5 Technology Trends That Will Shape Customer Experience in 2023

2023 is shaping up to be a big year for the customer experience. In the new year, we can expect to see even more technological developments that will shape how customers interact with brands. Here are 5 of the most important CX trends to watch out for:

1. Chatbots and AI-powered customer service will continue to grow in popularity.

We asked our LinkedIn audience to tell us what trend they think will dominate the CX landscape in 2023, and the vast majority – 64% in fact – voted for Artificial Intelligence (AI) Tools and Chatbots.

Over the next few years, chatbots and AI-powered customer service will become increasingly important for businesses. By 2023 chatbots are expected to answer 80% of customer queries without any human intervention, providing a valuable service for businesses by dealing with routine questions quickly and efficiently. 

But are chatbots actually a replacement for human agents? Our recent automation report found that 73% of consumers think that the ability to speak to a live agent when chatbots cannot solve their problem would have a significant or very significant impact on their experience with that brand.

As chatbots become more advanced, customers across various industries from banking to fashion are likely to rely on chatbot interactions to help them with their inquiries and make brand engagement feel more personalized. Utilizing chatbot technology is not just about the customer’s experience; it also improves operational efficiency which enhances profitability. As chatbot technology advances, businesses must be aware of the opportunities they provide in order to remain competitive in the industry.

2. The use of virtual and augmented reality will increase for customer support and agent training.

Virtual and augmented reality have been advancing in leaps and bounds over the past few years, creating more immersive and interactive experiences. As a result, they are becoming increasingly popular means of customer support and training.

These technologies hold a range of advantages over traditional training methods; they can drastically reduce the amount of time needed to educate new employees on complex concepts, as well as be much cheaper to scale up and use in comparison with chatbots or face-to-face interactions. Furthermore, the immersive environment provided by these technologies often creates an engaging experience for users that is more conducive to learning than simple text messages or presentations.

This increase in efficiency will not only help businesses spend less time training their agents but also provide better customer service with agents having a more solid understanding of the product or service being offered. As these technologies become easier to use, customers can expect their support experience to become increasingly tailored and personalized.

3. Voice recognition technology will become more widespread, providing an easier way for customers to interact with brands.

Voice recognition technology has the potential to take customer interaction with brands to a whole new level of convenience. Voice recognition technology is quickly becoming the preferred communication interface for many customers because it caters to their on-the-go lifestyle and allows them to interact with companies without having to type out their requests.

By recognizing voice commands, customers will be able to communicate with brands faster and more accurately than ever before. This could result in improved customer service, increased efficiency and higher satisfaction levels on both sides.

4. The growth of 5G networks will lead to faster and smoother customer interactions across all channels.

5G technology is rapidly transforming the way people interact with businesses. In 2023, 5G networks will provide a major boost to customer interactions across all channels, leading to faster and smoother experiences.

5G networks are designed to handle high volumes of traffic with minimal interference from other sources, so customers can expect fewer service hiccups and interruptions when using 5G-equipped devices. 5G's greater speed and responsiveness could also contribute to improved customer satisfaction through quicker uploading and downloading times for photos, videos, audio files and other media that customers rely on during interactions.

5. Consumers will increasingly demand personalization, and brands will use data collected about them to create unique customer experiences.

With consumers becoming more digital than ever, personalization has become crucial for brands to engage their customers. Personalization involves customizing interactions with customers according to the data and preferences collected, enabling an individualized experience that is tailored to each customer's needs.

Companies now have access to sophisticated technology and can use customer data coupled with personal feedback to create truly unique experiences. As personalization grows in importance and buzzwords like ‘hyper-personalization’ come into play, brands need to prioritize personalizing interactions so that they can differentiate themselves from the competition. In order to do so, they must embrace personalization by utilizing customer data while simultaneously adhering to consumer privacy regulations.

Planning to use automation in your 2023 CX strategy? Download our new report “The State of Automation in the Contact Center” to learn how to use automation to delight your customers.