Singaporeans collectively spent more than 30 million hours on hold to resolve customer service complaints or issues last year, according to new research by ServiceNow, a leading digital workflow company. The study, which surveyed 1,030 Singaporeans aged 18 and above, found that the average person spent approximately 16.1 hours on hold, equivalent to two full working days and resulting in an estimated $1.24 billion loss in wages nationwide.

The research, conducted by Lonergan Research in early 2024, highlighted the significant impact of slow service solutions on businesses. Employees spend an average of 4.7 working days to resolve each customer issue, increasing operational costs. Wee Luen Chia, Managing Director of ServiceNow Asia, noted, “The effect goes wider than just the individual businesses putting their customers on hold; it’s impacting Singapore’s competitiveness.”

Customer service frustrations are prevalent, with 34% of Singaporeans resolving issues themselves due to poor service. The top three frustrations include having to repeat issues to multiple people or departments (60%), being transferred multiple times (53%), and long wait times on hold (42%).

Respondents cited several reasons for the inefficiencies: 52% attributed it to staff lacking the power to make decisions, 48% to a lack of ownership between departments, and 47% to understaffed or overwhelmed customer service departments.

The study also revealed that 72% of Singaporeans have less patience with poor service due to inflated costs, and 70% believe service quality has declined as companies cut costs. Additionally, 43% reported that the time taken to resolve issues has increased, and 70% experienced service disruptions from key providers, averaging two disruptions per year.

Chia emphasized the need for businesses to empower their employees to collaborate quickly and transparently to resolve issues. “Frustrating wait times, little resolution, and abrupt service disruption are costing Singapore its patience and national productivity,” he said.

The research highlighted a digital divide in customer service experiences across generations. Baby Boomers waited the longest for service, averaging 5.7 days for issue resolution, while younger generations typically waited around 3.6 days. More than half (56%) of Gen Z used self-service options more frequently, while 55% of Baby Boomers preferred direct interaction with customer service agents.

Chia suggested that a better customer experience starts with understanding and addressing the gaps in current processes. “Organizations must invest in improving operations, consolidating, augmenting, or replacing service gaps. Customer experience requires a long-term commitment to building service roadmaps to meet and exceed Singaporeans’ evolving expectations,” he said.

Two-thirds of Singaporeans believe that quick issue resolution is key to good customer service, with transparency and empathy also playing significant roles. The top qualities of good service identified by respondents include resolving issues quickly (67%), getting through to someone promptly (52%), and having empathetic customer service agents (47%).

Chia concluded, “Customers expect every part of a business to communicate and work together to solve their issues quickly. Automation and AI technologies can help route the right people to the right processes at the right time, enhancing both employee and customer experiences.”