70 Key Customer Support Statistics: 2024 Analysis of Trends, Data and Market Share

A new version of this article, featuring the latest data and statistics is available. Check out our report on Customer Support Software Software for 2022.

If you are still caught up in the mindset that delivering a top-notch product or service should be your business’ overarching objective, think again. A sweeping tide of changes in customer attitude has seen them become loyal to companies that provide excellent customer experience rather than to those that provide outstanding products or services. As jolting as this new paradigm shift may seem, it is only one of several reasons why you should keep a close eye on what’s keeping leading customer support software vendors busy to push your business above the crowd and on a rock-solid growth path ahead. To help you gain a deeper insight on this topic without spending an excessive amount of time and resources, we gathered our experts to bring to you key trends and statistics on customer support solutions and other customer support software facts that should matter to your business now and in the future.

1. State of Customer Support Industry Statistics

The customer support software market size had never looked better, a far cry from just a few decades ago when companies hardly had separate and dedicated departments to focus on the needs of customers. Getting from zero to billions was quite the feat, made more impressive by leading businesses to a new era. And as AI, chatbots, interactive videos, machine learning, and the Internet of Things are poised to take the business world by storm, expect customer support software, especially the cloud-hosted variety, to be there.

• In 2020, the customer experience management market was valued at $7.6 billion. (Grand View Research, 2020)
• This growth in the customer experience management market is expected to continue at a compound annual growth rate of 17.7% between 2020 to 2027. (Grand View Research, 2020)
• 93% of customer service experts believe that customers have higher expectations when it comes to service and experience compared to the past years. (Hubspot, 2020)
• Among the biggest challenges that customer service representatives are facing include dealing with upset customers (49%) and not having enough time in the day to attend to customers (46%). (Hubspot, 2020)
• Furthermore, 48% of professionals in the customer service industry revealed that creating the best customer experience is a top priority in their team. (Hubspot, 2020)
• By 2020, CX will surpass both price and product as the key brand differentiator. (Walker, 2020)
• Around 45.9% of business experts say that customer experience is their top priority for the following five years. (SuperOffice, 2021)
• 61% of companies track their customers’ happiness. (Hubspot, 2020)
• 59% sends out a customer survey to gather feedback. (Hubspot, 2020)
• About 67% of customers said that friendly representatives are crucial in providing excellent support. (Netomi, 2020)
• Spearheading the customer software market share is contact center software, which is expected to reach $47.76 billion by 2025. (Grand View Research, 2021)
• Over 50% of customers in the United States said that they haven’t seen any improvement in their customer service experience over the last year. (Netomi, 2020)
• Only 10% of customers said that the current quality of customer service is convenient. (Netomi, 2020)
• 77% of customers are more likely to share a positive experience with brands. (Hubspot, 2021)

While customer support software market share has reached these landmark milestones, it helps to understand that it got there with help from other tools. One of these is the emergence of powerful business intelligence platforms to help mine key insights from mounting customer support big data.

2. How Customer Support Costs Your Business Statistics

The advent of widespread internet has allowed customers to speak their minds about businesses that consistently give them awful customer experience—something that they could have easily avoided by investing in capable customer experience management software. Their preferred methods of getting back at these awful businesses are voting through their wallets, moving their businesses to competitors, and posting their painful experiences on Facebook, Twitter, and other social media channels. If you don’t want to be on the crosshairs of angry customers venting their ire on your business, learn from the following customer support software research findings:

• 31% of customer service professionals report that their departments or teams are viewed as a cost center of their companies. (Hubspot, 2020)
• 35% of customer service teams say that cost reduction is important. (Hubspot, 2020)
• Companies will spend $8 billion more on customer service representatives compared to the previous year. (Forrester, 2019)
• Over 42% of teams have still not adopted any form of software for their customer service. (Hubspot, 2020)
• 47.1% of customers stopped doing business with a brand due to poor customer service. (Netomi, 2020)
• 16% of customers value personalization in customer support. (Netomi, 2020)
• 62% of customers say they share their bad experiences with others. (Salesforce, 2019)
• And, 44% of them report that waiting for a response from customer service representatives is a major reason for frustration. (Netomi, 2020)
• Customers want self-service options, but they expect a response from a customer service representative within minutes, not days. (Hubspot, 2020)

3. The Rewards of Customer Support Statistics

Extensive customer support software research in recent years reveals how global businesses and customers respond to constantly changing business landscapes. The emergence of powerful technologies, for example, has made aggressive consumer advocates for a better customer experience. Companies that address consumer concerns are reaping massive tangible rewards, with many of the leading businesses to a new age. Investing in a full-featured help desk tool, for example, can go a long way in this direction. This compilation of customer support software statistics shows how your business stands to gain in specific terms from implementing a customer support-oriented approach throughout your organization.

• 84% of customers say that customer service is an important factor in their buying decision. (Zendesk, 2019)
• Companies using omnichannel customer service solutions have 10% faster initial response and 17% quicker in resolving issues. (Zendesk, 2019)
• 77% of American customers reported that good customer service leads to brand loyalty. (Netomi, 2020)
• Consequently, companies are investing in increasing their Net Performer Score (NPS). Customers with positive support experience are more likely to provide high NPS and recommend the brand to others. (Netomi, 2020)
• Investing in top-notch customer service leads to increased profits. Even a 5% increase in customer retention results in a 25% increase in revenue. (Hubspot, 2021)
• A similar study found that companies invest in customer experience to improve up-selling and cross-selling (42%), customer retention (33%), and customer satisfaction (32%). (SuperOffice, 2021)
• 39% of surveyed customers around the world said that excellent treatment from companies is a critical component of trusting a brand. (Marketing Charts, 2019)
• Additionally, 36% expressed that they trust a brand that quickly addresses their issues as consumers. (Marketing Charts, 2019)
• 80% of customers indicated that the experience that a company provides is as important as their products. (Salesforce, 2019)
• 79% of organizations with excellent employee engagement also provide better customer service than companies that don’t. (Hubspot, 2019)

Most Popular Customer Support Software

1. Freshdesk. An award-winning cloud-hosted customer support platform with excellent tools and features that make it easy to provide a seamless customer experience. Our Freshdesk review presents details about its features, pricing, and relevant software information.
2. Zendesk. It is considered a top-tier customer support solution that’s relied upon by more than 40,000 companies across the world. This Zendesk review discusses its robust offerings.
3. Salesforce Service Cloud. Cloud-hosted customer service platform that facilitates the delivery of quick and smarter customer support. Our Salesforce Service Cloud review walks you through its product features.
4. Groove. A robust yet easy-to-use customer support solution for delivering efficient and personalized customer service. If you want to know more about this solution, check out this Groove review.
5. Freshservice. This popular cloud-based customer support platform helps companies of any size to provide great customer service. For more details about this award-winning platform, read our Freshservice review.

4. Customer Expectations’ Business Impact Statistics

With multiple avenues available for businesses to improve the way they deal with customers, it follows that the same customers expect businesses to employ any mix of these avenues to gain traction in their own markets. Businesses who are ready to attune their ears to these customer expectations and act accordingly are amply rewarded, foremost of which are customers who remain loyal to their brand for a long time. If you find yourself needing help in meeting these customer expectations, consider investing in any leading customer support apps.

• 46% of customers said that they have high expectations when it comes to customer service quality. (Zendesk, 2019)
• Moreover, almost 60% of consumers say that they feel they have higher expectations in terms of customer service in 2019. (Microsoft Dynamics 365, 2019)
• Up to 70% of customers expect support teams to collaborate so they do not need to repeat themselves. (Zendesk, 2019)
• 27% of consumers expect proactive customer service from companies. (Netomi, 2020)
• Around 84% of customers are ready to pay extra for excellent customer service. (Gladly, 2020)
• Consumers now expect companies to treat them as individuals, and not mere numbers, with 72%  expecting brands to understand their interests and needs. (Hubspot, 2021)
• 31% of customers have stopped doing business with companies multiple times due to bad customer service. (Netomi, 2020)
• 69% of consumers start with self-help service or help center when getting support. (Zendesk, 2020)
• However, only around 30% of companies provide self-service support options. (Zendesk, 2020)
• 86% of B2B CMO’s consider customer experience as very important. (Accenture, 2020)
• Additionally, 80% of buyers expect a buying experience similar to that of B2C consumers. (Lumoa, 2019)
• 78% of consumers expect that departments interact with each other to provide consistent support. (Salesforce, 2020)
• However, up to 59% of customers report that they felt like they are interacting with separate, disconnected departments rather than one, cohesive organization. (Salesforce, 2020)
• Almost half (47%) of customers expect fast and convenient support from companies. (Netomi, 2020)

5. AI, Chatbots, and Other Technologies in Customer Support Statistics

The hottest buzzwords in computing today are artificial intelligence, chatbots, robotic process automation, and the application of customer support software big data. Promises of tremendous rewards in these technologies find businesses out-muscling each other in acquiring or merging with RPA startups (ZDNet, 2019), for example, or starting their own initiatives. Do all of these mean anything to your business?

The answer is a resounding yes, and the latest customer support software trends and statistics bear out the facts.

• 23% of customers prefer interacting through chat or direct message when asking a quick question. (Netomi, 2020)
• As such, 28% of customer support teams say that they use social media platforms. (Zendesk, 2019)
• 34% of IT practitioners said that AI is critical to business operations and processes. (Forbes, 2019)
• Additionally, 41% of IT experts expect AI to become a crucial part of their organizations within the next three years. (Forbes, 2019)
• More than 50% of IT professionals believe that AI could improve their customer’s overall experience. (Forbes, 2019)
• 60% of people have already interacted with a chatbot in the last year. (Netomi, 2020)
• However, 86% of customers still prefer to interact with human operators over automated systems. (Forbes, 2019)
• And, up to 71% said that they are less likely to interact with brands that do not have human customer representatives. (Forbes, 2019)
• On the other hand, 30% of customers are ready to interact with virtual assistants and chatbots when solving their issues. (Forbes, 2019)
• 31% of consumers believe that chatbots and virtual assistants make it easier to resolve their issues. (CGS, 2019)
• However, up to 50% said that the same technologies make it harder to solve their problems. (CGS, 2019)
• Around 57% of users believed that AI is helpful when solving simple issues. (Zendesk, 2019)
• And, 38% recognized the contribution of AI to provide personalized support. (Zendesk, 2019)
• 77% of companies have already implemented some form of a chatbot for support. (Netomi, 2020)
• Furthermore, 60% of companies are planning to implement conversational bots for after-sales support and customer service. (Netomi, 2020)

If you’re considering future-proofing your company, an investment in artificial intelligence software should get you on your way.

6. Your Business and Social Media Statistics

Facebook, Twitter, and Instagram are no longer just the gathering place of long-lost friends and gregarious people who will post anything that comes to mind. Nowadays, these social media behemoths are also proving to be a battleground for businesses trying to outdo each other while hunting for leads and prospects as well as for customers sniping away at businesses that have offended them at some point, rallying friend, families, and any stranger who stumbled on the post to run for their lives rather than do business with this or that company. Social media platforms could prove to be a real jungle. If mastering it sounds massively appealing to you, then nothing would do better than understanding how social management software works right away.

• 48% of consumers use social media as an information source before buying a product. (W.P. Carey, 2020)
• Only 9% of users prefer using social media when they need support. (Zendesk, 2019)
• However, roughly 37% of customers get in touch with a company via social networks for their customer service concerns.  (Sprout Social, 2020)
• This is particularly true for consumers 25 years of age and below (32.3%) who say that social media platforms are their customer service channel of choice.  (Consumer Reports, 2019)
• 55% of consumers expect brands to respond to complaints they posted on social media. (W.P. Carey, 2020)
• But, only 29% of teams offer social media support. (Zendesk, 2019)
• On average, a social media user would post 16 times per year about their brand experience. (W.P. Carey, 2020)
• Also, 14% of customers post their complaints about a service or a product on social media. (W.P. Carey, 2020)

If you still doubt how much social media could impact your business, consider the United Airlines social media crisis. That’s when the company managed to lose $1.4 billion in value overnight when a passenger’s experience went viral on social media. (CNN, 2017)

Customer Support Software Works Best with Other Applications

If you have been paying close attention, you have probably already realized that there is more than one way to meet customer expectations squarely. While leading customer support software like Freshdesk can help you make data-driven decisions and meet most of your business needs, you may also consider applications that deliver specific customer needs.

One of these is live chat software, which lets you communicate with and engage leads and prospects in real-time. Some leading live chat tools also let you use them across multiple channels, saving you from further investing in other applications.

For a self-help approach to customer support, you can look up knowledge management software, which helps agents focus more on pursuing the most productive clients while allowing customers to resolve queries through a vast library of useful information on a database portal.

You cannot provide any meaningful customer support without a CRM tool, which is the foundation of many business operations. CRM applications are not only the best friend of the sales and marketing departments, but they are also behind the success of many customer service teams.

However you want to deploy your customer support system, never pick a solution without first giving it a test drive, which is typically offered by software vendors.

Key Insights

• Customer Experience as a Priority: Customer experience is becoming a key differentiator, surpassing both price and product quality in importance.
• Increasing Market Size: The customer support software market is expanding, driven by advancements in AI, chatbots, and cloud-hosted solutions.
• High Customer Expectations: Customers have higher expectations for service quality, with a significant portion willing to switch brands due to poor service.
• Cost and Investment: While some companies view customer support as a cost center, investment in this area can lead to significant revenue increases through improved customer retention and satisfaction.
• Technological Integration: Adoption of AI and chatbots is growing, with many companies seeing these technologies as crucial for future operations.
• Omnichannel Solutions: Companies using omnichannel customer service solutions report faster response times and higher customer satisfaction.
• Social Media Impact: Social media is a significant platform for customer service, with many consumers using it to seek support and share experiences.
• Self-Service Demand: There is a growing demand for self-service options, though many companies are yet to provide comprehensive solutions in this area.
• Importance of Employee Engagement: Companies with high employee engagement tend to provide better customer service.

FAQ

1. Why is customer experience becoming more important than product quality or price? Customer expectations have evolved, and they now prioritize the overall experience they have with a brand. Excellent customer service leads to greater brand loyalty and can be a key differentiator in a competitive market.
2. How significant is the customer support software market growth? The customer experience management market was valued at $7.6 billion in 2020 and is expected to grow at a compound annual growth rate of 17.7% from 2020 to 2027. This growth is fueled by advancements in technology and the increasing importance of customer experience.
3. What are the main challenges faced by customer service representatives? The biggest challenges include dealing with upset customers, time constraints, and the need for better organization and follow-up. These challenges highlight the need for effective customer support software to streamline processes.
4. How does poor customer service impact businesses? Poor customer service can lead to significant losses, with 47.1% of customers stopping business with a brand due to bad experiences. Additionally, many customers share their negative experiences on social media, which can damage a company’s reputation.
5. What are the benefits of investing in customer support software? Investing in customer support software can lead to increased customer satisfaction, higher retention rates, and improved revenue. Companies with excellent customer service are more likely to see loyalty from their customers and receive positive referrals.
6. How are AI and chatbots transforming customer support? AI and chatbots are increasingly used to handle simple queries and provide personalized support. While some customers prefer human interaction, these technologies can enhance efficiency and provide quick solutions for common issues.
7. What role does social media play in customer support? Social media is a critical channel for customer support, with many consumers using it to seek assistance and share their experiences. Companies need to be responsive on social media to maintain a positive brand image and address customer concerns promptly.
8. Why is self-service becoming more popular among customers? Customers value the ability to resolve issues on their own without waiting for a representative. Self-service options like knowledge bases and FAQs empower customers to find solutions quickly and conveniently.
9. How important is employee engagement in providing excellent customer service? Employee engagement is crucial as it directly impacts the quality of customer service. Companies with high employee engagement levels typically offer better customer experiences and achieve higher customer satisfaction rates.

References:

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By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.