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Customer Experience Technology: 5 Considerations Before Buying

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Phil Britt avatar
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Discover the 5 essential elements to consider when investing in customer experience technology. Avoid pitfalls and scale your business successfully.

The Gist

  • Scalability focus. Evaluating the scalability of customer experience technology is a must for future-proofing your business.
  • Privacy matters. Prioritize data privacy and security measures to comply with industry-specific regulations.
  • Integration key. Ensure that the CX technology integrates seamlessly with existing infrastructure to avoid disruptions.

In the quest to improve customer experiences, enterprises are turning to advanced technology. However, this path is fraught with potential pitfalls. There are several considerations customer experience technology buyers need to take into account as they prioritize solutions and prepare to sign purchase or lease agreements. Below are five important elements to evaluate.

Ensure Customer Experience Technology Is Scalable

One of the biggest challenges businesses may encounter when considering customer experience technology is how to properly assess the technology's scalability, according to Mac Steer, Simify director. “You can't just look at a product, or even your own company, as a single unit. You have to think about how it will affect every other part of your business.”

It's important to ask yourself what kind of future growth you think your company might face, Steer explained. Will your business continue to grow over the next few years? Are there any major shifts on the horizon that might affect your company? If so, consider how this new tool could help address those issues before making a decision.

Challenges arise when businesses fail to accurately gauge a chosen solution’s scalability, agreed Mike Myer, Quiq CEO. “A solution that meets current needs may struggle to accommodate increased demand, resulting in performance bottlenecks, downtimes and poor customer experiences. Where possible, stress testing and scalability assessments should be done. However, given the complexity of many CX technologies it may be impossible to synthetically create real customer load. In this case, asking the vendor to demonstrate existing clients of similar scale and speaking with references at those companies is the best alternative.”

It's also important to consider what kind of support structure will be in place once you've made your customer experience technology purchase, Steer added. “Will there be someone available at all times who can help you if something goes wrong? How long will it take them to respond? And lastly, how much training do they offer customers? You don't want to get stuck having spent all this money on something that isn't really going to work for you because they didn't give you enough information up front.”

Related Article: Why Digital Teams Need to Embrace the New Composable Era

Consider the Underlying Structure of Advanced Technology

"There are many considerations when investing in CX technology,” said Ashu Dubey, Gleen CEO. “When assessing CX tools, be sure to understand the way it works. Older customer success chatbots, for example, run on older models of AI. These are the tools that are in place in most CX tech stacks currently, and they are notorious for unresolved issues, infinite loops of communication, and a lack of understanding.”

With generative AI chatbots, there are a couple of concerns that come along with this new technology, Dubey added. “When assessing your options, it helps to know whether the chatbot is built using only an LLM and which LLM it uses (GPT4, LLaMA, etc.) The best would be if the bot is LLM agnostic and the producer utilizes company documentation like FAQ's, handbooks, etc. to essentially filter the LLM to only produce outputs that are already baked into company documentation.”

A customer is using his smart phone and communicating with a chatbot in piece about customer experience technology.
There are concerns about buying and using new customer experience technology, such as chatbots. sitthiphong on Adobe Stock Photo

Prioritize Privacy, Security

The influx of customer data in the digital age raises concerns about data privacy and security, Myer said. “As businesses leverage CX technology — including Large Language Models (LLMs) and generative AI — compliance and regulations such as GDPR, CCPA, and other industry-specific mandates need to be upheld no matter what.”

Striking a balance between personalized experiences and data protection requires robust data encryption, secure storage and transparent data handling practices, Myer added. Your vendors of choice should have a spotless record and be able to demonstrate compliance and certifications such as SOC 2, ISO 27001 and third-party security testing.

Related Article: The Role of Data Privacy in Customer Trust and Brand Loyalty

Prioritize Customer Engagement Technologies

Gartner’s Priority Matrix for Customer Service and Support Technology, released at the end of August, sees the transition of contact centers to customer engagement centers as having the most immediate benefits for companies, so it should be the priority for most.

“Clients need to balance the transformational nature of some emerging technologies with their need for application technologies that can be used beneficially during the next two years, and for technologies that will take five years or more to mature, said Gartner Analyst Drew Kraus. “Consider your own organizational priorities in terms of benefits and timelines. [Companies] looking for technologies that can have a near-term transformational impact should focus their attention on conversational user interfaces, digital customer service and generative AI to drive improvements across a variety of aspects of their operations.

Learning Opportunities

Related Article: 4 Strategies to Boost Customer Engagement

Ensure Integration Capabilities

Many businesses operate within intricate technological ecosystems, often consisting of legacy systems, third-party tools and custom applications. Integrating new customer experience technology seamlessly into existing infrastructure can be daunting, leading to compatibility issues, disruptions and data silos, Myer cautioned.

“A comprehensive integration strategy, coupled with robust APIs and middleware solutions, is key to achieving a cohesive and streamlined customer experience.” Myer said. “Find a vendor who not only understands this, but can walk you through the process, too.”

Final Thoughts on Customer Experience Technology

Navigating the labyrinth of customer experience technology options is a complex yet crucial undertaking for businesses aiming to enhance their customer interactions. The journey demands a keen eye for scalability, a deep understanding of underlying technology structures, an unwavering commitment to data privacy and security, a focus on engagement technologies and a robust plan for seamless integration. With these considerations in mind, enterprises are better equipped to make informed choices, ensuring that the technology not only meets current needs but also scales effectively to meet future challenges.

About the Author
Phil Britt

Phil Britt is a veteran journalist who has spent the last 40 years working with newspapers, magazines and websites covering marketing, business, technology, financial services and a variety of other topics. He has operated his own editorial services firm, S&P Enterprises, Inc., since the end of 1993. He is a 1978 graduate of Purdue University with a degree in Mass Communications. Connect with Phil Britt:

Main image: lzf on Adobe Stock Photos
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