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Predicts 2022: Customer Service and Support — Paving

the Way for Greater Ambition and Responsibility for the
Customer Experience
Published 19 November 2021 - ID G00757898 - 20 min read

By Jim Davies, David Norrie, and 2 more

To deliver on their bold vision and elevate customer service within the organization,
application leaders supporting customer service must challenge traditional approaches and
set the precedent that customer service is a role played by everyone in the organization.

Overview
Key Findings
■ Composable thinking in customer services will enable organizations to break away from rigid
team structures toward agile, cross-functional groups of employees to more readily respond to
changing customer demand.

■ Vendors supporting customer service are embedding real-time analytics capabilities in their
offerings as standard, increasing the quality and quantity of assisted interactions organizations
handle.

■ Due to the COVID-19 pandemic, employees are now aware of the upside of working from home.
With this in mind, in order to ensure sustained engagement and the associated effects on
operational performance and the customer experience, it is important to provide greater
flexibility in when and how employees work.

■ First contact resolution rates continue to hover below 50% in self-service and assisted service,
regardless of customers’ preferred channel of engagement with an organization.

Recommendations
Application leaders planning for the future of customer service should:

■ Test the agile team concept by identifying a short-term customer challenge and piloting a
project involving multiskilled staff to resolve key issues for better customer service.

■ Investigate real-time analytics capabilities within existing tools to support use cases in self-
service and assisted service. Augmentation complements automation.
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■ Explore opportunities to empower employees by adding greater flexibility to when and how they
work, creating a more dynamic working environment.

■ Prioritize investments to upgrade knowledge management as a core AI-driven customer

service application that optimizes the continuous collection and active application of trusted
knowledge.

Strategic Planning Assumptions

By 2027, 60% of organizations will adopt composable thinking in their customer experience
strategy, enabling cross-functional teams to respond to changing customer needs.

By 2027, 45% of agent-assisted interactions will use real-time analytics to improve business and
customer outcomes.

By 2025, 50% of customer service agents will have full control over their shifts and break times,
up from less than 5% in 2021.

By 2025, customer service organizations that use AI-enabled knowledge automation will achieve
90% first contact resolution, up from 50% in 2021.

Analysis
What You Need to Know
Customer service strategy continues to evolve to fulfill a greater ambition around responsibility
for the customer experience (CX) and management of the overall relationship. Last year, we cited
how customer service is set to become more proactive and more seamless in its digital
capabilities (both self-service and assisted). We predicted it would begin breaking down the silos
between service, sales, marketing and commerce to help pave the way for a more connected
customer relationship and associated interactions. Gartner’s own research around the future of
CX and CRM is cementing this more harmonized approach. Gartner’s CX CORE is a new model
designed to help organizations architect experiences for lasting and valuable customer
relationships. It is a model that puts the customer at the center of the business, and focuses on
helping organizations to design and deliver an intelligently coordinated set of products and
services for a specific stage in the customer relationship. CX CORE will act as an organizing
principle for whatever role-based or functional technologies, people and processes you may use
to manage your customer relationships (see Break Out of the Customer Management Industrial
Complex With Gartner’s CX CORE Model).

Within customer service, much needs to be done to deliver against this bold vision. Four
important shifts that will occur include:

■ Greater composability in architectural design and thinking to help simplify customer service
technology alignment and innovation, while at the same time easing the potential transition to a
more-connected future.

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■ Greater use of real-time analytics to assist employees in tasks.

■ Greater investment in employee empowerment technologies to provide greater flexibility in

when and how they work.

■ Greater emphasis applied to the curation and use of knowledge, without which customer
expectations will never be fully met.

These shifts help reinforce each of the four functional building blocks required for great customer
service and the different modes of delivery that contribute to the customer experience (see Figure
1). In this research we provide key predictions for each of these four technological areas.

Figure 1: Customer Service Technology

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In addition, the service organization of the future will likely undergo numerous operational
changes as it attempts to assert greater control over customer relationships. This has the aim of
optimizing value to the organization by selecting who to serve, how to serve and what the
organization measures (see Predicts 2022: A New Customer Service Identity Will Redefine the
Customer Relationship).

In this report, we also look back at our 2018 technology prediction about the use of AI in customer
service. Back then we stated that by 2021, 15% of all customer service interactions would be
handled by AI, an increase of 400% from 2017.

Strategic Planning Assumptions

By 2027, 60% of organizations will adopt composable thinking in their customer experience
strategy, enabling agile cross-functional teams to rapidly respond to changing customer needs.

Analysis by: Steve Blood

Key findings:

■ Rigid customer service organizations struggled to adapt to changing customer needs at the
start of the COVID-19 pandemic, while those with a flexible mindset and more autonomy were
able to reimagine new experiences to meet customer demand.

■ Composable thinking, fueled by the COVID-19 pandemic, is the result of organizational leaders
reinventing their business thinking to embrace change and accelerate their transition to digital
business.

■ When applied to customer service, composable thinking enables customer service employees
to form fusion teams with colleagues across the organization to rapidly adapt to changing
customer needs.

■ CX leaders that use composable thinking as a founding principle for managing advisers will
allow members a greater level of autonomy to own and resolve complex customer service
challenges, resulting in a higher level of customer and employee satisfaction.

Market implications:

Customer service representatives are usually the first to witness customer dissatisfaction from
changes to normal working service. They are, therefore, feasibly the most experienced associates
to drive change in service delivery in order to mitigate poor CX and influence a better CX. Early
warning indicators of customer dissatisfaction can also be detected through the use of customer
analytics. Customer service representatives (CSRs) and their newly formed insights can join with
technology and business professionals to form fusion teams, which can rapidly address short-
term turbulence from a CX perspective.

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Whether composable thinking is adopted just within customer services or as part of a broader
composable business initiative across the organization, inviting the most capable employees with
strong persuasive communications skills is key when selecting ambassadors for customer
services. Creating a composable work environment for CX sets a precedent that customer service
is a role played by everyone in the organization. This is a concept that challenges traditional
organizational structures, where staff hide in their silos.

Enabling composability in customer services, a business operation with usually rigid work
schedules, is made easier with investment in leading workforce scheduling tools that
automatically adjust for short-notice changes. Enabling CSRs more control over revising their
work schedules to participate in fusion teams contributes to an improved employee experience
(EX), equaled by the self-esteem boost from supporting business change projects. For example,
Case Study: Team-Based Performance (T-Mobile) describes how T-Mobile restructured its B2C
customer service organization into teams of experts supporting groups of customers. By creating
team structures that leveraged group expertise, T-Mobile improved both its CX and EX.

Recommendations:

Application leaders supporting customer service should:

■ Identify their most capable associates to join fusion teams by using analytics and profiling
tools to determine who has the strongest skill set to represent customer services in business
change projects.

■ Assemble a cross-functional team to resolve a short-term customer challenge by allowing a

team of colleagues time in their calendar to work together. Use microlearning to instill the
concept of CX in front- and back-office team members.

■ Pilot the shift to composable thinking by enabling teams to investigate service examples where
satisfactory resolution was not achieved. Use customer service analytics to drill into the root
causes of dissatisfaction, and measure improvements in CX post-change.

Related research:

Case Study: Team-Based Performance (T-Mobile)

Leading Customer Experience in a Composable World

Becoming Composable: A Gartner Trend Insight Report

Future of Work Trends: Teams Become Agile

By 2027, 45% of agent-assisted interactions will use real-time analytics to improve business and
customer outcomes.

Analysis by: David Norrie

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Key findings:

■ According to Gartner’s Customer Service and Support Research Circle from 3Q21, 40% of
respondents are actively pursuing AI use cases to assist agent interactions with customers.
Thirty-four percent are attempting to leverage AI to automate agent tasks, and a similar number
are tackling guided digital self-service experiences using AI.

■ A clear majority (91%) anticipate high or very high return on investment within the use cases
assisting agent interactions with customers, according to the same survey.

■ Involving and challenging stakeholders when prioritizing use cases to understand where the
comparative value of use cases will come from (revenue generation, operational efficiency,
customer satisfaction, risk mitigation etc.) will significantly increase the chances of success.

Market implications:

Application leaders in charge of customer service need to equip their teams with real-time
analytics tools such as customer journey analytics (CJA), knowledge management (KM) and
conversation orchestration. These will help them handle the complex interactions that will (and
should) make up much of their workload.

In Gartner’s 2022 Customer Service and Support Priorities Poll, 54% of customer service leaders
stated that growing the business was the most critical outcome they needed to support.
Organizations continue to try and deflect as much contact as possible into self-service channels,
but these targets are often unrealistic, as such agent-assisted interactions are here to stay.
Customer interactions are inevitably more complex than people originally believe, so the size of
the prize when “simple” contact types are targeted for deflection fails to meet expectations.
Additionally, the successful deflection of quick and easy contacts increases the burden on CSRs,
as the mix of interactions they take are more challenging to handle.

Organizations who continue to focus only on simple contact types face diminishing returns in
cost savings and discontented employees at a time when the business is actively scaling up the
workload. Self-service and lower-touch interactions alone won’t solve for — and could even
compound — these challenges.

Real-time capabilities have become hygiene factors across all CX- and customer-service-adjacent
technology spaces. Contact center as a service (CCaaS), voice of the customer (VoC), marketing
cloud, CRM and digital customer service (DCS) vendors, among others, are focusing on analytics
and orchestration capabilities that can improve interactions in the moment.

There are some minor obstacles slowing adoption, such as overlapping capabilities offered by
vendors operating in the areas mentioned, which confuses buyers. Vendors are also competing
on more fronts, rather than against the usual suspects they normally compete against in RFP/RFI
processes. Thus, it can be difficult for them to articulate what differentiates them from other
offerings, with pricing in particular being a sticking point.

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As previously mentioned, there are a number of real-time interaction analytics tools in use today.
In order of predicted growth through 2027, these include:

■ Customer journey analytics (CJA) — At its most basic, CJA provides CSRs with a snapshot of
up-to-date interaction data. These signals can be reused to inform fully and partly assisted and
unassisted customer interactions. Orchestration capabilities (enabling next best
action/offer/recommendation) have become the standard in CJA tools.

■ Knowledge management integration — Real-time interaction analytics classify customer intent,

enabling relevant resources to be served up to CSRs as needed.

■ Conversation orchestration — Parsing active conversations (voice- or text-based) can alert

managers to high-risk interactions or guide agents with suggestions on how to de-escalate
difficult contacts.

Recommendations:

Application leaders supporting customer service should:

■ Take a “use-case-first” approach, prioritizing investment using a combination of value and

feasibility against the current state, rather than pursuing capabilities. This also makes it easier
to demonstrate ROI.

■ Take a phased approach to their roadmap by tackling initiatives that will provide value early and
make later phases easier. For example, consolidating interaction data (which can be shared
and leveraged by multiple areas immediately) before tackling orchestration or next best action,
which are more effective and easier to integrate using a consolidated source.

■ Involve and challenge stakeholders when prioritizing use cases to understand where the
comparative value of use cases will come from (revenue generation, operational efficiency,
customer satisfaction, risk mitigation, etc.).

■ Seek out vendors or implementation partners with a proven track record of delivering these
solutions, either within your specific industry or similar adjacent verticals, to increase time to
value.

Related research:

Market Guide for Digital Customer Service and Support Technologies

Market Guide for Customer Journey Analytics

Magic Quadrant for Contact Center as a Service

The Eight Building Blocks of CRM: Information and Insight

5 Essential Practices for Real-Time Analytics

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Improve Critical Business Outcomes With Real-Time Data-Driven Insights

 Reducing the Cost of Rep Disengagement

By 2025, 50% of customer service agents will have full control over their shifts and break times,
up from less than 5% in 2021.

Analysis by: Jim Davies

Key findings:

■ The dramatic increase in working at home (WAH), driven by COVID-19, has surfaced a desire
for greater flexibility in how an employee’s time is managed in line with their ambition for a
better work-life balance.

■ A greater emphasis on employee engagement (boosted by the increase in resignations seen

during 2021) and an appreciation of the impact this has on operational performance and CX
enhancement are placing traditional employee management methodologies under scrutiny.

■ Focusing on expanding job flexibility improves the probability of engagement. Reps are actually
67% more likely to be engaged if their perception of work flexibility moves from a bottom-
quartile score (i.e., “not very flexible”) to a top-quartile score (“pretty flexible”) (see 2021
Gartner Customer Service Rep Role and Experience Survey).

■ If organizations cannot meet employees’ needs for flexibility, they may have trouble retaining
and attracting talent, especially as other organizations begin to offer more flexible
opportunities (see 2020 Gartner ReimagineHR Employee Surveys).

■ Leading workforce management (WFM) technology providers have evolved their applications
over the past few years to more easily accommodate this needed flexibility, such as adding
support for agent-initiated break times.

Market implications:

Giving greater control to employees over when they work is often approached with trepidation for
fear of the customer service team being woefully understaffed at certain times of day and failing
to meet operational goals. However, as shown in Case Study: Flexible Scheduling of Breaks and
Lunches (The Home Depot), provided the contact center has critical mass, usually over 200
agents, this has proven not to be the case. On aggregate, agents still tend to work roughly the
same hours or “shifts” as they would do with a rigid schedule. However, individually, they can now
wrap their time around aspects like the school run, a yoga class or even just needing to take a
breather from difficult calls. Organizations that have provided their reps with additional schedule
flexibility see greater employee well-being benefits with minimal to no disruption to their
operational efficiency.

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Rules can be put into place to help massage the resource pool, but still provide far greater
flexibility than what is traditionally applied. For example, a rule such as “you have to work two
Friday afternoons per month” ensures this less desirable working period has sufficient employees
available. If it still looks like a particular shift is going to be understaffed, an alert can be sent out
asking for volunteers, either as shift swaps or overtime, again determined by business rules.

This elevated flexibility does not just apply to the hours blocked out each day that the employee
signs up for in advance. It also needs to accommodate in-shift flexibility. Two common examples
of this are:

■ Delayed lunch — When a call is running longer than expected, there is a risk the agent will be
late for their planned lunch break. For example, if a call overruns by four minutes and the agent
is therefore going to be four minutes late for their planned 1 p.m. to 2 p.m. lunch break, the
shift can automatically be adjusted by these few extra minutes. Thus, they now work from 10
a.m. to 1:04 p.m., then from 2:04 p.m. to 5 p.m. Traditionally, these four minutes would have
been classed as an “out of adherence” issue.

■ Breaks on demand — Typically, an agent would have a set break time part way through their
shift. However, if they have had a few tiring or stressful calls, there currently is no option but to
carry on working up to this break time. With flexible breaks, the agent chooses when to take
their break during their shift. If they need to take 15 minutes after a particularly emotional call,
they can make that decision themselves, book the break and then come back feeling refreshed.
This approach is both more operationally efficient and empowering.

This significant increase in employee empowerment and perceived control over when they work
will better align with the needs and expectations of the post-COVID-19 world we live in.
Organizations that fail to commit to employee empowerment and work flexibility will increasingly
see attrition rates rise and recruitment programs fail to secure the right volume and caliber of
candidate.

Recommendations:

Application leaders supporting customer service should:

■ Survey employees to determine how interested they would be in flexible working rather than, for
example, a pay increase. Ask employees to fill in a time sheet citing when they would ideally
like to work each week (within contractual obligations). Analyze this to determine the impact on
current operational obligations (likely small, but needs to be analyzed to instill confidence).

■ Approach your incumbent WFM vendor to ascertain the degree of flexibility within their
application and what additional roadmap functions they are working on. Identify which
additional technologies and capabilities are required to offer real-time flexibility to CSRs by
auditing existing intraday workforce management capabilities (see Flexible Scheduling
Innovations That Improve Rep Engagement and Well-Being).

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■ Compare this with one or two leading WFM vendors’ solutions to ascertain a potential
capabilities gap (see Market Guide for Workforce Management Applications).

■ If scale permits, pilot the approach taken in one division (we recommend a minimum of 200
agents) to confirm viability, and learn associated lessons and best practices that can then be
rolled out holistically in due course.

■ Monitor employee engagement and attrition closely before and after the transition and use the
insight as ammunition to entice other agents to your company as you look to expand
operations. Track external company review sites like Glassdoor for score improvement.

Related Research:

Case Study: Flexible Scheduling of Breaks and Lunches (The Home Depot)

Case Study: Unlimited Well-Being Breaks (Anglian Water Group)

Reducing the Cost of Rep Disengagement

Flexible Scheduling Innovations That Improve Rep Engagement and Well-Being

How Common Is Flexible Scheduling Among Customer Service Organizations?

Leading Customer Experience in a Composable World

By 2025, customer service organizations that use AI-enabled knowledge automation will achieve
90% first contact resolution, up from 50% in 2021.

Analysis by: Pri Rathnayake

Key findings:

■ First contact resolution (FCR) rates continue to hover below 50% in self-service and assisted
service, regardless of customers’ preferred channel of engagement with an organization. The
2021 Gartner State of the Customer Survey results show that FCR rates for the phone and web
chat channels are at 46% and 42% respectively. For all other channels, including company
websites, email, SMS and social media, FCR rates are at 40% or below.

■ Many organizations have prioritized digital customer engagement investments only at the
front-end interaction layer, such as digital channels and chatbots. No similar levels of
investment have been made into upgrading the back-end capability of KM, which is a crucial
link in the intent-to-resolution value chain in customer service.

■ Customer service organizations want to use knowledge management systems (KMSs) to

improve CSR productivity and for self-service containment, thereby making FCR in assisted
service and self-service channels easier to achieve.

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■ A majority of customer service organizations cite keeping KMS up to date as the most
challenging aspect of KM. This is mainly due to the lack of investment in upgraded technical
capabilities, unclear ownership and lack of accountability for the KM program.

■ Automation of knowledge capture and automated optimization of knowledge creation are key
strategies to keep KMS up to date, but only 16% of surveyed organizations reported utilizing
such automation strategies as part of their KM programs.

■ FCR requires both intent detection and matching a resolution to the intent during a single
interaction. Such intent-to-resolution matching involves complex sequences of steps. Even
when the insights needed to provide a resolution exist within knowledge bases, matching those
insights to the intent through predefined decision trees and other conventional mechanisms
becomes incrementally complex. AI-enabled knowledge automation can handle this complexity
at scale and simplify the intent-to-resolution matching with improved accuracy.

Market implications:

As customer-facing applications increasingly adopt digital engagement channels, FCR continues

to be an important KPI, both as a performance metric and as an indicator of reduced customer
effort, brought about through digital transformation investments.

Application leaders responsible for customer service should prioritize the rapid adoption of AI-
enabled automation strategies at multiple points along the KM life cycle. These automation
opportunities begin at:

■ the point of knowledge capture, through to

■ the optimized creation of reusable knowledge assets, and finally to

■ the provisioning of contextualized knowledge snippets to each point of interaction in both

assisted and self-service channels

Automated provisioning of knowledge at the point of assisted service interactions will make it
easier for reps to offer resolutions to customer requests more often, saving them the time
otherwise spent searching for and reading through full-length knowledge articles. The repeated
application of such insights to solve real-world customer requests also has the effect of better
knowledge retention. Application leaders responsible for customer service should use these
improvements to promote microlearning practices within their organizations.

Delivering contextually relevant information to assist in customer interactions in real time was
ranked as the highest value topic to be addressed by 58% of respondents to the Gartner 2022
Customer Service and Support Priorities Survey. Vendors should plan for increased demand for
AI-enabled automation within the KMS tools to meet these heightened expectations. Of specific
interest will be capabilities which can automate content detection, capture, creation, curation and
provisioning in a near-seamless fashion to assisted and self-service channels.

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Recommendations:

Application leaders supporting customer service should:

■ Appoint a dedicated leader to own the customer service KM program, whose performance
incentives are directly tied to the success of the program.

■ Adopt a comprehensive KM governance framework and process methodology, encompassing

roles and responsibilities, content models and content life cycle.

■ Prioritize investments into upgrading KM as a core capability within the customer service
organization.

■ Implement an AI-enabled KM tool that optimizes the continuous collection and active
application of trusted knowledge within the flow of work.

Related Research:

Rampant Rep Disengagement Is Driving Turnover and Harming Customer Outcomes

State of the Customer: Customer Service Journeys and Channel Preferences

A Look Back
In response to your requests, we are taking a look back at some key predictions from previous
years. We have intentionally selected predictions from opposite ends of the scale — one where we
were wholly or largely on target, as well as one we missed.

On Target: 2018 Prediction — By 2021, 15% of all customer service interactions will be completely
handled by AI, an increase of 400% from 2017.

The volume of interactions being handled through digital channels sharply increased during the
COVID-19 pandemic, increasing potential savings as the percentage of interactions in-scope to be
handled partially or completely by AI increased.

In Gartner’s AI in Organizations Survey from 2020, 34% of respondent organizations were already
using virtual customer assistants (just one application of AI in service interactions). The trend
looks set to continue. Looking at future investments in 2022, according to Gartner’s Service and
Support Priorities poll, the two most important strategic priorities are focused on self-service. The
first is creating seamless journeys (47% ranked this as very important), and the second is
increasing migration to the existing self-service channels (42% ranked this as very important).

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