New Zealanders collectively spent 24 million hours on hold to customer service lines last year, according to new research released by ServiceNow.
The study highlighted the disconnect between business perceptions and customer experience. While businesses believe customer issues take approximately 30 minutes to resolve, customers report actual resolution times averaging more than four-and-a-half days.
"There is a big disconnect between what businesses think is the time to resolution and settling and what customers are telling us that they're experiencing,"" said Kate Tulp, ServiceNow New Zealand manager.
The research identified transportation companies, including bus, rail, and ride-share services, as the top performers in customer service efficiency. Household utilities such as gas and electricity providers earned the "most improved" recognition.
Financial services institutions like banks and insurance companies ranked among the worst offenders for customer wait times. Government agencies also performed poorly, with wait times increasing by 30 minutes year-over-year.
According to Tulp, part of the problem stems from fragmented customer information systems. Four out of five customer service representatives lack a comprehensive view of customer information. This forces them to put callers on hold while consulting colleagues or supervisors, creating further delays.
The research also found that customers who use digital service channels like chatbots, websites, or apps report higher satisfaction and faster resolution times compared to those using phone support.
Tulp also said that engaging in digital channels such as chatbots, websites, e-mail, or apps allow customers to multitask rather than listening to hold music they didn't choose.
ServiceNow said that AI can reduce time spent on customer service without replacing human agents. The company cited its work with Southern Cross Insurance, which implemented an AI-powered agent for internal users that achieved a 99% satisfaction rating.
"We're not saying AI replaces people," Tulp said. "If you've told the AI agent to be able to process results, you can choose to put in a little moment where a human checks it and says, ‘Yes, that's appropriate.’ But that's what happens when you're on the phone with the call centre too. It's the same, it's just that we're using technology smarter."
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