Self-Service: Balancing Cost Savings and Satisfaction

We recently surveyed over 200 customer service and CX leaders across multiple industries to better understand their long-term self-service goals. It revealed a growing emphasis on balancing cost savings with customer satisfaction through self-service channels. Over the next three years, the percentage of leaders prioritizing this dual approach is set to increase from 59% in 2024 to 69% in 2025 and 2026.

While customer-service experts might suggest a wholesale shift to self-service as a replacement for human agents is at hand, a closer look at the data indicates otherwise. Only 28% of respondents in 2024 and 23% in 2025-2026 identified "reducing the cost to serve" as the primary driver of self-service initiatives. This suggests that organizations are not pursuing self-service solely as a max-containment cost-cutting measure, which would align with replacing human agents, but rather as a strategic tool to enhance customer experience while also realizing operational efficiencies.

Striking the Right Balance

The higher percentage of respondents stating they plan to focus on balancing savings with customer satisfaction aligns with our observations of industry leaders. They appear to recognize the potential of AI and self-service to streamline operations and enhance customer experiences within self-service channels. However, they also understand the importance of maintaining human agents for complex issues to safeguard overall customer satisfaction. This strategic approach suggests a careful balance between efficiency and service quality.

How Does AI Fit into the Self-Service Mix?

AI-driven self-service is a top priority for surveyed leaders, with 82% of respondents rating it either “Very Important” or “Important” to their support strategy over the next few years. While many of our certified companies are exploring how to reduce call volume through AI integration, they are taking a more measured approach by avoiding excessive self-service reliance. Unlike competitors focused primarily on short-term cost cuts, these companies prioritize long-term profitability by retaining high-value customers. Forcing customers into self-service for complex issues can damage customer satisfaction and loyalty. A more strategic approach involves balancing AI with human support to provide seamless customer experiences.

Utilizing AI to Drive Profitability

AI can be a powerful tool for driving profitability by optimizing the customer journey. By leveraging AI tools to monitor experiences and better understand customer behavior, businesses can proactively transfer customers from self-service to live agent support when they encounter complex or frustrating interactions. This proactive and personalized approach may increase costs per interaction but ultimately safeguards customer loyalty by preventing frustration and churn. In fact, it can paradoxically boost self-service usage over time, as customers become more confident in the knowledge that human assistance is readily available. This approach fosters trust and encourages customers to explore self-service options more extensively, ultimately driving greater efficiency and satisfaction.

To effectively measure the success of self-service IVR initiatives, we encourage brands to track the percentage of customers who hit “zero” or request an “agent” repeatedly. Analyzing this data by caller characteristics, call type, and time interval can pinpoint areas where the self-service experience falls short and help identify the optimal moment to connect high-value customers to a rep. By prioritizing customer satisfaction and strategically routing customers to live agents when needed, businesses can cultivate loyalty, increase profitability, and achieve long-term success.

About the Author: Mark Miller leads the J.D. Power Global Customer Service Advisory practice and is responsible for thought leadership, solutions development, strategic alliances and client support. He leads customer service, technical support and sales performance improvement and certification initiatives for the company.

Find more insights like this:
This blog post was featured in the Customer Service Advice & Insights monthly newsletter. Sign up for the latest customer service channel intelligence >