15 key trends impacting the future of customer service

As technology continues to progress and new business tools are introduced, customer service is one area of organizational operations that has benefited significantly. These new resources aren’t meant to replace human support agents, but rather handle basic, repetitive tasks and inquiries, while freeing up live representatives to handle more complex and value-added activities.

As they say, innovation breeds innovation, and we anticipate the pace of technological development will only continue to increase as time goes on. Thus, it’s important that companies continually have their fingers on the pulse of innovation, adapting their support approaches and infrastructure as new solutions are introduced.

Today, we’ll dive into what customer service technology is, how you can leverage it to improve your support processes, and 15 ways these emerging tools will impact the future of customer service delivery.

Why is technology important in customer service?

Customer service technology holds the potential to expedite and personalize the CX, while also providing more consistent and accurate answers to user inquiries. Even more, these tools facilitate a deeper understanding of individuals’ needs through advanced data analytics and customer-centric software.

Essential advantages of customer support technology include:

• Efficiency: Technology streamlines customer service processes, reducing response and resolution times. Automated systems can handle routine inquiries, allowing human agents to focus on more complex issues.

• Personalization: Advanced customer relationship management (CRM) systems enable businesses to tailor their services to individual customer needs, enhancing the overall CX

• Availability: Technology allows for 24/7 customer support through chatbots, automated responses, and self-service portals, ensuring that customers can access help whenever they need it

• Consistency: Automated systems and standardized protocols help verify consistent service quality, regardless of when or how customers seek assistance

These benefits are typically achieved through the plethora of features and capabilities included under the customer service technology umbrella. 

You’ll want to seek out functionalities relevant to your identified business challenges and objectives when selecting a software, such as:

• Omnichannel messaging: Offers various channels for communication, while ensuring a seamless experience across them all

• Analytics and reporting: Gathers data on customer interactions to identify trends, preferences, and potential areas for improvement

• Chatbots and virtual assistants: Handle routine queries and tasks, freeing up human agents for more complex issues

• Automated ticketing systems: Efficiently create, prioritize, and assign customer requests

• Knowledge bases and FAQs: Provide customers with self-help resources to resolve issues on their own

Proactive support: Automated alerts and notifications inform customers about potential issues before they become problems

What is customer service technology?

Customer service technology refers to the range of software and hardware solutions that improve the customer experience (CX) and empower support agents to deliver better assistance.

Businesses can use an abundance of different tools both on the customer side and internally, on the agent side.

Customer-facing technology

• Self-service customer portal: A digital knowledge base where customers can find answers to their questions and issues

• Chatbots: Help individuals answer common questions, such as those concerning service hours or return policies, in seconds from any page on your website or app

• IVR: Interactive Voice Response allows customers to contact the most appropriate department when calling your contact center

Agent-facing technology

• Internal knowledge management: A private knowledge base to help reps maintain a consistent level of support

• Customer service software: Help desk technology assists in managing incoming support tickets from various channels, including email, voice, social media, and chat

• AI-powered automations: Speed up routine requests with AI-powered workflows like selecting from recommended replies, highlighting tutorials, and more

A closer look at the role of technology in customer service

As the customer experience often serves as a key differentiator between retaining or losing customers, organizations are increasingly turning to technology to create a satisfactory CX.

Customer service is an integral component in many individuals’ decision to stay with a business or switch to an alternative, as an astounding 96% say that it’s an important factor in their choice of whether or not to stay loyal to a brand. Here’s how the keeping up with the latest in customer service technologies can benefit your company:

• Upgrading from email to customer service software allows you to track, monitor, and engage with customers in a more comprehensive manner

• Integrating multiple channels into a single dashboard does away with juggling between different tabs or tools. A unified view of all channels enables you to offer a consistent experience no matter a customer’s preferred method of communication.

• Automating routine workflows serves to increase agent productivity

• Using chatbots enables you to answer basic questions in seconds and deflect up to 60% of tickets

• Leveraging AI to assist your agents with the information they need in real-time helps maintain a higher quality of service

• Scaling your customer service operation without increasing costs

• Accessing crucial CX metrics provides a better overview of the state of your customer relationships

New technology solutions can help customer service teams automate support processes, focus on creating memorable experiences, and at the same time, assist more individuals in solving straightforward problems on their own.

15 ways that technology is affecting the future of customer service

It’s been said that “the only constant is change”; and whether you’re ready for it or not, the landscape of customer service delivery projects to evolve significantly over the next few years. This leaves business leaders two choices: hop on board or get left behind. For those ready to take the leap, join us as we examine what the future may have in store for customer service technology and how to ensure your organization remains in a favorable position to succeed.

1. More service teams will purchase remote-ready technology

The rise in remote working arrangements has driven businesses to adopt various remote-ready customer service technologies to enhance their interactions. One such technology is cloud-based contact center software. These platforms allow support representatives to access all necessary tools from any location with an internet connection. Features like call routing, CRM integration, and analytics are all accessible remotely, ensuring that agents can provide consistent service without being tied to a physical office. 

This flexibility also allows businesses to hire talent from a broader geographic area, enhancing the diversity of their customer service teams.

2. The ideal channel mix will contain self-service, live chat, and other messaging apps

One of the key advancements in modern customer service approaches is the integration of self-help options. Self-service portals, powered by sophisticated knowledge bases and AI-driven chatbots, enable customers to resolve issues independently. These portals are often accessible through multiple channels, including company websites, mobile apps, and social media platforms, ensuring that individuals can access self-service options wherever they’re most comfortable.

Live chat functionality has also evolved, now being offered through website help widgets, social media channels, and more. Modern support platforms typically offer live chat features that can be embedded across different touchpoints. These solutions are equipped with AI capabilities to provide instant responses, while routing more complex queries to human agents.

3. Omnichannel customer service solutions will be a must-have

In today’s digital age, individuals interact with businesses through various channels and anticipate a consistent and coherent experience across them all. Omnichannel solutions empower organizations to integrate these channels, verifying that customer interactions are fluid and continuous, regardless of the platform. 

The future importance of omnichannel approaches is underscored by the increasing prevalence of digital communication. As machine learning and data analytics become more sophisticated, businesses can leverage these technologies to enhance their omnichannel strategies. For instance, AI-driven insights can help predict customer behavior, allowing businesses to proactively address issues and personalize interactions across all channels.

4. Businesses will scale service at a low cost by empowering agents with AI

Future customer service technology will likely further integrate AI to personalize customer interactions, which is crucial for scaling service without compromising quality. AI’s ability to analyze vast amounts of customer data to generate insights about individual preferences will only become more essential as time goes on. Armed with this information, agents can tailor their responses to meet the specific needs of each customer. 

Even more, AI-driven chatbots and virtual assistants will continually grow to be capable of handling increasingly complex tasks, freeing up even more time for live agents to focus on sensitive issues that require a human touch. It’s already estimated that well-designed bots can handle up to 80% of straightforward queries across all industries, and we anticipate that number to rise significantly in the future.

5. CX leaders will focus more on the Voice of Customer (VoC)

Looming advancements in real-time feedback mechanisms will likely allow customer experience leaders to capture the VoC instantaneously. For example, after interacting with a customer service representative, individuals can immediately provide feedback through automated surveys or rating systems. This immediate collection of data ensures that CX leaders always possess up-to-date information on customer satisfaction levels.

Additionally, predictive analytics derived from customer support technology will enable companies to anticipate individuals’ needs preemptively, leading to a more proactive approach to CX management. By leveraging these technologies, businesses can predict future customer behaviors based on historical data and current trends, allowing them to address potential issues before they arise. 

6. New positions will be created as customer service technology advances

As customer service technology advances, new positions will emerge to train and manage these tools. One significant area of growth projects to be in the development and maintenance of AI-driven customer service systems. This could include roles like AI trainers and conversational designers who will be responsible for teaching AI systems to respond to customer inquiries effectively. 

These advancements will also create demand for roles focused on ethical considerations and CX optimization. Ethics officers and compliance specialists will be essential in ensuring that AI technologies are used responsibly, respecting customer privacy and data security. Meanwhile, customer experience managers will leverage advanced analytics and AI insights to facilitate more engaging customer interactions. 

7. Self service will continue to grow as a necessity

Firstly, customer expectations are evolving towards greater autonomy and convenience. Self-service options empower customers to find solutions independently, whether through knowledge bases, FAQs, or automated troubleshooting systems. This shift not only meets the demand for immediate resolution but also reduces the strain on human support agents, allowing them to focus on more complex issues that require personalized attention.

Even more, the proliferation of mobile devices and internet accessibility has made self-service options more accessible than ever before. Customers now, and will continue to, anticipate seamless experiences across various channels. Companies that invest in user-friendly self-help interfaces stand to gain significant competitive advantages by meeting these expectations.

8. AI powered chatbots and virtual assistants will help customers and agents alike

For support reps, AI chatbots will grow in their capacity to serve as intelligent assistants capable of handling a wide range of tasks autonomously. These bots will be increasingly equipped with natural language processing (NLP) and machine learning capabilities, as opposed to the script- or rule-based nature that many of them possess currently. These features will empower them to understand and respond to customer inquiries with human-like fluency and accuracy. 

From the customer's perspective, AI chatbots will offer seamless and responsive assistance across both current and emerging channels. They’ll continue to provide personalized recommendations, product information, and troubleshooting guidance in a timely manner. By leveraging AI-driven insights, these bots should grow to deliver more contextual responses, enhancing the overall CX and promoting stronger customer loyalty.

9. As more tools and softwares are introduced, integration capabilities will increase in necessity

As businesses adopt more advanced AI-driven solutions, the need to seamlessly connect these technologies with existing IT systems and communication channels becomes paramount. Integration capabilities will enable organizations to centralize customer data and continue linking customer service tools to any emerging technologies.

In addition, as customer expectations evolve, so too will the complexity of support interactions. Individuals increasingly anticipate real-time responses, personalized recommendations, and hassle-free transitions between self-service tools and human assistance. Effective integration capabilities will facilitate these frictionless transitions, allowing AI chatbots to escalate inquiries to human agents when necessary, with all relevant information still available.

10. AI will make self service options more viable

In the future, AI will enhance the scalability and accessibility of self-service options across multiple channels, including websites, mobile apps, and social media platforms. 

AI-powered chatbots, for instance, can operate 24/7, providing instant responses and support regardless of the time or location. This accessibility not only meets the growing demand for immediate assistance, but also reduces dependency on human resources, allowing businesses to manage increasing customer volumes without compromising service quality.

11. Customer feedback is more effectively

Since the majority of future customer interactions will occur through AI-driven virtual assistants, it’s likely these technologies will be increasingly leveraged to proactively solicit feedback during and after conversations as well. These assistants will utilize their NLP capacity to discern sentiment, identifying emotions to gauge customer satisfaction in real-time. This data will then be instantly logged into centralized systems for immediate analysis.

Moreover, the proliferation of Internet of Things (IoT) devices will enable continuous monitoring of how users are leveraging products and services. Smart devices embedded with sensors will collect data on how customers interact with offerings, detecting issues or usage patterns that indicate satisfaction levels. For instance, an intelligent appliance might automatically send usage data to the manufacturer, highlighting areas for improvement based on how customers are using it.

12. As tools evolve, proactive support is more important than ever

In a competitive marketplace where CX often determines brand loyalty, proactive customer service will become an increasingly crucial differentiator. By demonstrating a proactive approach, businesses not only improve customer satisfaction but also build trust and loyalty. With advancements in technology, the predictive capabilities of these tools will continue to become more refined, improving their ability to foresee specific points in the customer journey where individuals may run into issues.

By leveraging AI, IoT, and predictive analytics synergistically, companies can stay ahead of customer expectations, fostering stronger relationships and maintaining a competitive edge in the market.

13. Blockchain will impact ecommerce customer support

Blockchain technology offers significant potential in future ecommerce customer support, as its decentralized ledger system provides an immutable record of every transaction. This transparency not only builds trust, but also reduces disputes and fraud, minimizing the need for support intervention related to transactional issues.

Moreover, blockchain can streamline customer service processes by enabling smart contracts. These self-executing contracts automatically enforce the terms of agreements between buyers and sellers based on predefined conditions recorded on the blockchain. For instance, in ecommerce, smart contracts can facilitate automatic refunds when specific conditions are met, such as delivery delays or product defects. 

14. Data driven decisions will increase

Firstly, AI-powered systems will improve their ability to aggregate and analyze vast amounts of customer data from multiple sources, including interactions, purchase history, and IoT devices. These technologies will not only capture real-time insights, but also uncover hidden patterns that human analysts might overlook.

Secondly, predictive analytics will play a crucial role in forecasting customer needs and behaviors. Machine learning algorithms can anticipate potential issues or opportunities based on historical data and ongoing trends. For example, predictive models can anticipate demand spikes, identify churn risks, or recommend personalized product offerings. 

15. Personalization is more important than ever

As customers become increasingly accustomed to tailored experiences across digital platforms, they expect the same level of customization from the brands they interact with. Advanced data analytics will play a crucial role in achieving this personalization by enabling businesses to examine vast amounts of customer data. This information can then be used to create tailored recommendations and deliver relevant solutions in real-time.

Moreover, personalization enhances customer engagement by making interactions more meaningful. By understanding individual preferences and purchase history, businesses can offer proactive support and suggest offerings that align with the customer's interests. 

How to use technology to improve your customer service?

When introducing new customer service technology into your business environment, we recommend creating a detailed implementation plan and clearly communicating it to your team. You’ll need to tailor your blueprint to fit your unique organizational needs, but in general, a well-rounded approach includes multiple channels for support, extensive training for agents on the new software, and the use of data analytics to refine strategies as you move forward.

1. Start with a cloud-based customer service software

Begin here by setting up the software according to your specific requirements, customizing it to reflect your branding and operational processes. This involves configuring user roles, creating automated workflows, and setting up communication channels like live chat, email, and social media. Don’t forget to ensure data migration is handled meticulously to avoid any loss of crucial customer information, while also providing comprehensive training for your customer service team to familiarize them with the new system.

2. Adopt an omnichannel customer engagement strategy

Incorporating an omnichannel engagement strategy starts with integrating all of your communication channels into a unified customer service platform. 

This means connecting your email, phone, live chat, social media, and any other customer touchpoints into a single system where all interactions are centrally managed. Utilizing a customer service technology that supports omnichannel capabilities empowers your agents to view a comprehensive history of interactions across all channels. This integration verifies that individuals receive consistent and informed responses, regardless of how they choose to contact your business. 

3. Offer a range of self-service options

By providing resources such as FAQs, knowledge bases, and interactive troubleshooting guides, you enable customers to find solutions on their own terms. This not only meets the growing demand for instant information, but also fosters a sense of control and satisfaction among individuals.

Furthermore, self-service options significantly reduce the burden on your customer service team, allowing them to focus on more complex issues. When individuals can easily access answers to common questions or perform routine tasks independently, it decreases the volume of incoming requests that agents need to handle. This leads to shorter wait times and faster resolutions for those who do require direct assistance.

4. Empower your staff with knowledge management and artificial intelligence

Providing your support staff with sufficient knowledge management resources begins with implementing a robust knowledge management system (KMS). A KMS centralizes information, making it easily accessible for your customer service team. This includes detailed product information, how-to guides, and answers to FAQs. By maintaining a comprehensive and well-organized knowledge base, agents can quickly find accurate information to assist customers. 

As for AI, tools such as chatbots and virtual assistants can handle a plethora of routine inquiries and simple tasks. Through machine learning, these technologies can typically learn from interactions and improve over time, becoming more effective at handling customer requests. Even more, AI can assist live agents by providing real-time suggestions and relevant information during customer interactions. 

5. Use analytics for insights into support performance and the real-time state of customer relationships

Leveraging reporting and analytics tools help to track key performance indicators (KPIs) such as response times, resolution rates, and customer satisfaction scores (CSATs). By monitoring these metrics, you can identify trends, pinpoint areas for improvement, and assess the overall efficiency of your support operations.

Moreover, real-time analytics provide a dynamic overview of customer relationships, allowing you to respond proactively to emerging issues. For instance, real-time dashboards display live data on customer interactions, sentiment analysis, and support ticket statuses. This immediate visibility enables support teams to detect and address potential issues before they escalate into larger problems.

Choosing the right customer service software for your business

When evaluating customer service software options; bBegin by identifying the core requirements of your customer service operations. Consider factors such as the volume of customer inquiries, the complexity of the issues, and the preferred communication channels of your customers. Additionally, assess your team’s workflow and determine which features are essential, such as ticketing systems, automation capabilities, and integration with existing tools like CRM or e-commerce platforms. 

Next, evaluate the usability and scalability of potential customer service software. The user interface (UI) should be easy for your team to navigate, minimizing the learning curve and ensuring quick adoption. Scalability is another crucial factor; the technology should be able to grow with your business, accommodating an increasing number of tickets and interactions without compromising performance.

Finally, consider the cost and return on investment (ROI). While it might be tempting to choose the cheapest option, it’s important to weigh the cost against the potential savings the software can provide. Calculate the total cost of ownership (TCO), including subscription fees, implementation costs, and any additional expenses for training or support. Then, compare this to the anticipated ROI in terms of improved efficiency, better customer satisfaction, and increased retention rates.

Prepare your customer service for the future with Freshworks!

Freshdesk acts as an all-in-one customer engagement tool. Self-help tools like our robust knowledge base and forums empower customers to resolve issues autonomously by accessing knowledge articles or leveraging the collective expertise of your business’s community. With real-time dashboards, custom reports, and curated reports to boot, organizations can verify that all exchanges are sufficiently personalized regardless of the channel used.

If your company requires any features that Freshdesk doesn’t offer, simply browse our extensive Marketplace for access to hundreds of third-party apps that can significantly expand the platform's scope!