New research from ArvatoConnect shows the balance of technology and human touch are key for helping vulnerable customers, which represent nearly half of all UK individuals.
Companies are at risk of losing customers that identify as vulnerable by failing to balance the use of automated customer support with empathetic human interaction, according to a new study by customer experience services provider, ArvatoConnect.
Under Consumer Duty legislation introduced in July 2013, all FCA regulated businesses have an obligation to deliver good outcomes for all customers, including those with characteristics of vulnerability.
Almost half (47%) of individuals in the UK identify as having one or more characteristics that would classify them as vulnerable, according to the Financial Conduct Authority (FCA). These include mental or physical health conditions, resilience difficulties, capability issues and trauma from bereavement and other life events.
ArvatoConnect polled 250 individuals* who self-identify as vulnerable for its latest report AI, Digital Transformation, and Vulnerable Customers, which explores how businesses must blend human empathy with advanced technology to meet the unique needs of vulnerable customers.
Nearly half (48%) of individuals that identify as vulnerable admit to avoiding businesses due to their poor customer service towards their requirements, with a similar proportion (44%) revealing how they’d never had a favourable experience with a company related to their vulnerability.
More than three quarters (78%) of respondents said they look for some level of human interaction when seeking out assistance, with vulnerable consumers revealing issues with the capacity of AI tools to fully grasp their individual needs, causing delays and frustration.
While 56% of consumers polled felt that AI and technology could cater to their needs as well as a human could, reflecting growing acceptance of digital solutions, a clear theme throughout the findings was that there is considerable room for improvement in how AI recognises and responds to individual vulnerabilities.
ArvatoConnect separately polled directors in financial services businesses with a responsibility for customer services. It found how only a minority of financial services firms plan to address the AI-imbalance, with less than a third (29%) of directors** stating that they planned to move focus away from AI and to provide more human support. More than half (51%) of directors also said they planned to increase adoption of AI and automation, which could create risks in serving the needs of vulnerable customers if not balanced with human support.
James Towner, Chief Growth Officer at ArvatoConnect, said: “Identifying, understanding and supporting consumer vulnerability has never been more critical and it’s clear from our research that change is needed.
“The fact that more than half of vulnerable customers are taking their custom elsewhere due to poor accessibility or customer service poses both a significant challenge for businesses and an opportunity for those that can get their customer experience right.
“Acceptance and usability of technology will undoubtedly improve and we believe that it can and will be a great enabler for people dealing with vulnerabilities. But the human touch will remain vital – those that create personalised, authentic experiences for every customer will do so by leveraging technology responsibly and maintain the human perspective.”
Warren Buckley, former global head of contact centres and former chair at Citizens Advice, said: ‘’From my experience, businesses should prioritise certain aspects when providing customer service to people with vulnerabilities. Firstly, senior buy-in is crucial for adopting an inclusive approach, even if it may run counter to other strategic goals. The best organisations apply this approach to the entire customer service design, not just products and services. This allows them to place human support at the centre and adapt to meet individual and group needs.
“Understanding and identifying those needs is often very challenging. I always encourage companies to partner with third parties, such as charities and consumer groups, that truly understand these needs and can provide valuable insights. This understanding must also extend to your own employees. How businesses support those with vulnerabilities sets the culture that drives excellent customer service.’’
For more information, visit the report here.
