Today, consumers have no dearth of choices and gaining their loyalty is the biggest challenge for any brand. As per Zendesk’s CX Trends Report 2025, 85% of consumers in India agree that a company’s customer service isn’t just a touchpoint, it’s the battleground for their loyalty. And in the age of AI, personalisation is a huge expectation. In an interaction with CRN India, Maureen Chong, RVP – Asia, Zendesk, explains why retaining existing customers is less costly than acquiring new ones, which means investing in loyalty is key. Chong believes that consumer-facing brands must focus on leveraging AI to deliver personalised experiences at scale, or risk losing customers to competitors.
Q. Why is customer loyalty at an all time low these days?
Maintaining brand loyalty is more challenging today than ever. Today’s consumers have endless choices, making it easier to switch brands. In fact, 70% of Indian customers will switch to a competitor after just one bad experience, according to Zendesk’s CX Trends Report 2025. Additionally, with rising inflation putting pressures on disposable income, price sensitivity plays a major role, with many prioritising discounts over long-term brand relationships.
The rise of digital platforms has further shifted the power dynamic–consumers can instantly compare products, reviews and service quality. And expectations have evolved. Customers now demand hyper-personalised, instant experience, and AI adoption has raised the bar. In India, over three quarters of consumers in India expect more personalised service with AI. To build lasting loyalty, businesses must go beyond transactions and create emotional connections, deliver seamless omnichannel experiences and provide tangible value that extends beyond just price.
Q. How will rising inflation affect consumer-facing businesses like retail and e-commerce in 2025?
Inflation in 2025 is projected between 4-6%. An increase in inflation will put intense pressure on consumer-facing businesses, forcing them to rethink pricing, loyalty, and operational efficiency. Customers will be more discerning, expecting not just value but seamless, empathetic service that respects their time and wallets. This is where customer experience (CX) becomes a competitive differentiator.
Brands that invest in AI-driven personalisation, proactive support, and self-service efficiency will build trust and retention, even as purchasing power tightens. The shift won’t just be about cutting costs, it’s about delivering smarter experiences that anticipate needs, reduce friction, and create lasting customer relationships.
The winners in 2025 won’t just be the ones offering the lowest prices, but those using CX innovation to make every interaction feel effortless, human and valuable.
Q. How important will customer service be in 2025 and why should brands focus on it?
Economic uncertainty, AI adoption, and rising customer expectations are reshaping the CX landscape, giving customer service the power to make or break a company. In fact, 85% of Indian consumers say customer service is the battleground for their loyalty. Support teams should no longer be seen as cost centers, but as key drivers of customer retention and profitability.
Business leaders are anticipating a fivefold increase in customer interactions, making it harder to keep up with the pace and complexity of customer needs. That’s why AI has become such a game-changer. Its ability to solve volume, quality and cost challenges simultaneously makes it an indispensable tool. The good news is that consumers agree and our CX Trends Report found that 87% of Indian consumers believe that AI improves customer service.
Brands that integrate AI-powered tools in their CX arsenal–from AI agents to predictive analytics and agent copilots–can scale support, personalise interactions, and drive operational efficiency. But the real differentiator will be in how businesses blend AI with human empathy to create seamless, effortless experiences. In an AI-powered world, brands should view customer service as more than just a function, it’s the foundation of trust, loyalty, and long-term growth.
Q. In the age of AI, how can businesses leverage this technology to deliver personalisation at scale?
AI is redefining personalisation–not just by making it possible at scale, but by making it faster, more accurate and more intuitive. Businesses looking to leverage AI need to move beyond surface-level automation and use AI to create deeply personalised, context-aware experiences that feel effortless for customers.
AI’s ability to analyse large amounts of data in real time makes it a powerful tool for personalisation. AI-powered chatbots and copilots can analyse data such as past interactions, purchase history and sentiment in real time to suggest responses, ensuring every conversation feels relevant and human. AI also helps human agents anticipate customer needs, offering proactive solutions and personalised recommendations.
AI-powered tools enable dynamic content, adapting messaging and offers in real time to be highly curated for each customer. It can also detect and analyse tone, urgency and emotion, allowing human agents to go into each conversation with the right level of empathy and context. When implemented effectively, AI can supercharge personalisation, helping businesses deliver the best experiences at the right moment, every time.
Q. Can AI-driven customer service truly contribute to gaining customer loyalty or is the human touch more important?
AI-driven customer service isn’t all about speed and efficiency, it’s also about meeting customers where they are, with the right response, at the right time. Loyalty today isn’t built on human interactions alone; it’s built on seamless, effortless experiences, and AI plays a critical role in delivering this consistently at scale.
AI and human support aren’t competing forces, they’re partners in delivering great CX. AI can anticipate needs, resolve issues instantly, and personalise interactions in ways humans simply can’t. In fact, Zendesk research shows that 92% of Indian customers say AI has become part of modern customer service–a sentiment that has grown by 8 percentage points year-on-year.
That said, there are instances that require a level of empathy, judgement and complex problem-solving that only humans can provide. When it comes to gaining customer loyalty, the best brands don’t choose between the two–they balance AI and human expertise thoughtfully to create the best possible CX.
Afterall, loyalty isn’t built on whether a customer interacts with AI or a human–it’s built on how effortless and personalised the experience feels. Human touch doesn’t have to be a trade off at the expense of AI-driven customer service. AI is there to empower human teams to deliver memorable service that keeps customers coming back.
Q. The year ahead will be quite challenging with budget cuts and supply chain disruptions. How can businesses drive better CX in such tough times?
Tough times don’t change the fundamentals of great CX–they amplify its importance. As economic uncertainty looms, businesses simply can’t afford poor CX. When every dollar is scrutinised, loyalty becomes the most valuable currency.
AI will be critical to driving better CX, in fact, 86% of Indian consumers say they see a clear gap forming between companies that leverage AI in CX effectively and those that do not. That said, businesses need to be thoughtful about how they implement it. It’s not just about doing more with less, it’s about doing what matters, better. While AI can sometimes offer quick fixes, its true strength lies in being a strategic enabler of effortless, human-centred CX.
To drive better CX outcomes, leaders should prioritise AI where it adds the most value, rather than taking a spray-and-pray approach. The focus should be on areas that have the biggest impact–reducing wait times, streamlining workflows and improving self-service. The goal isn’t just efficiency, it’s also making interactions feel seamless yet human. In India, more than one in two consumers say they are more trusting of AI that feels human-like.
AI isn’t just about answering questions or helping customers find answers themselves. It can be a proactive problem-solver, predicting needs, flagging potential issues, and communicating with customers before they even reach out. Businesses that implement AI in CX with precision and purpose won’t just navigate uncertainty, they’ll build resilience, loyalty and long-term growth.
