Menu

Survey finds poor customer service affects consumer brand loyalty, but conversational AI may help them stay

Research indicates nearly 80% of consumers would converse with a machine to avoid long hold times

SAN FRANCISCO, Oct. 13, 2021 /PRNewswire/ — Poor customer service is pervasive. A recent survey from Replicant, a provider of AI-enabled automated customer contact centers, found that 91% of consumers report they have experienced poor customer service in the last six months. To complicate things, the research suggests it’s not getting better, with one in three consumers saying customer service is worse than before the pandemic.

The problem in contact centers is especially dire. The most common form of poor customer service, according to 56% of those surveyed, was long wait times, and 70% of respondents said it’s harder to reach a real person now than it was during the beginning of the pandemic. Of consumers who report customer service is worse than before the pandemic, 82% blame staffing issues.

But the survey found that consumers are open to speaking to conversational machines (an AI-powered machine that can hold human-like conversation and respond to questions quickly and accurately in a natural sounding voice). Nearly 80% of consumers indicated they would speak to a machine to avoid long hold times. Moreover, 57% of consumers would speak with a conversational machine even if the hold time was only five minutes.

A majority of consumers are willing to talk with a conversational machine instead of a real person when making typical customer service requests like scheduling an appointment, starting or stopping a service, or making a reservation.

Consumers also report:

  • Time is money — 74% of consumers surveyed said they would be willing to lose $15.72 on average to avoid waiting on hold or dealing with poor customer service.
  • Longer hold times than before the pandemic — 32% report the average time they spend waiting on hold has doubled compared to before the pandemic; half of people waited on hold more than 15 minutes during their most recent customer service experience.
  • Hold times are a liability for brands — 70% of consumers are irritated or angry with a hold time of more than 30 minutes. One in five consumers reported waiting on hold at least 30 minutes during their most recent customer service experience.
  • Reevaluating travel due to poor customer service — 25% of summer travelers said they’ve rethought future travel plans because of poor service.

Overall, brands that don’t address gaps in customer service are at risk, with 76% of consumers saying a poor customer service experience negatively impacts their perception of a brand and one in three saying it affects loyalty.

“This data shows that customers are looking for better service, notice when it’s poor, and voluntarily switch brands as a result,” said Gadi Shamia, CEO and co-founder of Replicant. “Spikes in call volume and challenges in staffing call centers worsened during the pandemic and are now the new normal, so companies must think of a new path forward. For companies, AI Thinking Machines are providing a first line of support for overburdened contact centers to give customers quicker and more efficient customer service.”

For more information please visit: https://www.replicant.ai/blog/survey-the-effects-of-bad-customer-service-and-how-brands-can-fix-it/

Methodology
Replicant conducted this research using an online survey prepared by Method Research and distributed by Dynata among 1,000 US adults ages 18+ in the United States who have interacted with customer service within the past 6 months. The sample was equally split between gender groups, with census reflective age groups and a nationally representative geographic spread of respondents. Data was collected from July 30 to August 3, 2021. 

About Replicant
Replicant was founded on the belief that machines are ready to have useful and complex conversations that will transform the way we interact with the world, starting with customer service. Replicant’s powerful artificial intelligence platform combines natural language processing and machine learning and was trained to resolve customer issues over the phone with natural-sounding conversations that accurately recognize customer intent. Replicant currently handles over 3 million customer support calls a month and serves some of the largest call centers in the country. For more information, please visit www.replicant.ai. Follow Replicant on Twitter @Replicant_AI.

SOURCE Replicant

Author Information

As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.

Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.

Latest Insights:
Can Writer's Partner Program Model Scale Enterprise AI Through Ecosystem Rigor
February 20, 2026
Article
Article

Can Writer’s Partner Program Model Scale Enterprise AI Through Ecosystem Rigor?

Alex Smith, Analyst at Futurum, shares insights on Writer's new three-tier partner program and how it prioritizes co-delivery and shared outcomes to scale enterprise AI through ecosystem rigor....
Google Debuts Pixel 10A Amidst Minimal Hardware Evolution
February 20, 2026
Article
Article

Google Debuts Pixel 10A Amidst Minimal Hardware Evolution

Olivier Blanchard, Research Director at Futurum, dives into the timing, specs, competitive advantages, market positioning, and strategic importance of Google’s Pixel 10A release....
Analog Devices Q1 FY 2026 Broad-Based Recovery with AI Data Center Upside
February 20, 2026
Article
Article

Analog Devices Q1 FY 2026: Broad-Based Recovery with AI Data Center Upside

Brendan Burke, Research Director at Futurum, analyzes Analog Devices’ Q1 FY 2026 earnings, highlighting Industrial and Communications momentum, AI data center power/optics growth, pricing cadence, and a stronger second-half setup....
Cadence Q4 FY 2025 Earnings Underscore AI-Led EDA Momentum
February 20, 2026
Article
Article

Cadence Q4 FY 2025 Earnings Underscore AI-Led EDA Momentum

Brendan Burke, Research Director at Futurum, analyzes Cadence’s Q4 FY 2025 results, highlighting agentic AI workflows, hardware demand at hyperscalers, and portfolio traction across EDA, IP, and SDA that shape the FY...
Latest Research:
The Agentic Frontier: Why Converged Data Engines are the Optimal Foundation for Autonomous Enterprise AI
February 20, 2026

The Agentic Frontier: Why Converged Data Engines are the Optimal Foundation for Autonomous Enterprise AI

In our latest report, The Agentic Frontier: Why Converged Data Engines are the Optimal Foundation for Autonomous Enterprise AI, commissioned by Oracle, Futurum Research examines why agentic AI is exposing...
February 17, 2026

A Shift from Technology to Intelligence: The Rise of the Frontier Partner

Discover the Orchestration Era of enterprise AI. Frontier Partners: AI-first firms building original, agent-based solutions for business transformation....
Arm at the Center of the AI & Data Center Revolution
February 10, 2026
Research
Research

Arm at the Center of the AI & Data Center Revolution

In Arm at the Center of the AI & Data Center Revolution, Futurum Research examines how Arm’s scalable IP, partner ecosystem, and software enablement are positioning it as a unifying...

Book a Demo

Newsletter Sign-up Form

Get important insights straight to your inbox, receive first looks at eBooks, exclusive event invitations, custom content, and more. We promise not to spam you or sell your name to anyone. You can always unsubscribe at any time.

All fields are required






Thank you, we received your request, a member of our team will be in contact with you.