Some of the people ringing up groceries on registers at
Bob's Big M Store in Wolcott, New York, don't work there.
They just shop there. Co-owner Robert Delf says a self-service
checkout line has proved more than acceptable to customers.
"We think it's something they like and might not come here
otherwise," says Delf, 36.
Self-service has long been accepted in gasoline sales and
financial services. Consumers have eagerly adopted gas pumps that
let them fill up without going into a store and ATMs that allow
consumers to get cash, check balances and transfer funds 24 hours a
day.
Driven by improved technology, opportunities for cost savings
and success in other fields, self-service is showing up in a broad
spectrum of retail, information and service industries. Customers
buy airline tickets at self-service kiosks, exchange jars of change
for bills at coin-counting kiosks, custom-mix their own CDs at
music store kiosks, and order and pay for their sandwiches at
kiosks in Schlotzsky's delis. Using only telephone keypads,
they check flight schedules, move money between mutual funds and
navigate company switchboards. They make a variety of purchases
through self-service Web sites, configuring their own laptops at
Dell Computer's e-commerce site, stocking up on bestsellers at
Amazon.com, and ordering cellular service plans using Verizon
Wireless' online tools.
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They perform these transactions and more, all of which once
required human intervention, without ever seeing, speaking or
writing to a salesperson or customer service representative.
Do It Yourself
"How would you like to be in
the retail gasoline business and not have
pay-at-the-pump?"
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Before trying self-service, experts advise you to study and know
your customers. See what, if anything, self-service can offer them.
Self-service often appeals to people who want to be in control. A
desire to avoid dealing with insurance brokers and car salesmen is
one reason consumers have embraced self-service in insurance and
used-car sales, according to Prescott.
Check your own costs and benefits. Self-service technology
isn't cheap. A self-checkout stand costs about 20 percent more
than a human-operated one, says Delf. And an automated
voice-response telephone system can cost $4,000 a line, Prescott
says.
But self-service saves money as well. One way is by allowing
businesses to grow without adding employees. Grocers can have more
checkout lines in the same space because self-service lanes
don't take up as much room. "One of the key drivers for
self-service is cost savings," says Prescott.
"There's no question it's cheaper, and the return on
investment can be as quick as 150 days."
Self-service has to do more than cut costs, however, says
Leonard Berry, distinguished professor of marketing at Texas
A&M University in College Station. "It's a good idea
only if it's designed for the consumer's benefit and not
only to save the company money," says Berry, author of
Discovering the Soul of Service (Free Press). Forcing customers
into self-service against their will only drives them to
competitors. So another key is to provide a full-service option for
customers who don't like doing it themselves or who encounter
problems.
There are other risks. Confusing or awkward self-service systems
may alienate customers. Some services and products, such as alcohol
and tobacco where age must be verified, are not suitable for
current self-service technologies. Security against theft is also a
concern.
Self-service has been around for decades, but its best years may
lie ahead. Retina scanners promise to identify and age-verify
shoppers by looking at their eyes. Improved voice-response systems
will allow businesses to improve service without adding costs.
Interactive self-service will help entrepreneurs collect data about
customer preferences. More companies will offer more convenience
and more options and build higher levels of customer loyalty-all by
letting them do it themselves.
Under the right circumstances, self-service can be huge. Not
many years ago, it was common for motorists to pull into a gas
station and have an attendant jump to help them. Then came
self-serve gas pumps and now the ability to pay at the pump as
well-a self-service innovation that has become the standard.
"How would you like to be in the retail gasoline business and
not have pay-at-the-pump?" asks Berry. "You're not
competitive if you don't have a pay-at-the-pump
option."
Contact Source
- Bob's Big M Store,
12030 Park Ln., Wolcott, NY 14590, (315) 594-9535