Why is the Phone Still Essential for Customer Service and Revenue in 2025?

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In a world where digital communication channels like email, messaging apps, and social media platforms dominate our daily interactions, it’s easy to assume that traditional phone calls have become antiquated. However, an in-depth 2025 study by Forrester Consulting, commissioned by TransUnion, reveals a paradox that many may not expect: the phone remains an indispensable tool for achieving customer service objectives and driving revenue.

The Phone’s Unique Value in Customer Engagement

Despite the rapid proliferation of digital channels, the study highlighting responses from 719 decision-makers responsible for their companies’ outbound call strategies demonstrates that phone communication is still the preferred method for dealing with urgent and personal customer service issues. Notably, the study shows a surprising 26% decline in call volume, yet 86% of decision-makers across various industries affirm the phone’s crucial role in fulfilling customer service goals and enhancing revenues.

This seeming contradiction underscores the phone’s unique ability to facilitate direct, real-time engagement between businesses and their customers. While emails and live chats may suffice for routine inquiries, the phone often emerges as the preferred medium for resolving complex issues requiring immediate attention. Additionally, when there is a need for nuanced conversation—where tone, empathy, and clarity are critical—the phone surpasses other communication channels in effectiveness.

James Garvert, Senior VP at TransUnion, points out that the adoption of advanced communication solutions has notably improved customer experiences, increased revenues, and reduced fraud risk. Features like branded calling and call authentication are particularly transformative. For instance, accurate caller ID information is crucial for customer engagement, helping to build trust by displaying detailed information and logos on outbound calls.

Addressing Trust and Fraud Concerns

Moreover, the study reveals that fraud and call spoofing are prevailing concerns for organizations. Approximately 80% of participants note an uptick in customer service inquiries due to spoofed calls, leading to higher operational costs. Fraudulent calls significantly jeopardize customer trust; around 72% report a decline in customer confidence, adversely affecting retention rates.

Addressing these challenges, TransUnion suggests leveraging technologies that offer robust security measures. One such solution is the deployment of sophisticated caller ID frameworks aimed at thwarting fraudsters. For companies, prioritizing these preventive measures not only enhances customer trust but also reduces the strain on customer service resources. Surprisingly, only 55% of decision-makers feel that their current technologies offer adequate protection against spoofing, a worrying statistic considering 38% felt the same way two years ago.

This situation spotlights a crucial need: businesses must invest more in advanced phone communication technologies to safeguard against evolving fraud tactics. The study suggests optimizing phone use for particularly urgent and personal customer matters, further aligning with what customers prefer in high-stakes interactions.

Strategic Use of Advanced Solutions

Notably, around three-fourths of decision-makers emphasize that the correct portrayal of caller ID information is essential for successful customer engagement. Technologies that mitigate call spoofing by displaying rich content and company logos on outbound calls are instrumental in achieving this goal.

Implementing solutions such as branded calling aims to provide customers with a sense of security and authenticity. These measures are invaluable in combating spoofing, which has been a significant deterrent to customer trust. Consequently, showcasing advanced technological solutions is vital for companies striving to restore and maintain consumer confidence in their telephonic engagements.

This year, TransUnion plans to showcase their Branded Call Display (BCD) and Customer Contact Intelligence solutions at Enterprise Connect 2025. This participation will include insightful discussions by experts like Mick Moss, focusing on restoring trust in voice channels and building confidence in outbound calling systems.

Actionable Insights Moving Forward

In a world dominated by digital communication channels such as email, messaging apps, and social media platforms, one might easily assume that traditional phone calls have become outdated. Surprisingly, an in-depth 2025 study conducted by Forrester Consulting and commissioned by TransUnion reveals a paradox that defies this assumption: phone calls remain a vital tool for achieving customer service objectives and driving revenue. This study highlights how, despite the convenience and prevalence of digital communication, the human touch and direct interaction provided by phone calls are irreplaceable when it comes to building trust, resolving complex issues, and fostering customer loyalty. Therefore, while technological advancements continue to evolve, the phone retains its importance and proves to be an indispensable component in the customer service landscape.

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