November 2, 2006
Chain Store Age: The New Customer Service
By Debbie Howell
The irony of today’s consumer mind-set regarding customer service relates to perception — the fact is that for some, good service actually equates to less direct interaction with store associates. As shoppers become more tech-savvy and used to surfing for information on the Internet, their comfort level with self-service technology grows.
This perplexing paradigm demands that retailers take a close look at their stance on self-service applications and kiosk programs that can grow their business and keep labor costs in line. A number of surveys made public at the Self-Service and Kiosk show in September suggested kiosks and other self-service applications are primed for growth:
- Over the next five years, BCC Research forecasts the global self-service market will grow from $10 billion to $24.8 billion, keeping up a robust annual growth rate of 17 percent;
- More than 90 percent of consumers used self checkout in a two-month period, according to a 2005 survey by IHL Consulting;
- In-store kiosks are projected to grow at a rate three to four times higher than point-of-sale devices through 2010. Transactional kiosks will have the highest growth rate, forecast at 20 percent per year through 2010, according to an IBM study;
- Of adults surveyed by the National Restaurant Association, 43 percent said they would be likely to use a self-ordering and payment terminal at a restaurant;
- Seventy percent of airports globally are expected to offer self-service check-in kiosks within two years, up from 42 percent in 2005; and
- From September 2004 to September 2005, photo-kiosk usage grew 11 percent, while home photo printing dropped 12 percent.
Beyond these telling statistics, the show also proved that self-service applications are only limited by a retailer’s imagination. At one Giant Food store in Pennsylvania, for example, 17 kiosk stations interact with customers, offering both information such as a product locator and services such as ordering deli products. Among other unique applications now surfacing around the country are a self-service document shredder, a kiosk to renew drivers’ licenses or vehicle registrations, mailing-station kiosks, self-ordering and pay stations at restaurants, and a machine that dispenses personalized gift cards.
One of the show’s speakers, Terry Kasen, business unit director for Agilysys, summed up the mentality of today’s consumers who expect self-service options. These consumers cite reasons such as preferring to be in control of the transaction, and the speed and quality of information as opposed to dealing with a store employee who may be less helpful.
“Self-service has become the norm and expectation for consumers,” he said. “Consumers are starting to expect the ability to do things on their own.”
Effective kiosk applications can be tricky, however. Mr. Kasen warned outdated kiosk information or ineffective promotion can derail a useful program intended to increase customer loyalty and grow sales. Relevance, in terms of meeting a shopper’s need for service or information, along with a user-friendly touch screen format that is more simplistic than a Web page, are other keys to effective deployment of kiosk programs.
Discussion Questions: Has self-service “become the norm and expectation for consumers?” What does this mean for retailers looking to integrate self-service
and kiosk technology into store environments? What does it mean for how they deploy store employees?
Terry Kasen also had this to say at the Self-Service and Kiosk show: “As exposure to self-service kiosks grows, the more the technology becomes accepted
and expected within other aspects of consumers’ lives. However, acceptance by the general public doesn’t always equate to a simple implementation for a client. What we’ve found
from our experience is that implementing a successful, cost-effective use of non-standard technology such as kiosks hinges on its integration into the overall business.”
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If retailers don’t bring technology into their key customer touch points, they will disappoint an increasing percentage of their shoppers. Self-service is not an oxymoron. Most shoppers are armed with technology, knowledge, and purpose when they enter the store. The 25 years old shopper has been online for ten years or more. The 15 year old shopper doesn’t know anything else.
Their stores must fully engage them in the technology that they are familiar with. That means, point and click, streaming video, text messaging, Podcast, social networks, peer group review, and robust product information. And they need to know that the sales associates are even better equipped to meet specialized needs.
Fortunately, retailers have a great array of technology upon which to configure a 21st century customer service model. The good news is that everything works. These include: wireless, broad band, cell phones, PDAs, iPod, thin displays, and, of course, the Internet. Promising technologies are RFID, finger print recognition and image recognition.
Every retailer needs to think through how to adapt prevailing technology to the shopping experience whether you are Dollar General or Armani. Your shoppers are counting on you to deliver what you have always delivered: the right product at the right place and time. But now your product is, at least partially, service; your place is everywhere; your time is now.
It all began at the gas station. There is popular myth that at one time gas stations were called “service stations” and they had employees who would fill your tank, wash your windshield, check the air in your tires, and even check the oil, all at no extra charge. (Supposedly, they even gave a way “gifts” to acquire customers.)
Nowadays, who has time to wait around for any of that nonsense? Many of us want to jump out of our cars, fill them up ourselves, pay at the pump, and go. No human interaction required.
And now similar stories abound in almost every area of commerce. The pluses are speedier transactions, lower labor costs, and satisfied customers – at least those who like to play with new technology. The big minus seems to be a steady decline in the ability of staff and customers to interact when human contact is needed. Down the road, I think we’ll end up with a society that’s very efficient in doing transactions but maybe not so great at social skills.
The ideal world might be if retailers knew every consumer’s preferred level and mode of service upfront and could treat them accordingly.
Brick and mortar retailers have become extremely well aware that the phrase “customer service” is meaningful only within the context of the specific customer segment being discussed, and the purchase category in question.
Is self service “the future”? Absolutely, and absolutely not. A retailer intent on meeting customer service expectations will first begin with consumer segmentation. Having built a reliable and valid segmentation model of who is currently shopping (and who is expected to shop) their store, the retailer can begin to address the “service” needs for each consumer. It is likely that each segment has a different “value” in reference to product categories. By this I mean that one segment purchases disproportionate amounts of a given category and less of another. Having identified the “valuable” consumer segments within each product category, the retailer then has to understand (or learn) how each segment defines “service.”
Now in possession of what the expectation is, and for which customers given which product categories, the retailer can begin to model “how” to meet those needs. Knowing, without question, that to do it effectively will require a dynamic approach which might mean self service alone in one area, human assistance alone in another, and a combination of both in yet another area. In effect, make a matrix with types of service delivery along the X axis, product categories along the Y axis, and consumer segments along the Z access. You’ll get a road map of how to meet expectations. Doing it economically is another story and another day’s thought.
How long is a piece of string! Customer service is much, much more than giving information – it’s all about a total experience for customers and should be linked to the level of interaction required/needed by the customer. Where information is often needed, then customer service includes improving access to information, either with personal contact or via technology. Where this is not necessary, customer service may be limited to providing a good experience when entering and leaving the store!!
Customer service should be an attitude of mind, not the LEVEL or TYPE of service provided!
Consumers like choices, so my recommendation for retailers is to offer options.
A consumer may choose self-checkout for a small order, but a regular checkout for a large order. Kiosks can be helpful if they are pertinent, easy to use and provide information that consumers are looking for in a product or service. Kiosks shouldn’t be just product promotion. Associates can be helpful if they are knowledgeable and can answer more complicated questions or point customers in the right direction while they are shopping.
It would be a mistake to only offer self-service options as some consumers may not be able to or want to navigate this technology. These consumers could include senior citizens (some but surely not all!), or individuals who need added assistance for whatever reason.
Those retailers who experiment with new technology and ask for lots of feedback from their customers will come out ahead. I have seen retailers who try to force self-service on consumers who often end up resenting the change, rather than accepting it. Those retailers who offer the right combination of “self” service and “human” service will be the ones who distinguish themselves in the long run.
I don’t think there is really any irony about great customer service meaning both more high quality service AND more self-service. In the last millennium, great customer service had more to do with the feeling of being catered to. These days the key word is efficiency.
That said, if I am considering buying a pair of shoes I’d rather be able to quickly see if my size is available and try them on rather than wait 5-10 for an associate to come out from the stock room. However, if I need more technical assistance, I would expect more customer service. Whether that assistance would come more efficiently (speed plus accuracy) from either a human or a kiosk wouldn’t much matter to me. Lack of speed or accuracy from either one would put me over the edge.
How old is the advice that if you want a job done well you should do it yourself? When did the NY automat first open? I haven’t answered the poll question because I would go for both – make self-service available, especially if it can be done efficiently and always works well but make sure you have well-informed, helpful, friendly staff available at all times. Customers should be able to choose; what we want one day may not be what we want the next day. If retailers want loyalty they have to provide the goods – and the service.
No service is better than bad service!
Retailers with excellent line management policies (3 in line, we’ll open a new register) had a good thing going. And in the early days, self-service check outs had short lines (limited to 10-12 items or less) making the average check out experience faster. You also got to play cashier – fun factor.
Has anyone seen the lines at self-service check outs these days? They are often times longer than a staffed line. Whether the cause is someone with an entire basket or a new user trying the system for the first time – or a problem with an item scanning, there’s rarely a competent store employee to help/correct the problem. There is no one around (monitoring self-service lines) or they’re all too busy talking to each other because they don’t have anyone in their check out line.
Add to that the 100 items that have been scanned and now are piled up in the bagging area. Don’t forget – both check out and bagging are self-service! Is this really about providing better service? Faster service?
I think we need to ask shoppers – “Why are you waiting in a line when there is no line at the staffed check out?” Habit? Perceived efficiency? Lemmings?
In certain sectors (banking, gas stations, toll-roads) or within individual departments (deli) self-service is ideal (time-saving, efficient). In grocery stores and other retail outlets where multiple items are purchased – there is a greater potential for disaster.
The key is to understand the consumer in your store (ask them!)-and utilize those insights to make sure you are meeting (or better, surpassing) their needs.
Before praising the “Age of the Kiosk” we should look at some of the underlying reasons for the growth of self-service. One of the leading reasons is the poor quality of customer service in many retail establishments. High-turnover, tight to non-existent training budgets, more complex products, higher levels of inventory changes requiring learning new products, employee attitudes toward learning, and many other factors are depressing the quality of customer service available. Combine low customer service levels with customers who have less time and are more comfortable with technology, and self-service checkouts and kiosks become viable alternatives. For simpler transactions, they work. For more complex products and transactions, high quality customer service will still work better. The real challenge for retailers is developing the sophistication and systems to handle high and low customer service environments.
Some customer thoughts–
1) The customer has numerous choices for where they can buy what they need, so often the retail experience is the decisive factor.
2) Trying to get customers to all like one retailing concept is like herding cats; don’t even try.
3) This implies that you need multiple ways of providing an information and shopping environment so that you can appeal to different shopping style preferences.
Kiosks? sure.
Self-scan purchases? OK, but don’t take away nearly all check out staff like the Home Depot near me did; it just ticks me off.
The huge growth in online retailing has certainly helped acclimate customers to finding what they need by themselves, as long as the websites are well-designed for self-navigation. This has helped feed consumers’ desire for ease of navigation and self-selection when dealing with most brick-and-mortar retailers.
As long as the consumer in most retail channels is more and more time-starved, dealing with longer commutes and pressures on two-income families, retailers would be wise to define “customer service” as being in stock on wanted, clearly displayed merchandise in stores that are easy to navigate. There will always be a place for more traditional definition of hands-on customer service especially in stores where it’s part of the total branding behind the operation, but the most progressive retail concepts are really redefining what “service” means.
It is a great tactic towards a strategy of customer service. I agree with others that with certain purchases I want knowledgeable feedback and information. There are a number of transactions (grocery shopping for one) where the experience of poor service, lack of focus and mistakes make the self service option so much more enjoyable. It seems to address staffing needs and customer service needs. The tightrope will be in the risk of going too far.
Yes, it’s ironic, but sometimes good customer service means no human interaction, and sometimes it means high quality, high level human interaction.
When renting a car at an airport, for example, a Hertz Gold Card member can bypass the counter, walk directly to his or her car, see their name above the car, get in and drive away. When returning the car to the airport, the human interaction is minimal. In a few seconds your receipt is printed and again, you’re away. No consumer service is great consumer service!
When buying a high-end item of high salience, however, you want the experience and expertise of a well-trained salesperson.
Kiosks are an important part of any retail strategy where they make sense. Some first-time consumers will need help, of course.
I beg to differ. Self-service has always been around. It’s called lazy store owners. The customer goes and finds something, picks it up and pays for it. It’s called lower profits. It’s called retailing minimum.
What is sacrificed with no human contact is the upsell to better products, relationship to the brand and ultimately profitability.
It is a slippery slope retailers could enter as they do something [like] installing kiosks in upper-end stores. For the masses in the Home Depot and Wal-Mart world – maybe it works, as there is no relationship to the brand.
For the retailer who hopes to stand out in a constantly fragmented business, where new competitors open to steal a piece of your pie — not to grow the category, joining them in the rush to provide less service is a recipe for disaster. Otherwise, you’re just like them with nothing to offer except higher prices.
Yeah, that makes sense.
“Automate the rote — personalize the value-added”
Today’s consumer looks for minimal interference and effort to accomplish the basic tasks. I should be able to easily find my desired product, brand and size and pay for it as quickly and easily as possible.
When we need help, we want capable help — NOW. The value-add comes when the transaction is out of the ordinary for ME (not necessarily for the retailer) and I need direction, advice and assistance.
To a casual reader of this discussion so far, it might be easy to think that “customers want to do more themselves.” This could quickly lead to a conclusion that “less (service) is better.” I believe I may see this kind of mixed message and confusion a great deal among us industry watchers, experts, and spokespeople. I believe we need to be careful to use good critical-thinking here, or else we may end up perpetuating retail’s weaknesses.
Because self-serve is growing doesn’t mean it is what customers want — growth may be partly (or largely) driven by the fact that it may be what retailers want. Further, how were the numbers in the kick-off above derived? How were the surveys done? Who did them (conflict of interest?)? How was the data analyzed?
We also need to apply good critical-thinking to the entire topic. If customers say they want self-service kiosks, what are the reasons? Do they NOT want to wait in long checkout lines? Do they NOT want to suffer clerks who chat with their co-workers and ignore the customer? Do they NOT want to fill out endless forms/screens with a live person?
This is one of those discussions that frankly drive me a little crazy. There are so many traps here, so many hidden fallacies, so many logical gaps, so many data gaps, that I say to myself: no wonder retail operates at such a low level. Our data is that 92% of retail organizations have a customer service level of 70% or less. This says to me that retail has a difficult time understanding exactly what high-level customer service is, how to create it, and how to maintain it. I believe that this discussion may unintentionally promote these problems.
Two different things: what people want versus what they’re willing to pay for. Many people want outstanding personal service 24 hours a day seven days a week with no waiting. But if it costs an extra 20%, very few people will pay the price. Technology tries to deliver a decent experience at a lower price. Anyone who’s willing to pay for great personal service doesn’t shop at Home Depot. They go to an owner-operated single location hardware store, lumberyard, etc. Or they hire a contractor. Everyone wants Costco’s price and Nordstrom’s service.
Customer service is whatever the customer perceives it to be. Not all customer service is equal and not every retailer can have the same customer service. In some situations, customer service refers to speed and speed alone. In other situations it requires dedicated customer interaction. Each company must find out what their customers want and demand. They a decision must be made as to what the company is capable of delivering and then they must strive to deliver the service they are promising.
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If retailers don’t bring technology into their key customer touch points, they will disappoint an increasing percentage of their shoppers. Self-service is not an oxymoron. Most shoppers are armed with technology, knowledge, and purpose when they enter the store. The 25 years old shopper has been online for ten years or more. The 15 year old shopper doesn’t know anything else.
Their stores must fully engage them in the technology that they are familiar with. That means, point and click, streaming video, text messaging, Podcast, social networks, peer group review, and robust product information. And they need to know that the sales associates are even better equipped to meet specialized needs.
Fortunately, retailers have a great array of technology upon which to configure a 21st century customer service model. The good news is that everything works. These include: wireless, broad band, cell phones, PDAs, iPod, thin displays, and, of course, the Internet. Promising technologies are RFID, finger print recognition and image recognition.
Every retailer needs to think through how to adapt prevailing technology to the shopping experience whether you are Dollar General or Armani. Your shoppers are counting on you to deliver what you have always delivered: the right product at the right place and time. But now your product is, at least partially, service; your place is everywhere; your time is now.
It all began at the gas station. There is popular myth that at one time gas stations were called “service stations” and they had employees who would fill your tank, wash your windshield, check the air in your tires, and even check the oil, all at no extra charge. (Supposedly, they even gave a way “gifts” to acquire customers.)
Nowadays, who has time to wait around for any of that nonsense? Many of us want to jump out of our cars, fill them up ourselves, pay at the pump, and go. No human interaction required.
And now similar stories abound in almost every area of commerce. The pluses are speedier transactions, lower labor costs, and satisfied customers – at least those who like to play with new technology. The big minus seems to be a steady decline in the ability of staff and customers to interact when human contact is needed. Down the road, I think we’ll end up with a society that’s very efficient in doing transactions but maybe not so great at social skills.
The ideal world might be if retailers knew every consumer’s preferred level and mode of service upfront and could treat them accordingly.
Brick and mortar retailers have become extremely well aware that the phrase “customer service” is meaningful only within the context of the specific customer segment being discussed, and the purchase category in question.
Is self service “the future”? Absolutely, and absolutely not. A retailer intent on meeting customer service expectations will first begin with consumer segmentation. Having built a reliable and valid segmentation model of who is currently shopping (and who is expected to shop) their store, the retailer can begin to address the “service” needs for each consumer. It is likely that each segment has a different “value” in reference to product categories. By this I mean that one segment purchases disproportionate amounts of a given category and less of another. Having identified the “valuable” consumer segments within each product category, the retailer then has to understand (or learn) how each segment defines “service.”
Now in possession of what the expectation is, and for which customers given which product categories, the retailer can begin to model “how” to meet those needs. Knowing, without question, that to do it effectively will require a dynamic approach which might mean self service alone in one area, human assistance alone in another, and a combination of both in yet another area. In effect, make a matrix with types of service delivery along the X axis, product categories along the Y axis, and consumer segments along the Z access. You’ll get a road map of how to meet expectations. Doing it economically is another story and another day’s thought.
How long is a piece of string! Customer service is much, much more than giving information – it’s all about a total experience for customers and should be linked to the level of interaction required/needed by the customer. Where information is often needed, then customer service includes improving access to information, either with personal contact or via technology. Where this is not necessary, customer service may be limited to providing a good experience when entering and leaving the store!!
Customer service should be an attitude of mind, not the LEVEL or TYPE of service provided!
Consumers like choices, so my recommendation for retailers is to offer options.
A consumer may choose self-checkout for a small order, but a regular checkout for a large order. Kiosks can be helpful if they are pertinent, easy to use and provide information that consumers are looking for in a product or service. Kiosks shouldn’t be just product promotion. Associates can be helpful if they are knowledgeable and can answer more complicated questions or point customers in the right direction while they are shopping.
It would be a mistake to only offer self-service options as some consumers may not be able to or want to navigate this technology. These consumers could include senior citizens (some but surely not all!), or individuals who need added assistance for whatever reason.
Those retailers who experiment with new technology and ask for lots of feedback from their customers will come out ahead. I have seen retailers who try to force self-service on consumers who often end up resenting the change, rather than accepting it. Those retailers who offer the right combination of “self” service and “human” service will be the ones who distinguish themselves in the long run.
I don’t think there is really any irony about great customer service meaning both more high quality service AND more self-service. In the last millennium, great customer service had more to do with the feeling of being catered to. These days the key word is efficiency.
That said, if I am considering buying a pair of shoes I’d rather be able to quickly see if my size is available and try them on rather than wait 5-10 for an associate to come out from the stock room. However, if I need more technical assistance, I would expect more customer service. Whether that assistance would come more efficiently (speed plus accuracy) from either a human or a kiosk wouldn’t much matter to me. Lack of speed or accuracy from either one would put me over the edge.
How old is the advice that if you want a job done well you should do it yourself? When did the NY automat first open? I haven’t answered the poll question because I would go for both – make self-service available, especially if it can be done efficiently and always works well but make sure you have well-informed, helpful, friendly staff available at all times. Customers should be able to choose; what we want one day may not be what we want the next day. If retailers want loyalty they have to provide the goods – and the service.
No service is better than bad service!
Retailers with excellent line management policies (3 in line, we’ll open a new register) had a good thing going. And in the early days, self-service check outs had short lines (limited to 10-12 items or less) making the average check out experience faster. You also got to play cashier – fun factor.
Has anyone seen the lines at self-service check outs these days? They are often times longer than a staffed line. Whether the cause is someone with an entire basket or a new user trying the system for the first time – or a problem with an item scanning, there’s rarely a competent store employee to help/correct the problem. There is no one around (monitoring self-service lines) or they’re all too busy talking to each other because they don’t have anyone in their check out line.
Add to that the 100 items that have been scanned and now are piled up in the bagging area. Don’t forget – both check out and bagging are self-service! Is this really about providing better service? Faster service?
I think we need to ask shoppers – “Why are you waiting in a line when there is no line at the staffed check out?” Habit? Perceived efficiency? Lemmings?
In certain sectors (banking, gas stations, toll-roads) or within individual departments (deli) self-service is ideal (time-saving, efficient). In grocery stores and other retail outlets where multiple items are purchased – there is a greater potential for disaster.
The key is to understand the consumer in your store (ask them!)-and utilize those insights to make sure you are meeting (or better, surpassing) their needs.
Before praising the “Age of the Kiosk” we should look at some of the underlying reasons for the growth of self-service. One of the leading reasons is the poor quality of customer service in many retail establishments. High-turnover, tight to non-existent training budgets, more complex products, higher levels of inventory changes requiring learning new products, employee attitudes toward learning, and many other factors are depressing the quality of customer service available. Combine low customer service levels with customers who have less time and are more comfortable with technology, and self-service checkouts and kiosks become viable alternatives. For simpler transactions, they work. For more complex products and transactions, high quality customer service will still work better. The real challenge for retailers is developing the sophistication and systems to handle high and low customer service environments.
Some customer thoughts–
1) The customer has numerous choices for where they can buy what they need, so often the retail experience is the decisive factor.
2) Trying to get customers to all like one retailing concept is like herding cats; don’t even try.
3) This implies that you need multiple ways of providing an information and shopping environment so that you can appeal to different shopping style preferences.
Kiosks? sure.
Self-scan purchases? OK, but don’t take away nearly all check out staff like the Home Depot near me did; it just ticks me off.
The huge growth in online retailing has certainly helped acclimate customers to finding what they need by themselves, as long as the websites are well-designed for self-navigation. This has helped feed consumers’ desire for ease of navigation and self-selection when dealing with most brick-and-mortar retailers.
As long as the consumer in most retail channels is more and more time-starved, dealing with longer commutes and pressures on two-income families, retailers would be wise to define “customer service” as being in stock on wanted, clearly displayed merchandise in stores that are easy to navigate. There will always be a place for more traditional definition of hands-on customer service especially in stores where it’s part of the total branding behind the operation, but the most progressive retail concepts are really redefining what “service” means.
It is a great tactic towards a strategy of customer service. I agree with others that with certain purchases I want knowledgeable feedback and information. There are a number of transactions (grocery shopping for one) where the experience of poor service, lack of focus and mistakes make the self service option so much more enjoyable. It seems to address staffing needs and customer service needs. The tightrope will be in the risk of going too far.
Yes, it’s ironic, but sometimes good customer service means no human interaction, and sometimes it means high quality, high level human interaction.
When renting a car at an airport, for example, a Hertz Gold Card member can bypass the counter, walk directly to his or her car, see their name above the car, get in and drive away. When returning the car to the airport, the human interaction is minimal. In a few seconds your receipt is printed and again, you’re away. No consumer service is great consumer service!
When buying a high-end item of high salience, however, you want the experience and expertise of a well-trained salesperson.
Kiosks are an important part of any retail strategy where they make sense. Some first-time consumers will need help, of course.
I beg to differ. Self-service has always been around. It’s called lazy store owners. The customer goes and finds something, picks it up and pays for it. It’s called lower profits. It’s called retailing minimum.
What is sacrificed with no human contact is the upsell to better products, relationship to the brand and ultimately profitability.
It is a slippery slope retailers could enter as they do something [like] installing kiosks in upper-end stores. For the masses in the Home Depot and Wal-Mart world – maybe it works, as there is no relationship to the brand.
For the retailer who hopes to stand out in a constantly fragmented business, where new competitors open to steal a piece of your pie — not to grow the category, joining them in the rush to provide less service is a recipe for disaster. Otherwise, you’re just like them with nothing to offer except higher prices.
Yeah, that makes sense.
“Automate the rote — personalize the value-added”
Today’s consumer looks for minimal interference and effort to accomplish the basic tasks. I should be able to easily find my desired product, brand and size and pay for it as quickly and easily as possible.
When we need help, we want capable help — NOW. The value-add comes when the transaction is out of the ordinary for ME (not necessarily for the retailer) and I need direction, advice and assistance.
To a casual reader of this discussion so far, it might be easy to think that “customers want to do more themselves.” This could quickly lead to a conclusion that “less (service) is better.” I believe I may see this kind of mixed message and confusion a great deal among us industry watchers, experts, and spokespeople. I believe we need to be careful to use good critical-thinking here, or else we may end up perpetuating retail’s weaknesses.
Because self-serve is growing doesn’t mean it is what customers want — growth may be partly (or largely) driven by the fact that it may be what retailers want. Further, how were the numbers in the kick-off above derived? How were the surveys done? Who did them (conflict of interest?)? How was the data analyzed?
We also need to apply good critical-thinking to the entire topic. If customers say they want self-service kiosks, what are the reasons? Do they NOT want to wait in long checkout lines? Do they NOT want to suffer clerks who chat with their co-workers and ignore the customer? Do they NOT want to fill out endless forms/screens with a live person?
This is one of those discussions that frankly drive me a little crazy. There are so many traps here, so many hidden fallacies, so many logical gaps, so many data gaps, that I say to myself: no wonder retail operates at such a low level. Our data is that 92% of retail organizations have a customer service level of 70% or less. This says to me that retail has a difficult time understanding exactly what high-level customer service is, how to create it, and how to maintain it. I believe that this discussion may unintentionally promote these problems.
Two different things: what people want versus what they’re willing to pay for. Many people want outstanding personal service 24 hours a day seven days a week with no waiting. But if it costs an extra 20%, very few people will pay the price. Technology tries to deliver a decent experience at a lower price. Anyone who’s willing to pay for great personal service doesn’t shop at Home Depot. They go to an owner-operated single location hardware store, lumberyard, etc. Or they hire a contractor. Everyone wants Costco’s price and Nordstrom’s service.
Customer service is whatever the customer perceives it to be. Not all customer service is equal and not every retailer can have the same customer service. In some situations, customer service refers to speed and speed alone. In other situations it requires dedicated customer interaction. Each company must find out what their customers want and demand. They a decision must be made as to what the company is capable of delivering and then they must strive to deliver the service they are promising.