I Asked for a Human. The Bot Said No.

Customer Experience in the Modern World: Automation isn’t the problem. Making customers feel ignored is. In a world of bots and call trees, human connection still wins.

May 01, 2025

The other day, I was online with “customer service” — or rather, a very obvious AI bot.
At first, the experience was fine. But when the bot couldn’t understand what I needed, I asked to be connected to a live agent.

Guess what? That wasn’t possible.
You heard that right… Not possible.

And this wasn’t some scrappy startup — it was a large, well-known company.

Just a few weeks earlier, I had to reach out to another company’s customer service line. Only, there was no phone number. I was forced into chat. I got handed off three times, had to explain my issue thrice, and after 40 minutes, I was only half-confident my problem would get fixed.

I made a mental note to “fire” that company as soon as my subscription ended.

Sure, these are personal stories. But what about in business settings?
Is it any better — or is the customer experience just as broken?

Companies love to track NPS scores. They run surveys. They invest in automation. They talk about “customer obsession” on earnings calls.

But here’s the uncomfortable truth: It’s not about whether you use humans or AI. It’s about whether your customers feel understood — and whether their problems get solved.

Customer experience isn’t just a department or a chatbot upgrade. It’s the heartbeat of trust between you and the people who keep your business alive.

If that trust is broken, they’ll quietly leave.
And when they do, they won’t fill out your survey; they’ll just move on.

Customer Experience (CX) - Just a Buzzword?

In today’s market, experience is everything for customers. 88% of customers say a company's experience is as important as its products or services — the highest level since tracking began.

This shift didn’t happen overnight.

Over the past decade, businesses have slowly realized that winning and keeping customers often comes down to how those customers feel treated. From Retail to SaaS, companies are learning (sometimes the hard way) that a company is only as good as its service.

In this newsletter, I’ll take a fun-yet-informed look at how CX has evolved in recent years across North America. Fun? Well…you can be the judge of that.

I’ll explore long-term trends, the seismic changes post-COVID, and the flashy new tech — automation, AI chatbots, self-service portals, personalization engines, CRM systems, customer data platforms, and whether these tools are making customers happier and, as a business leader, your organization more efficient and increasing revenue.

I’ll also call out a worrying trend: as technology races ahead, some companies are leaving customers behind by neglecting good old-fashioned service and personalization.

Along the way, I'll sprinkle in statistics from Genesys, Forrester, PwC, Salesforce, and more, plus real-world examples (the good and the bad) from industries like retail, finance, hospitality, and SaaS.

Let’s dig in

The CX Evolution: Why Experience Became King

Not long ago, “customer experience” meant customer service – often an afterthought relegated to call centers. But over the last decade, that mindset flipped.

Customer experience has become the competitive battlefield for businesses. (One Gartner study famously found that 89% of companies compete primarily on CX rather than products or price.) The reason is simple: happy customers stick around and spend more, while unhappy customers churn, and fast.

Improved customer experience can increase company revenue by 10-15%.

Consider loyalty and revenue: 81% of customers say a positive customer service experience makes them more likely to make another purchase. Moreover, 61% of consumers will pay at least 5% more if they know they’ll get a good experience.

In other words, people are willing to open their wallets for brands that treat them well. PwC even found that consumers are willing to pay a price premium of up to 16% for great experiences (especially in industries like hospitality and luxury retail).

And when customers feel appreciated, they’re more open to sharing data and trying new offerings, fueling a virtuous cycle for companies who “get it right.”

On the flip side, a bad experience can ruin brand perception overnight. Nearly one-third of customers (32%) would stop doing business with a brand they love after just a single bad experience, and 59% would walk away after several bad ones.

In North America, consumers have zero patience for poor service: one survey found 60% of customers will defect after one bad experience, up 22% from the prior year. The stakes are high, and they’ve been getting higher.

So, companies responded by elevating CX to a strategic priority. We saw the rise of Chief Customer Officers and customer journey mapping exercises. Companies invested in slicker websites, mobile apps, and omni-channel support.

Yet, despite all the talk and investment, many brands still struggle to deliver experiences that truly satisfy customers. In Forrester’s latest U.S. Customer Experience Index (2024), CX quality among brands hit an all-time low after declining three years in a row.

Only 3% of companies in that study were rated as “customer-obsessed,” i.e., truly putting customer needs at the center of their business. (Yes, just 3%, down from 10% a year prior.) Most firms still have a long way to go, and my question is, “Do they even care anymore”?

Why the gap? Often, it’s because knowing what makes a great experience is easier than doing it consistently. Customers say they want the basics: speed, convenience, consistency, and a human touch.

As PwC summed it up, “minimize friction, maximize efficiency, and keep a human element.” Companies, however, sometimes get distracted by shiny new trends or cost-cutting pressures and forget to nail the fundamentals.

I’ll explore those pitfalls shortly. First, let’s look at how recent years, especially the pandemic era, have reshaped customer expectations.

How COVID Changed Customer Expectations For Good

The pandemic didn’t just push people online, it rewired how they expect to be served.

In just 100 days, e-commerce adoption leapt forward a decade. From Zoom meetings to curbside pickup, consumers adapted fast and expected companies to do the same. That shift didn’t fade after lockdowns ended. If anything, expectations only grew sharper.

Four lasting CX shifts that occurred:

Digital-First, No Excuses: Everyone became a digital user, even grandparents. Now, clunky apps or slow websites aren’t just annoying, they’re dealbreakers.
Omnichannel or Bust: Customers move between digital and human channels seamlessly. But 84% of CX leaders say they still can’t fully connect those dots, and consumers notice. As my examples pointed out above, this is a real problem.
Loyalty Is Fragile: 75% of consumers tried new brands during COVID. Many didn’t go back. Loyalty now depends on value, personalization, and well-run loyalty programs. Even companies such as Amazon may lose market share. Their customer experience has worsened, and now tariffs may impact prices.
Human Matters (Still): People don’t want less technology, they want better technology that supports real human connection. Empathy still drives trust.

Bottom line: COVID raised the bar. Today’s customers expect fast, seamless, human-centered service across every channel.

Tech to the Rescue? AI, Automation & the CX Balancing Act

Technology has transformed customer experience, but not always for the better.

Companies have invested heavily in tools that promise faster, more personalized service, from AI-powered chatbots to CRM upgrades and self-service portals. And it works when done right. The problem is that it rarely is.

64% of consumers believe AI will improve CX
CX leaders are spending 33% of their budgets on AI tools this year
Use cases like chatbots, “next best action” CRMs, and real-time agent coaching are on the rise

But here’s the catch: poorly implemented technology can backfire.
Think glitchy bots, endless phone trees, or systems that silo data across departments. According to Forrester, these technology missteps are a key reason CX scores have dropped. Customers don’t mind automation; they just don’t want to feel trapped in it.

What good looks like:

Easy self-service and access to humans when needed….yes….ACCESS TO HUMANS
Seamless transitions across channels
Personalization that feels tailored, not creepy

Yet most companies aren’t there.

84% of CX leaders admit they don’t offer fully integrated omnichannel experiences
78% of marketers say their loyalty and CX systems are still siloed
And 57% of CX technology isn’t even in the cloud yet

The good news? Companies are now investing in customer data platforms (CDPs), AI co-pilots, and cloud-native solutions to close the gap. However, the lesson is clear: Technology should solve real customer problems, not just cut costs or follow trends.

Are Companies Leaving Customers Behind?

With AI chatbots, automation, and data-driven personalization, you'd think customer experience (CX) is thriving. But many customers feel the opposite — overlooked, unheard, and undervalued.

Despite new technology, trust is eroding. A 2024 Salesforce study found:

72% of consumers trust companies less than they did a year ago
65% believe businesses misuse their data

Fancy tools aren’t winning hearts if they don’t feel personal, or worse, feel invasive.

There’s also a major disconnect in perception:

60% of companies believe they offer great service
Yet 54% of customers say it feels like an afterthought
And 59% feel brands have lost touch with the human side of CX

Automation done right enhances service. Done wrong, it signals cost-cutting over customer care. The Southwest Airlines holiday meltdown in 2022 is a case in point — outdated systems and inaccessible support cost them $600M+ in reimbursements and a $140M fine. Even beloved brands lose trust when they can’t deliver in critical moments.

Another blind spot: employee experience. Burned-out, undertrained staff can’t deliver great service. Forrester reports that declining CX often stems from companies neglecting employee well-being. Only 38% of U.S. consumers feel that front-line staff understand their needs.

In some industries, like SaaS, companies are cutting customer success teams to save costs. The result? Fewer reps, more accounts, less human connection, and more churn.

Bottom line:
Customers want to feel understood, valued, and supported, not just processed by a machine. When companies forget that, even the best technology won’t save them.

What Do Customers Want?

Technology is evolving fast, but the core of great customer experience remains surprisingly simple. Across studies, customers consistently ask for four things:

1. Solve My Problem, Fast and Easy

Speed and convenience top the list. 80% of U.S. consumers prioritize fast, friendly, knowledgeable service. They want low-effort resolutions — no repeating information, no jumping through hoops. Seamless handoffs across channels matter: 93% will spend more with companies that respect their time and make support frictionless.

2. Meet Me on My Terms

Omnichannel matters — but simplicity matters more. Customers want to choose their channel (chat, phone, app), expect continuity, and don’t want to start over. First-contact resolution is gold. Nearly 60% prefer fewer touchpoints to get what they need, and 69% expect connected experiences across departments.

3. Know Me, Respectfully

Personalization works when it’s relevant and not creepy. Customers want businesses to use existing data to anticipate needs, recommend smart options, and streamline communication. 63% are willing to share data if it leads to real value. But misuse that trust, and you’ve lost them.

4. Treat Me Like a Human

Courtesy, empathy, and a real effort to help still matter. 82% say friendly, informed support defines a great brand. Customers forgive mistakes if the recovery is sincere. What builds loyalty is listening, responding, and showing that their feedback drives action.

Bottom line:
Customers want companies to care about their time, their preferences, and their humanity. The best brands consistently deliver on what Forrester calls the “three E’s” of CX: easy, effective, and emotional.

When companies nail all three, they don’t just solve problems — they build loyalty.

Next up: real stories of brands that get it right — and those that don’t.

CX Wins and Fails Across Industries

Want to see what great (and terrible) customer experience looks like in the real world? Here are quick hits from four industries:

Retail

Win: Chewy has become legendary for empathy, sending flowers and even hand-painted portraits to customers who’ve lost a pet. Their personalized service drives loyalty and word-of-mouth like no ad campaign ever could.

Fail: Big-box retailers that failed to adapt during COVID (clunky curbside pickup, poor inventory visibility) lost ground to more nimble players like Walmart.

Lesson: Personal touches + convenience = retail CX gold.

Financial Services

Win: USAA and Navy Federal consistently rank among the top for CX by truly understanding and serving their unique customer bases. Human-centered service and helpful policies earn lasting trust.

Fail: Wells Fargo’s fake accounts scandal wasn’t just unethical, it destroyed customer trust and became a cautionary tale in CX.

Lesson: Trust and simplicity matter. If your bank helps when it counts, customers stay. If not, switching is easy.

Hospitality & Travel

Win: Ritz-Carlton empowers every employee to spend up to $2,000 to fix guest issues. Viral moments like “Joshie the Giraffe” show how small gestures create unforgettable experiences.

Fail: Airlines still rank low in CX. Even with some recent improvements (like Delta’s app-based rebooking), travelers often feel frustrated and undervalued.

Lesson: When things go wrong, how you respond is what customers remember most.

Software & SaaS

Win: Salesforce and HubSpot stand out by investing in customer success, education, and community. Their support turns customers into brand advocates.

Fail: Some SaaS companies slashed support teams in downturns, frustrating customers and driving churn. SAP once lost ground due to clunky UX, proving that even powerful software must be usable and supported.

Lesson: In SaaS, the product and service are inseparable. Success = helping customers succeed.

Final takeaway:
Companies that deliver speed, empathy, and relevance consistently outperform. Good CX isn’t just a feel-good story — it’s a real growth strategy.

The ROI of Great Customer Experience

Does CX really pay off? The data says: absolutely.

Revenue & Profit Growth

According to Forrester, customer-obsessed companies grow 41% faster in revenue and 49% faster in profit. Over time, CX leaders outperformed laggards by 5.4x in stock returns.

Retention = Revenue

Bad CX drives churn — 53% of consumers leave a brand after just two poor experiences. Improving CX reduces attrition, boosts customer lifetime value, and lowers support costs. Loyal customers spend more and refer others.

More Spend & Premium Pricing

81% of consumers say great service makes them more likely to buy again.
61% will pay more for guaranteed good CX. Think Apple: people pay a premium for a seamless, supported experience.

Differentiation in Competitive Markets

When products are similar, CX is the tie-breaker. T-Mobile gained market share by killing contracts and adding perks. Startups often win by out-servicing bigger rivals.

Lower Costs via Word-of-Mouth

Happy customers promote you. Tesla built its brand with almost no traditional advertising. Meanwhile, bad experiences generate bad buzz and costly PR damage control. (We’ve seen Tesla demonstrate both positive and negative brand aspects)

Leading Indicator for Investors

CX metrics like NPS and CSAT now sit alongside EBITDA on investor dashboards. A 5% improvement in retention at a $100M company = $5M+ in recurring revenue.

Bottom line:
CX isn’t a feel-good initiative; it’s a growth strategy. Better experience = higher loyalty, lower churn, stronger brand, and higher valuation.

Conclusion

Customer experience in North America has shifted from a neglected function to a vital strategic differentiator, especially during the pandemic. Technology, like AI chatbots, can enhance CX but can also alienate customers if mishandled.

As my examples point out companies seem to be making efforts, but not working from the customer backwards. Understanding customer needs and frustrations is key.

Business leaders should view CX as crucial to brand reputation and revenue, particularly in private equity and strategy. When acquiring or growing a company, assess customer satisfaction: are they raving or complaining? This will impact your growth and retention.

North American consumers demand fast service, seamless technology, personalization, and a human touch. They reward companies that meet these expectations.

To excel in CX, listen to customers, invest in technology and people, and simplify their journeys. This approach can position you as a leader in the evolving CX landscape.