Businesses Move to Combat Waning Customer Loyalty with Pre-Emptive Service Technology, Says Pega Study

Businesses Move to Combat Waning Customer Loyalty with Pre-Emptive Service Technology, Says Pega Study

Organizations realize they must invest in transformational solutions to optimize the customer experience or risk losing out to competitors

The survey found that pre-emptive customer service technology is becoming a must-have for businesses who are committed to meeting the needs of their customers. Nearly two thirds (65%) of respondents said that perfectly anticipating customer needs and solving them before they feel the need to reach out was one of their primary goals over the next five years, while more than half (54%) said their biggest customer service challenge was moving from reactive to pro-active and pre-emptive customer service. Meanwhile, nearly one-third (32%) said they expect customer service to become more anticipatory than reactive within that same period as a result.

The findings underline a shift towards customer-centric technology as the solution to the challenges posed by more demanding, digital-savvy customers. Eighty percent of respondents said deploying customer service technology to improve efficiency was one of their most important priorities over the next five years. Meanwhile, more than half (55%) cited a lack of investment in new technologies that can help them to meet growing customer expectations as among the top three technology customer service challenges they face.

Perhaps the biggest driver of this race towards more pre-emptive, customer-centric technologies over the coming years is that customer loyalty is expected to fall sharply as customers continue to evolve. More than half (55%) of respondents felt that over the next five years, businesses will become increasingly likely to completely lose customers if they deliver a poor customer experience. As a result, organizations are scrambling to stay one step ahead of their competitors by investing in customer service software.

The study also identified several changes to the way customer service will look over the next five years. These include:

"The entire customer service landscape is changing," said James Dodkins, customer service evangelist, Pega. "Where once it might have been enough to react to customers and their concerns, tomorrow's successful businesses know that they will need to pre-empt them and take action before they become an issue."

"Organizations know that unless they adapt accordingly, they will be left behind by competitors who are willing to give customers what they need, when they need it and, increasingly, before they even know they need it. That's the brave new world of customer service, and the willingness to rapidly invest and adopt technologies like artificial intelligence, intelligent automation, real-time decisioning, and predictive analytics could be the difference between success and failure for organizations in the years to come."

Download Pega's 'The future of customer service: How AI and automation will radically change service delivery' report at:

To understand how customer service is changing in response to new technology and emerging customer expectations, Pega surveyed 750 senior vice-presidents, vice-presidents, senior directors, directors, senior managers, and managers across key sectors, including financial services, life sciences, healthcare, retail insurance, manufacturing, telecoms, and the public sector.

Respondents answered 23 multiple-choice questions, which delved into how customer service is expected to change in the next three to five years. Pega also conducted qualitative interviews with customer service executives in healthcare, life sciences, and retail insurance.