Are Self-service Customers Satisfied or Stuck?

Ryan W. Buell; Dennis  Campbell; Frances X. Frei

Article | Production and Operations Management

Are Self-service Customers Satisfied or Stuck?

by Ryan W. Buell, Dennis Campbell and Frances X. Frei

Abstract

This paper investigates the impact of self-service technology (SST) usage on customer satisfaction and retention. Specifically, we disentangle the distinct effects of satisfaction and switching costs as drivers of retention among self-service customers. Our empirical analysis examines 26,924 multi-channel customers of a nationwide retail bank. We track each customer's channel usage, overall satisfaction, and retention over a 1-year period. We find that, relative to face-to-face service, customers who use self-service channels for a greater proportion of their transactions are either no more satisfied, or less satisfied with the service they receive, depending on the channel. However, we also find that these same customers are predictably less likely to defect to a competitor if they are heavily reliant on self-service channels characterized by high switching costs. Through a mediation model, we demonstrate that, when self-service usage promotes retention, it does so in a way that is consistent with switching costs. As a robustness check, we examine the behavior of channel enthusiasts, who concentrate transactions among specific channels. Relative to more diversified customers, we find that self-service enthusiasts in low switching cost channels defect with greater frequency, while self-service enthusiasts in high switching cost channels are retained with greater frequency.

Keywords: Service Delivery; Technology; Customer Satisfaction; Competition; Cost; Banks and Banking; Behavior; Market Transactions; Management Analysis, Tools, and Techniques;

Format: Print

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Citation:

Buell, Ryan W., Dennis Campbell, and Frances X. Frei. "Are Self-service Customers Satisfied or Stuck?" Production and Operations Management 19, no. 6 (November–December 2010). (Awarded the Decision Sciences Institute Stan Hardy Award for Outstanding Paper Published during 2010 in the Field of Operations Management.)

Working Paper | HBS Working Paper Series | 2020

Can Shared Service Delivery Increase Customer Engagement? A Study of Shared Medical Appointments

Ryan W. Buell, Kamalini Ramdas and Nazlı Sönmez

Customers and providers alike often consider one-on-one service delivery to be ideal, assuming –perhaps unquestioningly – that devoting individualized attention maximizes customer engagement and improves outcomes. Alternatively, shared service delivery, in which customers are served in batch, may, through the dynamics of group interaction, lead to increased customer engagement. On the other hand, the loss of privacy and personal connection in shared delivery models may undermine engagement and performance. To explore this tradeoff, we conducted a randomized controlled trial with 1,000 patients who were undergoing glaucoma treatment over a three-year period at a large eye hospital. Using verbatim and behavioral transcripts from over 20,000 minutes of video recorded during our trial, we examine how shared medical appointments (SMAs) – in which groups of patients with similar conditions meet with a doctor simultaneously, and each receives one-on-one care in turn – impact patients' engagement during their appointments. Patients who experienced SMAs asked 37.2% more questions per minute, made 8.2% more comments per minute, answered 3.6% more questions per minute, and exhibited higher levels of non-verbal engagement across a wide-array of measures (attentiveness, positivity, head wobbling or ‘talai taḷḷāṭṭam’ in Tamil – a South Indian gesture to signal agreement or understanding – eye contact and end-of-appointment happiness), relative to patients who attended one-on-one appointments. We further find that patients in SMAs went on to report higher levels of satisfaction and exhibit greater levels of learning and medication compliance. These results shed light on the potential for shared service delivery models to increase customer engagement and enhance service performance.

Citation:

Buell, Ryan W., Kamalini Ramdas, and Nazlı Sönmez. "Can Shared Service Delivery Increase Customer Engagement? A Study of Shared Medical Appointments." Harvard Business School Working Paper, No. 21-001, July 2020. View Details

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Are Self-service Customers Satisfied or Stuck?

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