Question

In: Operations Management

Self-service online is a major development in CRM systems allowing companies to reduce costs dramatically whilst,...

  1. Self-service online is a major development in CRM systems allowing companies to reduce costs dramatically whilst, in some cases, improving their service quality. Identify the impact of self-service online upon customer experience focusing upon potential negative impacts.

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Expert Solution

The development of technology has greatly impacted the way business firms conduct their business in the market. Now customers can order their products online without meeting with their sellers but in the end, the product reaches them. On the other hand, technology has made it able for some firms to lay off some of their employees as their functions are now done with the technology. Therefore, this paper is going to discuss self-service technologies and their negative impacts.

Self-service technologies

They are technologies that enable customers of a business firm to independently access its services without the direct involvement of the organization's employees. A good example of self-service technologies is the automated teller machine (ATM) that enables customers of banks to withdraw and deposit money without the help of the bank staff members. Some of the self-service technologies are replacing employees on their work as they are seen to be effective and take less time than compared to human labor.

Negative impacts of self-service technologies             

Reduces employment opportunities

Self-service technologies have rendered some human functions in the business to be obsolete as such functions are now being done by the machines. This has made many individuals remain unemployed hence being unable to contribute towards the growth of the economy.

Expensive to install and monitor

Self-service technologies require high capital investment to purchase and they also require people with technological experience to monitor their performance and also repair them when they experience problems. This makes small business entities not to be able to implement them.

Reduces face to face interaction with customers

Through service points, customers were able to interact with employees of the organization. Through such interactions, relationships developed among the customers and employees and this at the end made customers loyal to the firm and through the use of self-service technologies, there is limited or no interaction among customers and employees of the business firm.

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