Average people would switch to a $10/month service instead of $12/month. For internet, mobile plans, people in all sorts of circles brag about what a deal they were able to get with a service provider by haggling. Even when it's a $2 monthly difference. They are proud about their negotiation skills and how they pitted the service providers against each other to make the lowest bid.
Maybe once after they have received unsatisfactory customer support, they would consider switching, but passionate, skilled, caring and creative customer support would cost far, far more than that. Even if you employ enough customer support to provide a human out of the gate for everyone, you would only get people following the same script as the basic chatbot would. People and especially creative people wouldn't stay at this job for long, dealing with entitled customers. In most cases, it's mostly a thankless, dead end job that will get to your mental health.
> customer support would cost far, far more than that
That's not at all a given. Taking the example of $2 more per month, if the average customer needs a support call every two years, they could spend a whole hour on the phone with a support agent making $30/hr and the company is still ahead since they charged an extra $48 over those two years.
An realistically most support calls don't last an hour. Fifteen minutes maybe.
That's why I use Sonic for my ISP for example. I've only used support a few times in over ten years, but when I do, I want to talk to someone who knows what an IP packet is and what Linux is, not someone who just reads from a script telling me to find the start menu and click reboot.
Maybe once after they have received unsatisfactory customer support, they would consider switching, but passionate, skilled, caring and creative customer support would cost far, far more than that. Even if you employ enough customer support to provide a human out of the gate for everyone, you would only get people following the same script as the basic chatbot would. People and especially creative people wouldn't stay at this job for long, dealing with entitled customers. In most cases, it's mostly a thankless, dead end job that will get to your mental health.