New research unveils urgent customer service opportunities for India

India is poised to become the world’s third-largest consumer market, according to Morgan Stanley. Yet organizations are struggling to meet the evolving expectations of increasingly tech-savvy customers. In fact, ServiceNow’s latest Customer Experience Report found the average Indian wastes nearly 28 hours per year on hold.

Customer service agents are also stuck. They spend most of their time waiting for answers, chasing teams for information, and taking care of administrative tasks. That leaves less than one day per week to spend on resolving customer issues, according to our study.

These findings reveal some important customer service opportunities. Organizations that can close the gap stand to benefit from a virtuous cycle of new revenue streams and endorsement from satisfied customers.

Finding common ground on “good service”

Our customer experience research found that many organizations lack a customer-centric perspective. More than half (57%) of customer service employees believe simple customer issues are resolved in less than 30 minutes, while nearly the same number feel complex issues take an hour at most to address. Yet the average Indian reports spending almost four days resolving any sort of issue.

This gap underscores the disconnect created by siloed systems and limited visibility into the customer journey. It also adds to customer disappointment.

Organizations need to make sure their employees see the overall customer experience the same way their customers do. That involves finding ways to adopt customers’ perspectives and better understand their frustrations.

Eighty percent of Indian consumers are using AI chatbots for routine tasks, such as checking complaint statuses or accessing self-help guides. But they still face prolonged delays for complex issues.

To address this, brands need to provide agents with a comprehensive, end-to-end view of customers and their problems, including when these issues move beyond individual teams or departments.

To bridge the customer service gap, leaders should prioritize fast resolutions, qualified and equipped agents, and reduced hold times.

Closing the customer service gap

The greatest source of frustration for both Indian customers and agents is the widening rift between customer expectations and service experience. Siloed systems, fragmented functions, and disconnected departments cause customer issues to get lost or delayed.

In many cases, the most common grievances—waiting on hold for answers from different teams or having to repeat information to multiple parties—are the same for both customers and agents.

Simply adding new technology or processes can make the messy middle even messier. According to customer service agents in our survey, the majority of Indian organizations have installed AI tools (55%), training programs (53%), and new processes (56%) that failed to work with their existing tools.

That could cost brands further market share: 39% of customers consider taking their business elsewhere when faced with overcomplicated processes or technology, while 44% consider doing so when met with complex policies and processes.

Indian firms should clarify their strategy for ironing out the “messy middle” before any investments.

• Which processes currently drain the most time for agents?
• Where do customers most commonly demand escalation during the self-service experience?
• What systems stand in the way of giving agents from all teams a unified view of each individual customer and their issue?

The answers to these questions can lead the organization to consider platforms, such as the ServiceNow Platform, that can link their systems and give agents fast access to information—without demanding costly “rip and replace” changes to or complicated integrations for those systems. The majority (61%) of frontline agents believe this kind of technology can best support their customers.

Adopting AI for customer service success

AI presents a transformative opportunity for organizations:

• 52% of agents believe AI will enhance their role by freeing time for meaningful problem-solving.
• 48% see AI as a tool to reduce workloads.
• 42% believe AI will expand their role and lead to new growth opportunities.

AI can dramatically reduce how much time employees spend summarizing case histories. It can also automatically connect customers with the information most relevant to their issue at any time of day, and even help human agents better understand how customers are feeling in real time.

This is significant when 38% of Indian customers would pay more to resolve their issues faster, and 44% would pay a premium for 24/7 availability of dedicated support, according to our study.

Importantly, AI cannot be an add-on. To be effective, it must be part of a holistic customer experience strategy that aligns with customer needs. And it’s only as powerful as the platform it’s built into. ServiceNow is the AI platform for business transformation, delivering AI to every corner of the business.

AI isn’t just a technological upgrade—it's a strategic imperative. By using AI to streamline operations, enhance agent productivity, and improve customer experiences, organizations can turn service excellence into a powerful differentiator.

Leaders must seize this moment to adopt an AI-first approach, aligning technology investments with customer needs to unlock new levels of efficiency, loyalty, and growth. The message is clear: Embrace AI-driven transformation or risk losing ground in India’s rapidly evolving consumer landscape.

Download the 2024 Customer Experience Report – India to gain deeper insights and actionable strategies for driving exceptional customer service outcomes.