The Ovum report noted that only a two to three per cent rise in automation rates can already frustrate customers, leading to a potential increase in customer turnover.

"Many businesses do not realise that their automated systems cause this level of frustration. They are not aware of what their customers are actually experiencing because they are measuring their systems by how much money is being saved. This is a vulnerable position to be in because frustrated customers are unlikely to be loyal and could be defecting to the competition," added Hong.

Hong suggested that an ideal automated customer service voice system should be customer-centric and intuitive -- easy enough for customers to use. "Also, it should give the customer the ability to reach a live agent quickly should he/she want to escalate the call to a customer service representative," he added.

He brushed aside the thought that live call centre agents will suddenly become jobless as companies find means to better address customer concerns while at the same time watching the budget. "There will always be a need for live agents but due to budgetary constraints, enterprises need to invest in automation that is widely accepted and used by their customer base," he said in an e-mail interview.