The need for a top-notch customer experience (CX) has significantly increased over the past decade as more industries embrace digital transformation. Websites and social media pages are becoming the primary avenue for companies to engage with their clients, pushing enterprises to provide reliable platforms to improve communication and shopping processes. A first-rate customer service system continues to be an essential aspect of business growth, even in the digital age.

Fortunately, technological advancements allowed organizations to adopt sophisticated tools for their customer service needs. Moving from legacy systems to modern solutions enables institutions to have a robust approach to enhancing customer experience. A survey by NewVoiceMedia showed that 69% of consumers recommend a brand if they have good CX services. So optimizing CX can give firms a competitive advantage.

The global spending for CX solutions reached more than $500 billion in 2019. Statistica predicts that it will continue to rise, reaching up to $640 billion in 2022. This growth is primarily due to heightened customer expectations and companies realizing the benefits they can reap from modern CX software.

Advantages of Improving CX

Adapting to the ever-changing customer behavior entails looking for ways to cater to the latest trends and demands. This keeps the consumers happy and engaged in today’s business landscape. However, retiring legacy processes can be difficult if it has already been used for a long time and has already delivered results. But, investing in new software brings advantages that can drive favorable results amid the constant changes in customer needs.

  • Customer Loyalty and Conversion

Building a solid customer base is a goal that every organization tries to achieve. It is one of the main factors needed to grow a company and plays a considerable role in stakeholders’ decision-making. With an improved CX system, enterprises can provide personalized solutions to their clients, allowing them to resolve any issues immediately. This will enable them to boost their client retention efforts and significantly expedite the conversion of prospects into regular consumers.  

  • Develop a Strong Reputation in the Market

A dedicated client base is crucial in sales because these individuals can become effective brand ambassadors for the business. Satisfied patrons are likelier to talk about their positive customer experience to an average of nine people, according to a study released by Deloitte. For many enterprises, word-of-mouth marketing has always been an effective strategy, allowing them to get more prospects in the long run.

This would also enable them to build a solid reputation in the market, helping them have a good image for the consumers. It will help businesses upgrade their value and become more attractive to high-level clients. Furthermore, gaining a reputation in a competitive industry will allow a firm to influence policies that can further improve its services.

  • Innovative and Personalized Solutions 
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Firms can provide their clients with a platform that can provide immediate answers to simple questions and personalized solutions to complex issues. Chatbots, mainly used on social media and web pages, are an example of a cutting-edge technology that has been gaining popularity in recent years. This technology is powered by artificial intelligence (AI) and can immediately provide answers to simple inquiries, such as account information and order updates.


The Growth of Chatbots

For decades, tech giants have continuously made advancements in AI technology, making it a substantial part of numerous modern tools today. AI-powered solutions are slowly dominating the market as it helps automate various tasks and streamline multiple processes for employees and consumers. And a chatbot is an AI technology that is gradually becoming a significant player in promoting business growth and world-class CX.

AI, natural language processing (NLP), and machine learning (ML) can be pretty complex, especially for small and medium enterprises (SMEs). However, plenty of chatbot software providers can help companies employ the technology without difficulty. The International Data Corporation (IDC) forecasted that the global spending on chatbot software would reach more than $77 billion in 2022 as companies continue adopting it online.

Chatbots can be a game-changer for large corporations and SMEs in a world where the demand for faster response has never been higher. In 2020, usage of chatbots software increased by more than 90% and is expected to rise continually. Chatbots’ advantages to organizations make them one of the fastest-growing brand communication channels in recent years.

Chatbots are an ideal tool for institutions looking for a customer support channel available any time of the day. SMEs are often only available during specific operating hours, so their clients who have inquiries outside business hours often have to wait the next day to get answers. Chatbots will help respond immediately to questions, even in the middle of the night, which helps satisfy customers.

Customers can also use chatbots to gain more information about specific goods and services, eliminating the need to browse through hundreds of items. This will streamline the entire shopping, allowing them to use their time for other activities. Businesses can also save money that would have been spent on the salaries of customer support agents, enabling them to maximize their budget on other business-critical tasks.

Common Issues of Implementing Chatbots

Although chatbots help connect businesses with consumers, there are still instances where the technology runs into some issues when implemented. One of the most significant disadvantages of chatbots is that it is highly prone to misunderstanding customer inquiries. Consumers are usually unclear with their needs when using chatbots, leading to the system giving out wrong answers, which often frustrates the clients. Another downfall is when the customers’ problems require actions from a live support team, leaving them with no solution by the end of the session.

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Nonetheless, what remains the most significant threat when implementing the technology is its security, particularly where user authentication is required. For many enterprises, chatbots act as a customer’s first touchpoint when doing transactions. Chatbots need to authenticate clients when linked to an account. But, knowledge-based credentials like passwords or personal identification numbers (PINs) are quickly becoming inadequate, with hackers using numerous tricks to get to these data.

Biometrics and Chatbots

Integrating a more reliable user verification system can mitigate any risks of account takeovers or data theft due to compromised credentials. The use of biometrics for authentication is slowly gaining traction in dozens of industries because of its accuracy and reliability in identity proofing.

Investing in biometric identification solutions can help companies ensure that the people using chatbots are legitimate customers and not bad actors posing as one. Biological data, such as fingerprints, facial structure, and iris scans, can provide a high level of protection in every chatbot session with clients as it is hard to replicate.

In addition to the higher degree of online security, biometric authentication can also streamline various processes for consumers. It eliminates the need for knowledge-based login, which is a tedious process, especially if the customers forget their passwords. With biometrics, patrons can easily verify themselves using their specific biological attributes. This reduces the friction patrons commonly experience in chatbot sessions, primarily since biometric scanners are widely used in many devices today.


Customer experience has become one of the leading determining factors for customer engagement, making it vital for companies to have a reliable system to support their clients. Chatbots helped revolutionize how companies interact with their client base, allowing them to address concerns immediately and outside regular business hours.

Despite their advantages, chatbot sessions are still subject to multiple risks, particularly their security. Hackers are increasing their attacks on platforms with vulnerable text-based login credentials. 

Integrating biometrics as a primary identity authentication system will enable organizations to meet the increasing demand for convenience and security. This would significantly improve CX, allowing firms to build trust with their customers and make them brand ambassadors.