Introduction
Human interaction with machines is becoming part and parcel of the modern service delivery system. Springs (2009, week 8 lecture handouts) asserts that companies are investing heavily in self-service technologies such as internet shopping, online airline ticketing, ATMs, distance education, EFTPOS, and various dispensers. Self-service systems have been found to empower people to do things on their own. Modern stores are employing this technology to improve their service delivery systems and also to optimize returns from their businesses.
In this respect, I highly recommend self-service technology for our store. This will be implemented through the use of the EFTPOS machine which is the short form for Electronic Funds Transfer Point of Sale. It is a new technology that will enable all customers to make purchases and make payments through the use of EFTPOS cards. On bagging their goods, the store will debit a customer’s account directly from his debit card. As Keynes (2009, Para. 3) explains, the card is swiped into the EFTPOS machine where the customer confirms the purchase either by signing or entering his PIN. The EFTPOS machine makes contacts with the store’s bank to inform them of the transaction and also to the customer’s bank to debit the account. The customer is required to enter his PIN once the sale has been entered into the EFTPOS to authenticate the sale. A message to confirm the transaction is sent back to the store by the bank and then presented to the customer in form of a printed record (what is EFTPOS? not dated, Para.1).
Advantages of the self-service technology to the retailer
According to Atoji (2007 para.7), the shift of data management to the customer reduces the business overheads as fewer customer service agents are required to the business while the extra personnel is only involved in higher-value activities such as market promotions. You also have the advantage of monitoring the customers’ buying trends to focus your sales and to respond to the customer’s need appropriately since all the records of transactions are kept and are easily audited. Since payments are made electronically, we will be able to receive prompt payment from the customer without the necessity of cash payments. This will help to enhance the security of transactions by avoiding the high-security liabilities that come with handling a huge amount of money and also reduces the cost of handling cash to the store.
Our current model of service is labor-intensive and also requires a large pool of management staff which includes accountants and sales clerks. With EFTPOS the costs are greatly minimized. This is because most of the work will be escalated to the customers themselves through the self-service system which further cuts the cost of labor.
Disadvantages of the system to the retailer
The use of self-service technology might reduce the proximity between us and the customer. The technology might lead us into losing touch with our customer’s needs as they are largely interfaced with the machines. Close contact with your customers is largely important to any business as it helps the owner to retain his customers by cultivating loyalty amongst them. The capital outlay involved in the installation of the system is huge and might lead us to heavy expenditure on capital. Furthermore, the system is heavily reliant on the stability and reliability of the internet which means that downtime might impact heavily on our sales operations. A security compromise into our system as a result of online fraud might be highly detrimental to us or our customers in this era of hackers.
Advantages of the system to the customer
As I said earlier the customer feels empowered by the system since he is in full control of all the purchasing decisions. Hsieh (n.d. para. 2) points out that the customer is the best judge of what he wants and so we should assist them to help themselves. Middlemen are removed from the system giving customers more independence of mind. Another advantage is the speed of the technology in the delivery of service which takes a few seconds to be concluded thus reducing queues that are very prevalent in many retail centers.
Unlike cash transactions, the EFTPOS is the most convenient to use for small transactions. This is because the customer’s need for carrying cash, credit cards, and checkbooks to make any transactions is exempted. In addition, it provides an important credit management tool against impulse buying or unplanned spending since transactions are made using the EFTPOS card. With cash, the temptation for performing impulse buying is high as opposed to the EFTPOS system. The card saves the customer the agony of traveling to the bank or the ATM to withdraw cash and also comes with a reduction in bank charges as only one transaction is counted.
Disadvantages of the system to the customer
One of the greatest demerits of this technology is the inability of customers to obtain immediate information or responses to their inquiries since they are mostly interacting with the machines. This is likely to make customers feel alienated from reality. Using this technology requires special skills which might disadvantage those customers who lack it. In addition, the technology locks out those customers without access to EFTPOS cards which gives a feeling of discrimination by the retailer. Credit cards are surcharged by credit card dealers which increases the cost of transactions, unlike cash.
Conclusion
Self-service, therefore, empowers people to be independent in the performance of their purchasing decisions. This is because they are in control of their information which raises customer satisfaction. With these considerations in mind, it is evident that the merits of self-scanning outweigh the demerits and so I will opt for the technology to take advantage of the savings that come with it.
Reference
Atoji, C., 2007. Self-service technologies help companies help themselves. Web.
Hsieh, C., n.d. Implementing Self-Service Technology To Gain Competitive Advantages. 2009. Web.
Kayne, R., 2009. What is EFTPOS? Web.
Spring, Julie F., 2009. Managing Services and Relationship Marketing: mark938 week 8 lecture handout. Web.