Welcome to the new year! As we step into 2025, I find myself reflecting on trends, challenges, and opportunities that lie ahead for service organizations. If you’ve followed my podcast, you know I’ve always hesitated to make bold predictions. After all, none of us can truly predict the future.
Instead, I’ve decided to share some *non-predictions*—observations grounded in conversations with service leaders, insights from our community, and findings from the Stand Out Service Trends report. Let’s explore what might shape 2025 in the world of service.
1. Greater Workforce Flexibility Is No Longer Optional
Organizations will need to offer more flexibility to their frontline workforce. Why? Because it’s what today’s talent demands—and because it’s now entirely possible.
Historically, field service organizations have dismissed flexibility as “impossible.” But times have changed. Technology, creativity, and a willingness to reimagine service delivery have made flexible schedules, remote work, and other work-life balance initiatives feasible.
In our Stand Out Service Trends report, we found:
- 29% of leaders already offer flexibility as part of their employee engagement efforts.
- 52% are expanding self-service capabilities for customers.
- 33% have transitioned a significant portion of service delivery to remote.
Flexibility can take many forms: rotating schedules, work-from-home days, or even customized start and end times. Those who embrace this shift will find themselves ahead in the ongoing war for talent.
2. Customer Expectations Will Expose Service Complacency
Keeping up with customer expectations is no easy feat. But staying stagnant? That’s a recipe for trouble.
For years, we’ve discussed how consumer experiences set the standard for what customers expect in all aspects of their lives. Yet many service organizations have failed to evolve.
Key findings from the Stand Out Service Trends report highlight this divide:
- Peace of mind and guaranteed performance ranked as customers' second-highest priority.
- Yet only 26% of respondents offer outcome-based services, AND another 26% still operate reactively (offering only break-fix service).
The gap between what customers want and what organizations deliver is widening. Companies that prioritize innovation—be it through new service offerings, modernized delivery methods, or advanced technology—will stay competitive. Those that don’t risk being left behind.
3. Addressing Technology Debt Becomes Urgent
Modern service demands modern tools. Yet many organizations are held back by outdated systems.
Our report revealed that:
- Only 15% of respondents have a fully future-ready service management platform.
- 50% have automated less than 10% of their field service tasks.
The good news? Nearly half of respondents plan to increase their technology budgets in 2025. Whether it’s replacing legacy systems or investing in automation, organizations must act now to build scalable, sophisticated digital foundations.
4. AI Will Bring Big Wins—and Big Missteps
AI is no longer a buzzword—it’s a game-changer. From chatbots to optimized scheduling, AI has immense potential to revolutionize service operations.
Here’s what respondents shared in the Stand Out Service Trends report:
- 62% of respondents are using AI in some capacity.
- 76% believe advanced AI is critical to staying competitive in service.
That said, AI isn’t without challenges. Concerns about accuracy, bias, and lack of readiness loom large.
In 2025, we’ll see some major success stories emerge from those who thoughtfully implement advanced AI to positively impact their businesses, their employees, and their customers. But I believe we’ll also the first significant missteps from organizations: everything from failing to see AI as a tool that can augment the work of talented people and instead trying to replace them with technology to the detriment of the customer experience, or rushing into AI use that isn't rooted in real business case or supported by capable technology. To be clear, I'm not concerned about the fail fast type of mistakes that are part of any innovative project, but more so the “what were you thinking”-type missteps that come from believing that there's some sort of loophole to the realities of the hard work that is involved in getting AI right.
5. Storytelling Will Be a Must-Have Skill for Service Leaders
Finally, service leaders must learn to tell compelling stories—both within their organizations and externally.
John Carroll of the Service Council has spoken about the existential threat to service leaders: being excluded from strategic decision-making. To counter this, leaders must articulate how service drives business value, aligns with financial objectives, and fuels innovation.
Storytelling isn’t just about data. It’s about connecting the dots between service and your company’s vision—and doing so in a way that resonates with stakeholders.
What do you think 2025 will bring? I’d love to hear your perspective—reach out via email or LinkedIn.