Kustomer’s 2024 Pricing Insights: Customer Service Leaders Push for Usage-Based Models and AI-Inclusive Pricing
More than 91% believe AI should be included, rather than an add-on
Kustomer, the innovative AI-powered customer service platform known for personalizing every interaction through connected, efficient and proactive customer service, today unveiled its “2024 State of Pricing in Customer Service” report which offers critical insights into the evolving landscape of pricing in customer service. The survey of 200 customer service professionals representing consumer services, financial services, healthcare, retail, and travel companies highlights a significant shift from traditional seat-based pricing models to more flexible, usage-based options that better accommodate the diverse needs of modern businesses, including the integration of AI.
“The era of rigid, seat-based pricing in customer service is over. Companies demand flexibility that matches the pace of their operations. Our research shows that usage-based pricing, with AI as a standard feature, is what today’s businesses need”
With 94% of companies surveyed currently using seat-based pricing, the survey finds that more than 31% have begun to explore usage-based pricing models, which charge based on metrics such as conversations or resolutions. The study also shows that flexibility is a priority, with 77% of respondents emphasizing the need for adaptable pricing structures to accommodate seasonal fluctuations and varying user roles within organizations. In fact, 68% of buyers prefer inclusive pricing for different user types rather than paying extra for each category of user.
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“The era of rigid, seat-based pricing in customer service is over. Companies demand flexibility that matches the pace of their operations. Our research shows that usage-based pricing, with AI as a standard feature, is what today’s businesses need,” said Brad Birnbaum, CEO and co-founder of Kustomer. “It’s time the industry caught up with these demands. At Kustomer, we’re leading that change with new, modern pricing models that reflect the real needs of businesses and their customers. Expect big announcements later this month.”
Key findings from the study include:
- Preference for Usage-Based Models: 66% of respondents prefer usage-based pricing, citing its predictability as a major advantage.
- Demand for Comprehensive Features: An overwhelming 91% of respondents believe AI capabilities should be included in the overall cost, along with other essential functionalities.
- Conversation vs. Resolution: 76% of customer service leaders prefer conversation-based pricing models over resolution-based ones, as they find conversations easier to forecast with higher accuracy.
Kustomer’s “2024 State of Pricing in Customer Service” report surveyed 200 customer service professionals from the United States, Mexico, Colombia, and Canada in Q2 2024. The respondents represented a range of company sizes, from small businesses to large enterprises, with customer service operations ranging from 10-10,000 agents. The companies represented multiple industries, including consumer services, financial services, healthcare, retail, and travel.
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