Singapore businesses may be moving too quickly toward digital customer service, according to a new survey commissioned by ServiceNow.

Key Takeaways

• 80% of Singapore customers prefer calling a service representative, but only 9% of organisations plan to prioritise phone support in the next three years. 
• 52% of customers say they would switch brands after poor or slow service experiences. 
• Nearly half of customers cite a lack of empathy as a key frustration, while far fewer executives recognise it as a problem. 
• Service representatives often juggle multiple systems to resolve cases, reducing time spent addressing customer issues.

The study found that 80% of customers in Singapore prefer to call a service representative when interacting with organisations, making phone support the most commonly used channel for resolving issues. However, only 9% of organisations plan to prioritise phone support over the next three years, signalling a growing disconnect between customer expectations and corporate strategy. 

The findings come from The CX Shift: A study of customer expectations in the AI era, which surveyed 1,485 Singapore residents aged 18 and above as part of a wider global research project conducted in 2025.

According to the survey, many organisations are instead prioritising digital-only channels such as self-service portals, chatbots, and social media support, even though customers still value human interaction when resolving complex problems.

“Less investment in call centres does not have to result in degraded customer service,” said CK Tan, APJ Innovation Officer for Singapore at ServiceNow. “But organisations must provide what customers want most of all: fast, effective, and empathetic support that makes them feel heard and understood.” 

The research also highlights a gap in how organisations and customers view empathy in customer service. While 48% of customers say a lack of empathy is one of their top frustrations, only 28% of executives believe it causes serious challenges for customers. 

This disconnect appears to have financial consequences. The survey found that 52% of customers would switch to a competitor after poor or slow service, while 31% of organisations reported losing revenue due to poor customer experiences. 

Operational challenges also contribute to delays. On average, customer service representatives in Singapore must use more than four different systems to resolve cases, leaving them with limited time to directly engage with customers. 

At the same time, the study found that 83% of customers prefer to try self-service options such as online portals or chatbots before contacting a representative, although 47% say current chatbots struggle to understand their queries. 

Companies worldwide are increasingly investing in automation and AI-driven customer service tools to improve efficiency and reduce costs. However, the survey suggests that organisations risk overlooking the importance of human interaction and empathy, particularly in markets like Singapore where customers expect both digital convenience and personalised support.

Why It Matters

As organisations invest more heavily in AI and digital service channels, aligning technology investments with customer preferences will become increasingly important. Failing to strike the right balance between automation and human support could lead to customer frustration, higher churn, and lost revenue.