"Do It Yourself" or "Do It For Me"?

The topic of the self-service business model is like a river. It's worth, however, to consider where the difference lies between the automation and robotization of existing processes and services and where the introduction of a new business model such as self-service begins. Where modern technology is applied to increase productivity and where a new business model is introduced that generates new revenue streams.

With the dynamic development of telecommunications, customer service has gone through at least two phases. The first was dialing connections ourselves. Few of us remember ordering long-distance calls, or telephone connections made between several exchanges, where the subscriber called the telephone operator and ordered the connection to be set up. After some time, the telephone operator called back informing me that the connection could now be made. This example is not worth focusing on too much. The only important thing in it is the significant limitation of this service, which was the number of handled connections proportional to the number of telephone operators. Introduced automation, namely DTMF (Dual Tone Multi Frequency) exchanges, completely eliminated the role of telephone operators, but also provided exponential capability to make parallel connections. Operators from exchanges changed their occupations and began to serve customers, as the influx of new customers gave birth to ideas for providing new products. And people, as they are, don't understand, need help, and make complaints and someone has to talk to them and accept all these complaints. Along with the increasing standardization of services and centralization of customer service, the need for efficiency growth arises. The beginning of the 21st century for many is the blossoming of IVR (Interactive Voice Response) systems and ?Self-Service” services. And not only in telecommunications companies' call centers but also in banks or administration. And here comes the question of whether this is a new business model. So no. This is not a new business model. Even if we were looking at it from the side of companies offering this service, it cannot be called that. In this case, we can confidently talk about robotization or automation. Here a specific function emerges to us, namely the paralleling of processes. So far, the maximum number of operations was limited to the number of people who performed it. Thanks to automation, it is possible to scale (increase) the number of handled matters without increasing the number of staff, which in consequence leads to increased efficiency.

What about the business model? It is defined as a way of earning money on a standardized process where all activities from order to service delivery are carried out automatically - by computer systems. A very nice example showing the self-service business model is book printing (e.g., Amazon KDP) or photo album printing. We go to the website, we teach ourselves how to use the service (tutorials or YouTube videos), then we prepare the design, add content, finish the process, pay, and wait for delivery. In the background, the print is created automatically, sorted to the appropriate delivery places, the payment is completed automatically. What's more, we can only find out about the status of our order from a fully automatic system. You probably see similar examples every day. They are all connected by one common element, at first glance imperceptible. Namely, the elimination of intermediaries. In most cases, the self-service model is implemented in a simplified B-B-C convention to just B-C. Ordering an Apple computer or even configuring and ordering cars is done this way today. There is another particular characteristic of this model. The entire responsibility for the order (its correctness) is shifted onto the customer. You cannot say that the lady or gentleman in the showroom advised me this or that. This is very typical.

The self-service business model, however, has a fundamental weakness that we experience daily. You can't contact anyone (I mean a person) to dispel doubts, or ask about benefits. We are limited only to the content that was prepared by the supplier. Well, at most, we can look on the Internet on discussion forums for opinions and advice. But that's why it's cheaper and faster. That's why this model is called Self Service.

Over the past few years, the self-service business model is becoming increasingly popular. But along with its popularity, customers are expecting its modifications. The feature that is the impossibility of interactive ordering (i.e., advice) and hence the discomfort associated with the uncertainty that what I order will not be what I wanted, makes companies only test it for more complicated services and often withdraw from it or introduce semi-automatic solutions. Generative AI, in particular, advanced solutions supporting decision-making processes, are expected here like nowhere else. The possibility of consultation with maintaining the impression of a conversation with a person increases the comfort of order execution but most importantly, significantly the efficiency of sales (conversion) and cross-selling. The lack of a sense of security and comfort when placing an order or making a complaint, which was the cost of this model and savings for the customer, can be almost completely restored. Additionally, it becomes possible to use services such as an autonomous concierge making decisions for us in routine service and product orders.

For this reason, we will soon witness the emergence of a new business model (autonomous) Self Service. Do you see what I'm trying to say? Yes, today's marketing is supposed to encourage us to buy products or services. With this new business model, companies will have to develop marketing that will have to convince our personal AI adviser to purchase them. It's interesting whether they will convince him with Instagram influencers' ads or BOGO-type promotions.