumers surveyed.
Smart Communications’ research shows the rising stakes of CCM for organisations, and the importance of delivering best-in-class customer communications. Kaspar Roos, founder and CEO of Aspire CCS confirms that “the CCM market is at an inflection point, driven by a changing demographic makeup of the customer base and an increasing focus on digital channels for customer engagement. While many CX leaders have been espousing the value of AI in meeting these new demands, there is a clear need to be open, honest and respectful of consumer attitudes towards this ground-breaking new technology.”
For more information, view the full reports for financial services, healthcare, and insurance here.
About the research
Smart Communications commissioned Harris Interactive, a Toluna company, to conduct consumer research. Across all markets, a nationally representative audience (on age and gender) was targeted. To qualify, all respondents must be a customer of healthcare, insurance, banks, and/or other financial companies. The survey was compiled from a sample of thousands of consumers in the UK, US, APAC (Australia, New Zealand, China, Hong Kong, Taiwan, Japan, Singapore) and German-speaking markets (Austria, Switzerland, Germany). All fieldwork was completed in February and March 2024.
About Smart Communications
Smart Communications provides the platform that leading organisations trust to deliver personalised, consistent and compliant conversations across all touchpoints and channels. The Conversation Cloud™ consists of SmartCOMM™, for enterprise-scale customer communications, SmartIQ™ for digital forms transformation and SmartDX™ for trade documentation. Over 650 enterprise organisations across the globe rely on Smart Communications to simplify and automate complex processes and deliver highly secure, frictionless experiences across the customer lifecycle. To learn more, visit http://www.smartcommunications.com
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