Why Service Automation is going to be the Next Big Thing

Have you ever wondered why some organisations are successful and others – despite good products and services – never achieve the breakthrough that they so aspire? What is it that makes ‘exponential’ organisations such as Uber, Netflix and Amazon.com attract such a devoted group of followers or, in modern terminology, why do so many people ‘like’ these brands so much? How did they come to be at the centre of attention, attracting loyal customers from the South Americas to the north of Asia?

It not a secret that these ‘exponential’ organisations all thrive through Internet Technology and their ability to reach millions of potential customers with just a few clicks. Internet has an impact on society that is beyond imagination, but I’m sure you are already aware of that. New leaders in the market, however, have added an extra dimension to Internet technology, which makes them stand out from any other completion: customer service. These organisations apply the concept of Service Automation knowing that customer loyalty is the foundation of any organisation and that, especially in the fast and open internet market, it is much more difficult to remain a loyal customers than obtaining one.

Achieving Customer Loyalty though Service Automation

Service Automation is the concept of achieving customer loyalty by the use of automated technologies and builds upon a large demographic and sociological trend. As a society, we are more than ever in control of our own lives. Through the transparency that Internet brought, anybody has access to all the knowledge in the word. Each individual can easily obtain knowledge and ‘check’ whether the advice that was given to him or her is actually accurate. Increasingly, we arrange our lives online. Whether it is for comparing and buying insurance, or reserving a table in your favourite restaurant, chances are that you arrange that yourself online (especially if you are under 40). We are the Self-Service Generation, who are able to make our own decisions.

Many organisations are struggling with their response to the Self-Service generation and have not yet taken adequate measures to facilitate service delivery through automated technology. That is why I am convinced Service Automation will be one of the major topics on boardroom agenda’s in the years to come. As with any strategic question, the motive of change is primarily driven by increased earning capacity. Here are the five key business drivers for Service Automation:

1. By definition, Service Automation facilitates a scalable business model by which companies can enter new markets more easily and attract new customers;
2. Service Automation assists companies to make data-driven decisions based on earlier interactions with users and customers. Frequently, decisions based on facts prove to be more reliable;
3. Service Automation is automatically customer central. Services are always designed for customer needs, focusing primarily on an optimal customer experience;
4. The aim of Service Automation is to automate unnecessary manual labour, providing a more cost-efficient service delivery organisation;
5. And last but not least, by breaking down services into easy-to-understand steps, Service Automation provides a framework for consistently exceeding customer expectations. Ultimately, this transforms customers into fans.

Following these business drivers, for most organisations, is should not be difficult to make a sound business case to explore the possibilities of Service Automation. Other than that, I also think companies like Uber, Netflix and Amazon.com provide inspiring examples which most companies would like to follow. Each of these companies has a business model that fits all five business drivers discussed above, providing Automated Services to their (devoted) clients. The pursuit of that approach probably qualifies as the Next Big Thing.

Jan-Willem Middelburg, Director Education & Consulting at Pink Elephant NL