Type of Contract: High Contact Services and Low Contact Services

30/09/2020 1 By indiafreenotes

The approach towards customer service delivery can play a big role in your business success. There are plenty of ways to handle customer service delivery, but the strategies behind them can be broadly described as high-contact services and low-contact services.

High-Contact Services

In high contact, service entails interactions throughout service delivery between customers and the organization. The customer’s exposure to the service provider takes on physical and tangible nature. When a customer visits the facility where service is delivered, If they enter the service “factory” something that rarely happens in a manufacturing environment. Viewed from this perspective, a motel is a lodging factory, a hospital is a health treatment factory, an airline is a flying transportation factory, and a restaurant is a food service factory. Because these industries mainly focus on “processing” people rather than inanimate the objects, the marketing challenge is to make the experience appealing to customers in the physical environment and their interactions with service executives. During the course of service delivery, customers are usually exposed to many physical clues about the organization the exterior and interior of its building, equipment, furnishings, appearance, and behavior of service personnel and even other customers.

Low-Contact Services

Low-Contact Services are generally the opposite end of the spectrum, low-contact services involve little, if any, physical contact between customers and service providers or executives. In most cases, the contact takes place at arm’s length through the medium of the Internet or physical distribution channels. It is a fast-growing trend in today’s more convenience-oriented society. Many high-contact and medium-contact services are being transformed into low-contact services why? because to more convenient for the customers. Nowadays customers are conducting their insurance or banking transactions by mail, telephone, and the Internet or research and purchase a host of information-based services by visiting web sites rather than bricks-and-mortar facilities (traditional stores).

Difference between High & Low Customer Contact Service

Your approach to customer service can play a big part in the success of your business. There are plenty of ways to handle customer service, but the strategies behind them can be broadly described as high-contact or low-contact. High-contact service means you offer your customers a lot of hand-holding and direct support, while low-contact service means you give them tools to sort things out for themselves. They’re both valid options, so the real question is which approach will work best for you and your clients.

Customer Information Gathering

The level of information you gather to address customer problems will vary, depending on the level of customer service you provide. If you opt for low-contact customer service, you’ll address customer concerns and problems as they come up. This strategy typically doesn’t gather a lot of information to identify specific solutions.

For example, a jewelry store fixes watches as they break. The store does not collect information on the problem to create any kind of problem solving work flow. High-contact customer service, however, analyzes customer complaints to create solutions. For example, if you have a software company you’ll analyze your customers’ problems to find easy solutions for the next time a customer has the same experience.

Customer Access to Employees

The strategy you choose decides how much access a customer has to your employees. Low-contact customer service typically keeps customers at arm’s length, dealing with entry-level service reps and seldom reaching top-level managers or executives when a problem occurs. High-contact customer service offers the customer an opportunity, if needed, to speak to employees higher up the chain of command.

For example, if a customer’s new luxury car continuously breaks down after he purchases it, he potentially can speak to a vice president or owner at the dealership from which he purchased the car to discuss the problem.

Customer Interaction with the Company

The way customers interact with your company differs between high and low touch customer service programs. With low-touch customer service, customers often don’t speak directly with a human at all. For example, you might only offer an email address as your point of contact when a customer needs help with a problem.

High-touch customer service typically offers a call center or a representative to meet the customer and fix the problem. For example, if a customer has problems with his cable television and a service technician is sent to his home, this is high-touch customer service.

Customer Service Availability

Problems with products and services happen at any time of the day, and your choice of high or low contact customer service dictates what kind of response your clients can expect. If you opt for low-contact customer service, customers typically can’t contact a representative outside of business hours. High-contact customer service typically uses 24-hour call centers and help lines for customer problems.