Request a Demo

Make More Calls
Close More Deals

Trusted by thousands of leading brands

CallHippo Customer
CallHippo Customer
CallHippo Customer
CallHippo Customer
CallHippo Customer
CallHippo Customer

Create your CallHippo account


By signing up, you agree to our Terms & Privacy Policy

Thank You for Signing Up!

Check your Inbox

We’ve sent an email to
with a link to complete your account setup.
Having trouble?

Introducing CallHippo Ai Voicebot to Automate Your Business Conversations and Close More Deals. Learn More

What Is Customer Service Automation? (Pros, Cons, & Best Practices)

Experience the Future of Business Communication with Our Virtual Phone Solution

Do You Want to Make More Calls?

Set up CallHippo VoIP system in less than 3 minutes and start calling.

Sign Up Now

Rohit Rajpal
Senior Writer:
green tickDate: April 23, 2024

Customer service has become an integral part of every business. 90% of Americans use customer service as the primary factor in deciding whether to buy products from a company. 

However, 12% of Americans say their number one frustration with customer service is “lack of speed.” That’s where customer service automation can help. It reduces the time required to resolve an issue and minimizes human error, thereby enhancing the overall customer experience. 

But what exactly is customer service automation? How can it benefit your company? Does it have any drawbacks? We will answer these questions in this article and get the most out of customer service automation. Let’s get started!

protip image

Continuously analyze customer feedback and interaction data to fine-tune your automated systems. Ongoing evaluation and a data-driven approach ensure that your automation remains responsive to evolving customer needs and maintains a high level of efficiency.

What is Customer Service Automation?

customer service automation solutions

Customer service automation is the process of solving customers’ queries without the involvement of human agents. The primary advantage of automating service is that it saves time while ensuring the customer gets the solution they are looking for. 

Some of the customer service automation methods include: 

Did you know, 60% of US consumers prefer automated self-service for simple customer service tasks?

Automation makes customer service more efficient and offers a pleasant and streamlined experience to both agents and customers. 

Pros of Automated Customer Service

Automation is not a replacement of human agents, but it does have lots of benefits for your business. Let’s look at why you should implement customer service automation. 

1- Improves Agent Productivity

Boring and repetitive tasks can significantly bring down your agents’ job satisfaction and morale. Imagine having to pick up the phone 20 times a day to give every customer the same information. This will only build up frustration and affect their productivity. 

When you implement automation, your support agents won’t have to deal with basic questions like the refund/cancellation policy or the use case of a product. This allows your agents to focus on more complex issues and solve them efficiently.

2- Reduces Customer Service Costs

Businesses that use technology like automation to revamp the customer experience can save 20-40% in service costs. When you implement automation, you can reduce the need for new hires as your business grows. 

3- Allows You to Offer Customer Service Round the Clock

Customers can have an issue at any time or day of the week. And, it could be challenging to offer 24/7 support, especially if you are a growing business. With automation, you can provide continuous customer support without breaks, sick days, or vacations. 

Also, automation is more than just serving your customers. It also helps prospects learn more about your services, thereby increasing the chances of conversion. 

For example, Drift’s Chatbot highlights how businesses are benefiting by using Drift along with different options (I want to talk to someone, I already use Drift, and Great Question). 

Once you choose an answer, you will be provided with more relevant questions and options. 

You May Also Read : 7 Incredible Ways VoIP Improves Customer Service

4- Helps Retain Customers

When customers get answers to their queries immediately, they are more likely to stay with your company for longer. In fact, 75% of businesses report losing customers due to wait-related issues. 

5- Provides a Holistic View of Customers

Modern customer service systems like a virtual phone system integrate with a CRM platform. When you use it to centralize all your customer information, including their contact information, transaction history, browsing behavior, self-service interactions, and more, your agents get a 360-degree view of your customers. 

They can then use the data to personalize the customer experience when talking to them over the phone or sending an email. 

6- Enables You to Meet the Expectations of Customers of All Ages

While the phone is the most preferred customer service channel, the trend is likely changing. A report by Northridge Group indicates that the younger generations embrace digital channels for customer service. Besides, they are familiar with knowledge bases, virtual assistants, and social media messaging. With automation, you can meet their expectations and help them help themselves.


Cons of Automated Customer Service

Though customer service automation helps reduce costs and increase customer satisfaction, it does have some downsides. Let’s take a look at the cons of automated customer service. 

1- Lacks Emotional Connection

Even though bots can answer customers’ queries, it lacks emotional connection and the required empathy. Besides, less sophisticated systems might even point customers to irrelevant articles or solutions. In some cases, it requires even more human intervention to resolve the issue. 

2- Cannot Solve Complex Issues

Automation is great for solving simple issues, like billing information, refunds, etc. However, it cannot solve complex problems, such as technical issues in the product. Also, when customers express frustration, bots won’t understand and respond to them appropriately. 

3- Needs Significant Resources to Deploy 

To implement customer service automation, businesses need to invest substantial technical resources. While customer automation providers help you implement it, you need to train the tool to meet your business’s unique requirements. 

Customer Service Automation Strategies

Now that you know what customer service automation is, its benefits, and drawbacks, let’s look at the strategies to get the most out of it. 

1- Create a Knowledge Base

A comprehensive knowledge base that answers a variety of questions in different categories can help your customers find solutions quickly. Here’s how Zerodha, a stock brokerage firm, has created a knowledge base. Apart from articles in different categories, there’s also a search option to make it easy for customers to find the solution. 

2- Announce Updates on Your Phone System

When there is a problem with your products or services, most customers try to reach your support team via phone. And, if the issue is affecting a lot of customers, imagine the number of calls you will receive. Therefore, it makes sense to set up a custom message telling customers that you’re aware of the problem and are using every resource at your disposal to resolve it. A great office phone system like CallHippo allows you to set up custom messages. 

3- Install Live Chat along With a Chatbot

Chatbots can answer simple issues and can even redirect customers to particular articles on your knowledge base. And, for complex issues, make sure you have a human agent too. 

The chatbot can collect basic information like what product the customer is having issues with and their problem. This saves both agent’s and customer’s time while ensuring quick resolution. 

4- Automate Common Customer Service Workflows

Common customer service workflow responses, such as ticket assignment, ticket acknowledgment, and ticket prioritization, can be automated. For instance, when a customer raises a ticket, set up automation to instantly let them know that you have received their request and solve their issue via an email. You can then automatically assign the ticket to the right agent based on the category of the request. 

You May Also Read : Essential Soft Skills Your Call Center Agents Must Have

Measure the Results and Optimize Your Processes

Once you have automated customer service, it’s necessary to determine if it is working. Here’s how you can do that:

  • Check if the ticket volume is decreasing. If you don’t see the numbers going down consistently, you need to optimize your automation strategy. 
  • Analyze bounce rate and session duration on your customer service portal. Bounce rate helps determine if people are actually clicking (and reading) articles, while session duration shows how long a customer stays on a specific page. These two metrics enable you to understand how helpful your knowledge base is. 
  • Measure the customer satisfaction rate. At the end of the day, that’s what matters. 

Wrapping Up

Customer service automation allows your customers to become self-sufficient. It also gives your support team the additional time to solve consumers’ complex issues and ensure customer satisfaction. 

Have you implemented customer service automation yet? If not, what is stopping you? Let us know your concerns in the comments.


1. What is AI customer service?

AI customer service refers to the use of artificial intelligence technologies, such as chatbots and virtual assistants, to handle customer inquiries and support tasks. These AI systems can provide immediate responses, gather information, and assist customers 24/7, enhancing efficiency and accessibility.

2. What is CRM service automation?

CRM service automation involves using software tools to automate various aspects of customer interactions and data management. Customer service automation includes tasks like sending automated emails, tracking customer preferences, managing leads, and analyzing customer behavior to improve service and relationships.

3. Why is customer service automated?

Customers today expect great service and fast responses. Any delay in meeting these expectations risks leaving a negative impression that can significantly impact their satisfaction and loyalty to your brand. Customer service automation helps ensure timely and efficient support and meet customer expectations more effectively.

4. Does automation improve customer service?

Yes, automation can significantly improve customer service by reducing response times, ensuring consistency in interactions, and allowing businesses to scale their support operations efficiently. Automated customer service systems can also gather and analyze data to personalize customer experiences, leading to higher levels of satisfaction and loyalty.



subscribe image
Let’s Stay in Touch

Subscribe to our newsletter & never miss our latest news and promotions.

people subscribed +21K people have already subscribed
Share This