Self-service to boom

By Staff Writer for Consology
Johannesburg, 26 Mar 2009

As technology matures and economic pressures mount during 2009, people can expect to see a range of exciting developments in the self-service market, says Kevin Meltzer, Consology business development director.

Globally, companies are taking the knife to their technology budgets and are turning to self-service technology as a way to reduce their expenses, in order to ride out the worst economic storm seen in decades, he notes.

Research group, Forrester, predicts the global economic crisis will cause worldwide spending on IT products and services to drop by 3% this year. According to Meltzer, self-service generates cost savings from automating transactions and deflection of calls from the contact centre, while ensuring customers can access convenient service and support when they need it.

In a report: ICT Opportunities in an Economic Downturn, Frost & Sullivan identifies transactions via mobile phones, electronic billing services and self-service systems, such as branchless banking, as some areas that should do well in the downturn. Meltzer says: “Self-service is one of the few areas where companies are likely to invest more, rather than less. The reason for this is that self-service allows companies to improve customer service levels without growing headcount, enabling them to be more cost-effective and competitive.”

Some 72% of consumers in a survey by NCR, in the US, said they are more likely to shop with a retailer that gives consumers the flexibility to interact easily via online, mobile and kiosk self-service channels, versus a retailer that does not.

“The days of companies dictating how, where and when their customers will interact with them are over,“ Meltzer says. “To remain competitive, companies must strive to offer their customers convenient and accessible service channels that offer a consistent level of service no matter where and when customers use them. Kiosks and mobile phones are likely to become more important for South African companies that want to service customers from the lower end of the market, who usually do not have access to an Internet connected PC.”

By the end of the first quarter of 2008, there were more than 42 million mobile subscribers in SA. “Even if one allows for some subscribers holding more than one account or being inactive, it is clear that the mobile phone is the best channel to take self-service into the mainstream in a country where Internet penetration remains relatively low,” Meltzer concludes.