I want to talk to the (digital) manager!

By Prof. Kimmy Chan

As we go about our daily routines, we increasingly find ourselves having to deal with “smart” customer service systems that offer little, if any, contact with humans. Powered by technologies like the Internet of Things (IoT) and sophisticated algorithms, these IoT-enabled algorithmic customer service systems (“IACS”) are transforming the way companies manage their relations with customers. As the role of IACS is set to increase further, a recent paper[1]explored the impact such a system may have on a company’s managers, employees and customers. 

Applying insights from role theory, researchers developed a new multidisciplinary framework. Dubbed the "techno-service-profit chain", it considers how technology is integrated into the customer service process while also delving into the interactions between humans and technology, and on the relationships between managers, employees and customers. The framework was tested with both interviews and survey data collected from multiple sources and multiple waves in a leading ATM service firm before and after the company started using an IACS. As the IACS began fulfilling functions once reserved to human supervisors to monitor the operation of its ATMs and manage the delivery of maintenance services to its banking clients, it triggered changes in the relationship between supervisors and employees as shown across metrics like employees’ job motivation and performance.  

In general, the introduction of the IACS resulted in a significant uptick in customer satisfaction, as tasks were efficiently performed without the necessity of human interactions or extra care, which were often viewed as meaningful, such as receiving a card for the holiday. This transition also prompted employees to question the role of supervisors, who appeared to be increasingly redundant as it became clear that it was IACS that managed the work. Still, some employees seemed to yearn for the 'good old days' when they could engage in conversations with their human supervisors, particularly as they felt like little more than cogs in a machine, working for an impersonal system that left them with limited autonomy. Ultimately, once the IACS was fully integrated, it led to a sharp reduction in the unnecessary confusion customers previously encountered with the company and its employees. Simultaneously, it set the company apart from its competitors by enabling customers to save time, money, and avoid unnecessary hassles.

This study has many practical implications for businesses looking to implement an IACS. Since these enable firms to rely less on knowledgeable employees, the cost benefits can be substantial. This is especially true since findings suggest that customers don’t seem to miss the “human touch”, as long as they get good services from these tech agents. Meanwhile, firms using an IACS should review how they assess employees since performance, which is traditionally measured by consumer satisfaction, must be evaluated differently when customer services is performed under the direction of a digital system. In addition, the dehumanization of the process also impacts the way management and employees interact with each other: as both see each other as merely executing the will of the machine, they tend to lose respect for each other. Finally, there is no denying that the impact on customers must also be considered; after all, for many of us, being able to access human support, at least in some industries, still matter deeply.

Reference:

[1]Hsieh, J. J. P-A., Chen, L., & Chan, W. K. (Accepted/In press). Techno-Service-Profit Chain: The Impacts of IoT-Enabled Algorithmic Customer Service Systems from an Interdisciplinary Perspective. MIS Quarterly. (http://bit.ly/3txJwXF)