The_Role_of_Technology_in_Service_Encounter_Presentation_unit 3a.pptx

Role of Technology

1. Technology in the Service Encounter Augmenting, Substituting, and Transforming the Moment of Truth

2. The Evolving Service Encounter Traditional Service Encounter: Direct human-to-human interaction. Technology Shift: Removed the need for physical presence or contact. Old Paradigm: High-Contact (Human) vs. Low-Contact (Mail). New Paradigm: Self-Service and Technology-Mediated encounters. Core Question: Is technology a substitute or an enabler? (Both).

3. Classifying Technology-Driven Encounters 1. Technology-Free: Pure human-to-human (e.g., fine dining waiter). 2. Technology-Assisted: Employee uses hidden tech (e.g., retail inventory tablet). 3. Technology-Facilitated: Both use same tech (e.g., shared screen with banker). 4. Technology-Mediated: Remote human via tech (e.g., video call support). 5. Technology-Generated: Fully automated (e.g., ATM, kiosk, e-commerce). Key Takeaway: Design must suit encounter type.

4. Benefits for the Service Organization 1. Efficiency & Cost Reduction: • Automation reduces cost per interaction. • Scalable for fluctuating demand. 2. Consistency & Reliability: • Ensures same experience for all customers. • Enforces Standard Operating Procedures. 3. Data & Personalization: • CRM gives 360° customer view. • Enables targeted, personalized service.

5. Benefits for the Customer 1. Instantaneous Service (24/7): • Chatbots & apps solve issues anytime. 2. Speed and Convenience: • Faster self-service reduces wait time. 3. Empowered Control: • Customers manage services independently. 4. Customization: • AI/ML offer personalized recommendations.

6. Key Challenges & The Human Element 1. Loss of Human Touch: • Mitigation: Quick 'Escalate to Agent' options. 2. System Malfunction: • Mitigation: Rigorous testing and IT backup. 3. Digital Divide: • Mitigation: Maintain alternative human channels. 4. Data Privacy/Security: • Mitigation: Transparency, consent, and cybersecurity.

7. Strategic Conclusion: The Seamless Experience Goal: Integrate technology with human service. Mantra: 'High-Tech, High-Touch' • Tech handles routine; humans handle emotional/complex cases. The Hand-off: • Smooth transition between digital and human channels. • Agents must have full access to chat history.

8. Self-Service Technologies (SSTs): Putting the Customer in Control 🤳 Analysis of Adoption, Design, and Impact on Service Quality

9. What Are Self-Service Technologies (SSTs)? Definition: Tech interfaces enabling customers to perform services independently. Examples: • Retail: Self-checkout kiosks. • Travel: Online booking, check-in kiosks. • Finance: ATMs, online banking. • Support: Chatbots, IVR systems.

10. Why Do Firms Use SSTs? (Provider’s View) 1. Cost Reduction: Lower cost than human labor. 2. Increased Capacity: Scalable 24/7 operations. 3. Service Consistency: Reliable, repeatable delivery. 4. Data Collection: Improves process design and personalization.

11. Why Do Customers Use SSTs? (User’s View) 1. Convenience & Time Savings: Quick and accessible. 2. Sense of Control: Independence and privacy. 3. Freedom from Bad Service: Avoid poor staff behavior. 4. Privacy: Useful for sensitive transactions.

12. Factors Driving/Inhibiting SST Adoption • User Readiness: Confidence and experience. • SST Features: Ease, enjoyment, usefulness. • SST Success/Failure: Reliability determines future use. • Perceived Risk: Security concerns reduce adoption.

13. SST Design Principles: Minimizing Failure 1. Usability: Intuitive, simple, minimal steps. 2. Failure-Proofing: Escalate to human easily. 3. Maintain Emotional Connection: Friendly tone and design. 4. Continuous Improvement: Monitor and update regularly.

14. Strategic Implications for Management 1. Redefine Human Roles: Employees become problem solvers. 2. Invest in Training: Empathy and complex issue handling. 3. Manage Customer Mix: Use SSTs for routine tasks. 4. Seamless Handoff: Ensure smooth transition from SST to agent.

15. Conclusion: The SST Imperative SSTs define modern service delivery. Success depends on thoughtful design and choice. Goal: Seamless path between efficient self-service and empathetic human assistance.