Shep Hyken's Blog

This article answers the question: Why is personalization so important in customer experience today?

Answer: Personalization matters because most customers expect it and are even willing to pay more for it, making it a key driver of loyalty and revenue.

“With great power comes great responsibility.”  

Several weeks ago, I wrote about how “It’s company policy” is the second most expensive phrase in business. My cartoon for that week featured a superhero who proclaims that empowering employees to take care of customers, rather than standing behind “company policy,” is a power given to them by the company and comes with responsibility. 

That cartoon inspired me to take it a step further. The quote, “With great power comes great responsibility,” was originally used in a 1962 Marvel comic book,  Amazing Fantasy #15 , that introduced Spider-Man to the world. Seven months later, Marvel Comics started the Spider-Man comic book series, which has stood the test of time and remains popular today. 

The quote was originally a caption and, in later years, was attributed to Uncle Ben, advising Peter Parker (Spider-Man) on how to use his newfound power. However, more research shows that quotes and statements similar to Uncle Ben’s advice go back as far as the Bible, Luke 12:48: “From everyone who has been given much, much will be demanded.” 

And you are probably wondering what this has to do with the customer experience (CX). In the past few years, with the help of AI, we have been given a superpower: the ability to personalize the customer experience.  

I’ve written extensively about personalization and featured a number of findings in my annual customer experience research. Consider this: 

Nearly eight out of 10 customers (79%) say a personalized experience is important to them.  


Six out of 10 customers (63%) are willing to pay more to do business with a company or brand that offers a personalized experience. 

AI is a superpower that can help us collect incredible amounts of customer data, allowing us to personalize the CX. The best companies think about personalization in three ways: 

Remembered –  You recognize the customer and their buying history. Remember the theme song from the 1980s sitcom Cheers? People want to go … where everybody knows your name.  


Connected –  You use the information to create relevance. The customer doesn’t have to start over every time they do business with you. The relationship progresses with each interaction.   


Known –  You know the customer so well, you anticipate their needs and make the experience easier. The customer doesn’t feel like the experience is a transaction. Instead, it feels more like the continuation of the relationship. 

AI gives you the power to turn these three ideas into reality at scale. It can analyze behavior, predict preferences, and deliver insights that the typical salesperson or agent can’t do quickly or easily.  

But be careful. As the opening quote implies, when you have this superpower, you must use it responsibly. Used the wrong way, personalization can become frustrating or off-putting to customers. Bad recommendations and too many marketing messages become intrusive. And then there’s the “creepiness factor,” which has the customer wondering, “How did they know that about me?”  

The companies that get this right won’t be the ones with the most data. They will be the ones using it the right way. Personalization, when done right, builds trust. Done wrong, it breaks it. Use this superpower wisely, and you will create the experience that gets customers to say, “I’ll be back!”

Shep Hyken  is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s  customer service and customer experience keynote speeches  and his  customer service training workshops  at  www.Hyken.com . Connect with Shep on  LinkedIn .

This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:

How can balancing technology and personal interaction improve customer loyalty? 
How does a strong internal culture impact the overall customer experience? 
Why is it important to offer customers a choice between AI tools and human interaction? 
How can handwritten notes or personalized follow-ups boost brand loyalty? 
How are emerging technologies like AI used to support, not replace, employees? 

Top Takeaways:

Human-led customer service creates stronger connections with customers. Even as AI and technology advance, many customers still want the option to speak to a real person, especially for sensitive or complex issues.  


While investing in AI enhances the customer experience, providing easy access to human support helps build trust, resolve issues efficiently, and build customer loyalty. 


While many companies are turning to AI and self-service channels to cut costs, the most effective approach is to use technology to assist, not replace, customer support teams. AI tools and chatbots can handle routine inquiries and streamline processes, allowing agents to focus on building relationships, offering empathy, and solving complex problems. 


When it’s possible, employing customer care staff within the same communities they serve provides a significant advantage to both the company and its customers. Local teams have firsthand knowledge of regional regulations, weather patterns, and community-specific concerns. They can relate to customers on a more personal level, anticipate needs, and respond to unique local situations with empathy.  


An organization’s internal culture directly impacts the customer experience. When companies invest in their teams, employees become more engaged and committed to the company’s mission.  


Low employee attrition and high job satisfaction translate into more engaged agents who use their experience and empathy to better serve customers and contribute to a strong, positive brand reputation. 


Personal touches like sending handwritten or personalized cards after customer interactions make a lasting impression. Even when automation is used to scale these efforts, cards that reference specific details from the customer’s experience strengthen the sense of genuine care and appreciation that employees and companies have for them. 


The State of Customer Service and CX study shows that most customers prefer to use the phone to resolve issues, especially when something goes wrong. This preference cuts across generational lines and is even more needed for emotional or complicated customer concerns. Even though self-service solutions boost efficiency, providing an easy way to speak with a real person when automation is not enough prevents frustration with impersonal digital-only solutions. 


Customers love to do business with companies that contribute to their communities and support local causes. When companies are transparent about their community engagement, whether it’s through financial contributions or volunteering, it not only makes employees proud to work there but also builds trust within the community. 


When leaders consistently embody the business’s values and mission and actively support both customers and employees, the effects are felt throughout the organization. Employees become brand ambassadors, invested not only in day-to-day tasks but also in the company’s larger purpose. It creates a workplace where employees want to stay, and customers want to do business. 


Plus, Jenni shares how Gas South has earned thousands of outstanding 5-star Google reviews. Tune in! 

Quotes:
“Embracing technology is important, but customers should always have the choice to speak to a human when they need to.” 

“A great customer experience can’t be replicated by AI when it comes to empathy, warmth, and understanding individual customer needs on a personal level.” 

“Building a great culture and caring for employees directly translates to great service for customers.” 

“Creating a culture where leadership lives the company’s values, and where employees are connected to the mission, results in team members who provide exceptional customer experiences.” 
About:
Jenni Hawkins is Vice President of Customer Care at Gas South and has previously held leadership roles at Delta Air Lines, CBORD/Roper Technologies, and Delta Community Credit Union. Since 2021, Jenni Hawkins has helped Gas South achieve record customer satisfaction and thousands of 5-star Google reviews. 

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .

Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.

Experience for Everyone by Sivaguru Kumar
(TATA Consultancy Services) In today’s experience economy, where memorable and engaging experiences have distinct economic value, the experience for everyone is the guiding principle around which all customer engagements revolve. But what exactly does experience for everyone mean, and why does it matter?

My Comment: We kick off this week’s Top Five with an article about using AI to help personalize the customer experience. This article has a breakdown of the advantages for both customers and employees. There is some great information overall, but my favorite part is the simple graphic that summarizes these benefits.
Customer Experience: Are Brands Using This Sleeping Giant? by Tom Primrose
(Shots) The quest for cut-through is at boiling point. Hyper-competitive markets and always-on lifestyles have created a world where every brand is shouting to be heard. But the noise has consequences.

My Comment: This is a great read on why CX is one of the most underutilized tools in a brand’s strategy in getting customers to come back. The author emphasizes how even small, intentional moments can turn ordinary touchpoints into memorable brand experiences. The concept of flipping “pain points” into “gain points” is worth the read.
The First 5 Minutes Define How Customers Will Treat You by Colleen Lonsberry
(CMSWire) We like to think of customer behavior as something inherent. That some customers are “good” and others are “difficult.” That some are loyal while others are transactional. But what if behavior is, at least in part, a response to the environment we create? In other words, customers rise or fall to meet the expectations set by the brand.

My Comment: Here’s an interesting concept. The title of the article is a set-up for an important premise: The first five minutes a customer experiences in your business will determine how they act (and treat you). The author uses an example of a child eating at a meal at The Four Seasons rather than at a fast-food restaurant. She behaved very differently based on how she was treated and what she observed in her environment. If I had to come up with a term to describe this, it would be “Customer Behavior Design.”
Customer Experience Horror Stories and How Better Connection Prevents Them by Lisa Orford
(Retail Customer Experience) Most customer experience “horror stories” don’t start with bad intentions. They start with good people working hard, but in disconnected systems.

My Comment: I recently wrote an article about how it’s not customer service that’s broken. It’s the system. In short, that’s what this article is about. There’s a reason customers have to repeat their stories or call back multiple times for the same issues. It’s a broken system, and this article points out the four most common system failures and what to do about them (and more).

Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.

This article answers the question: Why is answering the phone a critical customer service skill for employees today?

Answer: Answering the phone is a critical customer service skill because customers still prefer it for support, and failing to respond creates frustration and signals that the company doesn’t care.

Recently, a client shared that their younger employees didn’t answer the phone. With plenty of frustration in her voice, she asked me, “Can you teach them that skill?” 

At first, I thought she was joking, or maybe venting, but she backed up the complaint with a comment that made sense. The younger generation didn’t grow up with a hard-wired “land line” in their home. Everything they know about a phone is what they carry in their pockets. Furthermore, many people carrying a phone hardly ever use it as a phone. They use it for messaging, social media posts, text messages, and more, but not for phone calls. 

So, here is our reality. This isn’t about customer service in a contact center. That is a job that requires the phone to be answered. That’s what people are paid to do. This is about anywhere a phone rings while employees are busy doing something else. It could be a store, a hotel, a doctor’s office, a lawyer’s office, a nursing home – pretty much anywhere.  

The phone becomes background noise. It is ignored rather than answered. If a customer, patient, or client reaches out to a company and nobody picks up, it becomes a customer experience problem. Maybe customers are calling for something as simple as store hours. Or maybe it’s an urgent matter. Regardless, they are reaching out and expecting someone to be there. When nobody answers, the message they receive, even if unintentional, is that the company or brand doesn’t care. 

Year after year, in my customer service and CX research, the phone consistently ranks as the No. 1 preferred method of communication when customers need help or have a question. Despite the fact that we live in a digital world, the old-fashioned “analog” phone is not dead – not even close. So if your team isn’t answering it, you have a customer experience problem that needs to be fixed.  

Here are four ideas to help get the phone managed the way it should be: 

The Why:  As part of the onboarding process, explain the importance of answering the phone, and emphasize why it matters to the customer when it’s mismanaged or ignored.   


Basic Training:  This is where employees learn the basics of phone skills. How the phone is answered and how a conversation is ended are both important. I always say, “First impressions set the tone for what’s to follow, and last impressions leave lasting impressions.” 


Set Minimum Expectations:  Standards matter, such as answering the phone within three rings. If a customer must be transferred, make it only once and to the right person. Know the proper way to put someone on hold. These are the baseline for a good experience.   


Soft Skills:  It goes without saying that the employees you hire should have the “people skills” needed to ensure the customer has a good experience when they call. Confidence, listening skills, and empathy are essential and a great place to start.  

Anytime a customer calls you on the phone, it’s an opportunity to form an impression that confirms the customer made the right decision to do business with you. Don’t let employees with poor phone skills and etiquette get in the way of getting your customers to say, “I’ll be back!”

Shep Hyken  is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s  customer service and customer experience keynote speeches  and his  customer service training workshops  at  www.Hyken.com . Connect with Shep on  LinkedIn .

This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:

What is the connection between employee experience and customer experience? 
How does company culture impact the way customers perceive an organization? 
Why is employee retention important for delivering consistent customer service? 
Why is consistency key to building customer trust and confidence? 
What role does leadership play in ensuring a positive customer experience? 

Top Takeaways:

How employees are treated within an organization directly impacts how customers perceive and experience the company. When employees feel valued, cared for, and seen, they bring that same energy to every customer interaction. 


Employee tenure is an indicator of a healthy workplace, where people feel fulfilled and are unlikely to leave even when opportunities elsewhere arise. 


The goal for leaders is to provide opportunities for growth that equip employees with the skills to thrive. Then create a work environment they love and don’t want to leave.  


Core values must be more than just words on a wall. A great work culture shows up in the hallways, meeting rooms, and customer interactions.  


What happens inside the organization is felt by customers on the outside. The leadership, the organization’s mission statement, and the team must be aligned, because those on the front lines deliver the customer experience. 


People want to know what to expect when they do business with you. Consistent actions and reliable results create trust, which is just as important as product quality.  


The consistency and trust built over time make customers confident that, when mistakes occur, the company will address them openly and make things right. Customers don’t expect perfect performance, but they do expect reliability. 


Successful leaders aren’t afraid to ask questions or adopt new ideas. Some of the best lessons come from listening to other people’s stories. Leaders who seek feedback and absorb wisdom from others consistently improve. 


Plus, Lisa shares more insights from her book, Something Extra: Uncover Your Strengths. Unlock Your Potential. Unleash Your Impact. Tune in!  

Quotes:
“If we take care of our employees, they’re going to take care of our customers, and then our success will follow.” 

“The customer experience begins with employee experience. Without the employee experience, there is no customer. Start by investing in your team.” 

“If you really love your people, you’re going to want them to be the best version of themselves. Helping employees grow is not just for them, but it enables better service to customers, too.” 

“Customers feel your culture. It is how they experience the organization, not just in the products and services you deliver.” 
About:
Lisa Nichols, CEO and co-founder of Technology Partners, is the author of Something Extra and a top-ranked podcast host, mentoring leaders to embrace the unique qualities that set them apart.  

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .

Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.

CX Is Chasing ROI – but Still Thinking Reactively by Jeannie Walters
(CX Network) Customer experience is being held accountable like never before. Yet most organizations are still operating in reactive mode and missing the opportunity to drive business results.

My Comment: We kick off this week’s Top Five with an article from CX expert Jeannie Walters (author of the new book Experience Matters , who shares her takeaways from the recent Qualtrics conference. This article focuses on how CX is becoming accountable to prove its ROI, and some companies are struggling to do so. Walters also comments on how AI progress is making positive strides and can make good CX better, and bad CX worse.
When AI Optimizes the Wrong Thing by Rob Markey, Phil Sager, and Cassy Reichert
(Bain & Company) Faster automated service, lower costs, and a quiet erosion of customer value hiding in plain sight.

My Comment: Another article from the experts attending the Qualtrics conference. Rob Markey (of NPS fame) shares a story about losing his mobile phone. Not sure if he would find it, he had the phone “wiped” remotely. He eventually found the phone and attempted to restore the data but was caught in a bad chatbot experience (the dreaded “circular loop” that kept making the same bad suggestion). Frustrated, Rob gave up on the online support experience and drove to a store where a technician fixed the problem in less than five minutes. This story sets up lessons that sometimes AI makes things worse and can destroy customer value.
‘I hate customer-service chatbots’: The Consumer-AI Refund Relationship Is off to a Rocky Start by Kevin Williams
(CNBC International) Artificial intelligence may be the future of customer service, but some early consumer reviews suggest that, at least for now, you should prepare to be annoyed.

My Comment: Using chatbots to “deflect” customer service issues away from live agents is a mistake. It’s as simple as that. While my customer service and experience research shows positive progress with AI and chatbots, when a company uses AI for the wrong reasons, it hurts everyone. I agree with much of the commentary in the article. There will be better AI experiences, and eventually, most companies will get it right. One other comment in the article is worth mentioning. In the near future, consumers will have their own “AI agent” that will deal with company AI chatbots. (This is something like fighting fire with fire. It will be interesting to see how that plays out.)
What the 1990s Got Right About Customer Experience by Simon Robinson
(CMSWire) Customer experience as a practice has evolved significantly over the past two decades, driven in part by advances in the power and sophistication of CX technologies.

My Comment: Everything old is new again. This article goes back to the 1990s when customer experience became more intentional. Companies became better at measuring CX results. Here we are, 30 years later, and we’re still measuring and improving the experience, but there should be more. The author claims companies should not just focus on fixing problems after they happen but instead focus on preventing them.
5 Things to Know about the State of CX in 2026 by Melanie Mingas
(CX Network) Customers are now on the AI bandwagon data security is a trust issue – find out what’s changing CX this year

My Comment: AI is reshaping modern CX, changing how customers find, interact with, and expect brands to serve them. Experiences are becoming more proactive rather than reactive, which is great for customers. It’s nice for companies to fix problems before customers ever know about them. And even if AI works, don’t forget about keeping live agents in the loop. Many customers still want to talk to someone. Finally, as the technology gets better, trust and transparency are becoming more important than ever.

Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.

This article answers the question: What is the second most expensive phrase employees can say to a customer?  

Answer: The second most expensive phrase employees can say to a customer is “It’s company policy,” because it signals a lack of authority, flexibility, and willingness to help, which quickly frustrates customers and damages loyalty. 

Not long ago, I wrote about what may be the most expensive phrase employees can say to a customer:  It’s not my department . When customers hear that, they know they won’t get the answer they want or a solution to their problem. At best, they will be transferred, told to talk to someone else, be forced to repeat their story, and experience other friction that makes customers wonder why they chose to do business with this company or brand. 

In that article, which I also turned into a video, I mentioned that the other phrase that could qualify as “most expensive” was: It’s company policy. I’ll admit, it was difficult to choose between the two. After doing a little Google research, I decided to go with It’s not my department, but at the end, you may remember I mentioned coming back soon with some commentary on this one. 

When customers hear an employee say, “It’s company policy,” what they are really hearing is: 

“There’s nothing I can do.” 


“I don’t have the authority to help you.” 


“The rules matter more than you do.” 

Even if the policy makes legitimate sense, if the customer is upset, that line is not going to help make them happy. 
The problem is solved with three words: training, empowerment, and flexibility. Let’s break it down: 

Training: You can’t expect employees to know what to do unless you teach them and follow up with coaching as needed. If you’ve hired the right person, you have an employee who wants to help. Give them the tools to do so. 


Empowerment: Once you’ve trained employees, empower them to do their job. Don’t force them to ask permission to do something that feels right. I’ve written about the concept of  One to Say Yes and Two to Say No , which is exactly what it sounds like. If it makes sense to say, “Yes,” to a customer, empower the employee to do so. Train them on how far they can go to make a customer happy. If the employee doesn’t know what to do or believes the answer should be “No,” then they can seek out a manager for help. And once the manager shows them what to do, they should never have to ask for help about this issue again. 


Flexibility: This is what happens when you combine training with empowerment. You’ve created permission to make good customer-focused decisions.  

There are legitimate reasons you can’t say yes and have to stand behind company policy, which could include the law or regulatory requirements, but that doesn’t mean you use those three dreaded words: It’s company policy.  

Customers don’t care about your policies or your departments. They care about whether you help them. Policies should guide employees, not replace their judgment. When they are properly trained and empowered to help customers, that’s the customer-focused approach that customers love. There may be policies and rules that can’t be broken. It’s how you handle them that makes the difference.  

Shep Hyken  is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s  customer service and customer experience keynote speeches  and his  customer service training workshops  at  www.Hyken.com . Connect with Shep on  LinkedIn .

This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:

What is hospitality mentality, and how does it enhance customer experience in any industry? 
Are loyalty programs effective? 
Why is customer perception important to business success? 
How do word-of-mouth recommendations influence customer experience? 
How does company culture shape customer experience? 

Top Takeaways:

We can’t talk about customer experience without talking about hospitality. No matter the industry, whether B2B, B2C, or government, the “hospitality mentality” is about making every interaction welcoming and memorable. At its core, hospitality is about making people feel valued, appreciated, and at home, regardless of whether they’re a first-time visitor or a loyal customer. 


A great customer experience comes from intentionally designing interactions that help people feel seen, heard, and comfortable. It’s no longer just about products or services. Brands need to focus on making things easy for customers and creating genuine human connections, even in digital channels, so that every touchpoint feels welcoming and personal. 


Focus with the end in mind. What matters most is how your customers feel and what they say about your brand when they leave.  


Most loyalty programs are discount programs. The problem is that customers become loyal to the perks rather than to the company. So when the loyalty program is changed, or another company offers a better reward, customers walk away because they do not have a relationship with the brand. 


Loyalty programs should go beyond points or discounts. True loyalty is built on relationships and trust. Customers return when they feel an emotional connection, not just because of rewards or perks. 


A culture of hospitality starts inside the organization. Every employee, not just those in customer-facing roles, impacts the customer experience. A strong internal culture, from the frontlines to behind the scenes, helps create a consistent, welcoming experience that reflects the company’s values. 


Find ways to make your online or digital experiences as welcoming and personal as face-to-face interactions. Even as digital tools make things more efficient, people still crave human touch and connection.  


Plus, Shep and Lisa discuss why word of mouth inspired by amazing experiences is the most powerful marketing a brand could have. Tune in!

Quotes:
“Loyalty is not just a program. It’s a relationship. We can’t expect customers to be loyal simply because we ask them to. Loyalty is earned through trust. We need to give them reasons to stay and reward them for being ambassadors who share our brand with others.” 

“Culture starts internally. Every employee, whether on the front lines or behind the scenes, influences the customer experience. Everyone should remember who they’re serving, because ultimately, the customer only cares about how they feel, not your company org chart.” 

“No matter how technology evolves, our customers are people, and people want to be treated hospitably. They want to be welcomed, valued, and appreciated.” 
About:
Lisa Checchio is the Chief Commercial Officer at EBG. She oversees entertainment, travel, and shopping platforms that create valuable experiences and savings for employees and members. 

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .

Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.
5 Questions CX Leaders Are Asking (and What They Really Mean) by Jeannie Walters
(CMSWire) Forget dashboards and demos — the most telling moments at X4 came after the keynote, when leaders asked what’s really holding customer experience back.

My Comment: We kick off this week’s Top Five with a great article by Jeannie Walters, who just released the book Experience Is Everything . If you lead or are involved with anything related to CX, this article is a must-read. The five questions Walters covers are about why an investment, a change, or certain measurements aren’t performing the way you want. And even if they are, you will want to read her answers.
What Companies Can Learn from Their Biggest Fans by Marcus Buckingham
(Harvard Business Review) Your most devoted employees and customers have a lot to teach you about loyalty and performance.

My Comment: Here’s another excellent article from HBR, and the focus is on your “biggest fans.” And what makes them your biggest fans? Three words: extreme positive experiences. The article goes on to show the difference between bad, good, and extreme customer experiences, and how they make customers feel.
7 Surprising Shopper Psychology Trends to Help Grow Your Small Business by Erica Sweeney
(CO) Why do people buy what they buy and shop where they shop? These are the fundamental questions of shopper psychology. And, it’s complicated. But when small businesses understand what drives consumer behaviors and motivations, they can attract shoppers.

My Comment: This article gives us a snapshot of how consumers think about shopping. Specifically, the article identifies seven trends. The author makes the point that purchasing decisions are first driven by emotions, and then consider price, quality, value, and a need to justify their purchases.
Customer Loyalty Is Becoming More Fragile. Here’s the Leadership Mistake That’s Fueling Its Decline. by Natalie Ruiz
(Entrepreneur) Why trust and emotional connection, not speed or automation, drive lasting loyalty — and how you can use humans and technology together to keep customers coming back.

My Comment: This article isn’t about a loyalty program. It’s about misconceptions that cause bad decisions… Looking at the wrong metrics could give you the wrong impression about what’s driving loyalty. Automation is great, but it could be putting a wall between you and your customers. And removing humans from the experience can diminish its value and destroy loyalty. If any of those topics resonate with you, you’ll enjoy the article.
The Handoff Is Where CS Goes to Die by Lincoln Murphy
(Sixteen Ventures) I’ve done root cause analysis on churn at hundreds of companies. Different industries, different sizes, different products. And one thing comes up more consistently than almost anything else. The relationship was damaged before Customer Success ever touched it.

My Comment: We wrap up this week’s Top Five with a short article to remind you about something customers hate: the handoff/transfer. It destroys confidence when the first agent lacks the knowledge or isn’t empowered to make a customer-focused decision. It means the customer will most likely have to repeat their story. (Customers hate that!) And a big part of the experience becomes wasted time. I recently wrote about the top ten reasons customers leave, and several of them fall under the category of poor handoffs or transfers. While it’s impossible to never have to transfer a customer to someone else, at least do it right.

Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.

This article answers the question: Are customers becoming more comfortable with AI in customer service?

Answer: Are customers becoming more comfortable with AI in customer service?

AI is not a strategy. Experience is. AI can support your customer service strategy, but it won’t replace it. And that is why you need to read and understand the impact of the findings regarding AI in the 2026 State of Customer Service and CX research report. This year, I included more questions about AI, and this is the information you must consider as you implement AI into your CX strategy.  

49% of U.S. customers are more comfortable using AI for customer support this year than last year.  This is a minor increase of just 2% over last year. I predict this number will continue to increase as AI technology improves and companies make it easier for customers to use. 


50% have successfully resolved a customer service issue without the help of a human.  This number needs to increase before AI becomes mainstream. And age makes a difference: 54% of Gen-Z have had success, compared with just 34% of Baby Boomers.  


53% have noticed an improvement in AI customer service technologies over the past year.  As customers become more comfortable and confident, as already mentioned, this number will increase next year. 


54% believe chatbots have significantly improved the speed and efficiency of customer service.  Try it, you’ll like it. Customers who believe chatbots improve the experience will keep using them.  


32% of customers stopped doing business with a company because self-service options were not provided.  Our research also finds that seven out of 10 customers prefer using the phone when they need support, but a third of customers still want the choice. By the way, it’s the younger generations that drive this statistic. 


57% say companies that offer AI-fueled types of self-service options frustrate them.  Unfortunately, some companies have self-service that is not as intuitive or easy to use as it should be. Adding to the frustration is the inability to easily connect to a live agent. 


45% say AI and ChatGPT scare them.  These customers have a scary vision of AI taking over the world. But AI horror movies like I, Robot, 2001: A Space Odyssey and The Matrix are just movies, meant to be scary.  


59% feel when it comes to customer support, they dislike self-service options and only want to speak with a human.  AI isn’t perfect, and if a customer has two or three bad self-service experiences, it makes sense they don’t want to risk it.  


53% say they have received incorrect information from an AI self-service bot.  AI is known to make mistakes, but we also receive incorrect information from live agents. Nobody and no technology is perfect. 


68% of customers prefer to speak with a live agent rather than use a digital self-service solution.  We end with this one to emphasize that no matter how quickly AI customer experience is improving, when customers have a problem or issue with a company, seven out of 10 prefer the phone.  

As you look at these findings, the message is clear. The data show that AI is improving, but adoption remains slow despite the hype. AI is becoming an expected option for speed and convenience, yet trust, ease of use, and immediate access to a human remain the deciding factors in whether customers use it or avoid it.


Shep Hyken  is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s  customer service and customer experience keynote speeches  and his  customer service training workshops  at  www.Hyken.com . Connect with Shep on  LinkedIn .