Indians Lost Over 15 Billion Hours on Hold in 2023, Leading to $55 Billion Economic Impact

New findings from ServiceNow reveal that Indians spent over 15 billion hours on hold with customer service in 2023, causing an economic loss estimated at $55 billion. The ‘Customer Experience Intelligence Report 2024’ highlights that, on average, each individual lost more than one day annually dealing with service delays, with 66% of respondents considering switching brands if issues aren’t resolved within three working days.

The research, involving over 4,500 participants aged 18 and above, indicates a growing dissatisfaction with service speed. More than half of those surveyed reported an increase in wait times compared to the previous year. It currently takes about 3.9 days to resolve customer issues, prompting many to seek alternatives if their concerns are not addressed promptly.

Sumeet Mathur, Senior Vice President & Managing Director at ServiceNow India, warns that businesses risk losing a significant portion of their customer base if they do not improve their service speed. He emphasizes the need for AI-powered self-service solutions to meet consumer expectations for faster and more efficient resolutions.

The report also notes a rising trust in AI tools, with nearly two-thirds of respondents expressing confidence in generative AI for customer service, surpassing traditional in-person support. This reflects a shift towards technology-driven solutions, particularly among younger users.

ServiceNow’s Now Assist platform aims to alleviate the burden on human agents by automating routine tasks and personalizing interactions based on customer data. This approach is designed to enhance customer experiences and improve operational efficiency.

The study points out systemic issues contributing to delays, such as inefficient internal communication and lack of decision-making power among staff. Transparency, faster resolution times, and better use of self-help resources are identified as key areas for improvement.

Sumeet Mathur urges Indian enterprises to embrace AI technologies to enhance customer service and reduce agent workload. The choice facing businesses is clear: either address these issues or risk continued erosion of customer loyalty.

Notes:
The $55 billion economic loss estimate is based on average hourly wages and the time spent by employees resolving service issues.

Research Methodology:
The survey, conducted by Lonergan Research for ServiceNow, engaged 4,500 participants across India. The data was weighted to reflect the latest population statistics and included a broad geographic and demographic sample.