This post is part ofG2's 2024 technology trendsseries. Read more about G2’s perspective on digital transformation trends in anintroductionfrom Chris Voce, VP, market research, and additional coverage on trends identified by G2’s analysts.
Customer service automation benefits smaller companies' ROI
In 2024, smaller businesses (SMBs) customer service teams will experience a faster return on investment (ROI) from adopting generative AI solutions than mid-market and enterprise-sized businesses. SMBs willing to adopt these platforms into their tech stacks will experience less risk, faster financial return, and lower team resource consumption.
Among businesses, the customer service departments are routinely seen as cost centers under constant risk for downsizing. This is especially true for enterprise businesses because they can have truly gargantuan support departments to manage the deluge of customer support tickets.
However, this can also concern smaller teams that don’t want to dramatically increase overhead while providing excellent customer service.
G2 data shows a positive correlation between company size and time till ROI
The graph below shows data on how company size has a positive correlation (r = 0.64) with self-reported return on investment from adopting customer service automation into their tech stack.
On average, small businesses only require a little over 13 months to experience ROI on their purchase, while enterprise-sized businesses need almost 22 months for ROI.
This average nine-month difference is three business quarters' worth of productivity before companies feel a CSA product has been fully accepted into their company and is providing more value than its initial cost.
In G2’s 2023 Buyer Behavior Report, companies of all sizes list ROI in six months as a top three consideration when determining which software product to adopt. Mid-market companies listed ROI in six months as #1, enterprise businesses listed it as #2, and SMBs listed it as #3.
CSA software product providers must investigate why smaller companies observe faster ROI. Many of these benefits SMBs experience can be used to improve the adoption experience of larger companies.
Simpler tech stack: Easier and quicker to integrate new technology.
Flatter hierarchies: Customer support agents with more resources provide better answers, which creates better training data for AI.
Youth and comfort with tech: Younger companies are more entrepreneurial and more likely to adopt new technologies.
Quality and quantity of data: SMBs have smaller data lakes and data infrastructure. The result is a cleaner database with fewer redundancies.
Guided learning: Active training alongside a customer support agent as a company grows provides higher quality input than old datasets with little context.
Jeffrey is a research analyst at G2 with a focus on Customer Service and HR software. Prior to joining G2, he worked in Human Resources for Amazon. In his free time, he spends time playing video games, exploring cities, and traveling when possible.
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2024 Trends: Customer Service Automation Is The Key to Faster ROI for SMBsRead G2's 2024 Trends content written by our market research experts. In 2024, we see a large ROI for companies adopting Gen AI and customer automation software.https://research.g2.com/insights/customer-service-automation-trends-2024https://learn.g2.com/hubfs/Trends%202024%20Jeffrey%20Lin.png2023-10-11 10:08:06Z
Jeffrey LinJeffrey is a research analyst at G2 with a focus on Customer Service and HR software. Prior to joining G2, he worked in Human Resources for Amazon. In his free time, he spends time playing video games, exploring cities, and traveling when possible.https://research.g2.com/insights/author/jeffrey-linhttps://learn.g2.com/hubfs/jeffrey-lin.jpghttps://www.linkedin.com/in/jeffreylilin/