115 Critical Customer Support Software Statistics: 2024 Market Share Analysis & Data

It’s impossible for businesses to exist without customers. That’s why it’s important to keep an eye on customer support software statistics and industry best practices so that companies can meet the needs of their customers and turn them into long-term clients. Ever since COVID-19 started wreaking havoc worldwide in 2020, disruptions have shaken the industry and changed customer behavior.

In this article, you’ll learn the state of the customer support industry through statistics, reports, and surveys of customer service teams, executives, and consumers. It will also seek to answer the questions: What is customer support software and what other technologies are shaping how support is delivered? What are the proven benefits of providing an excellent customer experience? Most importantly, what will 2022 look like for customer support?

State of Customer Support Industry Statistics
Data on the Cost of Bad Customer Support
Benefits of Customer Support Statistics
Customer Support Technology Statistics
Statistics on the Importance of Customer Support
Customer Support Challenges Statistics
Statistics on the Effect of Covid-19 on Customer Support
Future Trends of Customer Support Software

State of Customer Support Industry Statistics

How big is the customer support industry? The United States customer care market alone is estimated to be worth $11.3 billion in 2022. Like any other industry, customer support continues to face evolving challenges.

But the good news is, based on customer support statistics in 2022, customers seem to have a positive perception of the service they are getting.

63% of customers around the globe believe that customer service is getting better (Microsoft, 2020).
Among the success metrics for customer service are customer satisfaction (73%), new sales (33%), repeat purchase/upgrades (29%), and speed of resolution (26%) (Hubspot, 2020).

With this positive view comes higher expectations when it comes to the quality and speed of the service. For example, more and more customers do not want to be put on hold and expect a reply in less than five minutes when calling support. Also, getting issues resolved fast the first time is the most important aspect of customer service for 35% of global consumers.

58% of retail customers said that their expectations of interactions with their preferred brands and retailers are higher than they were a year ago (Talkdesk, 2021).
55% of customers expect better customer service year over year. This is especially high among consumers aged 18 to 34, with 70% indicating higher expectations (Microsoft, 2020).
93% of service teams agree that customers today have higher expectations than ever before (Hubspot, 2020).
65% of executives feel customer expectation is high when it comes to connecting them with a knowledgeable support team (CGS, 2021).
66% of U.S. adults believe that valuing their time is the most important thing a brand can do to provide them with a good customer experience (Khoros, 2021).
Patience for response times is decreasing as 51% of customers expect a response in under five minutes on the phone, and 28% expect the same on live chat (Zendesk, 2020).
Instant messaging apps are more forgiving. Only 7% of customers expect a reply to a message in under five minutes, though most expect a response in less than an hour (Zendesk, 2020).
83% of customers expect to engage with someone immediately when they contact customer support, up from 78% in 2019 (Salesforce, 2020).
Getting issues resolved the first time is the most important aspect of customer service according to 35% of customers (Microsoft, 2020).
59% of executives feel that customer expectations are high when it comes to resolving issues on first contact (CGS, 2021).

Customer support statistics also reveal that customers are also willing to provide feedback and feel more connected to brands that listen to their opinions. However, companies have yet to realize that they should ask their customers more often for feedback. This is because only 7% almost always request feedback from customers. It’s clear that there are opportunities to be found in this gap in customer service.

89% of customers want to provide feedback (Microsoft, 2020).
However, only 7% of companies almost always request feedback from customers (Microsoft, 2020).
47% of customers believe that companies take action on the feedback they receive, while 53% said otherwise (Microsoft, 2020).

State of Customer Support: Customer Perceptions and Expectations

Source: Microsoft/Talkdesk, 2020

Data on the Cost of Bad Customer Support

While the majority of customers globally have positive experiences with customer support, companies can’t rest on their laurels and assume that customers will remain satisfied. As revealed in a study, customers will not hesitate to shift to the competitor if they receive poor service.

Moreover, with higher expectations and more competition in the market, customers have also become less tolerant of mistakes. This is evident in one study where half of the customers said they would switch to a competitor after one bad experience while another 80% said they would do the same after more than one bad experience.

Businesses underestimate how often customers have poor experiences by an average of 38% (Khoros, 2021).
91% of CX experts agree that customers are more willing than ever to change brands if unsatisfied (CX Network, 2021).
68% of customers state that a single negative customer service experience will reduce their loyalty to that brand (Talkdesk, 2021).
65% of customers said they have switched to a different brand because of a poor customer experience (Khoros, 2021).
58% of customers show little hesitation in leaving a brand if they are not satisfied with customer service (Microsoft, 2020).
75% of customers who repeat themselves to customer care agents often take a second look at doing business with that brand (Deloitte, 2021).
77% of customers said they would take their business elsewhere if they received poor service (Destination CRM, 2021).
50% of customers said they would switch to a competitor after one bad experience and another 80% said they would leave after more than one bad experience (Zendesk, 2020).
Only one in five consumers will forgive a bad experience at a company whose customer service they rate as “very poor.” (Qualtrics XM, 2020).

Benefits of Customer Support Statistics

Customer care data reveals the consequences of poor customer support. The good news is that it is also very clear what businesses need to do to retain their customers—provide quality customer support consistently.

There are many studies and reports detailing how good customer service has a direct, positive impact on sales, revenues, and brand reputation. The benefits range from repeat purchases, brand loyalty, and more spending.

91% of customers said they are likely to make another purchase after a positive customer service experience (Salesforce, 2020).
84% of consumers who gave a high effort rating to a business are more likely to make additional purchases. This percentage drops to 58% for consumers with only a neutral effort rating. (Qualtrics XM, 2020).
94% of consumers who give a company a “very good” customer experience (CX) rating are likely to purchase more products or services from that company in the future. In comparison, only one in five of those who give a company a “very poor” CX rating say they will purchase again from that company (Qualtrics XM, 2020).
75% of customers feel loyal to a brand or company (Zendesk, 2020).
83% of customers said they feel more loyal to brands that respond promptly and resolve their complaints (Khoros, 2021).
52% of customers report going out of their way to buy from their favorite brands (Zendesk, 2020).
Price is still the top consideration when it comes to brand loyalty, but customer service comes in second place with 57% of consumers ranking it as a factor why they feel loyal to a brand (Zendesk, 2020).
Existing customers are 50% more likely to try out new products and spend 31% more than new customers. (Invesp, n.d.).
89% of consumers are more likely to make another purchase after a positive customer service experience (Salesforce, 2020).

The above-mentioned aside, the most important numbers for companies to note would be recommendations as a result of good customer service. Customer recommendation is a powerful indicator of business growth as proven through the Net Promoter Score (NPS) metric. This is because when a person needs to make an important purchase decision, one usually consults friends and families and read reviews and feedback of other customers. If you’re running a company, then it’s crucial to know the experience of customers with your brand.

94% of consumers who give a company a “very good” CX rating are likely to recommend the company while only 13% of those who gave a company a “very poor” CX rating say the same (Qualtrics XM, 2020).
Consumers who rate a company’s service as “good” are 38% more likely to recommend that company (Qualtrics XM, 2020).

Likelihood of Recommending a Company Based on Customer Experience

Clients who gave a “very good” CX rating

Clients who gave a company a “good” CX rating

Clients who gave a company a “very poor” CX rating

Source: Qualtrics XM, 2020

Customer Support Technology Statistics

Based on the latest statistics, there are now 5.22 billion unique smartphone users, 4.66 billion internet users, and 4.20 billion active social media users. Because there is a need to meet customers where they are, it’s natural for businesses to implement the technologies necessary to reach their customers. Considering most consumers are now mobile, expect prompt replies, and convenient interactions, the use of technologies like AI-powered chatbots, instant messaging, and live chat have permeated the customer support industry.

Technologies and Tools for Customer Support

Companies know the importance of advanced technologies like customer support solutions in delivering quality service and will continue to dedicate their budgets to tech investments for CX.

77% of CX experts say customers are happy to pay more for convenience (CX Network, 2021).
$50,000 is the most common annual budget size for CX investments. Top tech investments are AI, customer journey mapping, and data and analytics (CX Network, 2021).
79% of contact center leaders plan to invest in greater AI capabilities in the next two years (Deloitte, 2021).
95% of executives agree that augmented reality (AR) can help organizations better keep up with rising customer expectations (CGS, 2021).
Additionally, according to executives, AR can improve first-time fix rates by 54%, reduce training time for staff and users by 53%, and save on service costs by 47% (CGS, 2021).
The most implemented technology for customer support is help desk software (42%), followed by knowledge base/FAQs (40%); shared email alias (37%), and CRM (32%), and Live Chat (29%) (Hubspot, 2020).
Among high-growth companies, the top technologies being used are help desk system (51%), knowledge base/FAQs (45%), shared email alias (43%), CRM (36%), and live chat (36%) (Hubspot, 2020).

Source: Hubspot, 2020

Preferred Customer Support Channels

When it comes to contacting support, even with the many digital options available, phone/voice is the preferred channel of customers. However, it is also the most expensive channel for companies to maintain; thus not the most common contact channel used by organizations in the US. In-person and customer support by email are the two most widespread channels, both indicated by approximately 73.5% of organizations.

36% of leaders say that despite the ongoing proliferation of service “front doors,” customers have stuck with the same, familiar channels—primarily phone, the most expensive channel of all—to reach them (Deloitte, 2021).
Most preferred channels for customer support: voice/telephone (71%), email (64%), online self-service (53%), and live chat (48%) (Microsoft, 2020).
66% of customers typically use the phone to resolve issues with a company, 49% use email, 28% use online forms, 28% use messaging, and 24% use chat (Zendesk, 2020).
The number of customers using six or more channels to contact customer services has decreased significantly to 69% from 29% in 2015 to only 9% in 2019 (Microsoft, 2020).
Meanwhile, the number of customers using one or two channels has increased to 36% in 2019 from 29% in 2016 (Microsoft, 2020).
The most common customer contact channels used by organizations in the US are email and in-person customer support (73.5%). This is followed by websites and social media (71.4%) (Insightnow, 2021).
54% of customers had a more favorable view of brands that responded to customer service questions or complaints on social media. However, social media is not really a favorite support channel with only 26% of customers relying on Facebook for customer service (Microsoft, 2020).
Only 9% of consumers typically use social media when trying to resolve an issue with a company. In comparison, 66% of customers use the phone to contact support (Zendesk, 2020).

The Importance of Omnichannel

However, take note that customers don’t immediately make phone calls every time they need help. That’s why it’s still important to offer multiple but integrated (omnichannel) customer touchpoints.

Surprisingly, only 35% of companies have implemented an omnichannel approach to their customer support (Zendesk, 2020).
40% of customers choose a channel based on the complexity of their problem (Zendesk, 2020).
72% of customers say that their preferred channel for communicating with a company varies depending on the context (Talkdesk, 2021).

Video Chat is Gaining Traction

Live video chat support is another technology that’s has been getting positive feedback on its capabilities to seamlessly connect support agents and customers. However, it has yet to become a staple among the many tech tools of support teams.

Customers are slow to pick up video chat as a support channel. Only 15% used video chat in 2019 (Microsoft, 2020).
While only a few use video chat, it received positive feedback on effectiveness as a support channel with 89% saying it was helpful in resolving their issue (Microsoft, 2020).
Live video chat has a 73% satisfaction rate among customers, compared to 61% for email and 44% for phone communication (Revchat, 2021).

Self-Service Customer Support Channels

Customer support software statistics in 2022 tell us that self-service channels will be a necessity in the future. Self-service channels powered by emerging technologies like AI and AR have made it possible for companies to meet the need for speed and convenience of customers. Moreover, customers are very receptive to using self-service to quickly find answers to questions or even fix something themselves.

69% of customers want to resolve as many issues as possible on their own (Zendesk, 2020).
65% of customers use self-service channels first before contacting an agent when trying to resolve an issue (Microsoft, 2020).
63% of customers always or almost always start with a search on a company’s online resources when they have an issue (Zendesk, 2020).
High performers in customer service are 76% more likely to offer self-service portals (Zendesk, 2020).
17.7% and 16.7% of customers gave an excellent (10/10) ranking for robotics and artificial intelligence for customer experience, respectively (Insightnow, 2021).
35% of American customers would prefer using AR with a representative to assist them instead of mailing an item for repair (CGS, 2021).
45% of customers are interested in using AR for the setup, installation, or repair of technology, phone, and internet services (CGS, 2021).
Chatbots’ effectiveness to resolve issues fell in 2019, with 28% saying it was very effective and 36% it was ineffective leading them to use other channels (Microsoft, 2020).

Though customers expect self-service channels and actually prefer to use them, companies seem to lag behind implementing such technologies.

86% of customers expect companies to offer online self-service options (Microsoft, 2020).
Less than 30% of companies offer self-service, live chat, social messaging, in-app messaging, bots, or peer-to-peer communities. (Zendesk, 2020).

Statistics on the Importance of Customer Support

Businesses know that customer service is important to their success and consumers expect good service in every interaction with a brand. However, just how strong is the impact of excellent CX on a company’s bottom line?

One study revealed that 90% of customers cited service as the differentiator when it comes to their choice of brand and loyalty to a brand. The importance of customer service varies depending on the industry, but it’s always top of mind, scoring above 50% in all industries.

71% of customers have made a purchase decision based on the quality of customer service (Salesforce, 2020).
80% of customers say the experience a company provides is just as necessary as its products or services. (Salesforce, 2020).
90% of consumers said that customer service is important to their choice of and loyalty to a brand (Microsoft, 2020).
As ranked by customers worldwide, customer service was deemed most important in the appliances and technology industry (66%). This was followed by beauty and cosmetics (57%), apparel (50%), and personal care (50%) (EY, 2020).
89% of companies see customer service as a driving factor in customer loyalty and retention (Invesp, n.d.).
90% of American consumers see customer service as a factor when deciding whether or not to do business with a company (Microsoft, 2020).
Chief Customer Officer (CCO) is becoming a priority. 63% of companies that started five years ago have a CCO and 30% of customer experience leaders agree that the CCO will ultimately own the customer experience (Zendesk, 2020).

Impact on Customer Retention

Providing excellent customer service is also important if you want to acquire and retain customers. A positive customer experience helps a business gain the trust of its clients and is even helpful in times when mistakes occur as almost 80% of customers reported that they will forgive a bad experience if the service is very good.

Only 14% of customers strongly agree that retailers are committed to delivering the best possible customer experience (Talkdesk, 2021).
69% of high-growth companies track customer satisfaction/happiness; 67% survey customers for feedback, and 59% monitor online reviews (Hubspot, 2020).
Nearly 70% of consumers who give a company a “very good” CX rating are likely to forgive a company for a bad experience, but only 15% of those who gave a company a “very poor” CX rating say the same (Qualtrics XM, 2020).
Nearly 90% of consumers who give a company a “very good” CX rating are likely to trust a company to take care of their needs. In comparison, only 16% of consumers who gave a company a “very poor” CX rating say the same (Qualtrics XM, 2020).

Source: EY, 2020

Customer Support Challenges Statistics

The overall perception of consumers is that customer support is better but there’s always room for improvement. After all, the industry is not without challenges. For example, with multiple customer touchpoints comes the problem of integration. Companies report significant progress in integrating their service channels but customers have yet to experience seamless interaction.

54% of customers feel they are communicating with separate departments, not one company (Salesforce, 2020).
Another 53% described most service interactions as fragmented (Salesforce, 2020).
60% of organizations reported progress on connecting their service channels, and 11% can now transition customers across channels and experiences seamlessly (Deloitte, 2021).

Increased Demands from Customers

Some long-standing challenges also remain, such as lack of a 360-degree view of a customer, personalization, and offering a cohesive CX journey. This indicates that service teams can address the problems by focusing more on data analytics and an omnichannel approach that could help them gain insights for better personalization.

58% of customers felt their last retail experience was not personalized for them (Talkdesk, 2021).
66% of customers want an organization to reach out and engage with proactive customer service and notifications (Microsoft, 2020).
56% of customers don’t mind sharing their personal information in exchange for better service (Salesforce, 2020).
75% of customers expect the agent to know who they are and their purchase history (Microsoft, 2020).
87% of customers find it frustrating to repeat themselves in multiple channels (Deloitte, 2021).
77% of companies said they struggled to create a cohesive journey across channels and devices (Khoros, 2021).
Among the most frustrating parts of poor customer service is the representative’s lack of knowledge or inability to resolve the issue (35%). This is followed by having to repeat the same information multiple times (32%) and the difficulty of reaching an agent (21%) (Microsoft, 2020).
72% of CX professionals are experiencing an increased demand for customer data analytics (Talkdesk, 2021).
63% of consumers expect businesses to know their unique needs and expectations, while 76% of B2B buyers expect the same thing (Salesforce, 2020).

Concerns of Service Teams

Knowing which technologies to invest in and which ones are effective in delivering great customer care should also be a part of addressing challenges.

48% of service teams want to create a great customer experience and 45% want to focus on retaining customers. Meanwhile, 41% focus on customer success; 40% focus on customer engagement, and 35% focus on saving costs/cost reduction (Hubspot, 2020).
62% of CX professionals report that legacy contact center technology is limiting their ability to improve customer experience (Talkdesk, 2021).
31% of teams think their company considers customer service as an expense, not an opportunity for growth (Hubspot, 2020).
Based on service teams’ feedback, the top effective technologies helping them achieve specific goals, such as helping customers, managing data, and staying organized and productive are CRM (90%), knowledgebase (91%), and email, tickets, live chat (90%) (Hubspot, 2020).
86% of companies that were using a help desk system said it made them more productive. (Hubspot, 2020).

Call for Data Transparency

One caveat in using big data analytics for crafting personalized CX is the perceived lack of transparency among companies using that data. This lack of transparency is an obstacle to improving customer engagement.

Only 27% of consumers completely understand how companies use their personal information. (Salesforce, 2020).
63% of customers agree that most companies are not transparent about how they use a customer’s personal data. (Salesforce, 2020).
86% of consumers want more transparency over how their personal information is used (Salesforce, 2020).
71% of customers reported that they would leave a company if it shared their data without permission (McKinsey, 2020).

Source: Salesforce/McKinsey, 2020

Statistics on the Effect of Covid-19 on Customer Support

Consumers and businesses are getting used to doing more activities and transactions online almost two years after the WHO declared COVID-19 as a pandemic. As a result, customer behavior has also changed—pushing even reluctant customers to use digital tools and self-service technologies to reach customer support.

Now, statistics show that even after the pandemic is over, the majority—61%—of customers expect to spend more time online than they did before. Service teams can take a cue from this and continue to solidify their strategies to deliver seamless, timely, and quality support via online means.

60% of customer interactions are taking place online, compared to 42% in 2019 (Salesfore, 2020).
61% of customers expect to spend more time online after the pandemic than they did before. (Salesforce, 2020).
73% of brands expect the number of inbound channels to increase in the next two years (Khoros, 2021).
45% of customers are more likely to use self-service today than before the pandemic (Destination CRM, 2021).
88% of customers expect companies to accelerate digital initiatives due to COVID-19 (Salesforce, 2020).
69% want companies to offer new ways to get existing products/services (e.g., digital versions of traditionally in-person experiences). Meanwhile, 54% want companies to expand customer engagement methods. (Salesforce, 2020).

Shifting Consumer Behavior

Upgrading current systems and exploring new technologies are also crucial for organizations to meet increased support demands not only during the pandemic but also long after it’s over. For contact centers, in particular, cloud systems and continuous professional training that support remote agents should be prioritized.

58% of customers prefer solving issues by calling support (Accenture, 2020).
57% ranked call support as their initial channel preference (Accenture, 2020).
A majority of CX professionals (74%) report that customer interactions with the contact center have a significant influence on CX. This percentage is anticipated to rise to 90% within two years (Talkdesk, 2021).
51% of IT decision-makers plan to invest in new contact center systems because current ones lack the functionality needed to support current demands over a longer-term (Deloitte, 2021).
Contact centers expect to outsource a full 37% of their total workforce two years from now (Deloitte, 2021).
75% of contact centers will move to the cloud in the next two years (Deloitte, 2021).
77% of service organizations are either adopting or accelerating their work-from-home programs (Deloitte, 2021).
91% of executives agree that AR is helping improve service operations during the pandemic (CGS, 2021).
96% agree that AR can boost connectivity between workers and subject matter experts, especially remotely; this is significant during COVID-19 (CGS, 2021).

The Need for a More Human Approach

The use of digital tools for customer support should not be an excuse for companies to forget about the human factor in customer care. As one study shows, providing a human touch in service is still a good strategy as 68% of customers will spend more on brands that understand them and treat them like an individual.

75% of consumers prefer an authentic human voice over a perfectly crafted brand message (Khoros, 2021).
68% of customers will spend more money on a brand that understands them and treats them like an individual (Khoros, 2021).

Future Trends of Customer Support Software

As customer expectations evolve, so does the landscape of customer support software. Here are key trends shaping its future:

Increased Use of Artificial Intelligence (AI): AI is becoming a core component of customer support software. Chatbots and virtual assistants enhance response times, handle common inquiries, and provide 24/7 support, allowing human agents to focus on complex issues.
Omnichannel Support Integration: Customers now expect seamless interactions across multiple channels, including email, chat, social media, and phone. Future software solutions prioritize omnichannel capabilities to ensure a consistent experience regardless of how customers reach out.
Focus on Personalization: With data analytics, customer support software is becoming more adept at delivering personalized experiences. Tailoring responses based on previous interactions helps build stronger customer relationships and improve satisfaction.
Self-Service Options: More businesses are offering self-service portals and knowledge bases. Empowering customers to find solutions independently improves efficiency and enhances the customer experience by providing immediate access to information.
Integration with CRM Systems: Future customer support software will increasingly integrate with Customer Relationship Management (CRM) systems, providing a comprehensive view of customer interactions. This integration allows support teams to deliver more informed and contextually relevant assistance.

Meeting Customer Support Demands with Technology

These customer support software statistics and industry data give a clear view of what’s ahead in 2022. Customers have higher expectations, shorter patience, and less tolerance for bad experiences when they interact with support teams.

On the other hand, companies and their service teams not only need to design a stellar customer experience but also have to know where they are in terms of putting out strategies that can address the challenges mentioned in these statistics. Fortunately, businesses are not left without any tools to win the battle for excellent customer support. Technologies like help desk software and CRMs have dramatically improved through the years. However, we can expect them to be continuously developed to help support agents do their job and do it well.

References:

Accenture (2020). COVID-19: Responsive customer service in times of change. Accenture
Anant, V., Donchak, L., Kaplan, J., & Soller, H. (2020). The consumer-data opportunity and the privacy imperative. McKinsey
Britt, P. (2021). The Top Customer Service Trends: Digital Channels Overtake Service Options. Destination CRM
CGS (2021). Consumer Interest in AR Support and Service Is Growing. cgsinc.com
CX Network (2021).The Global State of Customer Experience in 2021. Cxnetwork.com
Deloitte (2021). Future of Service. Deloittedigital.com
EY (2020). Future Consumer Index. Ey.com
Hubspot (2020). State of Service Report. Hubspot.com
Insightnow (2021). Overall customers´ rate for artificial intelligence (AI) and robotics for customer experience (CX) in the United States 2021. Insightnow.com
Invesp (n.d.). Customer Acquisition Vs.Retention Costs – Statistics And Trends. Invesp.com
Khoros (2021). Forrester report: Getting to know your customers. Khoros.com
Microsoft (2020). Global State of Customer Service. Microsoft.com
Qualtrics XM (2020). ROI of Customer Experience. qualtrics.com
Revchat (2021). The Essential Guide to Use Video Chat for Customer Service. Revchat.com
Salesforce (2020). State of the Connected Customer. Salelsforce.com
Talkdesk (2021). The CX Revolution in Retail. Talkdesk.com
Zendesk (2020). Customer Experience Trends Report 2020. Zendesk

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. From pitch deck to exit strategy, he is no stranger to project business hiccups and essentials. He has been involved in a few internet startups including a digital route planner for a triple A affiliate. His advice to vendors and users alike? "Think of benefits, not features."