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:
IBM Quantum
April 22, 2026
Article
Article

Will IBM Quantum’s Q4Bio Challenge Results Lead to Biochemistry Breakthroughs?

IBM Quantum played a pivotal role in the Q4Bio Challenge Results, with five of six finalist teams using its quantum hardware to achieve novel discoveries in molecular simulation and drug discovery that...
Qualcomm’s Snapdragon Wear Elite Redefines the AI Wearable Stakes—But Who Wins the Wrist War?
April 22, 2026
Article
Article

Qualcomm’s Snapdragon Wear Elite Redefines the AI Wearable Stakes—But Who Wins the Wrist War?

Qualcomm's Snapdragon Wear Elite marks a turning point in wearable AI, delivering a dedicated neural processing unit for on-device intelligence, privacy, and real-time voice interactions—positioning the company against Apple and Samsung....
VAST Data Valuation Triples. Can a Unified Platform Scale AI Globally?
April 22, 2026
Article
Article

VAST Data Valuation Triples. Can a Unified Platform Scale AI Globally?

Brad Shimmin, Vice President & Practice Lead at Futurum, analyzes VAST Data valuation and its AI operating system strategy, questioning whether unified infrastructure can scale amid persistent market fragmentation....
CadenceLIVE 2026 — Can Agentic AI Finally Crack 3D IC Design Automation?
April 22, 2026
Article
Article

CadenceLIVE 2026 — Can Agentic AI Finally Crack 3D IC Design Automation?

Brendan Burke, Research Director at Futurum, unpacks CadenceLIVE 2026's agentic AI expansion—ViraStack, InnoStack, and a customer-tested Mental Model architecture—and why 3D IC design automation remains the semiconductor industry's hardest unsolved gap....
Latest Research:
Data Fitness for AI-Driven Operations
April 20, 2026
Research
Research

Data Fitness for AI-Driven Operations

In our latest market brief, Data Fitness for AI-Driven Operations, completed in partnership with NETSCOUT, Futurum Research explores why observability alone is insufficient as AI moves toward autonomous execution, and...
Unblocking AI Compute: SiFive Intelligence’s Open Solution for Edge to Cloud Scale
April 14, 2026

Unblocking AI Compute: SiFive Intelligence’s Open Solution for Edge to Cloud Scale

In our latest Market Report, Unblocking AI Compute: SiFive Intelligence’s Open Solution for Edge to Cloud Scale, completed in partnership with SiFive, Futurum Research explores how shifting AI workload demands...
Packaging the AI Frontier: Intel Foundry’s Advanced Packaging Alignment with the XPU Industry Roadmap
April 9, 2026
Research
Research

Packaging the AI Frontier: Intel Foundry’s Advanced Packaging Alignment with the XPU Industry Roadmap

In our latest market brief, Packaging the AI Frontier: Intel Foundry’s Advanced Packaging Alignment with the XPU Industry Roadmap, completed in partnership with Intel Foundry, Futurum Research examines why advanced...

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.