Convenience at a cost
Maintaining a customer relationship, or any relationship for that matter, takes personal interaction and support, right? That was the logic behind trying to save mom-and-pop stores from going under when big box retailers gained popularity. Many of those larger companies have since improved their service, largely due to knowledgeable and visible associates. A new study by IHL Consulting Group, which analyzes retail technology, however, seems to devalue personal interaction with customers.
The study looked at self-service kiosk sales (self-checkouts, check-ins at airports, or food ordering kiosks for example) and found that customers will spend $525 billion using them this year, a 20 percent increase over 2006. President of IHL Greg Buzek concluded the increase meant more satisfied customers.
“Consumers enjoy self-service and increasingly seek out retailers that offer the technology,” he said in a press release. “Retailers and other businesses are finding that self-service kiosks can significantly increase customer loyalty, as well as customer satisfaction.”
Yes, people do hate to stand in long lines, especially now that we all think our time is so valuable. But does replacing personal service to create added convenience hurt the customer experience instead of helping it? Airline ticket agents or grocery store cashiers may not have all been the highest paid or most outgoing people, but they had skills the average consumer doesn’t.
I can hold a barcode in front of a scanner as easily as anyone else, but I don’t have the experience to pack items into the least number of bags (and not putting the bread in the same bag as heavy items like milk never occurred to me when I began shopping for myself). I can also put my credit card into a kiosk at a train station and buy a ticket, but it doesn’t mean I know how to find the right platform or the times for a return trip.
It’s those short, seemingly unimportant interactions with actual people that give a face to a company, personalize a brand, and create a relationship. For now to save time, customers may agree with many of these businesses that self-service is the way to go. But will they regret that when a box of circuits tells them it’s out of service and they have no one to turn to?
I think ultimately consumers will transact with whatever options are available to them, but not offering human assistance can sometimes put the business at a disadvantage when it comes to cross-selling and up-selling.
For example, cashier at my local Safeway's checkout has the insight to tell me that Gala apples are 2 for 1. Without that person being there to inform me of this, I may not have noticed and bought less apples.
That's the kind of information most self-service options don't provide.