The human touch really counts for luxury customer service says survey

As businesses race to introduce artificial intelligence into their customer services, a new study suggests they should’t underestimate the human touch with “an emotive experience unlocking repeat purchasing and more revenue”.

Research from customer experience (CX) agency Ventrica “shows that luxury retail has the highest revenue potential tied to customer experience but also the highest risk of churn”.

It’s based on a survey of 2,000 UK consumers and found that 87% of luxury shoppers would make repeat purchases after a positive customer service experience. Meanwhile 39% would make multiple purchases (compared to just 20% across other sectors) after a positive experience.

And a positive CX results in additional spend with the brand, per enquiry.

However, the sector also reported the highest customer churn rates. Poor customer experiences could lead to the loss of 33% of customers. That’s worrying given that 52% of luxury retail customer service interactions were reported as negative — the highest of all sectors.

Ventrica’s conclusion is that combining AI with human customer service has the most potential for a positive impact for luxury retailers. How so? While just 23.4% of positive customer experiences were delivered by a blend of AI and human support across UK consumer sectors, this number jumped to 39% in luxury.

The survey, which covered the last 12 months, found that across sectors, only 53% of people found chatbots alone to be a successful means of resolving enquiries, significantly lower than calls (87%).

This means UK brands are at risk of losing out on potential revenue opportunities, with the survey finding consumers would be willing to spend up to £100 more on a brand in the future, following a positive experience. This figure doubles among 18 to 34-year-olds, with the median additional spend being between £100 and £199.

According to the research, consumers make an average of five customer service enquiries a year. If brands invest in delivering positive CX, consumers could spend up to £500 more a year on average. 

And Ventrica said that “if you listen to the technology providers in the space, you’d believe customers want more self-serve options and chatbots for customer enquiries. But that is just not the case,” its study shows. Over three-quarters (76%) of positive experiences were delivered solely by a human and 72% of all interactions, whether they started via chatbot or any other means, were eventually resolved by a person. 

The company said the “findings reinforce the importance of empathy and emotional intelligence in customer interactions”.

When asked what makes an experience positive, 69% of respondents said speed to resolution was the most important factor. The second highest was clear and easy-to-understand communication (45%) and empathy rounded out the top three factors, selected by almost a third (31%) of all respondents.

In an age of increasing digital communication, the research found consumers still heavily rely on phone calls, as they look for a fast and emotive customer experience. Ventrica said 82% of consumers called customer services in the past year, compared to 75% using email, 65% using a chatbot, 39% using a messenger service like WhatsApp and 36% using social media.

Clearly though, the percentages show that other options than a phone call with a human are appealing to consumers, although with some of them (apart from the chatbot interactions), it looks like the human touch could be hugely important.

Unsurprisingly, over half of 18 to 44-year-olds had used social media or messenger applications to communicate with customer service teams, suggesting that this demographic is more open to new ways of handling customer service enquiries. 

The research also found that 41% of all the positive experiences related to an issue such as a faulty or lost product. While these experiences can often leave a sour taste in consumers’ mouths and damage brand reputation, an empathic and speedy resolution can often lead to a positive experience and improved loyalty. 

Iain Banks, CEO of Ventrica, said: “Rather than seeing customer service as just a cost centre, brands should recognise it as a powerful driver of revenue and loyalty. Our research highlights that when customers receive fast, empathetic, and emotionally engaging support, they develop a stronger connection to the brand, leading to increased loyalty and higher spending.

“The human touch is essential – consumers value authentic, emotional connections that create positive experiences, especially when resolving issues. By focusing on emotionally intelligent, high-quality service, businesses can turn every customer interaction into a revenue-generating opportunity, fostering stronger relationships and increasing lifetime value. In an era where consumers reach out to customer service teams an average of five times a year, brands have a golden opportunity to build trust and differentiate themselves.”