Coveo (TSX: CVO), a leader in AI-Relevance, has unveiled its fifth annual CX Relevance Report, titled "Customer Effort Is at an All-Time High – Is Search The Key?" The report, produced in partnership with Arlington Research, provides a detailed analysis of contemporary customer service journeys, highlighting customer behaviors, expectations, and frustrations.
On April 8, 2025, Coveo announced the findings of the report, which surveyed 4,000 customers across the U.S. and U.K. The results reveal a pressing need for businesses to enhance their digital customer experiences, particularly through improved search functionalities. Notably, 84% of respondents reported difficulties in finding relevant information, while 53% identified search as their most significant frustration.
Patrick Martin, Coveo's EVP of Global Customer Experience, emphasized the urgency of addressing these issues. "In an era of instant gratification, minimizing customer effort is paramount. Every interaction must minimize friction and maximize relevance," he stated. Martin further explained that the report underscores the necessity for a unified and connected customer experience. He noted that integrating AI-Search capabilities, advanced generative AI, and robust content strategies is essential for empowering customers to effortlessly access the information they need.
The report highlights several key findings that illustrate the current landscape of customer service:
- Frustrating Experiences Lead to Abandonment: A staggering 72% of customers abandon websites after negative experiences. However, there is a glimmer of hope; 62% of customers are willing to return, particularly Gen Z and Millennials, who are inclined to refine their searches or explore site categories further.
- Demand for Generative Search: The desire for AI-powered solutions is significant, with 69% of customers expressing a need for AI-driven resolutions. Additionally, 48% are interested in educational tools or guides, and 44% are looking for AI-powered virtual assistants to assist them in navigating complex service issues.
- AI Skepticism Persists: Despite the promise of generative AI in enhancing customer experiences, challenges remain. Approximately 49% of customers have encountered AI "hallucinations," leading to skepticism regarding the accuracy of AI-generated responses. Furthermore, 42% of respondents admitted to fact-checking the information provided by AI.
- Willingness to Share Data: Interestingly, 53% of customers are open to sharing personal data to receive more tailored experiences. This willingness is notably higher among younger demographics, with 60% of Gen Z and 62% of Millennials ready to provide their information for better, personalized solutions.
The findings of the report indicate a significant shift towards self-service solutions, with consumers increasingly seeking instant answers and relevant content recommendations. Coveo's research suggests that businesses must adapt to these evolving expectations to improve customer satisfaction and loyalty.
In light of these insights, Coveo advocates for the adoption of AI-Search technologies as a game-changer in the quest to enhance customer experiences. By leveraging advanced generative AI capabilities, companies can streamline their customer service processes, reduce costs, and ultimately drive increased revenue and profitability.
The full CX Relevance Report is now available for download on Coveo's website. Interested parties can explore the insights further at www.coveo.com.
Coveo continues to position itself at the forefront of AI-Relevance, transforming the way enterprises connect with their customers and employees. The company emphasizes that relevance is not just a luxury but a necessity in the digital age, where exceptional customer experiences are essential for success.
As digital interactions become the norm, Coveo's AI-Relevance Platform™️ is designed to provide hyper-personalization at every customer touchpoint. This platform unifies data securely while ensuring contextual accuracy, setting a new standard for customer engagement.
With a strong commitment to innovation, Coveo has established itself as a trusted partner for many leading brands globally, facilitating millions of interactions across diverse audiences. As the digital landscape continues to evolve, Coveo's solutions are poised to meet the demands of modern consumers.
In conclusion, the findings from Coveo's CX Relevance Report serve as a wake-up call for businesses to prioritize customer experience and leverage AI technologies to meet the growing expectations of their customers. The insights provided highlight the importance of minimizing customer effort and maximizing relevance in every interaction.
