TP’s Business Insights report  into consumer behaviors and preferences, taking in more than 57,000 respondents across 19 sectors, is shedding new light on how evolving channel preferences are reshaping the customer experience at the dawn of the AI-enabled support era.

TP Australia Vice President, Maurice Zicman said while the report found a clear preference for human support, there was a shift towards digital communication especially from younger generations with green-shoots from older generations adopting in-app digital channels.

“Overall, 62 percent of all consumers surveyed showed a clear preference for interaction with a person when dealing directly with a business or organisation, especially for complex or sensitive issues,” Mr Zicman said.

“While AI can assist with basic tasks, customers overwhelmingly agree that human oversight is essential for delivering quality support,” he said.

While Gen Z (18-25 year-olds) were most likely to contact a brand, how those interactions occur are changing.

“Gen Z showed a higher percentage of respondents contacting through email in the last 12 months, while ‘Chat with Live Agent’ was the most utilised option across the younger generations seeking support through the Mobile App.”

“Gen Z are proving to be the most challenging consumer to support, they are digital native’s and well researched on service providers products and services.”

“Millennials prefer email and digital messaging platforms, while Baby Boomers continue to favor a phone call as their primary contact method.”

“Facebook remains the most utilised platform by Baby Boomers, Gen Xers, and Millennials using social media to contact their brands, but it is surpassed by Instagram among Gen Z,” Mr Zicman said.

While speaking directly to a person remained the primary channel for most consumers, its usage has declined since 2019 with video, SMS, and Instant Messaging experiencing the most significant growth, up as much as four times higher.

Food delivery services showed the highest percentage of customers contacting through the mobile app, while online education followed by online travel agencies had the most instant messaging contact from users reaching out for support.

Preference for traditional voice calls was highest among automotive and electric utility customers, followed by auto insurance policy owners.

While 12 percent of respondents resorted to Social Media platforms to contact brands.

“As consumer behaviors change, businesses must also adapt by embracing a more flexible and omnichannel approach to customer support,” Mr Zicman said.

“Brands that integrate AI tools for efficiency, while ensuring human oversight, will be better positioned to build trust and maintain loyalty in the long term.

Mr Zicman also warned companies should ensure contact information was easily accessible to customers, with the effort required to find support details playing a critical role in shaping customer perceptions of a brand or organisation.

“A good range of contact options can serve as a loyalty catalyst or detractor. 

“Brands that offer a range of contact options which are easily accessible create a more trustworthy and reliable customer experience, with data showing consumers were 41 percent more likely to stay loyal. When customers struggle to find those contact details, their loyalty tends to diminish.

The Business Insights Lab is TP’s research centre dedicated to monitoring consumers’ changing behaviors and expectations globally.

Launched in 2013, the Business Insights Lab conducts thousands of interviews across multiple sectors, helping organisations understand customer’s evolving needs through data-driven insights.