AUSTRALIAN COST OF POOR CUSTOMER SERVICE REVEALED, AI RESOLUTION UNDER PRESSURE
SIPPY DOWNS, Australia, April 30, 2026 /PRNewswire/ -- With the time it takes from query to resolution, new research commissioned by Australian insurance company Youi[1] has uncovered that human connection and clear communication are critical for a positive customer service experience. In a study of more than 2,000 Australians, findings revealed that while 81% report their most recent customer service interaction as positive, the cost of a negative experience is steep, and can impact more than just our wallet.
The real life 'time-away' cost
The numbers reveal a hidden, real life 'time-away' cost – a personal cost that Australians experience when dealing with customer service. 62% of Australians say their most recent customer service interaction took time or energy away from something that mattered, including personal downtime (39%), mental or emotional wellbeing (19%), family or friend time (13%), work or income (11%), and sleep (7%).
This hidden 'time‑away' cost becomes even more apparent during bad customer service experiences. Among those whose last experience was negative, 91% reported a cost to their time or wellbeing, with 57% losing personal time, 52% mental energy, 27% family time, 23% work or income time, and 18% sleep, compared with just 9% who experienced no impact.
Good customer service – a simple recipe
Anthony Antonucci, Chief Customer Officer at Youi said the research reveals a clear blueprint for fixing the service industry problem, a simple recipe for good customer experience built on three essential ingredients.
"This research makes clear that great customer experience isn't accidental – it follows a recipe. Australians tell us the three ingredients that matter most are simple: being able to speak to a real person, having clear communication, and getting a quick, effective response," Anthony said.
"But as more companies lean heavily into automation and AI, access to a real human is becoming harder to find, and consumers are feeling the consequences. Even tech savvy Australians, who are comfortable with digital tools, still credit real human support as critical to resolving their issue. That tells us something important: technology can absolutely help, but it can't replace empathy, clarity or genuine connection. These three elements are key to timely issue resolution, giving customers their time back."
51% of respondents say speaking to a real person is the top factor driving an effective resolution. This is followed by 34% citing great communication and thirdly, quick responses or short wait times, which 33% say made a difference.
Among the Aussies that prefer technology, four in five (81%) still say speaking to a real person is important or essential for high-stakes customer issues, such as those affecting their finances, health or family. Further, 32% want to speak to a real person immediately when something goes wrong. This sentiment is even more common among the general population, with two thirds of Australians (67%) saying they want to talk to a real person straight away when an issue arises.
Psychologist and Human Behaviour Expert, Sabina Read has emphasised the power of human connection. "In a fast-moving world, with AI and chatbots infiltrating many of our daily interactions, it's no surprise that human connection and clear communication top the list of ingredients that constitute a positive customer service experience. We're hardwired for connection. Even the best technological innovations can't replace the power of being seen, heard and validated in a timely manner when we are seeking to resolve an issue that matters to us," Sabina said.
"Curiosity and presence matter when we're feeling frustrated. Human connection is the most impactful way to truly bring these to life, which goes a long way in explaining why contact with another person is a key ingredient is in delivering customer service that lands," she said.
The recipe for better customer service is clear. While automation and AI can improve efficiency, human connection cannot be replaced. When customer service puts people first, Australians gain back the time, clarity and confidence they need most.
To find out more about the research, visit here.
Disclaimer:
This article's data is sourced from a survey conducted by Ideally Group Limited between 10th March 2026 and 14th March 2026, involving 2,080 individuals aged 18 and above from all states and territories within Australia. Some percentages have been rounded to the nearest whole number. Survey results have not been independently verified by Youi and may not be representative of the general population. Youi makes no representation or warranty of any kind of the accuracy, adequacy, reliability, or completeness of the data and accepts no liability for any loss or damage of any kind suffered as a result of the use of or reliance on the data. Individual experiences may vary.
ABOUT YOUI:
Youi Pty Ltd is an Australian registered company and is a wholly owned subsidiary of Youi Holdings Pty Ltd, a subsidiary of OUTsurance International Holdings Pty Limited. The ultimate holding company is OUTsurance Group Limited.
Youi Pty Ltd is a registered general insurance company which underwrites its own policies. Our products currently include Vehicle Insurance (Car, NSW CTP Green Slip, SA CTP, Motorcycle, Caravan and Trailer), Home Insurance (Buildings and Contents), Watercraft and Small Business Insurance.
Company: Youi
Company Phone: 13 96 84
Website: https://www.youi.com.au/
Head Office Location: https://share.google/Vw6L9htnVyiMIYQFP
SOURCE Youi
Share this article