Brands Briefing: Customer-service phone lines are getting a second look thanks to AI fatigue

Sproos is one of a number of brands that are betting on customer-service phone lines staffed by real humans to appeal to AI-weary shoppers. Today, nearly every major retailer uses customer-service chatbots in at least some capacity in the name of speed and efficiency, including to initiate returns, provide delivery updates and recommend products. Other brands are replacing human representatives with AI tools to counteract rising expenses from tariffs and inflation. Still, executives from brands like Trade Coffee and Made In say there’s a benefit to the human touch.

“With AI, it feels nearly impossible to get in touch with a real person,” said Jessica Crystal, the director of growth at Trade Coffee. “We want to make it really easy to get in touch with someone to help you.” Meanwhile, at Made In cookware, “We don’t want to be the company that you’re yelling ‘[customer-service] agent’ at,” said Lindsay Jackson, the brand’s chief marketing officer.

A recent study by SurveyMonkey found that 79% of Americans strongly prefer interacting with a human over an AI agent. And 41% of respondents said that customer service has worsened because of AI. Gartner even predicts that businesses could see “a surge of assisted-volume interactions as customers exercise their right to opt out of AI.” Some brands are taking notice of the backlash and acting accordingly.

Like the resurgence of low-rise jeans or Hacky Sacks, customer-service phone lines are yet another example of “what’s old is new again.” For decades, phone lines were the norm for contacting customer-service departments. But in recent years, they’ve become increasingly rare, leaving shoppers to turn to forums like Reddit to find a phone number they can call to reach a company.

“Twenty years ago, any company would have people you could actually talk to,” Lia Haberman, the author of the marketing Substack “ICYMI,” told Modern Retail. “Now, that is such a differentiator. It’s such a unique selling point — to be able to actually reach people at a company — that I think it goes beyond customer service. There’s a novelty to the experience that makes it special.”

This idea is something that Made In, the cookware brand, tries to keep in mind. The company has an AI customer-service chatbot, but it also operates a phone line. Staffers even get on FaceTime and Zoom calls with customers to answer their questions about keeping pans clean or cooking eggs without burning them, Jackson, the CMO, shared.

“We are very proudly a human-run business that happens to be built on a lot of the great technologies that allow us to do what we do, at scale,” Jackson told Modern Retail. “But you can’t talk to a bot about why your seasoning isn’t working. It’s very important to have somebody on the other end of the phone who you can walk [an issue] through with.”

Made In, which sold its first frying pan in 2017, keeps a roster of professional chefs and line cooks on staff. These folks commonly hop on calls with home cooks looking for “that little extra help,” Jackson explained. “And we really think that matters, especially in this era of, ‘Agent, agent, let me speak to a human,'” she said. “We want to be there to serve your needs and deliver hospitality-level service.”

Trade Coffee, which offers coffee subscriptions using beans from dozens of roasters, has operated a customer service line since its inception in 2018. The company has about six phone staffers at a time and adds several contractors during the holidays, when inquiries about gifting tend to go up. It’s not unusual for agents to chat with a customer for as long as 30 minutes, Crystal, the growth director, said.

Customers can still use AI tools to submit inquiries to Trade Coffee or request to skip an order. But phone calls help with loyalty, Crystal told Modern Retail. “We see so many customer reviews come through that [mention] speaking to specific people they talk to on the phone, and how that was the reason they’re continuing with Trade,” she said. “Obviously, they love the coffee, but the emotional response to our brand is typically rooted in our customer experience team.”

Notably, Trade Coffee has one requirement for its agents: They have to be former baristas. “If a customer calls with any type of coffee question, they know the answer,” Crystal said. “You could tell them [about] a coffee machine, the ratios you’re using, the exact grind that you did, and they will be able to walk you through, step by step, how to make your morning cup better [and] what you could be doing wrong.” Bots, on the other hand, cannot drink coffee.

Indeed, it makes a difference when companies staff phone lines with real people who’ve tried real products, Haberman said. That helps customers “feel like the company cares about them,” she said. Conversations can also be more effective over the phone than within an automated chat, Haberman explained. With AI, “You cannot predict what the experience will be like and whether you’re going to get help,” Haberman said. “Scaling [the process] back to this manual experience offers a lot more predictability and comfort to humans.”

As brands see it, these phone conversations — by humans, with humans — are a win-win. Customers can get help with their questions, and companies can learn what shoppers need. Trade Coffee, for instance, shares customers’ inquiries with its roasting partners and updates its marketing materials based on trends that come up in calls, like the best way to make espresso.

Similarly, talking one-on-one with people helps Sproos understand “the customer journey,” Fix said. He mentioned that shoppers say where they bought the showerheads, share what colors they like or don’t like, and request expedited shipping if they have guests coming over. Many mention learning about accessories, like slide bars, from reading materials that come in the box. “They tell you the whole story — how they live — and that’s very good for marketing people for any brand to understand,” Fix said.

What we’re reading

• Primark, which has long relied on brick-and-mortar sales, will start offering home delivery in Britain. (Bloomberg)
• After an 18-year run, Nike will exit the S&P 100 on Sept. 21. (Fortune)
• Waymo is bringing its self-driving cars to Las Vegas. (Reuters)

What we’ve covered

• A tale of two brands: Aerie is soaring in back-to-school sales, while American Eagle is working to “balance” its denim assortment.
• Reformation said active customers grew 23% in its first quarter as a public company.
• Boll & Branch revealed where it draws the line on AI-generated advertising.