As telco providers increasingly rely on digital tools to engage customers, chatbots have become a central feature of their online strategy. However, the limitations of chatbots often lead to customer frustration and lost opportunities.
Research from 15gifts claims nearly a quarter of consumers are frustrated by chatbots’ inability to answer specific questions. Limitations have visibly impacted sales, with 20% of consumers abandoning purchases entirely due to chatbot failures.
“Chatbots are often seen as a minimum requirement for online support. But when they fail to deliver, they do more harm than good, driving customers away instead of keeping them engaged,” said Tom Cox, CEO of 15gifts.
Cox highlighted that most chatbots today lack the functionality to “replicate the sales techniques of a skilled human advisor,” leading to missed opportunities and dissatisfaction.
When chatbots fail, most consumers turn to live agents or physical stores for assistance. Nearly 30% of telcos in the UK report that consumers switch to live agents when chatbots fail to meet their needs. The trend is compounded by mistrust of chatbot capabilities.
“Consumers bypass chatbots altogether due to an inherent mistrust, with their preferred alternative likely to be an interaction with a live agent or a visit to a physical store,” said Cox.
“Customers know they can receive a better experience from talking to a human sales advisor because they can address concerns, such as price or product capabilities, and offer alternatives where needed,” he added.
The generational gap
Frustrations with chatbots vary by age, with older generations being the most dissatisfied. Of consumers over 55, 28% reported difficulties getting their questions answered by chatbots, and 23% found the lack of real-time human support particularly frustrating.
“The older demographic [has] had more experience of completing transactions via the phone or heading into stores to speak to an advisor, and so are frustrated at the inability to access real-time support from a human,” commented Cox.
The demographic split highlights the need for telcos to offer hybrid solutions catering to their customer base’s diverse preferences.
The role of AI
In recent years, the telco industry has led the way with AI-enabled chatbots, with varying degrees of success. According to 15gits, 47% of telcos spend over £1 million annually on chatbot technology. However, these investments tend to fail to address the core issue—replicating the human touch.
“Advanced virtual sales agents trained in consumer psychology can bridge this gap,” Cox noted. “These tools go beyond basic interactions, creating a sales journey that feels personalised and human-like.”
Telcos leverage metrics like handling times, resolution, and conversion rates to evaluate chatbot effectiveness. However, NPS values often unveil negative trends, as bad chatbot experiences turn customers into active detractors.
“Every failed chatbot interaction isn’t just a lost sale—it’s a lost customer. Telcos need to rethink their approach, focusing on tools that complement chatbots rather than replacing them outright,” said Cox.
The chatbot headaches faced by the telco industry are not unique. In retail, 25% of shoppers report that chatbots disturb their online experiences, and the transport sector has seen an eight-year low in customer satisfaction due to similar issues.
“As more industries adopt chatbot technology, the pressure to get it right increases,” Cox remarked. “The future lies in combining the precision of AI with the empathy and expertise of human advisors.