Global State of Customer Service
The transformation of customer service
from 2015 to present dayTable of contents
1

Introduction

2

Brand loyalty

10

Perceptions and frustrations

25

Omnichannel experience

40

Digital and emerging trends

47

What we’ve learned“(c) 2020 Microsoft Corporation. All rights reserved.

Customer service is not a department—
it’s everyone’s job.
—Anonymous

Introduction: today’s realities andexpectations for customer service
Since the first Global State of Customer
Service study in 2015, customer
expectations have continued to rise overtime. Consistently delivering exceptional
service is challenging for any brand,
especially with fierce competition in an
overcrowded market, not to mention thecontinual onslaught of new and emerging
technologies that promise to upliftcustomer satisfaction. One constant in thisvolatile landscape is that branddifferentiation is aligned with customer
experience. Organizations that understandthis plurality, remain agile and attentive, andlearn to create a consistently positive
customer experience will prosper and move
forward. Organizations that are less fluidand fail to respond to the customer’s
expectations will contract and eventuallyfade from view.
Customers continue to evolve as does thetechnology that supports fast, first timedelivery of solutions to customer issues. To
create a positive customer experience,organizations must understand customer
behaviors, preferences, and expectations.
This knowledge, combined with the latest
technology and the ability to reimagine thedelivery of customer service, organizations
can then consistently craft experiences thatbuild loyalty and engagement.

(c) 2020 Microsoft Corporation. All rights reserved.

The Microsoft 2019 State of Global
Customer Service survey polled 5,088
individuals across Brazil, Germany, Japan,
the United Kingdom, and the UnitedStates to better understand the customer,
their expectations, frustrations, andperceptions of the delivery of customer
service. Our results reconfirm that
customer service plays a pivotal role inthe customer experience and serves as abrand differentiator, as 90% of
respondents indicated that customer
service is important to their choice ofand loyalty to a brand.
We hope you’ll find this year’s insights
beneficial, especially some of the trends
we’ve found over the past five years. It is
our hope that this report will provide
greater clarity about your customers andspark inspiration within your organization
to help you consistently deliver an
exceptional customer experience.

Dynamics 365

Page | 1

Brand loyalty
Customers have grown increasingly savvy
about service and support and expect theorganizations they do business with to beequally as astute. Expectations remain highas 90% of customers continue to place ahigh value on the quality of customer
service when choosing or remaining loyal toa brand. As customer expectations areshaped by their previous experiences,businesses need to rise to the occasion bycontinuously meeting or exceeding these
expectations. Should those expectations
fall short, 58% of customers show little
hesitation in severing the relationship.

Optimism continues to be strong with
55% of customers expecting better
customer service year over year. This isespecially true amongst those age 18-34
with 70% indicating rising expectations
looking forward. Thus, delivering
consistent exceptional customer service
will continue to build loyalty andstrengthen the customer relationship,
which in turn means revenue for thebusiness.

Customers are constantly changing, seeking
more than just answers to issues from
customer service agents. They want to berecognized, to be known, to be understood.
More than two-thirds of customers wantan organization to reach out and engage
with proactive customer notifications.
This proactive experience feeds thecustomer’s need to be recognized, and in
turn, generates customer engagement andstrengthens loyalty.

Customer expectations and needs
continue to evolve as both businesses
and customers embrace newtechnologies in service delivery. Artificial
intelligence (AI) enabled technologies can
assist organizations in identifying
customer trends and gaps in service
delivery. Customer service managers canprioritize these insights to determine
which will have the greatest impact. The
more successful organizations willleverage these AI-powered businesssolutions to transform as customer needs
continue to shift. Those organizations
that fail to anticipate and proactively
support their customers’ needs will beleft behind.

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 2

Q1. How important is customer service in your choice of, or
loyalty to, a brand?
Globally, 90% of consumers believe customer
service is somewhat to very important in the
choice of a brand. While the US (94%), UK (92%)
and Brazil (97%) all exceeded 90%, Japan andGermany were slightly more forgiving, pullingthe average lower with 81% and 85%,
respectively. Interestingly, more than 88% of all
age groups considered customer service
important in their purchasing decisions.

Global Average
2019
50%

40%
10%

Very important

Somewhat
important

Not important

By country
USA
56%

UK

47%

38%

Germany

45%

Very
Somewhat
Not
important important important

Japan

83%
14%

16%

Very
Somewhat
Not
important important important

Very
Somewhat
Not
important important importantBrazil

48%

36%

8%

6%

27%

2%

Very
Somewhat
Not
important important important

54%

19%

Very
Somewhat
Not
important important importantBy age groupAge 18-34
52%

36%

Age 55+

Age 35-54
49%
12%

Very
Somewhat
Not
important important important

40%

49%
10%

Very
Somewhat
Not
important important important(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

42%

9%

Very
Somewhat
Not
important important important

Page | 3

Q2. Have you ever stopped doing business with a brand due toa poor customer service experience?
Nearly two-thirds (58%) of consumers
will sever a relationship with a businessdue to poor customer service. This
year’s study found 75% of consumers in
Brazil are more apt to sever a relationshipwith a business with poor service. The US
followed with 63% and the UK closebehind with 58%. Japan is the mostforgiving with only 45% ending therelationship.

Five-year global average
2015-2019
66%

60%
40%

56%
44%

2016

2017

34%

2015

Yes

61%

58%

39%

42%

2018

2019

No

By country

63%

Yes

Germany

UK

USA
58%

37%

No

Yes

52%

42%

48%

No

Yes

Japan

Brazil
100%

75%
25%

50%

No

45%

55%

Yes

No

0%
Yes

No

By age groupAge 18-34
55%

Yes

35%

No

Age 35-54

Age 55+

57%

43%

55%

45%

Yes

No

Yes

No

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 4

Q3. Do you have higher expectations for customer service now
than you had a year ago?
Globally, 55% of consumers havehigher expectations for customer
service than one year ago. However,expectations seem to be weakening
slightly, except for Brazil with 85% having
higher expectations—a three-point
increase from 82% in 2018. Excluding
Brazil, the global average falls to 48%.
Including Brazil raises the global average
by a whopping 7 points. However,globally, expectations are highest
among those age 18-34 at 70%,
followed by ages 35-54 at 57%, and55+ at 45%.

Five-year global average
2015-2019
55%
45%

56%
44%

54%
46%

2015

2016

2017
Yes

59%
41%

2018

55%
45%

2019

No

High turnover and an inexperienced laborpool with a business culture of historicallyconstrained IT expenditures, has also
contributed to Brazilian customer service
to lag technologically behind its US, UK,
German, and Japanese cousins. These
combined factors could be contributing
to the high expectations of Brazilian
customer service.

“(c) 2020 Microsoft Corporation. All rights reserved.

Nobody cares how much you know until theyknow how much you care.
—Theodore Roosevelt

Dynamics 365

Page | 5

Q3. Do you have higher expectations for customer service now
than you had a year ago?

By country
USA

UK
53%

52%

55%

47%

48%
Yes

Germany

No

Yes

No

Yes

No

Japan

Brazil
85%
50%

50%

Yes

No

15%
Yes

No

By age group

70%
30%
Yes

No

Age 55+

Age 35-54

Age 18-34

57%

Yes

(c) 2020 Microsoft Corporation. All rights reserved.

43%

45%

55%

No

Yes

No

Dynamics 365

Page | 6

Q4. Do you have a more favorable view of brands that offer orcontact you with proactive customer service notifications?
Globally, two-thirds (67%) foundproactive customer service notifications
favorable, with Brazil leading the cheerswith 91%. The UK came in with a lukewarm
50%. Interestingly, 75% of respondents
between the ages of 18-34 overwhelmingly
favored proactive customer service, while
69% of ages 35-54 were favorable, and just
59% expressed favorability for ages 55+.

Global average
2015-2019
45%

56%

55%

2015

44%

2016

55%

59%

45%

2017
Yes

54%

41%

2018

46%

2019

No

By country
USA
63%

Yes

UK

Germany
53%

37%

50%

50%

No

Yes

No

47%

Yes

Brazil

Japan

91%

77%
23%

9%
Yes

No

No

Yes

No

By age groupAge 18-34
75%

Age 35-54
69%
31%

25%
Yes

No

Yes

(c) 2020 Microsoft Corporation. All rights reserved.

No

Dynamics 365

Age 55+
59%

Yes

41%

No

Page | 7

Q5. Do you have a more favorable view of brands that respond to
customer service questions or complaints on social media?
Globally, 54% of respondents had a morefavorable view of brands that responded
to customer service questions orcomplaints on social media. Surprisingly,
the US and UK were the least impressed with
33% and 34%, respectively. Germany andJapan reported a more favorable view with
56% and 60%, respectively.

Young adults were by far the earliest
adopters of social media in the US with otherage groups following later. If this trendtranslates globally, it is no surprise that 80%of those 18-34 have a favorable view tobrands responding to customer service
issues via social media. Conventional wisdom
holds true with 59% favorable of those age
35-54 and those age 55+ trailing behindwith only a 35% thumbs up.

A whopping 89% of Brazilians have afavorable view of brands that respond toquestions or complaints via social media. A
reported 122 million1 Brazilians are on social
media (87.7% of the country’s internet
population) and spending an average of 3.4
hours each day on social media. It’s nowonder they hold a favorable view.

Over the past five-years, the global
breakdown has been relatively flat, except fora slight spike in 2018; however, the age
breakdown across the globe is interesting
as no matter which country, generational
differences on matters of social media
support are the same.

Five-year global average
2015-2019
55%
45%

2015

56%

59%

55%
44%

2016

45%

46%

41%

2017
Yes

54%

2018

2019

No

1. “Digital in 2017: South America,” We are Social, SlideShare.net.
2. “The Evolution of Social Media in Brazil,” Joao Citounadin, The
Brazilian Report.
(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 8

Q5. Do you have a more favorable view of brands that respond to
customer service questions or complaints on social media?

By country
UK

USA
67%

34%

33%

Yes

Yes

No

Germany
66%

56%

44%

No

Yes

No

Brazil

Japan

89%

60%
11%

Yes

No

Yes

40%

No

By age groupAge 18-34
80%

59%
20%

Yes

No

Age 55+

Age 35-54

Yes(c) 2020 Microsoft Corporation. All rights reserved.

41%

35%

No

Yes

Dynamics 365

65%

No

Page | 9

Perceptions and frustrations
Customers continue to believe customer
service is getting better at 63%. This isinteresting considering when asked ifgetting questions answered was becoming
easier, respondents were more evenly split
with one-third believing getting answers
was easier, a third believing it had grown
more difficult and a third seeing nodifference whatsoever. Customers continue
to expect service will get better despite
two-thirds having seen no improvement ingetting answers.
Customers across all age groups, however,were united as to what factors contribute togood and poor customer service
experiences. Getting the issue resolved thefirst time topped the list in delivering a
positive experience. This was followed by aknowledgeable agent, and lastly, not having
to repeat the same information acrosschannels.
Conversely, conventional wisdom prevailed
as customers agreed that their greatest
frustration was an agent’s lack ofknowledge, followed by the inability toresolve an issue. Lastly, customers growfrustrated when they must repeat the same
information. These frustrations weighheavily on customers as 58% have stopped
doing business with an organization due topoor service.

(c) 2020 Microsoft Corporation. All rights reserved.

The factors for good and poor customer
service are the same and can be remediedby leveraging AI-enabled technology andwell-trained agents. Well-trained agents
backed with the right tools can resolve
customer issues quickly. Current customer
service applications can deliver anomnichannel experience so if one or
multiple channels are used by thecustomer, a holistic view of the customer
journey is available to the agent—
negating the customer ever having torepeat the same information again.
An up-to-date article knowledgebase
provides a solid foundation to improvecustomer issue resolution. AI-enabledcustomer service applications can save timeby searching and presenting articles to theagent associated with the topic being
discussed during the customer interaction.
Self-service portals with a current
knowledgebase can add to the experience.
AI-enabled virtual agents can suggest
articles to customers, which can facilitateissue resolution, creating a more positive
experience. However, if the article
knowledgebase is not kept current, thesystem breaks down in domino fashion—
impacting agent knowledge and failing toresolve customer issues quickly.

Dynamics 365

Page | 10

Q6. Overall, do you feel the quality of customer service isgetting better or worse?
Very little change from year to year.
Globally, 63% of respondents believecustomer service is getting better. Thosewith the belief that customer service isbecoming worse grew by three points
to 37%. The only two outliers are Japanand Brazil, with 73% and 81% believing
customer service is becoming better.
Overall, customers are growing more andmore savvy, and thus, customer
expectations continue to rise. Fortunately,
customer service organizations generate
volumes of data and there aretechnologies available to digest andanalyze this data so companies cancontinue to meet or exceed expectations,ensuring exceptional customer service.

Five-year global average
2015-2019
65%

35%

2015

62%

67%

38%

2016

66%

34%

33%

2017
Better

2018

63%

37%

2019

Worse

At first glance, Japan appears as ananomaly with 73% believing customer
service is getting better. Japan is wellknown for its incredibly polishedcustomer service, culture of respect, andpride of workmanship. These are wellknown tenants of the Japanese customer
experience.

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

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Q6. Overall, do you feel the quality of customer service isgetting better or worse?

By country
Germany

UK

USA
50%

50%

Better

Worse

54%

56%

46%
BetterWorse

Brazil

Yes

No

Japan

81%

73%
27%

19%
Better44%

Worse

BetterWorse

By age groupAge 18-34
78%

Age 35-54
63%

22%
BetterWorse

Better(c) 2020 Microsoft Corporation. All rights reserved.

37%

Worse

Dynamics 365

Age 55+55%

45%

BetterWorse

Page | 12

Q7. Is engaging with customer service to get your questions
answered getting easier?
Just over a third of respondents (34%)
believed getting questions answered isgetting easier, which is a decrease of 5
points, or 39%, from 2018.
Respondents citing greater difficulty ingetting answers rose to slightly less than
one third at 29%, a three-point increase
from the prior year.
Those reporting no difference from year
to year were at 37%, a two-point increase
from 2018.

Global average
2018-2019
39%

34%
26%

Yes

29%

No
2018

35% 37%

About the same
2019

Brazil showed great optimism with 67%
believing their questions are getting
answered with greater ease, whileconversely, the US and UK hunkered
down at only 23% believing questions are
getting answered easier.

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

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Q7. Is engaging with customer service to get your questions
answered getting easier?

By country
USA
23%
Yes

UK

38%

39%

No

About the
same

67%

Yes

35%

23%

Yes

No

Germany

41%

26%

Yes

About the
same

Japan

Brazil
12%

21%

No

About the
same

31%

22%

Yes

No

37%

37%

No

About the
same

47%

About thesame

By age groupAge 18-34
51%

Yes

Age 55+

Age 35-54

19%

29%

No

About the
same

36%

Yes

(c) 2020 Microsoft Corporation. All rights reserved.

27%

No

36%

About thesame

Dynamics 365

22%
Yes

36%

42%

No

About thesame

Page | 14

Q8. What do you feel is the most important aspect of a good
customer service experience?
Results in 2019 were clear: getting
the issue resolved the first time is
the most important aspect of good
customer service. Of growing
importance is contacting aknowledgeable agent at 31%—a fivepoint increase since 2015.

Global average
2019
Resolving issue in one
interaction

35%

Knowledgeable agent

Not having to repeat the same
information when transferred isimportant to 20% of respondents,
down 18 points since 2015. Resolving
the issue through self-service isimportant to 11%, varying only two
points since 2015.

31%

Finding information myself

11%

Not repeating information

20%

Five-year global average
2015-201939%

38%
26% 25%9%2015

24% 24%

27%

11%

2016

31%

30% 28%

33%

21%
13%

2017

35%

20%
12%

2018

Not repeating information

Finding information myself

Knowledgable agent

Resolving issue in one interaction(c) 2020 Microsoft Corporation. All rights reserved.

31%

Dynamics 365

11%

2019

Page | 15

Q8. What do you feel is the most important aspect of a good
customer service experience?
By country
Not repeating information

Finding information myself

26%
19%

22%

17%

13%

US

14%

19%
7%

UK

Germany Brazil

Japan

US

Knowledgeable agent
38%

UK

40%
27%

UK

Germany Brazil

Germany BrazilJapan(c) 2020 Microsoft Corporation. All rights reserved.

41%

38%

Japan

34%

25%

16%

US

9%

Resolving issue in one
interaction

41%
33%

9%

USA

UK

Germany Brazil

Dynamics 365

Japan

Page | 16

Q9. What is the most frustrating aspect of a poor customer
service experience?
Results are almost identical to lastyear. The top two answers are very
close with 35% stating a
representative’s lack of knowledge
or inability to resolve the issueranked as the most frustrating aspectof poor customer service. This wasfollowed by an irritated 32% saying it
is having to repeat the same
information multiple times.
Knowledgeable agents are an
important factor in creating a positive
experience. However, empowering theagent with access to the customer’s
journey is equally as important. A
360-degree view into the customer
journey arms the agent with theinformation needed to better serve
the customer. This inside view
reduces any friction the customer may
encounter during the experience andprovides the agent with theopportunity to personalize thecustomer experience.

(c) 2020 Microsoft Corporation. All rights reserved.

Only 21% of respondents reported
difficulty or the inability to reach an agent
as the most frustrating aspect of poor
customer service. The inability to resolve theissue through self-service ranked as mostfrustrating by only 12% of respondents.

Global average
2018-201936% 35%

32% 32%

20% 21%
12% 12%

Unable to resolve
issue myself

Difficu lty
reaching an
agent
2018

Dynamics 365

Agent lack of
kn owledge

Havin g to repeat
information

2019

Page | 16

Q9. What is the most frustrating aspect of a poor customer
service experience?
By country
Inability to resolve issue myself
through self service

Agent lack of knowledge
39%

US

31%

UK

31%

31%

Germany Brazil

41%

21%

Japan

6%

8%

US

UK

27%
28%

US

UK

29%

21%

38%

Germany Brazil

20%

24%

Japan

USA

By age group
Surprisingly, all age groups
agreed that an agent’s lack ofknowledge and having torepeat information areamong the most frustrating
aspects of poor service.
However, the inability toresolve the issue through selfservice was most frustrating
to the “do-it-yourself” 18-34
age group. Difficulty reachingan agent peaked at 25%
among those 55+. Those age
35-54 and 18-34 followedwith 20% and 18%,
respectively.

Germany Brazil

10%
Japan

Difficulty reaching a live agent

Having to repeat information
40%

17%

UK

25%
14%

Germany Brazil

Japan

Global average by age group
36% 35% 35%

32% 32% 33%

25%
19%

18%

15%

20%

7%

Unable to resolve Difficu lty reachin gissue myself
an agent(c) 2020 Microsoft Corporation. All rights reserved.

18-34

Agent lack of
kn owledge

35-54

Dynamics 365

Havin g to repeat
information

55+

Page | 17

Q10. Should organizations give you the opportunity toprovide feedback?
Overwhelmingly, customers want toprovide feedback with 89% of
respondents answering yes, leading
to a three-year average of 85.3%.
Statistically, there was also little
variation by age group.
The results are clear: Just ask.
Customers want to be heard and theywant to share their experience.

Global average
2017-2019
90%

77%

23%

2017

And, the solution is so simple fororganizations. Businesses can easily
cinch this gap by automating a followup survey of the customer’s support
experience. An automated email
survey following up on the customer
service experience will go far to satisfy
the consumers’ need to provide
feedback. Customer data can begleaned and leveraged to improve thecustomer experience. Surveying
customers following a support
interaction is a win-win for thecustomer and for the business.

(c) 2020 Microsoft Corporation. All rights reserved.

10%
2018
Yes

Dynamics 365

89%

11%
2019

No

Page | 19

Q10. Should organizations give you the opportunity toprovide feedback?

By country
95%

USA

94%

86%
14%

6%

5%
Yes

Germany

UK

Yes

No

Yes

No

Brazil

Japan
74%

98%

26%

2%
Yes

No

No

Yes

No

By age groupAge 35-54

Age 18-34
89%

88%
12%

11%
Yes

No

Age 55+91%

Yes(c) 2020 Microsoft Corporation. All rights reserved.

No

Dynamics 365

9%
Yes

No

Page | 20

Q11. How often are you given the opportunity toprovide feedback?
Similar to 2018 results, only 7% ofcompanies almost always request
feedback from customers. Surprisingly,
44% of respondents in Japan cited thatthey are almost never given theopportunity to provide feedback.
It is clear from respondent’s answers
that they want to share their experience,but organizations are still not inviting
customers to share, let alone listen.
Again, the solution is simple: anautomated follow-up email survey could
significantly improve customer
satisfaction while providing valuable
insights into the customer experience.

(c) 2020 Microsoft Corporation. All rights reserved.

Global average
2018-2019
Almost always

7%
7%
17%
18%

Often

22%
23%

About half the time

37%
36%

Occasionally
17%
16%

Almost never2018

Dynamics 365

2019

Page | 21

Q11. How often are you given the opportunity toprovide feedback?
By country
UK

USA
Almost always

10%

Often

26%

About half the time

28%

Occasionally
Almost never

31%
5%

Almost always
Often
About half the time
Occasionally
Almost neverGermany
Almost always
Often
About half the time
Occasionally
Almost never

9%
23%
28%
36%
5%

Brazil

8%
19%
25%
39%
9%

Almost always
Often
About half the time
Occasionally
Almost never

6%
16%
17%
45%
16%

Japan
Almost always
Often
About half the time
Occasionally
Almost never(c) 2020 Microsoft Corporation. All rights reserved.

4%
7%
16%
29%
44%

Dynamics 365

Page | 22

Q12. Do you believe most brands take action on feedback
provided by their customers?
It’s a close call with 47% of
respondents answering yes and 53%
answering no. Brazil was the outlier
with 54% believing organizations would
take action from provided feedback.
Year-over-year trends were relatively
consistent with a nearly even split.
Those aged 18-34 are the most
optimistic about their feedback
being used, with 56% believing thebrand would act. Respondents aged
55+ are less optimistic with only 42%
believing feedback would prompt any
action by the organization.

Global average
2016-2019
52%

52%

48%

2016

53%

51%

48%

2017

49%
47%

2018
Yes

2019

No

Customer surveys are one way fororganizations to gain insights into
operations and satisfaction.
Organizations can also deploy AIenabled analytics applications to
consume and digest customer service
data to identify gaps in service andopportunities to improve. AI-enabled
analytics are useful when prioritizing
initiatives to determine which provides
the greatest impact. By leveraging
customer feedback and analytics
programs, customer service can not
only identify areas for improvement,
but can also enhance the customer
experience.

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 23

Q12. Do you believe most brands take action on feedback
provided by their customers?

By country
UK

USA
47%

Yes

53%

41%

No

Yes

Germany
59%

43%

No

Yes

Brazil

No

Japan
51%

54%

Yes

57%

46%

49%

No

Yes

No

By age groupAge 55+

Age 35-54

Age 18-34

53%
56%

Yes

44%

47%

No

Yes

(c) 2020 Microsoft Corporation. All rights reserved.

42%

No

Dynamics 365

Yes

58%

No

Page | 24

Omnichannel experience
The majority of customers continue to use
3 to 5 channels to get their issues
resolved, and voice remains the preferredchannel to contact customer service.
Email, self-service, and chat follow closely
behind. However, email has started to
decline with self-service (53%) and chat(48%) growing in use.
This increase in self-service could be basedin the advances in the technology such as
artificial intelligence (AI) and machinelearning, making self-service even easier touse by both the customer and the agent. It’s
therefore not by coincidence that 86% ofrespondents expect a self-service option
and two-thirds try self-service first before
contacting a live agent.
The rise of chat may be that many small- to
medium-sized businesses have caught up to
their enterprise cousins with live chat
implementations. Other factors may include
the ease of use, convenience, and the ability
to communicate in real-time. Some of the
popularity in self-service and chat channels
may also be due to their complementary
nature.

(c) 2020 Microsoft Corporation. All rights reserved.

An overwhelming 75% of respondents
want the agent to know who they are andtheir purchase history. This expectation
has remained steady for the past five
years. This year, respondents reported that
only occasionally (31%) did the agent havethis information.
Organizations can check off this frustration
and replace it by exceeding anotherexpectation with one solution: simply
provide agents a 360- degree view of thecustomer journey across channels and overtime. A true omnichannel experience
threads the customer profile and history
across the channel landscape.
Social media continues to trail as acustomer service channel with 61% of
respondents preferring to use otherchannels. Of those using social media forcustomer service, 74% did not expect a
response within that same day; however,
54% of respondents were favorable to abrand that answered customer service
questions via social media. It would
appear that responding to customer service
questions over social media is more
important to customers than the timelinessof the response.

Dynamics 365

Page | 25

Q13. Which of the following customer service channels
have you used?
Overall, there was little change from2018 in the channels used byconsumers. Using the telephone (orother voice channels) to reachcustomer service still rules with thischannel being used most by 71% of
respondents. Voice is followed
closely by email (64%), self-service(53%), live chat (48%), support ticket(22%), mobile (16%), social and SMS(tying at 15%).
One of the most gradual declines has
been in email. In 2015, email wasused by 80% of respondents andhas fallen steadily to 64% in 2018and 2019.
Mobile apps have risen in use with
only 8% in 2015 and doubling to 16%
in both 2018 and 2019.
Online self-service started off with abang with 59% in 2015, dropping in2016 and 2017. This channel has
rebounded with increased usage with
53% in 2019. The increase in usage
may be due to more organizations
offering self-service portals and FAQs
for 24/7 customer service andadvances in the self-service
technology.

(c) 2020 Microsoft Corporation. All rights reserved.

Global average
2019
Texting/SM S
Support ticket
Social media
Online self-service
Telephone/voice
Mobile apps
Live chat
Email

15%
22%
15%
53%
71%
16%
48%
64%

Five-year global average 2015-2019
Email
80%

77%

2015

2016

63%

64%

64%

2017

2018

2019

Mobile apps
8%

2015

10%

11%

2016

2017

16%

16%

2018

2019

Dynamics 365

Page | 26

Q13. Which of the following customer service channels
have you used?
Chat, like self-service, started off
strong with 61% of respondents using
chat in 2015. However, the use of chatfell in 2016 and again plummeted toits lowest point with only 40% of
respondents using the channel in2017. Studies indicate that this drop
off in consumer use may be partially
due to the evolving nature of chat andthe inability to meet growing demand
for the technology. During this time,
demand for live chat far exceeded
supply, creating greater difficulties forsmall and medium businesses tocontract and implement chat thantheir enterprise cousins; therefore, live
chat was simply not available to use.

machine learning (ML), and businessintelligence (BI). Chat is much easier todeploy and is a low-effort customer
service tool, offering personalized,
real-time communication with theability to automate routine answers.
These new capabilities may contributeto the gain of 8 points in usage
since 2017 to 48% in 2019.
It is also worth noting that live chatand self-service naturally
complement each other in thecustomer’s quest for service. Manyorganizations offer a self-service
portal with an optional chat channel
should consumers wish to reach out toa live agent. This pairing of channels
may also contribute to their growing
popularity.

Live chat technology has madesignificant strides since with theaddition of AI,

Five-year global average 2015-2019
Online self-service andLive chat
59% 61%

2015

56%

45%

2016

46%

55%
40%

2017

Online self-service(c) 2020 Microsoft Corporation. All rights reserved.

45%

2018

53%

48%

2019

Live chatDynamics 365

Page | 27

Q14. Which channel would you ideally prefer to use?
Again, voice is the clear winner witha preference of 34% globally;
however, this is a drop of 5 points
from 2018. Email is a distant runner up
at 17%, a drop of 3 points from prioryear. Live chat was the third most
preferred channel at 15%, and selfservice came in at at 9%. SMS or text
messaging pulled up the rear at 3%.

Global average
2019
Texting/SM S

3%Social media

4%

Online self-service

9%

Telephone/voice

34%

Live chat

15%

Email

17%

Five-year channel global average 2015-2019
Email
29%

2015

Live chat
31%

32%
23%

2016

2017

20%

17%

2018

2019

Online self-service
12%
5%

2015

8%

7%

2016

2017

2018

19%

2015

2%

2015

3%

2016

2017

5%

2018

2017

16%

15%

2018

2019

Telephone/voice

9%

33%

2019

2015

38%

2016

43%

39%

2017

2018

34%

2019

Texting/SMS

Social media
4%

2016

12%

4%

2019

(c) 2020 Microsoft Corporation. All rights reserved.

3%

3%

2018

2019

2%
No
data

No
data

2015

2016

2017

Dynamics 365

Page | 28

Q14. Which channel would you ideally prefer to use?
By country
UK

USA
Texting/SM S

3%

Texting/SMS

1%

Social media

2%

Social media

2%

Online self-service

3%

Online self-service

5%

Telephone/voice

Telephone/voice

41%

Live chat15%

Live chat

Email

13%

Email

Germany
Texting/SMS
Social media
Online self-service
Live chat
Email

26%
22%

BrazilTexting/SMS

1%
4%

Social media

6%

Online self-service

Telephone/voice

31%

1%
12%
14%

Telephone/voice

48%

30%

Live chat

8%

23%

Email

17%

13%

Japan
Texting/SMS
Social media
Online self-service
Telephone/voice
Live chat
Email

7%
2%

(c) 2020 Microsoft Corporation. All rights reserved.

15%
23%
4%
19%

Dynamics 365

Page | 29

Q15. How many different customer service channels haveyou used?
In 2015, 29% of respondents used 6
or more channels. In 2019, thispercentage dropped a whopping
69% to just 9% of respondents
using 6 or more channels. Most
respondents continue to use 3 to 5channels to contact customer service
with an average of 47.8% from 2015
to 2019. The use of 1-2 channels rosefrom 29% in 2016 and 2017 to 37% in2018 and 36% in 2019.
The reduction in consumers using 6 ormore channels and the increase of
those using 1 to 2 channels issignificant as shown in the graphbelow. However, whether the drop in
multiple channels used is due todissatisfaction or due to quick issue
resolution is unclear.
No matter how many channels areused by the customer, it is importantto create a seamless customer
experience across the channellandscape. Customer service shouldhave a comprehensive view of thecustomer journey across channels andacross time to personalize theexperience and expedite issue
resolution.

(c) 2020 Microsoft Corporation. All rights reserved.

Global average
2019
49%
36%

9%

5%

6 or more

3 to 5

1 to 2None

Five-year global average
Number of channels used2015-2016
60%
40%
20%
0%
2015

2016

6 or more

Dynamics 365

2017
3 to 520182019

1 to 2

None

Page | 30

Q16. Do you expect a representative to know your contact,product and service information/history?
A whopping 75% of respondents
expect the agent to know who they
are and their purchase history.
Respondents’ answers to this question
are consistent year over year with afour-year average of 74% so theneedle is not moving. Brazil showed
higher expectations with 93% of
respondents expecting their profileand customer journey to be available
to the agent.

Global average
2016-2019
72%

76%

72%

28%

28%

2016

2017

75%

24%

2018
Yes

25%

2019

No

By country

77%

70%

68%
32%

Yes

Germany

UK

USA

30%
Yes

No

23%

No

Yes

No

Japan

Brazil
93%

64%

36%

7%
Yes

Yes

No

No

By age groupAge 35-54

Age 18-34
80%

76%

No

70%
30%

24%

20%
Yes

Age 55+Yes(c) 2020 Microsoft Corporation. All rights reserved.

No

Dynamics 365

Yes

No

Page | 31

Q17. How often does a service representative have access to yourcontact, product and service information/history?
The answers to this question mirrored2018 responses. If customers expect
the representative to know who they
are and be able to view their complete
history with the company, a significant
opportunity exists for customer
service organizations. By bridging thisgap, 75% of all customers would havetheir expectations met—a significant
lift to any service organization. By
creating a seamless experience acrosschannels, including access to thecustomer profile and journey,
customer service organizations canmake huge strides in creating aconsistently positive customer
experience and building customer
loyalty.

(c) 2020 Microsoft Corporation. All rights reserved.

Global average
2018-201931% 31%
23% 24%

21% 21%

15% 15%

10% 9%

Almost never Occasionally Half th e time
2018

Dynamics 365

Often

Almostalways2019

Page | 32

Q17. How often does a service representative have access to yourcontact, product and service information/history?
2019 by country
UK

USA
Almost always

Almost always

15%

Often

26%

Often

Half the time

25%

Half the time

Occasionally26%

Occasionally

Almost never

Almost always
27%

9%

Often

22%

Half the time

23%

21%

Occasionally
Almost never10%

Brazil11%

Half the time

26%

Almost never

8%

Often

20%

37%

Germany
Almost always

8%

Occasionally

32%

34%

Almost never

9%

11%

Japan
Almost always

5%

Often
Half the time
Occasionally
Almost never(c) 2020 Microsoft Corporation. All rights reserved.

16%
19%
26%
35%

Dynamics 365

Page | 33

Q18. When engaging with customer service, do you try to use
self-service first or immediately engage with an agent?
On average, nearly two-thirds of
respondents go directly to selfservice first, rather than immediately
engaging an agent. Brazil and Japan
engage self-service the most with 79%
and 70%, respectively. The UK also led
the way, choosing self-service firstwith 58%, while the US and Germany
tied at 57%.

Global average
2018-2019
66%

64%
36%

34%

2018

2019

Begin with self-servi ce

Engage agent

By country
USA

UK

Germany

57%

43%

58%

42%

57%

43%

Begin with selfservice

Engage agent

Begin with selfservice

Engage agent

Begin with selfservice

Engage agent

Japan

Brazil
79%

70%
21%

Begin with selfservice

Engage agent

Begin with selfservice

30%
Engage agent

By age groupAge 35-54

Age 18-34
74%

66%
26%

Begin with selfservice

Engage agent

Begin with selfservice(c) 2020 Microsoft Corporation. All rights reserved.

34%
Engage agent

Dynamics 365

Age 55+57%

43%

Begin with selfservice

Engage agent

Page | 34

Q19. Do you expect an organization to offer online self-service
support options (e.g. FAQ or support community)?
Overwhelmingly, 86% of consumers
expect online self-service options.
And, a whopping 96% of respondents
from Brazil expect a self-service
option.
Often accessed through a portal, selfservice can include a searchable
knowledgebase, dropdown FAQ or a
support community.

Global average
2015-2019
92%

90%

90%

88%

86%

8%

10%

10%

12%

14%

2015

2016

2017

2018

2019

Yes

No

A knowledgebase is a living library, arepository of information for both thecustomer and the agent. A self-service
knowledgebase or FAQ can be a winwin for the customer and organization
to help find answers quickly. Selfservice can be complimented with live
chat and the use of virtual agents.
However, the success or failure of aself-service knowledgebase restsheavily on the relevancy and accuracyof the topics and articles, and theability to quickly access theinformation. If the information isdifficult to access or is infrequently
updated, the knowledgebase canquickly turn into a liability.

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 35

Q19. Do you expect an organization to offer online self-service
support options (e.g. FAQ or support community)?

By country
USA
90%

85%
15%
Yes

Germany

UK

83%
17%

10%

No

Yes

No

Yes

Brazil

No

Japan
78%

96%

22%

4%
Yes

No

Yes

No

By age groupAge 18-34
91%

86%

No

84%
16%

14%

9%
Yes

Age 55+

Age 35-54

Yes(c) 2020 Microsoft Corporation. All rights reserved.

No

Dynamics 365

Yes

No

Page | 36

Q20. What social channels have you used for customer service?
Contrary to popular belief, social
media is not a favorite channel when it
comes to customer service. Thoserelying on Facebook fell to 26%
from 32% in 2018 with every othersocial channel, except Instagram,falling or remaining the same as prioryear. Instagram was the only social
channel to gain usage for customer
service with an increase of 2 points to
11% from 2018 to 2019.
No surprise that answers varied by age
group with those aged 18-34 having
used social media for customer
service. This age group led with 66%
using at least one social platform forcustomer service.

(c) 2020 Microsoft Corporation. All rights reserved.

Global average
2018-201955%

None of the these
Lin kedIn

61%
4%
4%

Instagram

9%
11%

Twitt er

13%
10%YouTube

14%
12%
32%
26%

Facebook

2018

Dynamics 365

2019

Page | 37

Q20. What social channels have you used for customer service?
By country
USA
None of the these
Lin kedIn
Instagram
Twitt er
YouTubeFacebook

UK
74%

2%
4%
5%
8%
18%

None of the these
LinkedIn
Instagram
Twitter
YouTubeFacebook

Germany
None of the these
LinkedIn
Instagram
Twitter
YouTubeFacebook

71%
2%
3%
9%
6%
20%

BrazilNone of the these
LinkedIn
Instagram
Twitter
YouTubeFacebook

67%
5%
9%
6%
15%
22%

23%
9%
33%
18%
18%
62%

Japan
None of the above
LinkedIn
Instagram
Twitter
YouTubeFacebook

71%
3%
7%
11%
13%
10%

By age groupAge 35-54

Age 18-34
None of the above
LinkedIn
Instagram
Twitter
YouTubeFacebook

34%
8%
28%
18%
21%
45%

None of the above
LinkedIn
Instagram
Twitter
YouTubeFacebook(c) 2020 Microsoft Corporation. All rights reserved.

Age 55+
58%

5%
11%
11%
13%
30%

None of the above
LinkedIn
Instagram
Twitter
YouTubeFacebook

Dynamics 365

80%
1%
2%
4%
6%
13%

Page | 38

Q21. Do you have a more favorable view of brands that respond toquestions or complaints on social media?
Interestingly, customers may not use
social media for service issues, but 54%
of respondents have a more favorable
view of organizations responding via
social media. Age group 18-34 are mostimpressed with 80% having a favorable
view and conversely, age group 55+ areleast impressed with 35% having afavorable view.

Global average
2015-2019
55%
45%

56%
44%

55%
45%

59%

2015

2016

2017

2018

Yes

41%

54%
46%

2019

No

By country
USA

UK
67%

66%

56%

44%

No

Yes

No

34%

33%

Yes

Germany

No

Yes

Japan

Brazil
89%

60%

40%

11%
Yes

Yes

No

No

By age groupAge 18-34
80%

59%
20%

Yes

No

Age 55+

Age 35-54

Yes(c) 2020 Microsoft Corporation. All rights reserved.

65%

41%

35%

No

Yes

Dynamics 365

No

Page | 39

Digital and emerging trends
Customers want their issues resolved within
the first interaction with customer service
and they depend on the channels theyknow best like voice, email, and chat.
Survey respondents were slow to explore
new channels such as video chat and cobrowse. This may be due to an unclear
understanding of what the channels offer,customers having privacy issues, or a lack ofcompanies offering such diverse channel
options. However, the biggest concern may
be more about the customer’s comfort levelwith showing their face over video chat withan agent than anything else.
Some studies indicate that most internet
users want to maintain their anonymity
online, which may account for the slow
acceptance of video chat and co-browse
as channels. For co-browse, customers may
not fully understand that they are sharing ascreen, not the data residing on the hard
drive. For these reasons, some customers
may be wary of allowing an agent to cobrowse their screen. However, despite thelack of use by customers, both video chatand co-browse channels consistently
provide high satisfaction levels. To help
increase adoption, it is a matter ofeducating the customer on what data theyare (and are not) sharing when engaging
with these channels.

(c) 2020 Microsoft Corporation. All rights reserved.

Customer acceptance of chatbot or
virtual agent technology continues togrow. However, not all chatbot technology
is the same. Most bots are built by
developers or data scientists, rather than by
the customer service subject matter expert(SME). This may explain why only a third of
respondents reported having their issue
resolved by a bot while two-thirds were
either transferred to an agent or simply
gave up. The customer service SME needs
to be actively involved in the bot building
and maintenance process to create relevant
bot conversations and articles that resolve
routine issues quickly. Some technologies
now eliminate the need for developers,
so the SME can easily build, launch andmaintain better, more relevant bots.

Dynamics 365

Page | 40

Q22. Have you ever used video chat?
Consumers who use live chat are yet to
explore video chat.

Global average
2018-2019

Respondents using video chat was
only 15%, a decrease from 18% in
2018. Interestingly, Germany and Brazil
were the biggest users of video chat with
34% and 23%, respectively.

85%

82%

18%

15%

2018

2019
Yes

No

By country
USA

UK

Germany
95%

93%

66%
34%

7%
Yes

5%
No

Yes

No

Yes

Japan

Brazil

87%

77%
23%
Yes

No

13%
No

Yes

No

By age groupAge 18-34

Yes

16%
No

93%

84%

73%
27%

Age 55+

Age 35-54

Yes(c) 2020 Microsoft Corporation. All rights reserved.

7%
No

Dynamics 365

Yes

No

Page | 41

Q23. Was video chat helpful?
For the few that used video chat, 89%
reported it was helpful in resolving theirissue—a four-point increase from 85% in
2018.

Global average
2018-201989%

85%

While SMS communication is all about
efficiency of service, video chat provides afriendlier, more personalized experience thathelps to establish trust and build strong
customer relationships. As bandwidthconcerns continue to diminish, Forrester
expects the use of video chat to grow.

15%

11%

2018

2019
Yes

No

By country
77%

93%

87%
23%

7%
Yes

Germany

UK

USA

No

Yes

13%
Yes

No

Japan

Brazil
95%

92%
8%
Yes

No

5%

No

Yes

No

By age group
93%

86%
14%
Yes

No

Age 55+

Age 35-54

Age 18-34

87%
13%

7%
Yes

(c) 2020 Microsoft Corporation. All rights reserved.

No

Dynamics 365

Yes

No

Page | 42

Q24. Have you ever used co-browse?
A global average of 81% of
respondents have yet to use co-browse.
Remarkably, 95% of respondents from the
US and UK have not used co-browse as achannel. Brazil led the way with 39% of
respondents having tried co-browse withJapan and Germany following with 30%
and 25%, respectively.

Global average
2018-2019
81%

77%

23%

19%

2018

2019
Yes

No

By country
USA

UK
95%

5%
Yes

Germany
95%

75%
25%

5%
No

Yes

No

Yes

Japan

Brazil
39%

Yes

No

70%

61%
30%
No

Yes

No

By age groupAge 35-54

Age 18-34

Yes

22%
No

94%

78%

65%
35%

Age 55+Yes(c) 2020 Microsoft Corporation. All rights reserved.

6%
No

Dynamics 365

Yes

No

Page | 43

Q25. Was co-browse useful?
A resounding 92% found co-browse
useful, up one point from the previous
year.

Global average
2018-201992%

91%

According to analysts, nearly 60% of
customer interactions required
intervention by a live agent. Co-browsing
is a user-friendly tool that can enhance thecustomer experience with a more
personalized, high touch interaction while
simultaneously expediting a resolution.

9%

8%

2018

2019
Yes

No

By country
USA
84%

88%

82%
18%

16%
Yes

Germany

UK

No

Yes

12%
Yes

No

Japan

Brazil
95%

91%
9%

5%
Yes

No

Yes

No

No

By age groupAge 35-54

Age 18-34

9%
Yes

95%

92%

91%

No

Age 55+8%Yes(c) 2020 Microsoft Corporation. All rights reserved.

No

Dynamics 365

5%
Yes

No

Page | 44

Q26. How effective was a chatbot in resolving your issue?
Chatbot effectiveness has fallenslightly with 28% of respondents
reporting the bot resolved the issue.
A total of 35% reported that the
chatbot could not resolve the issue
but transferred the consumer to a live
agent, and 36% reported the chatbot
was completely ineffective.
Bots are built with the best intentions,but sometimes, as shared by our
respondents, they become a liability
rather than contributing to a positive
customer experience.
Most bot technologies rely on
developers and data scientists. Thiscan create distance between the bot
and those who understand thecustomer best. Because of costly
developer time and scheduling, bot
conversations grow less natural, topics
are not as easy to locate and content
is not refreshed as often as it shouldbe, making the bot more ineffective as
time goes on.

(c) 2020 Microsoft Corporation. All rights reserved.

Global average
2018-201937% 35%30% 28%

Very effective

Unable to answer
question , buttransferred me toan agent
2018

33%

36%

Ineffective; usedother channel

2019

New bot technologies can mitigate theseissues by making it easier to create,launch and maintain bots. Conversations
are more natural because those closest to
the customer create the scenarios, andtopics can be more frequently. Customer
issues are found quicker and issues areresolved faster. But, most of all, youmaximize the potential impact of the bot
whenever the customer has a positive
experience interacting with it.

Dynamics 365

Page | 45

Q26. How effective was a chatbot in resolving your issue?
By country
USA
38%

UK
40%

21%

Very effective

33%

26%

Unable to answer Ineffective; used
questi on, butother channeltransferred me toan agent

Very effective

Unable to answer Ineffective; used
questi on, butother channeltransferred me toan agent

Germany
27%

36%

41%

Brazil
36%

44%

38%
18%

Very effective

Unable to answer Ineffective; used
questi on, butother channeltransferred me toan agent

Very effective

Unable to answer Ineffective; used
questi on, butother channeltransferred me toan agent

Japan
46%
30%

24%

Very effective

Unable to answer Ineffective; used
questi on, butother channeltransferred me toan agent(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 46

What we’ve learned
Customers have higher expectations than ever before. So it’s no surprise that analysts
predict customer experience will overtake price and product as a key brand differentiatorin 2020.
Customers want to be recognized as individuals, treated with respect by knowledgeable
agents and have their issues resolved quickly and completely by self- or assisted service.
They want a positive customer experience and to create a relationship with your brandthat is based on more than just the latest transaction. And, it’s clear that customer service
is the epicenter of delivering a positive customer experience. Delivering a positive
customer experience drives customer retention, enrichment and advocacy—all of which
affect loyalty-driven revenue.
Companies are listening, measuring their customer experience and making data-driven
moves to improve the experience. Constantly improving the customer experience andcontinually tweaking processes for better efficiency will drive revenue and lead thesecompanies to prosperity. Conversely, those that ignore the customer experience-revenue
relationship will fail to optimize company performance and sadly, will eventually fadefrom view.
What are you doing to capture the opportunities that lie ahead? How is yourorganization focusing on the customer experience?
Learn how our industry-leading Microsoft Dynamics 365 Customer Service solution canhelp you build loyalty and deliver consistent, exceptional customer experiences. We
fuse AI, machine learning, IoT, and analytics to give you the breadth and depth needed totransform your organization to capitalize on the new service economy.
Learn more at: https://aka.ms/CustomerService or give us a call at 888.477.7989 todiscuss your unique needs.

Follow us on Twitter: @MFSTDynamics365.

(c) 2020 Microsoft Corporation. All rights reserved.

Dynamics 365

Page | 47