How to avoid the pitfalls of technology overload in customer relationships

How to avoid the pitfalls of technology overload in customer relationships

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This is a common problem, although not at all times recognized. While poorly functioning technology often frustrates users, too much technology will be just as harmful. It could also be tempting to think that customers might want a lot of advanced technology to speed up interactions with your organization; Technology overload can kill customer relationships. In my experience, you must consider ways to avoid this trap.

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1. People are still higher at many things

At my jewelry insurance company, we use technology extensively with an omnichannel strategy. However, there are areas where we imagine technology is not the best and where people can work higher, which is the case in many firms today. People are superior and essential to many interactions in an organization.

Everyone is trying to leverage technology for the whole lot, especially with the surge in interest in artificial intelligence and GenAI. However, AI and GenAI cannot necessarily streamline or automate the whole lot. For example, many things require empathy and experience that only humans can provide. The human touch is a real and powerful force. For example, we use technology to manage insurance claims, but these claims are mainly controlled by humans. Why? Because we’d like to be sure that our interactions with our customers are truly empathetic. Computers don’t have this capability. They are not good at the subtle nuances required when you and your client want human help and understanding.

Resist the temptation to overwhelm your processes and company with technology. Even if you have good intentions and try to provide a higher user experience, the result can have the opposite effect. The technology could also be great, but the user experience fails because the way it responds is not what people want or how they need it. Innovate in small steps to test and learn before making decisions or expanding the use of advanced technologies – especially with prospects and customers.

2. The path of least resistance does not at all times lead to advanced technologies

It’s easy to gravitate towards complex technology-based paths that appear more efficient. Many leaders fall in love with really complicated solutions. Or they feel market pressure to have technology with very many functions. They are ashamed that their innovation could seem unsophisticated.

However, often the path of least resistance is not at all times optimized by maximizing advanced technologies. Your first iteration in process automation will probably be ugly. Don’t assume that your technology has to be complex and in-depth instantly. Instead, start small, get feedback, learn and repeat. Use technology to create feedback loops and see how people are using your product, down to every detail and nuance. It can inform you what buttons users click, what colours work best, how often they click, etc.

If you utilize the right tools, you possibly can monitor interactions and gain great quantitative insight. Then mix these insights with qualitative (read human) customer feedback. Ninety-nine percent of the time, easy is higher.

3. You cannot at all times be trusted to catch the latest trend

Many leaders focus on trends and lose sight of first principles pondering. You need to find a way to take a step back and determine whether you think something makes sense for your small business. It doesn’t matter what consultants inform you or what your competition does. You can imagine in adopting current technology. Certainly yes. But you furthermore mght need to know when this risks overloading staff and customers.

There is a lot of fear of missing out (FOMO), in addition to pressure on CEOs and leaders to use the latest technology. The narratives around AI and GenAI are a perfect example. Companies are scrambling to work out how to use AI/GenAI, how to get to the goal first, etc. But for firms, it doesn’t make sense to use AI and GenAI. We found good ways to use it with prospects and customers, but its capability is small. It’s all about how well it really works for you and your customers.

Many large tech firms introduce solutions and features that folks don’t use at a cost of tens of millions of dollars – and that shouldn’t occur. Innovation may come at a cost. Test and learn, experiment and ask questions as you think about innovation. Don’t assume that you simply are missing something or that you simply are lacking something. Instead, test it based on human conversations and judgment.

A tough-earned lesson

Technology overload was something I saw in the early insurtech era. Many in the industry believed that customers would like to purchase home, auto and other insurance policies directly from insurance firms online. Build elegant technology and they may come. But it didn’t quite work like that. Just Some consumers preferred using the Internet, while many didn’t. S

Some consumers want to work with a broker or agent they trust, which is why they have been purchasing insurance for a long time. Ignoring the power of the human element in the purchasing process has led to problems for several well-known insurtech startups.

There are many other examples, from e-commerce shopping carts to smartphones. When using technology, take your time, create feedback loops, and (above all) look at your customers’ expectations.

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