Customer Experience and Technology: Everything You Need to Know

It is hard to think of a time when customer experience and technology weren’t connected. Businesses are constantly on the hunt for innovative strategies to draw in, engage, and retain customers, and technology plays a key role in making these goals achievable. To ignore it would be to sabotage your business and fall behind your competitors.

In this article, Hariharan KP, Head of Service Operations for solverASSIST, breaks down the connection between customer experience and technology – and what it means for your organization. 

What We Cover:

  • The Emerging Technologies Revolutionizing Customer Experience
  • How Technology Is Improving Customer Experience
  • Customer Experience and Technology: Pitfalls and How to Avoid Them
  • How to Balance Automation and Human Interaction in Customer Service
  • How to Measure the ROI of Technology Investment For Customer Experiences
  • Customer Experience and Technology: Tips for Success

The Emerging Technologies Revolutionizing Customer Experience

Artificial intelligence, virtual reality, and predictive analytics are just a few of the technologies impacting the customer experience. In Hariharan KP’s own words, these technologies are “streamlining customer service processes and enhancing the overall customer experience” – not only that, but these innovations are enabling “more meaningful interactions between customers and businesses.” 

Let’s take a closer look: 

Artificial Intelligence

Artificial intelligence (AI) stands at the forefront of this revolution, offering innovative solutions such as chatbots, virtual assistants, and personalized recommendation engines. AI-driven tools not only provide instant responses to customer inquiries, but also ensure support is available around the clock regardless of location or time zone. This kind of support proves invaluable when customers have queries about a product or service. Ultimately, it can make all the difference between a customer deciding to buy and deciding not to buy.

This technological leap significantly boosts customer satisfaction and overall experience. In fact, 80% of customers expect bots and AI to improve their experiences (Verint, 2023). 

Natural Language Processing

Natural Language Processing (NLP) technology enables machines to understand and interpret human language, paving the way for more meaningful interactions. NLP-powered chatbots and voice assistants allow businesses to engage with customers across various platforms, ensuring communication is both seamless and personalized.

Predictive Analytics

Predictive analytics employs statistical modeling, data mining, and machine learning techniques to predict future trends and outcomes based on historical data. This enables your business to better understand customer behavior, tailor offers, anticipate needs, and increase the likelihood of making a sale, strengthening your customer engagement strategy.

Augmented and Virtual Reality

Augmented reality (AR) and virtual reality (VR) technologies are redefining customer engagement by providing immersive experiences. From virtual product demonstrations to virtual showrooms, these technologies allow customers to ‘try before they buy’ in a simulated environment, deepening relationships and creating an effective and memorable buying experience.

Internet of Things

The Internet of Things (IoT) is transforming how businesses deliver personalized services and anticipate customer needs. By collecting real-time data through IoT devices, companies can offer connected products and services, optimize operations, and introduce smart home and remote working solutions, further enriching the customer experience.

How Technology Is Improving Customer Experience

63% of retailers are already using AI to improve customer service (Capgemini, 2023), and it’s unsurprising when technology such as e-commerce platforms and mobile applications enable personalized shopping experiences and effortless transactions for their customers. 

“In retail, churn happens extremely fast. But now companies are using technologies to revolutionize the customer experience.” – Hariharan KP. 

Digital Banking and Mobile Payments in Finance

The finance sector has undergone major changes with the advent of digital banking, mobile payments, and online banking platforms. Technologies such as chatbots and mobile apps have made financial services more accessible, eliminating the need for physical wallets. 

Now, a digital device is all you need to manage finances, showcasing how technology simplifies and secures financial transactions.

Telemedicine and Remote Monitoring in Healthcare

Healthcare technology has enhanced patient engagement through telemedicine, remote monitoring, and mobile health apps. These innovations allow patients to access medical records and receive care remotely, altering the healthcare experience by making it more convenient and patient-focused.

Streaming Services and Personalization in Entertainment

The entertainment industry has been reshaped by streaming services and platforms like Netflix and Spotify, which offer personalized content recommendations. These advancements have revolutionized how we consume entertainment, allowing for on-demand access to “movies and music with just an internet connection”, says Hariharan KP.  

Moreover, the insights derived from customer feedback and sentiment analysis are instrumental in enhancing this personalized communication. By understanding the specific needs and preferences of their customers, businesses can fine-tune their communication and content strategies to ensure messages are more relevant.

Online Learning Platforms in Education

In education, technology has facilitated the emergence of online learning platforms, virtual classrooms, and e-learning resources from companies like Udemy, Upgrad, and Coursera. These platforms have democratized education, allowing learners to access courses from anywhere in the world. 

Retention Strategies

It’s common for businesses today to use advanced Customer Relationship Management (CRM) and marketing tools to send personalized messages, improving how they connect with customers. With AI technologies, such as chatbots and predictive analytics, they can spot issues early and offer help before problems arise. They can also track feedback across multiple channels to quickly improve customer service. 

All of these capabilities play a part in building customer loyalty and retaining customers. 

“Technology has influenced customer retention strategies through data-driven insights. Technology enables businesses to collect, analyze, and leverage customer data to gain instant insights about their behavior patterns and preferences.” – Hariharan KP. 

Customer Experience and Technology: Pitfalls and How to Avoid Them

Technology holds incredible power, but it’s not without risks. Hariharan KP acknowledges that collecting and analyzing customer data raises significant privacy and security issues. 

Alarmingly, 82% of U.S. consumers have some concern over how companies are gathering and using their personal data (MAGNA/Ketch, 2022), meaning that businesses must comply with data protection regulations, implement strong security measures, and maintain transparency about data usage. The good news is that offering opt-in and opt-out mechanisms can help to build trust and demonstrate respect for customer privacy.

Beware the following pitfalls of technology, too: 

  • Integration Upsets. Adopting various technologies can lead to integration challenges, particularly when systems are incompatible. Investing in platforms and tools that offer seamless integration or developing custom solutions to ensure interoperability is essential.
  • Customer Resistance. Another pitfall is that new technology-driven experiences may initially meet resistance from customers accustomed to traditional interactions. Overcoming this requires educating customers about the benefits of new technologies, addressing their concerns proactively, and providing ample technical and application support to facilitate adaptation.
  • Unforeseen Technical Issues. Technical glitches, system downtimes, or bugs can also diminish customer trust. Hariharan KP recommends that businesses make contingency plans, such as backup systems and disaster recovery protocols, or leverage the expertise of technical support specialists to maintain service continuity and customer confidence.

“Another pitfall is an overreliance on automation and AI, which might overshadow the importance of human interaction. You must find the right balance, ensuring technology complements rather than replaces genuine human engagement.” – Hariharan KP. 

How to Balance Automation and Human Interaction in Customer Service

49% of consumers believe that an AI algorithm can’t operate effectively without human intervention (TELUS International, 2023). This concern raises an important point, especially when you consider technology’s potential to malfunction. Have you considered the importance of human input in any customer experience you offer? 

The first way to balance automation and human interaction in customer experience is to identify the appropriate touchpoints. “Determine which customer touchpoints are best handled by automation,” advises Hariharan KP, “and which require the nuanced understanding of a human agent.” Automate routine inquiries and simple transactions, while reserving complex issues for human intervention.

Offer Self-Service Options

Provide customers with self-service options and troubleshooting guides. This not only improves efficiency but also allows customers the flexibility to resolve issues at their convenience.

Implement Intelligent Routing

Use algorithms to direct customer inquiries to the most suitable channel or resource, whether automated or human. Consider factors like inquiry complexity, customer history, and agent availability to optimize routing.

Train and Empower Agents

Equip customer service agents with the training, tools, and authority needed to handle complex inquiries effectively. Empowering agents to leverage automation and knowledge resources improves both efficiency and personalization.

Leverage Data to Give Your Customers What They Want

Use customer data and insights to tailor interactions, whether automated or human-led. By segmenting customers based on demographics, purchasing behaviors, and engagement, companies can direct targeted marketing, personalized recommendations, and tailored offers that resonate with each segment. This approach increases customer satisfaction by proactively meeting their needs.

Continuously Refine Strategies

Regularly review and adjust your balance of automation and human interaction based on customer feedback, performance metrics, and evolving business needs. Starting with lower-impact automation and gradually expanding to more significant areas can help scale your efforts cautiously.

How to Measure the ROI of Technology Investment For Customer Experiences

The first step to measure the return on investment (ROI) of technology investment is to identify and align key performance indicators (KPIs) with your business objectives. These KPIs could range from Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS) to customer retention rates, average order value, conversion rates, and Customer Lifetime Value (CLV). 

Hariharan KP insists that establishing baseline metrics is crucial for benchmarking current performance and tracking improvements over time following the implementation of technology-driven initiatives. This step ensures that you can measure progress against your strategic objectives.

Quantify Cost Savings and Revenue Impact

Calculating the direct cost savings and revenue impacts resulting from technology investments is a key component of measuring ROI. This includes assessing reductions in customer service costs, increases in sales revenue, higher average transaction values, and the potential for improved cross-selling or upselling opportunities. 

Additionally, estimate the value of efficiency gains – such as reduced handling times, increased agent productivity, and processes streamlined by technology solutions – to receive a clear picture of the financial benefits derived from these investments.

Monitor Customer Loyalty and Behavior Changes

Tracking customer loyalty metrics such as CSAT and NPS, along with monitoring customer churn rates, helps identify correlations between technology investments and changes in customer behavior. This may manifest as increased engagement, improved reviews, or other positive shifts in customer interaction with the brand. 

Customer Experience and Technology: Top Tips For Success

Hariharan KP warns businesses to carefully consider their approach when using technology to improve customer experience. He recommends that you start by thoroughly understanding the customer to ensure that technology addresses their specific needs. It’s also vital to have clear goals for how technology will alter your customer experience strategy.

Next, invest in technology that is scalable, flexible, and focused on customer needs. Finally, it is important to integrate AI with other technologies to create personalized, context-aware experiences for customers. Take time to research and consult with experts; avoid embracing any technology that comes your way, as it should always be relevant and useful to your context and customers. 

At solverASSIST, we co-create intelligent service solutions. In these solutions, humans and machines work together with redefined processes to create excellent customer experiences and efficiencies in order to drive profitability.

Get in touch to learn more. We’ll set up a free consultation to discuss how we can help your business. 


Hariharan KP serves as Head of Service Operations at solverASSIST. He is an experienced business executive with years of experience in driving top-line and bottom-line growth for businesses across geographies. He also has decades of experience in the international shipping and logistics industries. 

Prior to solverASSIST, Hariharan worked with P&0 Nedlloyd, Maersk and Agility Logistics. He has a strong track record in developing new digital assets, marketing in the digital world, and converting opportunities into business service partnerships. 

Hariharan is known for his ability to inspire teams to deliver consistent and standardized service delivery, and a strong data-driven and technology-focused approach has helped him deliver successful business transformations and customer service projects. 

His skills include project management, IT services management, data science and analytics.

Connect with Hariharan on LinkedIn