As customers, we’ve all wasted time communicating with a chatbot when a human could have solved the problem much more quickly, we’ve all witnessed a growing queue because a self-service checkout wasn’t recognising an item’s barcode, and we’ve all frequently had to download apps that require multi-stage authentication and which we might only use for one event or transaction.
Yet all of these scenarios have originated because the business we were trying to interact with has aimed to improve customer experience, and has equated implementing more technology with increased efficiency and effectiveness.
And that’s why all company decision-makers need to take a step back and truly analyse whether the technology they’re currently using, and the future plans they have, are truly benefiting customers. Or is sometimes a good old-fashioned person-to-person interaction simply the best way to go?
Helping or hindering?
It is widely quoted that the average person has 80 apps installed on their phone, but uses only nine on a daily basis. Yet, consumers are still consistently asked to download additional apps to access an event, for example, or for other single-time uses – so it is hardly surprising there is a newly-coined phenomenon of ‘app fatigue’.
This perfectly exemplifies how technology can be useful in some circumstances but actually create extra work or a negative perception in others: an optional app which provides exclusive rewards and loyalty points can actually strengthen a brand’s position compared to competitors without the same offering (with EY finding half of consumers are likely to willingly download this sort of app). This sort of tech works really well for businesses whose customers use them on a regular basis, such as supermarkets. But for larger one-off investments, or scenarios where an app download is mandated rather than optional, it feels like a hindrance rather than a help.
Systems not service
There are so many examples of helpful technology out there which supports back-office functions relating to payroll, finance, supply chain or stock management. All of these could be implemented without customers ever realising – but of course, they indirectly support a consumer’s experience with a brand through freeing up staff to deal with enquiries, ensuring order fulfilment, and collating accurate information on key points such as delivery times and product availability.
The very worst option is to focus on cutting costs through implementing technology, rather than prioritising enhancing speed, accuracy and reliability – especially where this involves redirecting budget away from customer-facing functions.
Any new technology must have the ultimate outcome of improving customer experience, whether they directly interact with it or not. When it comes to customer-facing tech, aligning expectation with experience is a crucial factor: at a convenience store, it is common-place to see self-service checkouts, and around two thirds of customers are happy to use them (according to Zendesk) due to the speed and ease of doing so. Yet walking into a luxury hotel having splashed out on a high-cost break, it would likely be a huge disappointment to be greeted with the cold, sterile site of a computer check-in screen, rather than the smiling face of a team member welcoming you by name.
Tech with purpose
Each business is unique, which means there is no ‘one size fits all’ advice for implementing technology. Instead, decision-makers must analyse customers’ pain points and priorities, to ensure they find the right balance between technology and human interaction. Customer expectations will vary hugely depending on the business sector, purchase value, size and scale of the company, and many other factors.
Adopting AI to promote efficiency in the back-office can have a positive impact across all business functions, but it must be implemented having fully analysed the cost versus the potential benefits, the effect on customer experience, and ultimately whether it is fit for purpose.
Implementing technology to replace human interaction, because ‘everyone is doing it’, to look good, or just for the sake of it: none of these sound like rational business decisions, and yet we are seeing companies across most sectors falling into the trap of handing over functions to tech tools without fully considering all of the implications of doing so. In these cases, technology becomes about vanity not value – and that’s never going to win the loyalty of customers.
Naeem Arif is an entrepreneur, management consultant and best-selling author, who has delivered over £2bn in business transformation projects for a multitude of global corporations and SMEs. A former Forbes Business Council member, founder of the Retail & Hospitality Forum and honorary chairman of his local Chamber of Commerce, Naeem has a passion for giving back to the business community alongside running his own successful company. Visit www.linkedin.com/in/naeemarif to connect with Naeem on LinkedIn.