06.06.2006
A new report shows the general public is very willing to embrace customer service technology, such as call centres and online banking, contra to popular misconceptions.
The report finds there are only marginal differences in usage between men and women, young and old, and that customers' main concerns when using service technology are reliability and the depersonalising of the experience.
These are findings from 'Service Technologies: Developing strategies', released today by the Institute of Customer Service (ICS) and the University of Brighton's School of Service Management.
The report examines the challenge of using technology to enhance customer service, whether a public or private sector organisation.
Consumers and businesses across the UK participated in the survey, which found that the two most important concerns for customers are technological failure (21 per cent) and the impersonal nature of technology creating a barrier to a meaningful relationship with an organisation (20 per cent). One in ten customers specifically seek a degree of human interaction.
Although customers are becoming more confident in the security of service technology, 69 per cent of customers said security remained an important or very important issue.
Public sector organisations were found to have some of the best CRM systems. The nature of their customers means more time can be given to guiding them through systems.
Tesco is rated highly for its implementation and use of service technology, whereas telecoms companies, banks and online retailers need to do better.
"The more technology becomes reliable, the more customer perceptions about its value to them will be enhanced, and the more they will be prepared to use it," said Dr Paul Frost, Head of the School of Service Management at the University of Brighton.
"Customers are prepared to embrace service technology if they are supported in how to use it. They quickly reject technology that makes organisations less accessible, or more inconvenient to access."
"The challenge to organisations is to explain more clearly to their customers why they are introducing service technology," he added.
The report shows that customers want ease of use and the choice between using technology or speaking to someone. The more valuable or more complex the transaction, the greater the desire to talk to someone.
The report also contradicts any popular misconceptions over technology usage between men and women.
The only differences with gender are that women are more concerned about security and men are more concerned about speed. Men make greater use of the internet while women make greater use of cash points and call centres.
Young customers seek faster and enhanced supplies of information from technology while older customers prefer accessibility and security. Younger customers emphasise the internet, older customers make greater use of call centres and tele-banking.
David Parsons, ICS chief executive, said: "Service technologies only work if they are supported by well trained and knowledgeable customer focused employees."
"There are too many examples of this not being the case. This causes problems which, in turn, feed negative assumptions about technology."
"The message needs to be: Be customer-driven, not technology-driven. Allow the customer to choose when to use technology. Imposing it is a dangerous strategy."
Paul Frost added: "Technology only makes communication complicated when it is perceived as a barrier. It can offer strategic advantages if organisations develop it at the same pace as their customers develop."
"Customers do not automatically distrust technology, but they should not be made to run until organisations have helped them to walk faster. Using the customer's own preferred way of learning should lie at the heart of any developments in customer service technologies."
The research has led to the development of the Service Technology Model. This consists of five areas to consider at all stages of developing, designing, implementing and evaluating a service technology strategy. The five areas are: communication and education; reliability and security; accessibility and inclusivity; simplicity and function; and humanization and consideration.
The definition of service technology in this report covers not only the internet but also call centres, cash points, teletext, bar code scanners, card swipes, pay-and-display machines and much more. In short, 'service technology' includes any technology with which the customer interacts while transacting with an organisation.
The University of Brighton interviewed over 1,000 members of the public and 20 senior managers from a cross section of public and private UK organisations.
Contributing organisations included Dixons, Ordnance Survey, BT, RNIB, South Tyneside Council, Ford Financial Credit, Air Miles, Johnson Controls, NTL, Osborne, B&Q, British Airways, London Borough of Newham, General Motors Europe, Oracle, Visa, DHL and EasyJet.
The Institute of Customer Service (ICS) is the UK's leading independent body actively promoting customer service excellence across all sectors.
This research is part of the ICS Breakthrough Research programme which is pioneering cutting-edge research into a range of service related issues.
Copies of the report are available from ICS at £125 (£100 for members) plus p&p. Please contact 01206 571716 or go to www.instituteofcustomerservice.com for details of how to purchase.
To set up interviews, request a review copy of the report or obtain any further press information, please contact:
Kay Williamson or Neil Drake at Gravitas Public Relations, 7 Imperial Square, Cheltenham, GL50 1QB, Tel: 01242 211000, Fax: 01242 211030, E-mail kay@gravitaspr.co.uk, neil@gravitaspr.co.uk
Or Rebecca Haroutunian, Marketing and Communications Manager, University of Brighton, Mithras House, Lewes Road, Brighton, BN2 4AT, Tel: 01273 643022, E-mail rebecca.haroutunian@brighton.ac.uk
Contact: Marketing and Communications, University of Brighton, 01273 643022
