New research commissioned by Australian insurance company Youi has uncovered that human connection and clear communication are critical to a positive customer service experience.

In a study of more than 2,000 Australians, the findings show that while 81% report their most recent customer service interaction as positive, the cost of a negative experience is steep—and can impact more than just our wallets.

The real-life ‘time-away’ cost

The data reveals a hidden, real-life ‘time-away’ cost—a personal toll Australians experience when dealing with customer service.

62% of Australians say their most recent customer service interaction took time or energy away from something that mattered, including personal downtime (39%), mental or emotional wellbeing (19%), time with family or friends (13%), work or income (11%), and sleep (7%).

This hidden ‘time-away’ cost becomes even more apparent during poor customer service experiences.

Among those whose last experience was negative, 91% reported an impact on their time or wellbeing, with 57% losing personal time, 52% mental energy, 27% family time, 23% work or income time, and 18% sleep—compared with just 9% who experienced no impact.

Good customer service – a simple recipe

Anthony Antonucci, Chief Customer Officer at Youi, said the research reveals a clear blueprint for improving the service industry: a simple recipe for a great customer experience built on three essential ingredients.

“This research makes clear that great customer experience isn’t accidental—it follows a recipe. Australians tell us the three ingredients that matter most are simple: being able to speak to a real person, having clear communication, and getting a quick, effective response,” Anthony said.

“But as more companies lean heavily into automation and AI, access to a real human is becoming harder to find, and consumers are feeling the consequences.”

“Even tech-savvy Australians, who are comfortable with digital tools, still value real human support as critical to resolving their issues.”

“That tells us something important: technology can absolutely help, but it can’t replace empathy, clarity or genuine connection. These three elements are key to timely issue resolution, giving customers their time back.” he said.

51% of respondents say speaking to a real person is the top factor driving an effective resolution. This is followed by 34% citing clear communication, and 33% pointing to quick responses or short wait times.

Among Australians who prefer technology, four in five (81%) still say speaking to a real person is important or essential for high-stakes issues, such as those affecting their finances, health or family. Additionally, 32% want to speak to a real person immediately when something goes wrong.

This sentiment is even more widespread among the general population, with two-thirds of Australians (67%) saying they want to talk to a real person straight away when an issue arises.

Psychologist and human behaviour expert Sabina Read emphasised the importance of human connection:

“In a fast-moving world, with AI and chatbots becoming part of many daily interactions, it’s no surprise that human connection and clear communication top the list of ingredients for a positive customer service experience.

“We’re hardwired for connection. Even the best technological innovations can’t replace the power of being seen, heard and validated in a timely manner when resolving an issue that matters to us.”

“Curiosity and presence matter when we’re feeling frustrated. Human connection is the most impactful way to bring these to life, which helps explain why contact with another person is a key ingredient in delivering customer service that resonates.”

The recipe for better customer service is clear. While automation and AI can improve efficiency, human connection cannot be replaced. When customer service puts people first, Australians gain back the time, clarity and confidence they need most.

To find out more about the research, visit here.