October 6, 2022The Self-Service Tipping Point with Elo’s Luke Wilwerding
The Self-Service Tipping Point w/Elo’s Luke Wilwerding
Elo’s Luke Wilwerding, VP of Field Sales North America, is back on the pod to explore the early days of self-service through today. What slowed (and accelerated) adoption? What’s changed about form factors? How should VARs address concerns and misconceptions like installation issues, smaller purchases, and higher losses?
“Identify a practical need and create a solution.” That’s a good mantra for any solution provider and the simple impetus behind the creation of self-service options in various industries. While waiting in a line for two to three minutes may have been acceptable years ago, customers now demand faster service as they have experienced self-service through the pandemic at a much greater rate and expect no lines.
Banking has not traditionally been considered an innovative industry; however, they were one of the earliest adopters of providing self-service ATMs. Automated teller machines are precisely that; they provide automation in a repetitive task and enable you to get cash and make deposits during non-banking hours. This technology was met with hesitation at first, but now widely accepted and widely used. The ATM industry is expected to grow from 21.44 billion to 29.89 billion in 2028; much of this is due to increased security using biometrics, single-use authentication, and Smart ATMs for banking customers with special needs.
Airlines were an early adopter of this technology and part of the early days of self-service, reducing agents with self-service check-ins supported by airline ambassadors that are there as “the human factor” and to aid travelers not as comfortable with technology in using the self-service check-in solution. Airline operations continue to evolve and add virtual agents during the pandemic, enabling agents to keep their job and be safe by providing service remotely and using a two-way camera to support traveler’s needs.
Luke discusses how the banking industry initially used keyboards for ATMs; now, these are all touchscreen solutions. ATM design will evolve with technological advances, such as QR code usage to access your account.
The hosts of TEConnect reflect on the original airport designs using keyboards and rollerballs – self-service check-in has come a long way with form factor and design. The self-service kiosks are now touchscreen-enabled, reducing the time to access information, and increasing efficiency while keeping lines down.
Form factors are becoming simplified, smaller in footprint size, more modular design, and increased affordability. The evolution in form factor is another reason more businesses are adopting self-service technologies.
Luke references the study, Achieving Customer Amazement, by CX expert, Shep Hyken, noting that 71% of respondents use self-service solutions, and over 40% prefer to solve customer service challenges using self-service solutions. “Convenience wins business - 75% of consumers will switch brands for convenience,” as referenced by Luke. Self-service enables businesses to be more strategic; customers benefit from faster service, and companies can leverage human talent for the human factor and more complex business needs. Employees are certainly not going away; in fact, self-service increases the need for more employees in different roles to support the business.
Luke also notes that the growth of the self-service industry indicates a dramatic adoption rate by 2026, reporting 2021 self-service sales at 22.1 billion, with a 33-billion-dollar industry forecast in 2026. The future of self-service is bright as it creates loyal customers and increases market share and employee morale. The tipping point is here.
Watch the podcast for more details on the self-service tipping point.
Reference: ATM Market Size, Share & Growth Report, 2021-2028 (grandviewresearch.com)