Customer service is undergoing a rapid transformation, driven by evolving customer expectations and technological advancements. While AI and automation have been hailed as game-changers, the full promise of AI has yet to be universally realized. It's time to change that and put an end to bad customer service once and for all.
The stakes are high: globally, poor customer experiences cost organizations $3.7 trillion annually -- an increase of $600 billion from last year. According to our 2024 AI and Customer Service Index, only 50% of people believe AI has improved service in recent years. As we look ahead to 2025, it's clear that customer service is still broken, and the traditional approaches aren't delivering. New answers are needed, and those answers lie in the powerful fusion of data, AI and humans.
At Kustomer, we've spent nearly a decade reinventing customer service, and we've learned that the future comes down to one thing: empowering human agents with AI and real-time data. With over two billion consumer interactions under our belt, it's clear this synergy is the key to transforming CX from a cost center into a growth engine. When businesses can leverage the combined power of humans, AI, and data, they unlock scalable, adaptable, and delightful customer experiences at every touchpoint.
Data + AI + humans: A unified, data-driven approach for next-level CX
In today's rapidly evolving customer service landscape, the key to delivering outstanding experiences lies in the seamless integration of data, AI and humans. When these three forces come together, businesses can provide proactive, personalized service at scale, transforming customer interactions from reactive problem-solving to strategic relationship-building.
Why data + AI + humans?
The equation is simple but powerful: Data provides the foundation, AI amplifies efficiency and humans bring empathy and insight. Together, they create a customer service experience that's both intelligent and human-centric -- one that doesn't just meet expectations but exceeds them.
Research supports this shift. 76% of consumers expect proactive service, while 71% demand personalized interactions. Even more telling is that 76% of customers will switch providers if these expectations aren't met. To stay ahead, businesses must shift from traditional, reactive models to a more proactive, data-driven approach, and that's where this winning combination comes into play.
The role of data: Anticipating needs, not just reacting
At the heart of proactive service is data. Most platforms wait for a ticket to gather information, reacting only after a problem arises. But with Kustomer's approach, data is collected and analyzed in real time -right from the moment a customer places an order. This allows businesses to anticipate needs, solve issues before they even arise and deliver a seamless experience.
Our CRM pulls in all relevant data -- purchase history, preferences, behavior patterns -- into one unified timeline, creating a 360-degree view of each customer. This comprehensive view ensures that both AI and human agents have the context they need to make informed, thoughtful decisions.
AI: Enhancing service, not replacing humans
Now, let's talk about AI, specifically AI agents, and how they fit into this equation. Unlike platforms that bolt on AI as an afterthought, Kustomer's AI agents are fully integrated into the workflow, designed to work alongside human agents rather than replace them.
Think of AI agents as the ultimate customer service sidekick: S.M.A.R.T. -- Specialized, Multi-Channel, Advanced in reasoning, Responsive and Team-oriented. These agents aren't just glorified chatbots -they're capable of handling complex tasks, understanding customer needs and making real-time decisions based on data. Whether they're fielding routine inquiries or solving more advanced problems, AI agents free up human agents to focus on what they do best: relationship-building and complex problem-solving.
For example, imagine you're trying to reschedule a flight. A chatbot might only offer a generic response: "Visit the airline's website to change your flight." But Kustomer's AI agent does more. It pulls your travel history, checks availability and proactively suggests the best options based on your preferences -- then, if things get tricky, it seamlessly passes you to a human agent who knows the full context.
Why it's better: The AI agent isn't just answering questions; it's solving problems, anticipating needs and working alongside humans to deliver a personalized, efficient experience.
By automating routine tasks and harnessing real-time data, AI agents can proactively solve problems, often before customers are even aware of them. This allows humans to focus on delivering the kind of high-value service that only human empathy and insight can provide.
Humans: The empathy engine
While AI handles efficiency, humans remain the core of great customer service. No matter how sophisticated AI becomes, there's no substitute for the emotional intelligence and problem-solving skills that human agents bring to the table. With AI managing repetitive tasks and providing data-driven insights, human agents are empowered to do what they do best: deliver personalized, empathetic service that builds lasting relationships.
This synergy -- data informing AI, AI empowering humans and humans elevating the experience -- creates a level of customer service that's proactive, personalized and strategic.
Breaking free from legacy pricing models
But delivering exceptional service isn't just about the technology; it's also about how companies pay for it. As customer service evolves, so must the pricing models to better meet the needs of businesses. Traditional, seat-based pricing has long restricted companies from scaling their customer service operations effectively. According to our 2024 State of Pricing in Customer Service report, 93.5% of companies are still tied to seat-based pricing, but many are eager for change. The reason? Managing multiple seat types -- whether full-time, part-time, admin or seasonal -- is a logistical nightmare. What businesses really want is a model that balances flexibility with predictability, something seat-based pricing struggles to offer. Enter usage-based pricing.
When we dug deeper, we found that companies can forecast conversations with 75% accuracy -- far more reliably than they can forecast other metrics like resolutions. This is why 76% of customer service leaders prefer a conversation-based pricing model. Conversations are predictable, trackable and easy to manage, allowing companies to scale their operations without hidden fees or complications.
In addition, businesses are increasingly rejecting AI as an expensive add-on. In fact, 91% of leaders believe AI should be included in the overall cost, and 96% expect platform functionalities to be part of the package. What they want is simple: unlimited AI, unlimited platform access and a pricing model that adapts to their business needs without adding complexity -- all for one price per conversation. By shifting to conversation-based pricing, companies can enjoy the benefits of flexibility, predictability.
Leading the way in the evolving AI-CX market
The future of customer service is limitless -- and it's powered by the unstoppable force of data, AI and human expertise. It's time to ditch outdated models and embrace a new era where AI enhances human empathy, data drives smarter decisions and every customer interaction becomes a growth opportunity. At Kustomer, we're not just imagining this future -- we're leading it. Are you ready to transform customer service forever? Let's get started.
