Mumbai: ServiceNow has released its Third Customer Experience (CX) Report, revealing that service inefficiencies and fragmented platforms are significantly impacting customer loyalty in India. The report highlights that Indians spend an average of 10.8 hours annually resolving service-related issues, while 44% of consumers are willing to switch brands after a single poor service experience.
Based on insights from over 5,000 Indian consumers and 425 customer service professionals, the study indicates that despite rapid adoption of automation and artificial intelligence, structural issues such as disconnected systems, lack of empathy, and inefficient workflows continue to undermine trust in India’s growing digital service ecosystem.
Customer Service in India at an Inflection Point
The report reveals that customer service representatives often struggle with operational complexity. On average, service agents must navigate four different systems to resolve a single customer query, resulting in delays and inefficiencies. The findings suggest that fragmented infrastructure remains a major barrier to delivering seamless and responsive service experiences.
“Customer experience in India is at an inflection point. Enterprises have invested in AI, but the underlying infrastructure, a chaos of fragmented systems, disconnected data and siloed workflows, is holding them back.” said Sumeet Mathur, Senior Vice President and Managing Director, ServiceNow India Technology & Business Center. “The opportunity is about unifying what you already have so AI and people can work together effectively. That’s the transformation ServiceNow enables.”
The Empathy Gap in Customer Service
The report identifies a widening “empathy gap” between companies and customers, with many consumers feeling that service interactions lack context and understanding.
Key findings include:
- 48% of customers say service interactions lack empathy, making it their top source of frustration
- 45% report being transferred between multiple departments, reinforcing perceptions of fragmented service
Addressing this gap will be essential for businesses aiming to transform efficient service delivery into stronger, long-term customer relationships.
Commenting on the findings, Dinesh Narayan, Global Chief Information Officer, TVS Supply Chain Solutions, said, “In the supply chain landscape today, customer experience isn’t just about service levels, it’s about how intelligently we respond to change. As networks become more complex, we need digital platforms that connect data, workflows and people in real time. Our experience with ServiceNow shows how AI-powered workflows can bring greater visibility and faster decision-making across global operations. The insights from this CX report strongly resonate with what we are seeing on the ground, organisations that embed intelligence into their workflows are better positioned to deliver consistent, resilient and customer-centric outcomes.”
Consumers Are No Longer Willing to Compromise
Indian consumers are becoming increasingly vocal about poor service experiences. According to the report:
- 34% post public reviews or complaints, amplifying reputational risks for brands
- 37% share negative experiences with family and friends, extending the impact beyond the initial interaction
- 53% express frustration with unclear explanations, indicating rising expectations around both clarity and empathy
These findings underline how customer experience directly influences brand perception and loyalty.
The Platform Imperative
The study highlights that connected service platforms are becoming essential for delivering consistent customer experiences. Currently, service representatives spend only 48% of their time addressing actual customer issues, while the remainder is consumed by administrative tasks and navigating multiple systems.
- Other operational challenges identified include:
- Complex service issues taking up to 39 hours on average to resolve
- 30% of service professionals stating that too many tools slow down their productivity
“For businesses to compete in today’s experience economy, closing these gaps is not optional, it’s strategic,” added Mathur. “Empathy, speed and intelligence are the new currency of loyalty, and enterprises must invest in the platforms that make them possible.”
AI as the Future of Customer Experience
Customer service representatives increasingly view AI as a key enabler of next-generation customer experiences:
- 53% of service reps say AI is critical to delivering future-ready CX
- 52% report that AI has reduced workload and stress
Despite these gains, the report notes that operational inefficiencies continue to limit the full potential of AI-powered service models.
CX as a Productivity Multiplier
The report also highlights the broader economic implications of service inefficiencies. Earlier research from ServiceNow estimated that Indians collectively lose nearly 15 billion hours annually due to service delays, representing a $55 billion productivity opportunity for businesses.
With 66% of consumers expressing trust in AI and 80% already using chatbots, modernising customer experience infrastructure is increasingly viewed as a key driver of productivity and economic efficiency.
The Future of CX in India
According to the report, the next phase of customer experience transformation in India will be driven by the integration of AI, human expertise, and unified digital platforms. In this model:
- AI manages scale, speed, and complexity
- Human representatives deliver empathy and judgment
- Connected platforms orchestrate seamless service journeys
As businesses compete in the experience economy, organisations that successfully combine technology with human-centric service delivery will be best positioned to build trust and long-term customer loyalty.
