Self-service is transforming commercial relationships and
will, one day, become the norm, says John Hughes.
Economic prosperity in the 21st century owes its origin
to one overriding development - not the oil industry, transport, or
the development of the computer, but the introduction of
self-service.
This was the argument presented in a report by analyst firm Butler
Group. It said that although self-service technology is now widely
taken for granted, it has transformed the way business
operates.
One of the most widely used "bricks-and-mortar" applications of
self-service is the cashpoint machine. Barclays Bank is said to
have installed the UK's first cash machine in June 1967. Since
then, self-service kiosks in train stations, petrol pumps and even
check-out tills in supermarkets illustrate how pervasive the
concept of self-service has become.
Provided that both the supplier and the customer stand to gain from
a self-service initiative, it can transform the way business is
done.
For the consumer, the ability to make transactions in a way where
timing, method, and manner are all under the user's control is
attractive - particularly if it saves time and effort. Suppliers,
for their part, can offload the administrative costs of selling to
the consumer and give a better service.
The internet has further transformed business and is perhaps the
ultimate form of self-service. For example, internet banking saves
the consumer considerable time and hassle. Until recently, even the
simplest transactions would require a visit to the bank - now it
can be done online in an instant.
Consumer expectations have also evolved. Although a few years ago
people might have grumbled about having to use a computer to manage
their bank accounts, consumers now expect this option and are even
willing to pay more for the convenience.
Where companies provide online self-service as an alternative
channel, rather than the only channel, customers can still make
direct contact for complex queries or complaints - improving the
customer experience.
Although at the moment it is a minority that uses the online
self-service approach, take-up will continue to grow and is likely
to become the norm for particular market segments.
As the mobile phone industry prepares to roll-out the next
generation of technology, self-service is increasingly seen as a
significant part of the jigsaw.
Mobile self-service has evolved from the user finding out
information on the internet or from interactive voice response
systems, to the mobile portal concept.
The consumer can now activate or turn off mobile data services,
check free minutes, view their bill and download games without
calling a customer service representative.
Mobile customers will soon be analysing their bills on mobile
handsets and changing rate plans themselves. In this way,
self-service becomes not just an alternative channel but, for many,
the primary channel in the customer/supplier relationship.
Self-service has evolved. It is no longer simply a channel for
businesses to sell or deliver products and services, it allows
consumers to choose and define to businesses the products they want
to buy.
What do you think?
Is self- service benefiting your business?
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John Hughes is founder and executive
vice-president of Netonomy