Editor’s note: Visualisations included throughout this article are set to global responses to the State of Service report by default. ANZ responses are available via filter.

Both service and field service organisations are increasing their investment in AI to meet rising customer expectations and unlock revenue-generating opportunities, according to new research from Salesforce’s sixth State of Service report.

The State of Service report gathers insights from over 5,500 service professionals in 30 countries, including 300 in Australia and New Zealand (ANZ). It highlights the priorities, challenges, and strategies shaping customer service in the AI era.

“Service and field service teams are getting more proactive and productive with the power of data and AI,” said Kishan Chetan, EVP and General Manager of Service Cloud. “They’re deflecting more issues with smarter self-service. And they’re devoting more time and energy to generating revenue — pointing to a fundamental shift in their role within the business.”

They’re deflecting more issues with smarter self-service. And they’re devoting more time and energy to generating revenue — pointing to a fundamental shift in their role within the business.

Kishan Chetan, EVP and General Manager of Service Cloud

Service organizations double down on revenue generation

Open Image Modal

Image Modal

The trend of viewing service as a revenue driver instead of a cost centre is accelerating.  Seventy-nine per cent of Australian and New Zealand service decision-makers now say their teams are expected to contribute a larger slice of revenue over the coming year through upselling, cross-selling, and customer retention – compared to 85% globally.

In Australia and New Zealand, the strategic emphasis on revenue generation is fueling bigger budgets and larger teams. Sixty-nine per cent of service decision-makers across Australia and New Zealand expect budgets to grow over the next year. Meanwhile, two-thirds (67%) of ANZ decision-makers anticipate expanding their headcount.

Agents and mobile workers face mounting pressure

With 88% of customers worldwide saying good service makes them more likely to purchase from the same company again, it’s clear that customer experience is key to driving revenue. However, delivering on expectations isn’t as simple as in years past. Eighty-one per cent of ANZ service professionals say customer expectations are getting higher.

On top of increasingly sophisticated demands from customers, 69% of ANZ service organisations anticipate higher case volumes in the year ahead. The risk of burnout or failure in this scenario is a major factor for agents, who are already stretched thin.

Organizations lean into AI, automation, and data to boost efficiency, sales

AI and automation may present solutions for over-burdened agents tasked with revenue generation. Currently, ANZ agents spend just 35% of their time servicing customers amid competing demands like internal meetings, administrative tasks, and manually logging case notes.

Ninety per cent of Australian and New Zealand service professionals at organisations with AI say the technology saves them time. By responding to simple queries and crafting self-help knowledge articles, AI clears the way for human agents to focus on more fulfilling and higher-value work, such as building customer relationships and resolving complex cases.

Service organisations also report using AI to directly help with revenue generation by providing intelligent recommendations and offers to agents.

Savvy service organisations are taking note of the promise AI and another efficiency driver, automation, can bring. Currently, 68% of organisations in ANZ have invested in AI. Eighty-two per cent of Australian and New Zealand decision-makers plan to increase their AI investments over the next year.

For both AI and employees, personalising service interactions requires customer knowledge, which often is drawn from many different data sources. Empowering AI and employees with a complete view is a clear priority for decision-makers in ANZ, 85% of whom plan to boost investments in data integration over the next year.

Existing investments appear to be paying off. As AI, automation, and data capabilities mature, organizations are getting better at striking the right balance between service speed and quality — a notoriously difficult challenge. In 2022, 76% of agents cited juggling these competing priorities as difficult, but that percentage dropped to 69% in this year’s report.

More information

• Read the full State of Service report
• Explore more top generative AI statistics

Methodology

Salesforce conducted a double-anonymous survey of over 5,500 professionals in roles including service operations, service agents, mobile workers, service managers/directors, and service leadership/head of service – including 300 from Australia and New Zealand.  Respondents were sourced from 30 countries and five continents. The data was collected between December 8, 2023, and January 22, 2024.