Self-Service: A Blessing or a Curse

Around forty years ago I began to notice subtle changes in the way businesses interacted with their customers. In the constant corporate quest for cost saving opportunities, combined with the never ending drive to find a competitive advantage, and the emergency of the technology revolution, the self-service concept was forever transformed. Like a caterpillar emerging from it’s cocoon.

One of the major self-service innovations can be attributed to Clarence Saunders. He founded America's first true self-service grocery store, Piggly Wiggly in 1916. His self-serve concept, at the time, truly revolutionized the grocery industry. Shortly other grocers would adopt his concept. The self-service grocery store became the norm, not the exception. In the coming years every industry would seek ways to incorporate the self-service concept into their business model.

The expediential rise of self-service directly correlated to the advancements in telecommunications technology and the development of the computer.

The introduction of ATM’s in the 1970’s was a prime example of this newest technology being incorporated as a way for banks to save money. Even with the relatively expensive computer technology of the late '70s and early 80s the cost of processing deposits and withdrawals via ATMs proved to be less than the cost of training and employing tellers to do the same work. Customers enjoyed the ease and the convenience of these machines, while having the new found ability to access their accounts 24 hours a day.

During this time period gas stations started to offer their customer’s a choice between full-service and self-serve, where you pumped your own gas, then paid the attendant. Self -service was promoted as a way for the consumer to save money, usually around a nickel a gallon. For my younger readers - full service meant an attendant pumped your gas, checked your fluid levels (oil, brake fluid, power steering fluid) , cleaned your windshield, and if requested checked the pressure in each tire. This was the standard procedure every time you got gas. In reality self-service saved the gas station money in labor costs.

Retailers big and small embraced the self-serve concept. Stores were designed with the concept of consumers shopping by themselves, leisurely finding the merchandise they wanted, with little or no interaction between the consumer and a store employee, then paying for their selections in the checkout area. Retailers saved money by having fewer employees. The prevailing corporate thought was, consumers would spend more money if they wondered through the store by themselves. The self-service bandwagon began to pick up steam. Self-service became the norm, not a choice. Businesses even began to charging extra fees for interaction with a live person.

Then along came the internet. Bang, in just a few short years (seemed like overnight) the internet launched the concept of self-service into a whole new stratosphere, unimagined 20, 15, even 10 years prior. The self-service revolution Piggly Wiggly created paled in comparison. The internet has forever changed the way commerce is conducted.

With a few mouse clicks and a few keystrokes you can purchase almost any item with no human interaction what so ever. Place your order at anytime, 24 hours a day, whether you are dressed or in your pajamas, it does not matter. One to three days later, the merchandise arrives at your front door. Laptop computers, cell phones, Blackberry’s and iPods allow you to conduct business anywhere in the world. The internet is the ultimate example of self-service.

The internet offers today’s consumers an unprecedented access to information about any product or service they desire, combined with a level of convenience, choices and options unmatched in history. Businesses save money on overhead, reach more consumers, and can offer a greater selection of merchandise via the internet. Win-win scenario for everyone right? Not totally. Customer loyalty suffers in this self-service environment.

Customer loyalty is derived from customer retention. Customer retention is created from the customer having repeated satisfying experiences with a company. High customer retention forms the foundation for a high level of customer loyalty.

When a business allows the purchase experience to be accomplished with no or little interaction from them, they rely on a combination of extremely volatile, very competitive factors to build customer satisfaction, such as item price, location, website, and the quality of the purchased product or service. If one small transaction detail fails the consumer’s satisfaction plummets. The self-service consumer is driven manly by price. Coupons, discounts, special promotions, free offers (like shipping), and a host of other marketing gimmicks the merchant must continually resort to, hoping to retain the consumer. This is true for a brick and mortar locations as well as the virtual world of the internet. If price is the chief decision factor, then a business’s ability to build long term relationships with the consumer is next to impossible, thus customer retention and loyalty suffers.

How then can a business improve their customer retention and loyalty in this self-service world?

By delivering exceptional, memorable, personalize customer service while embracing the four pillars of customer retention: Preparation, Execution, Follow-Through, and Passion.

Preparation means to properly prepare to serve the consumer, while anticipating the consumers’ wants, needs and desires. This is the time to construct a game plan, develop strategies and to practice perfecting customer service skills. For businesses with physical locations, questions such as …. Is the merchandise stocked, facilities clean, store well organized, employees trained, store properly staffed, restrooms clean?, need to be asked. For website businesses, ask these types of questions…is the website easy to navigate, consumer friendly, informative, easy to use, do you have a help menu, is the purchase process simple, what else can be done to improve website appearance, can consumers get real-time help? Every business needs to consistently ask themselves, what else can be done to further enhance the customers’ experience? Remember, you never get a second chance to make a good first impression.

Execution means exceeding the customer expectations at all times, in every situation, and with level of professionalism which leaves the customer anxious and eager to return for more. Game plans, strategies, and training are all set in motion during execution. The goal is to deliver memorable service and to excite the consumer with the overall experience. Every aspect of execution either lays the foundation for a long term relationship or burns the bridge to future repeat business. The goal is simple - 110 % customer satisfaction, 100% of the time.

Follow-through means the transaction process never ends. The road to customer retention begins after each transaction. Communication is the most effective way to build a loyalty based relationship and to stay abreast of the consumers’ ever changing needs, wants, and desires. A business must strive for constant communication with each customer either through phone calls, letters, or emails. Better yet, use all three methods of communication. Due to lack of human interaction, follow up communication is essential with all internet transactions. Besides your monthly bill, when was the last time you heard from your electric company, your phone company, your insurance company, your mortgage company? How about your doctor, your barber, the car dealership, or your favorite restaurant? How can any business expect customer loyalty when they do not demonstrate enough desire to keep in contact with them?

Passion means to have a enthusiastic dedication, a focused determination, and single mindedness of purpose in serving the customer. If you are not in business to serve your customer, what are you in business for? Passion mixed with conviction illuminates a businesses core customer service beliefs.

Preparation plus Execution Determines the Level of Customer Retention.

Follow -Through plus Passion Determines the Level of Customer Loyalty.

Self-service should always be a choice that the consumer chooses for their convenience. Not a cost saving concept businesses force feed consumers. In this highly competitive, instantaneous, technological driven society, businesses need to promote, encourage, and foster an environment of human interaction whenever possible. If customer retention and loyalty are important, businesses need to take a page from the past and embrace a business culture that creates a marketplace where self-service is the exception, not the norm.