New Delhi, March 6 Indian customers are increasingly expecting service that is quick, seamless, and context-aware, but frustrations continue to dominate their support interactions, according to a report by NYSE-listed tech firm ServiceNow.
Rising customer expectations, fragmented service platforms, and gaps in empathy are rapidly emerging as the biggest threats to customer loyalty in India, according to the third 'Customer Experience (CX) Report' by ServiceNow.
The report, based on insights from over 5,000 Indian consumers and 425 customer service professionals, found that while automation is improving speed and convenience, structural gaps continue to undermine trust in India's fast-growing, AI-powered service economy.
Today's Indian customers increasingly expect service that is quick, seamless, and context-aware, it said.
Noting that frustrations continue to dominate service interactions, the report said that 48 per cent of customers say service interactions lack empathy, often missing the customer's context and understanding, making it their top source of frustration.
Moreover, 45 per cent of customers report being transferred between multiple people or departments, reinforcing perceptions of fragmented and impersonal service, it added.
Bridging this gap will be key to transforming efficient journeys into meaningful customer relationships, ServiceNow said.
"Customer experience in India is at an inflection point. Enterprises have invested in AI, but the underlying infrastructure—a chaos of fragmented systems, disconnected data, and siloed workflows—is holding them back," said Sumeet Mathur, Senior Vice President and Managing Director, ServiceNow India Technology & Business Center.
He further said, "The opportunity is about unifying what you already have so that AI and people can work together effectively."
The report also pointed out that Indian consumers are no longer willing to compromise as they no longer tolerate friction, with service experiences directly shaping trust and brand choice.
When service falls short, disappointment travels fast and shows up in various forms, it said, adding that 34 per cent of respondents post public reviews or complaints, amplifying reputational impact, while 37 per cent share negative experiences with family and friends, extending the impact beyond the immediate interaction.
A further 53 per cent report frustration with unclear explanations, signalling rising expectations for both accuracy and emotional awareness in service interactions, it added.
The top challenges faced by customer service representatives include resolving complex issues, which on average, takes up to 39 hours, and 30 per cent say too many tools slow them down.
According to the report, customer service reps see AI as the path forward with 53 per cent of them saying AI is critical to delivering next-generation customer experience while 52 per cent say AI has reduced workload and stress.