How To Evaluate Your Next Technology Investment
Last month, more than 800 CX leaders in the contact center industry, along with partners/vendors, attended the Customer Contact Week (CCW) meeting in Nashville. I'm fortunate and honored to be on the CCW advisory board. I get to hear from top CX leaders about opportunities and challenges facing the CX industry.
I'm often asked by clients to help them decide what CX technology to invest in. This includes CRM software, communications software and the popular technology of the day, AI software. Their question does not have an easy answer. Actually, the answer comes in the form of more questions.
At the recent CCW board meeting, one of our presentations came from Nicole Kyle, managing director of CMP Research, the research advisory arm of CMP (Customer Management Practice), which hosts the CCW events. Kyle shared the new CX technology assessment framework, CMP Research Prism , which includes a list of criteria used to evaluate an investment in technology. While the CMP Research Prism is focused on the CX and contact center industry, with slight modification, it can also be used for any type of software evaluation. With that in mind, here are evaluation criteria and the questions you need to ask to make a good decision about your next technology investment:
Price: How much does it cost, and is there flexibility in the pricing models based on customers' needs? And, whatever the cost, can you prove the ROI when your senior leadership asks? This investment is exactly that: an investment. It shouldn't cost. It should pay.
Customization and Flexibility: One size does not fit all. How flexible is the software, allowing it to be customized to meet your organization's specific needs?
Integration: Does the new software replace an existing solution, forcing the company to, in effect, start over, or does it integrate with existing software? The answer is an important consideration.
Security: How can you be sure—and make your customers confident—that the information they share is secure? You want assurances that the software protects your customers' sensitive information. Compliance with security standards and regulations must be considered. Security will build trust and confidence with customers.
UX: Is the user experience (UX) easy and intuitive? And, users may not just be your customers. You also want to consider the employee experience. If the technology is good for the customer, it should also be good for the employee. It shouldn't cause employees to be frustrated with extra work. The best solution considers both customers and employees in the UX.
Reporting: Does the software include a reporting feature? The software should ideally provide some form of reporting.
Customer Support: Every company must offer support, because in the real world the question is not if there will ever be a problem, but when. So, how fast is support available when customers need it? Time is money. If your software glitches, it's not just frustrating for the company—customers will be frustrated as well. Support is a key consideration.
Innovation and Future Strategy: Technology is changing at a rapid pace. Does the vendor innovate, and can these innovations be incorporated into whatever you buy today? You don't want software that is obsolete six months after you buy it.
Accuracy of the AI Model: One of the issues with ChatGPT-type technologies is what is referred to as "hallucinations." This is when the software makes up answers. What safeguards does the software have in place to prevent it from hallucinating?
Implementation: How long will it take to ramp up the solution? Obviously, faster is better, but the implementation must be smooth and hassle-free, and staff must be properly trained.
Mario Matulich, President of CMP, said, "CMP Research Prism is designed to deliver efficiency in the sourcing process, remove wasteful efforts with misaligned providers, help calibrate vendor go-to-market strategy, and allow for more informed decisions, buyer's remorse is avoided, and ideal customer outcomes are achieved."
There are three obvious benefits to this evaluation criteria. First, you will have Clarity Amidst Complexity, which will empower you to make smart decisions. Second, considering the criteria will give you what CMP calls Efficiency in Technology Sourcing, a framework to ask questions that will save you time and resources (money and people). And third, you will gain Confidence in Decision Making, which is what you need to make a sound technology investment.
