Customer Service

The customer service industry is generally expected to have steady growth in the near future. Companies in various industries will continue to improve on the tools and techniques needed to provide their customers with the best customer experience possible. Large and small businesses will enhance their customer service offerings by adopting the most current social and mobile applications for managing customers, from product research to purchase and to post transaction. The customer relationship market will continue to expand and is projected to exceed $163 billion in revenue by 2030, according to Grand View Research Inc. The firm indicated that more companies were using CRM tools to be more responsive, cut costs, and boost customer satisfaction. During the mid-2020s, trends included "hyper-personalization of customer service, use of AI and automation, and implementation of robust social media."

Companies realize the importance of the customer experience (or CX, as is commonly known in the industry) with their products and services and will continue to research and invest money in customer service innovations. A recent Inc. article noted that more companies worldwide are integrating CX-related systems and technology into more of their business operations. And that "this has coincided with a reconsideration of what CX can do for a company, including providing valuable consumer data, reinforcing a brand’s positive image in the mind of its customers, and ultimately reducing churn."

Industry experts predict that more companies will begin using generative artificial intelligence (GenAI) in their customer service programs in the next few years. In a December 2023 Forbes article, Samantha Richardson, executive programs lead at Twilio, stated: "AI will become a non-negotiable. As the dust settles in 2024, more brands will hopefully start to think practically about how they'll start implementing it. Brands need to start to update essential channels like IVR, voice, chat and email. … In 2024, we’ll see more AI applications automating and handling simple-to-resolve queries, offering deeply personalized interactives that surpass consumers’ expectations, and helping agents better understand each customer’s history and previous interactions with their brand."

Employment opportunities in customer service will vary depending upon the industry, with some areas offering more job growth than others. The Department of Labor (DOL) predicts a 5 percent decline in employment growth overall for customer service representatives through 2032. From 2022 through 2032, approximately 162,700 customer service representative jobs are expected to be lost, resulting in a workforce of about 2.82 million workers.

"There is expected to be less demand for customer service representatives, especially in retail trade, as their tasks continue to be automated," the DOL stated in its Occupational Outlook Handbook. "Self-service systems, social media, and mobile applications enable customers to do simple tasks without interacting with a representative. Advancements in technology will gradually allow these automated systems to do even more tasks. Some companies will continue to use in-house service centers to differentiate themselves from competitors, particularly for complex inquiries such as refunding accounts or confirming insurance coverage."

The top industries in the United States that are driving economic growth and will offer the best employment opportunities for customer service workers and others include health care, medical and life insurance, technology, banking, pharmaceuticals, and solar energy. Customer service workers who specialize in computer equipment and software are expected to have excellent job opportunities. Faster than average employment growth (5 percent) is predicted through 2032 for computer support specialists. Individual consumers and businesses alike will require the expertise of these specialists as well as help-desk technicians to help resolve technical issues with computer products and software systems. However, automation, including the use of tools like chatbots, may impact demand.

In-house customer service departments will continue to exist in some companies, as they aim to distinguish themselves from their competitors, especially for such functions as confirming coverage of insurance or issuing refunds for customers. Technological advancements in the customer management field, however, may reduce the number of jobs available in some companies, as more customers can have their questions and issues handled through Internet self-service, interactive voice response, and mobile applications, without need to speak to a customer service representative.

Increased investment in computers and software could pose a threat to the customer care center industry. In the coming years, more companies are expected to introduce virtual customer assistants and chatbot technology into their customer service offerings. This could reduce the need for customer service representatives; on the other hand, it also might increase the demand for human customer service specialists who can handle the more complicated inquiries that are outside of the scope of virtual tools and technologies.

In 2024, the U.S. customer care center industry was valued at $13 billion, according to IBISWorld. There were 36,787 businesses and 305,000 customer care center employees. This industry is expected to continue growing through 2029, according to the researcher. "Despite current challenges related to high inflation, rising interest rates and recessionary fears, the US economy will perform well during the outlook period," the firm noted in May 2024. "As stable economic growth fosters higher consumer spending and corporate profit, downstream demand for customer care centers will rise, causing revenue to expand."

According to Tidio, more than 63 percent of retailers were using AI to provide better customer service in 2024. In the coming years, the company indicated that spending on GenAI for customer service applications was poised for explosive growth. After reaching $482.72 million in 2024, related revenues were projected to total almost $2.90 billion by 2032. The fastest growth was occurring in the chatbot category. Valued at $1.2 billion in 2024, related revenues were forecast to reach $4.9 billion by 2032.