Q: Do customers still value traditional customer service?
Customer service models have evolved significantly, with many businesses now relying on automation, AI agents and self-service platforms to manage customer interactions. These solutions are fast, efficient and highly cost-effective from an employer’s perspective.
However, the question remains whether automated service is always the optimal approach. In an increasingly digital environment, customers often value a more personalised and human level of engagement. This does not necessarily require excessive staffing, but it does require a considered people strategy.
A: Personalised customer service continues to deliver strong value.
Despite technological advancements, customers continue to seek human interaction, particularly when navigating complex or sensitive matters.
There are three key reasons for this preference:
- Trust and empathy: When issues involve financial discrepancies, service failures or emotional stress, customers expect empathy, accountability and clear communication—qualities that automated systems cannot consistently provide.
- Context and recognition: Customers value being recognised and having their history understood. Human service representatives, supported by effective CRM systems, are better positioned to deliver informed and tailored service.
- Expectation of quality service: Recent Australian research indicates that 88% of consumers report higher satisfaction when customer interactions are managed mostly or entirely by human agents. Positive experiences drive customer loyalty, brand advocacy and valuable word-of-mouth referrals.
While automation remains effective for high-volume, low-complexity interactions, human-led service is a critical driver of customer retention and competitive advantage. Strategic investment in customer service personnel and training may therefore represent a sound commercial decision.
If you would like to review your customer service or people strategy, we encourage you to arrange a discussion with our team.
