Importance of Technology in Customer Service with Examples & Trends You Shall Watch Out For

Technology is all around us, constantly getting better. So, I’m curious, which tech revolution do you like the most?

For me, Lenskart’s 3D technology stands out. It’s like having a magic mirror that lets you try on different eyeglass frames without actually putting them on. This way, you can easily pick the frames that suit you best and that you really like. It’s a game-changer for eyewear shopping!

In the 21st century, our world has undergone a significant transformation, shifting from the traditional offline way to a thriving online lifestyle. The COVID-19 pandemic played a pivotal role in accelerating this technological change from payment method to shopping to customer service to digital marketing.

Online shopping has now become a trend and online purchases are increasing every single day and customers are loving it! 

However, traditional offline stores are not going away. They are changing the way they work, trying to include technology. People are still visiting physical stores, but they are looking for something special. They want a great product, and they want to have a good experience while shopping in the store.

Here’s a simple example: At Azorte Reliance Lifestyle Store, they’ve added a cool feature to their changing rooms. If you try on some clothes and they don’t fit quite right, there’s no need to worry. They have a special screen inside where it analyzes your dress as soon as you enter the changing room that you’re trying on, and now you just select the size you want. 

Then, a friendly staff member will bring that size to your changing room. You don’t have to go and find it yourself. This technology makes the shopping experience super easy and enjoyable for customers.

This shows that both online and offline shopping have their own unique strengths in today’s changing world.

Importance of technology in customer service

The importance of technology in customer service and its management cannot be overstated. It has completely revolutionized the way your businesses interact with customers, making the entire process easier, faster, more cost-effective, and more beneficial.

Let’s explore how technology makes the lives of customer service representatives easier and more effective.

Efficiency and speed

Technology has helped customer service with its superpower of efficiency. Repetitive tasks that once consumed too much of your time are now effortlessly automated. Whether it’s sorting through your customer inquiries or managing routine requests, technology streamlines these processes.

For example, you as a customer service representative can now rely on chatbots to handle frequently asked questions, providing immediate responses 24/7. This not only speeds up query resolution but also ensures customers get the help they need when they need it.

For instance, imagine ordering pizza from Domino’s using a chatbot. It’s easy and quick. The chatbot asks you questions like, “Do you want a vegetarian or non-vegetarian pizza? What toppings do you like? What size pizza do you want?” You answer these questions, and your order is ready to be delivered. It’s like magic, making pizza ordering super fast and simple.

Cost reduction

When I talk about efficiency, I am essentially talking about saving money. Do you think the same way?

Technology is an amazing revolution that helps you spend your resources wisely in your businesses. By letting technology take care of repetitive tasks, your company can actually make services better. And here’s the thing: you can do all of this while needing fewer customer service reps.

Technology helps businesses cut down on labor costs. And when you spend less on labor, your business’s finances look healthier. It’s like a win-win situation where businesses save money and still make their customers happier. Those are the businesses that understand the importance of good customer service to grow the business. 

For example, when the chatbot takes orders of pizza, Domino’s can automatically reduce the number of customer service reps.

Better customer outcomes

Technology equips your customer service representatives with tools and insights, providing exceptional support. Imagine data analytics and customer relationship management (CRM) software as your trusted partners, helping reps understand customers’ needs, behaviors, and preferences.

With these insights at their fingertips, your customer service reps become more than just helpers; they become problem-solving wizards by knowing your customer. They delve into your customer’s world, understanding their unique needs and desires. This knowledge empowers them to craft tailor-made solutions, sprinkled with personalization. 

The result? A remarkable customer experience, marked by smiles, satisfaction, and loyalty. You have found a secret recipe for customer happiness, and technology is your assistant.

Reducing repetitive tasks

Nothing is more frustrating for both your customers and your team than repeating the same information multiple times. Technology ensures that this frustration becomes a thing of the past. The customer service team now uses sophisticated Customer Relationship Management (CRM) software technology, which stores a detailed record of your previous interactions.

So, when you make that next call, the customer service representative already knows your history. They can address your issue more efficiently and pick up the conversation right where you left off. It’s like having a personal assistant who never forgets. This not only saves you time but also makes you feel valued and appreciated as a customer, knowing that your previous interactions were important enough to be remembered.

For example, your organization sells tablets, and a customer calls with a vague ‘technical issue.’ But thanks to your CRM software, your tech support team doesn’t need to play detective. With just the customer’s contact number, they instantly access a wealth of information: tablet version, warranty status, and more. This means no more guessing games and repetitive questions. The conversation becomes efficient and personalized, leaving the customer feeling valued and the issue resolved faster.

But how exactly is technology changing the customer experience?

How technology is helping customer service (with examples)

Technology is giving the traditional call center a makeover. It’s empowering customer service reps to make better use of their time and helping businesses connect with top-notch representatives at a low cost.

In this journey to keep customers happy, finding innovative solutions is key. And technology is your partner in leading the way. Here we go down to explore them.

Chatbot

Chatbots are computer programs designed to simulate conversations with your users. They’re like virtual assistants that interact with your customers in a conversational manner. Chatbots can handle a wide range of tasks, from answering frequently asked questions and providing information to assisting with simple troubleshooting or guiding users through a process.

They work around the clock, offering 24/7 customer support, and can significantly improve efficiency and response times in customer service, all while reducing the workload on customer service agents. Chatbots are a prime example of how technology is transforming customer service by offering instant and automated assistance to users.

Looking for an example for chatbot? Let me show you.

Skoda’s digital assistant chatbot, Jessie, is like a helpful robot. It talks to you and asks common questions, like if you want to book a test drive, order a car online, or get your car serviced. You just have to choose the question you want to ask. Then, Jessie gives you the answer automatically.

But if Jessie can’t figure out your question, she doesn’t give up. Instead, it connects you to real people, the customer service reps, who can help you. So, it’s like having a smart friend who can answer your questions or get you in touch with the right people if things get tricky. This is a great example of how technology makes our lives easier and more convenient.

CRM system

CRM software simplifies the complex task of managing customer relationships. It’s like a super-smart technology, an all-in-one tool that helps you handle everything from new leads to existing customers, making informed decisions tailored to their needs.

In simple terms, a CRM is like a database where you can keep important customer information, like contact details and transaction records, and also automate repetitive tasks and more. When it comes to customer service, a CRM is a game-changer. It’s a powerful technology tool for improving and streamlining your customer relationships.

Automation features in CRM software are like your trusty assistants, handling routine tasks to save time and boost efficiency.

Email Automation

This feature allows you to send automated emails to customers based on triggers or schedules. For instance, you can set up automatic ‘Thank You’ emails after a purchase or reminders for upcoming appointments. It ensures you stay connected with customers without manual effort. 

Email is one of the top lead generation channels and by leveraging email automation you not just stay on top of your customers’ mind but also increase the potential of them coming back to your business. You kill two birds with one stone- delivering exceptional service as well as increasing customer retention. 

Example:

WhatsApp Automation

With the popularity of WhatsApp, this feature lets you automate messages and responses. For instance, you can send order confirmations, shipping updates, offers, and many more via WhatsApp. It’s a quick and convenient way to reach your customers.

Example:

SMS Automation

Much like WhatsApp, SMS automation sends out pre-scheduled or trigger-based text messages. You can use it for order updates, appointment reminders, or even promotional messages. It’s a direct and efficient way to keep customers informed.

Example:

Omnichannel support

Delivering a consistent and reliable support experience to your customers across multiple channels is of prime importance. Your customers want to engage with your businesses on their own terms, whether it’s through traditional means like telephone and email or more modern avenues like social media, live chat, and mobile apps.

This seamless experience, where customers can effortlessly switch between different channels without losing the thread of the conversation, is what we call “omnichannel support.” 

Social Media

Social media has emerged as a powerful magnet for customer attention. It’s where customers gather, discuss, praise, and sometimes complain about products and services. On this social media platform, businesses need to be present and responsive across all channels.

For instance, let’s take Airtel, a communication organization. When you, as a customer, face a network issue and you decide to share it on Twitter, the power of technology comes into play. In a matter of minutes, customer service agents are not only aware of the issue but are also primed for action. They smoothly responded to your tweet, acknowledging the problem and working towards a solution.

This real-time responsiveness on social media demonstrates how technology has become the star of modern customer service. It’s about being where your customers are and using technology to smoothly address their concerns. It’s how technology and social media have reshaped the customer service landscape, making it more dynamic, efficient, and customer-centric.

Note: Members of Generation Z are more inclined to favor digital channels.

Live Chat

Live chat is a real-time customer support and communication tool that allows your business to interact with website visitors or customers instantly through a chat interface. Think of it as having a friendly expert right at your fingertips while your customer is browsing a website.

A little chat box pops up, and you can type in your questions or concerns. Without any waiting, a live chat agent on the other side jumps in to help you out. It’s like a virtual help desk that’s always open, making sure you get quick answers and support without the hassle of making a phone call or sending an email. It’s all about convenience and speed, putting the power of communication in your hands.

Choosing the right chat service company for your live chat is a significant decision.
Have you faced a dilemma? Should you manage live chat in-house or outsource it to experts? It’s a question that demands careful consideration.

First, take a look at your in-house capabilities. Do you have the resources and expertise to run your live chat support effectively? Managing it in-house requires a deep understanding of chat operations, technology, and customer service. It’s like maintaining your garden; it can be rewarding, but it demands time, effort, and know-how.

On the other hand, outsourcing your live chat support from one of the best outsourcing companies like AM2PM Support, can be a smart move. These professionals are like experienced gardeners. They bring specialized knowledge and technology to the table. 

You can think of it as a partnership where you focus on your core business while they handle your customer support needs.

Personalisation

Technology enables your businesses to collect and analyze vast amounts of customer data. With this data, you can offer personalized services, like tailored product recommendations and content. Instagram’s AI algorithm serves as a perfect illustration of this.

Think of Instagram’s AI as your personal assistant. When you begin liking posts or reels from fashion influencers, Instagram’s clever algorithms are like your attentive buddy who’s paying close attention. In a matter of seconds, it starts to grasp your preferences. As soon as it understands that you have a thing for fashion, it goes into action mode.

You’ll notice your feed transforming magically. Suddenly, it’s filled with more fashion-related content, fashionistas, and the latest style trends. It’s as if Instagram knows your fashion DNA and tailors your feed to your tastes. This level of personalization enhances your experience, ensuring you’re exposed to content that genuinely interests you.

This is just a glimpse of how technology harnesses customer data to create a personalized and engaging customer experience. Whether it’s tailored product recommendations, content suggestions, or a curated shopping experience, technology has the potential to make each interaction feel as if it’s designed just for you, all thanks to the power of data and smart algorithms making personalized customer service possible.

IVR (Interactive Voice Response)

Interactive Voice Response (IVR) is a technology that allows automated interaction with callers through voice and touch-tone keypad inputs. It’s commonly used in customer service to provide information or route calls.

For example, when you call your bank’s customer service line and a recorded voice says, “Press 1 for account balance, Press 2 for recent transactions,” and so on, that’s IVR in action. Based on your input, the system routes your call to the appropriate department or provides the information you requested, all without speaking to a live agent. It’s a quick and efficient way to get basic information and reach the right person or department.

My experience with Maruti Suzuki’s IVR technology is a perfect example of how far technology has come. It’s like having a conversation with a real customer service agent, but in reality, it’s artificial intelligence at work, making it all seem natural and effortless. What’s even more impressive is that this interaction was in my local language, Kannada, showcasing how technology is becoming more advanced and user-friendly, making the interactions with it feel increasingly human-like and comfortable.

Technology Trends in customer service

These technologies are truly fascinating, and the best way to explore them is through real-life examples. So, let’s take a journey into innovative customer service technologies.

Augmented reality (AR) 

AR technology will enable businesses to offer virtual product assistance, step-by-step guides, and virtual showrooms, enhancing the customer experience with the ideal customer service strategy. 

A great example is IKEA Place, it is a fantastic illustration. This app allows you to visualize how IKEA furniture would look in your homes through AR. It uses the smartphone’s camera to place virtual furniture in a real room, providing a highly immersive and interactive shopping experience. IKEA’s use of AR goes beyond traditional product images, and you can see exactly how items will fit in their living spaces.

AI-powered chatbots

AI advancement has taken the 5th gear in today’s world, enhancing better customer service. 

Take Google’s Duplex as an example. Duplex is an AI-driven conversational technology that makes appointments and reservations on your behalf. 

It can engage in natural-sounding conversations with businesses, like booking a restaurant table or scheduling a hair salon appointment. This showcases how AI is making chatbots more human-like and capable of handling complex interactions, ultimately enhancing customer satisfaction.

Data-Driven Customer Insights

Your business will increasingly rely on advanced analytics tools to gain deeper insights into customer behavior and preferences. Analyzing customer data will enable your business to understand and anticipate customer needs, identify patterns, and segment customers effectively. By utilizing data-driven insights, you can personalize your offerings, target marketing campaigns, and optimize your customer service strategies.

Disney+ Hotstar uses data analytics to understand user preferences, viewing habits, and content choices. It examines which shows or movies are the most popular and which genres users engage with the most. This data-driven approach allows Disney+ Hotstar to tailor its content recommendations to individual viewers.

For instance, if you are frequently watching Marvel superhero movies, Disney Hotstar’s algorithm will prioritize suggesting similar content, such as other Marvel films or related series. Likewise, if you are more inclined towards family-oriented content, the platform will recommend Disney classics and family-friendly shows.

This personalization strategy not only enhances the user experience by presenting content that aligns with individual preferences but also contributes to customer retention and engagement, highlighting the effectiveness of data-driven customer insights in the streaming industry.

Future of customer service

Technology has become the backbone of customer service, reshaping how your businesses engage with your customers. It’s so essential that sometimes managing it in-house can be quite challenging. In such cases, the smart move is to bring in external experts. 

The professionals, like AM2PM Support, can handle the complex world of customer service on your behalf, ensuring it’s done with efficiency and expertise. AM2PM Support not only brings the updated technology on board but also a decade of experience in customer service. That is what makes it a lethal combination if you want to ace the market. 

They show your business how technology can create amazing customer experiences. Keeping up with the latest trends and getting ready comes next. As you go forward, blending technology and human skills will be what sets great customer service apart.