Customer Success Playbook Podcast S3 E42 - Shep Hyken - AI, Fear, and Friction

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In the final episode of this powerful three-part series, the Customer Success Playbook Podcast welcomes back Shep Hyken for a forward-looking discussion on AI's role in customer experience. From customer trust and chatbot misfires to the fear of messing up (FOMU), Shep breaks down the opportunities and pitfalls of artificial intelligence in service.

Detailed Analysis: Kevin Metzger and Roman Trebon wrap up the Shep Hyken trilogy with a candid conversation on how AI is both transforming and challenging the customer service landscape. While 68% of customers still prefer phone support, Shep’s latest research reveals a promising shift: 50% of consumers have successfully resolved issues with AI-driven support. But there's a catch—another 50% report being misled by AI.

That duality sets the stage for Shep’s deeper message: AI must offer convenience without creating confusion. The brands that win will be those who design seamless handoffs to humans when bots fall short, and those who tailor support channels based on customer demographics. Shep emphasizes that CX isn't about chasing tech trends—it's about knowing your customer and building trust at every touchpoint.

He introduces a key fear hindering AI adoption: not FOMO (fear of missing out), but FOMU—fear of messing up. Many organizations hesitate to modernize due to sunk costs in legacy tech or risk aversion among leadership. But as Shep points out, the true risk is falling behind the expectations set by the best experiences customers have had—regardless of industry.

As a bonus, Shep shares where to find his expansive research, including his 2025 State of Customer Service and CX report, freely available at https://hyken.com/research/.

This episode is essential for any business leader looking to leverage AI wisely and responsibly in the age of customer experience.

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You can find Roman at:
Roman Trebon on Linked In.

Episode Transcript

Kevin Metzger (00:05):
Customer success.

Roman Trebon (00:10):
Welcome back to the Customer Success Playbook
podcast.
I'm your host, Roman Reon.
Joined by uh, my co-host KevinMetzger.
Kevin, we made it to Friday, theend of the week, and we're
wrapping up our awesome threepart series with Shep.
He all about the state ofcustomer experience.
You ready to dig into AI withShep?

Kevin Metzger (00:31):
Let's dig into AI with Shep.
It's AI Friday.
AI Friday.
Ai, ai, ai, ai, ai.
Alright, all we, like you said,we've been discussing how
satisfaction alone isn't enoughand how price versus experience
can be a delicate balancing act.
Today Shep will share findingson how AI can enhance or

(00:53):
undermine customer service.
Depending on how it's used.
Shep, your report shows manycustomers still prefer the
phone, yet a growing numbersuccessfully resolve issues with
AI driven chatbots.
How do companies use AI todeliver speed and convenience
without frustrating customerswho just wanna speak to a human?

Shep Hyken (01:13):
Well, first let's talk about that phone versus the
digital experience.
And most of the time the digitalexperience has some level of AI
tied to it.
Uh, although if I have a greatfrequently asked question piece
on my website, it might be typein the question in any language,
and, and that's AI doing it.
But I can also give lists ofways to.

(01:34):
Answer questions and there couldbe, you know, uh, a link to a
video tutorial to help me out.
Now, that's not ai, but it'sstill digital.
Obviously AI is just thegreatest thing that, I mean, we
are in a time that I think, Ibelieve this is so off topic,
but I believe that this AIthing, especially generative AI
and large language, uh, models,these, this is bigger than

(01:57):
electricity.
Or close to it, maybe just asimportant.
Anyway, I digress.
68%.
Uh, by the way, uh, if youlisten to our other, uh,
segments that we did earlier inthe week, this is a cross
section of what, you know, theUS consumer thinks.
Age 18 to 70, broken down, just,it's just basically a mirror of
what the US population is Whenwe survey our customers and we

(02:19):
survey thousands over the years,and 68% this year said, I would
rather go to the phone.
First.
Wow.
And by the way, it's alwayshovered around 69, 70% for the
last, I don't know, four or fiveyears.
And this surprises me, whichmeans that about 32% prefer
digital experience.
If you break it down bydemographics, it's about 82% of

(02:42):
boomers older generations versus52% of Gen Z.
That's a pretty big differencein, uh, interesting.
Their comfort level in goingdigital first or using the phone
first.
So my suggest to companies isknow your customers.
Know your demographics.
If you care to everybody, youbetter make sure you have all
the options.
So that's the first part, butsomething to get excited about

(03:06):
50% of customers said they havesuccessfully resolved.
Customer service issues using AIwithout having to talk to a
human.
Very exciting, by the way, about51%, same number, basically said
AI's also given'em badinformation, uh, which means
companies need to have thisseamless ability to connect a

(03:28):
customer to a live agent if theystarted down the AI direction
and find they have to veer offand get help from somebody who
can't, uh, who can answer aquestion that AI can't.

Kevin Metzger (03:38):
Do your numbers look at all at how companies are
succeeding at doing this andgiving the options to customers?

Shep Hyken (03:45):
No, we don't actually.
Uh, we interview the consumer tounderstand what their
expectations are.
I do study.
Reports from what companies aredoing, and it really surprises
me that companies haven'tinvested in the right
technology.
I just finished an interviewwith a major company and what
the reason they haven't done it,it, it, it just blows my mind is

(04:08):
they've spent prior, so 10 yearsago, let's just go back 10
years, there was AI being used,the cost to implement AI in a
customer support or sales or anytype of of process cost.
Tens of thousands, maybehundreds of thousands.
I know some of the largercompanies were spending a
million dollars or more to beable to experiment using ai.

(04:31):
Now, let me ask you a question.
If you're spending that kind ofmoney and you've got all this
hardware, which is what it wasback then, servers, and all of a
sudden today you're finding out,wow, for$30 per person.
Per month, like for a fewhundred dollars a year, I can
get even better experience.
But wait a minute, I've alreadyspent, you know, hundreds of
thousands of dollars.
Let's use this first.

(04:51):
You know, so that's why some ofthese companies haven't caught
up.
Many companies are a little bitof afraid, uh, to jump in and
invest even in an inexpensivesolution in case it's wrong.
So you've heard of fomo, thefear of missing out, there's
fomo, the fear of messing up.
So if somebody decides they wantto implement a solution and it
doesn't work, their head'spotentially on the chopping

(05:13):
block, they don't want toexperience that.
So there's a little bit of fear,but I'm gonna tell you the
biggest fear of all shouldn't bewhether you're implementing the
right solution or not.
And I.
So I'm gonna give you twothoughts here.
Number one, customers don'tcompare to direct competitors
anymore.
They compare to the bestexperience they had from anyone,
and that could be a shoe repairstore down the street.
Even though I'm trying to com,I'm work doing business with the

(05:36):
bank, you know it, it doesn'tseem like, well, they're totally
different.
No, they're not.
The best experience is the onethe customer said, I wish
everything were like this.
Most companies.
Say for example, a bank mightlook at other banks to see how
far they have to go to create agreat experience, which is
wrong.
I think it's great to be, createa competitive experience, but

(05:56):
not the best experience.
And so a lot of times companieswill look at what others in
their industry are doing andrealize we only have to be this
good to make that work.
Well, that's gonna befrustrating long term.
The first company that figuresout Shep says, look, outside of
the industry is going to figureout they made the right choice.

Roman Trebon (06:14):
Shep, this is great stuff.
I'm glad you joined us all week,Shep.
I know our audience can [e-mail], right?
That's But where else?
That's me.
Can they find you the report?
What you, you're speakingengagements.
You're all over the place.

Shep Hyken (06:25):
I am.
Well, hyken.com has everythingand the report is free and we
don't even ask for your emailaddress.
That's just the kind of guy weare.
Not only do we protect yourprivacy, we don't even ask to
get private.
So if you wanna join mynewsletter list, of course you
can.
And of course, on YouTube, Ipost videos every week.
Uh, shep tv.com or SHEP tv willget you there.

(06:49):
And I'm on every social channelYou can imagine.
Uh, even, even I, I postprobably about weekly or twice a
week on TikTok.
So Instagram, Facebook, YouTube,

Roman Trebon (07:00):
everywhere,

Shep Hyken (07:01):
everywhere, everywhere.

Roman Trebon (07:02):
I love it.
Well, our audience, uh,definitely go to hiking.com,
check it out, get the report.
While Shep's not gonna ask youfor your email, I am gonna
strongly recommend you sign upand put your email in there to
get the newsletter.
There's tons of great stuff youwanna stay on top of that, Shep,
honestly, it's been awesome.
We really appreciate you comingon the show.
The report is terrific.
I, we got an early copy of it.
We got to, I got to read thewhole thing.

(07:22):
It was awesome.
So really appreciate that.
To our audience, again, thanksfor listening.
We hope you enjoyed this threepart series with Chef Hyken.
We'll be back next week withmore customer success insights
and actions for yourorganization.
Don't forget to subscribe likethe show.
You can find Kevin and I onLinkedIn at Roman Reon at Kevin

(07:44):
Metzker.
You can also find Shep on, onLinkedIn.
He is there as well, right?
Every social media platformeverywhere.
So make sure we call thateverywhere.
Everywhere.
And if you want TikTok, checkout Shep on TikTok.
I'm not on there yet, but Shep,when I sign up for TikTok,
you'll be one of my first, uh,first people to follow.
So with that, Kevin.