Singaporeans want phone support as firms push digital

Singapore customers still favour phone support when they need help, but many organisations plan to place less emphasis on call-based service in the coming years, according to a customer experience study commissioned by ServiceNow.

The survey found that 80% of respondents preferred to call a service representative when interacting with an organisation. Yet only 9% of organisations said they plan to prioritise phone calls as a customer service channel over the next three years. Singaporeans also spend more time resolving issues on the phone than through any other channel.

The research drew on responses from 1,485 Singaporeans aged 18 and above. ThoughtLab conducted the work in 2025 as part of a broader international project examining customer expectations and service operations amid rising AI use.

Executives and customers also differ on what matters most in service interactions. Just 28% of executives believed a lack of empathy creates serious challenges for customers, compared with 48% of customers who ranked it among their top frustrations.

The survey suggested that misalignment has commercial consequences. It found that 52% of customers would switch brands after slow or poor experiences. It also reported that 31% of organisations lost revenue and 52% experienced high churn due to poor customer service.

Singapore's high AI adoption rate adds another layer to the debate over channel strategy and service design. ServiceNow cited broader findings that more than 70% of Singapore companies adopted AI in the past year, mainly for labour optimisation, product development, and supply chain efficiency.

Digital push

The study described a growing shift towards digital-only channels such as self-service portals, intelligent chatbots, and social media. That push sits uneasily with many customers' preference for speaking to a person by phone or using live online chat when needed.

ServiceNow linked the trend to continued investment in technology and process change, citing Singapore's $37b Research, Innovation, and Enterprise plan as part of the broader context for corporate digital investment.

ServiceNow's APJ Innovation Officer in Singapore, CK Tan, said reduced focus on call centres does not necessarily mean weaker outcomes.

"Less investment in call centres does not have to result in degraded customer service," Tan said. "But organisations must provide what customers want most of all: fast, effective, and empathetic support that makes them feel heard and understood."

Self-service gaps

The survey suggested many customers try self-service before escalating to a call. It found that 83% of Singapore customers prefer self-service options such as online portals and chatbots before calling a service representative.

Even so, it reported persistent dissatisfaction with automated interactions. It found that 47% of customers felt current chatbots do not understand their questions and concerns, pointing to gaps in how organisations design and deploy digital support.

Another tension is emerging around service speed and safety. The study asked customers and service representatives about identity verification checks used to counter scams and found that 1 in 2 customers and 42% of service representatives said such checks take too long.

Tan said customers will choose whichever channel resolves their issue quickly and with confidence.

"Singapore customers are pragmatic: they'll use self-service, live chat, or the phone depending on what helps them resolve an issue fastest and with confidence. But if such options are too slow, complicated, or unresponsive, the majority of customers will naturally look for alternatives with less friction - including those with fewer safeguards against threats like scams."

Systems strain

The report also highlighted operational constraints inside customer service teams. It found that customer service representatives in Singapore typically use more than four systems to resolve a single case. As a result, they spend about 35% of their time directly addressing customer issues, with the remainder devoted to system switching and administrative tasks.

The study suggested that these conditions can affect both service quality and staff experience because representatives have less time and attention to devote to problem-solving and human interaction.

"Siloed systems, data, and processes have left many executives and service reps unable to gain a clear picture of what customers expect in different situations, hence the consistent misalignment between customers' preferences and organisational priorities," Tan said.

AI already plays a role in many service operations, with mixed results depending on integration and design. The survey found that 60% of customers said AI had improved their experience, while 53% of service representatives said it reduces administrative workload, and 44% said it has helped lower stress levels.

Tan said organisations need stronger foundations in systems and data if they want AI to improve service while maintaining empathy.

"In a digital-savvy market with plenty of choices, AI can help Singaporean organisations create experiences that are even more human, not less - but only a few have managed to use AI to build meaningful emotional connections with their customers. That kind of consistent empathy at scale is only possible when leaders unify their systems, data, and people around a single clear view of what each customer needs at any given time. Those that get the foundations right will take market share off those that can't or won't."