The Pros & Cons of Automated Services

As an office professional, I'm sure we've all muttered the words "Why can't I get a live person on the line?" when stuck in an aggravating phone tree. The advent of online bill pay and other automated services have taken the human interaction out of the way we do business. Whether we're making personal bill payments, business tax payments or even processing credit cards, these impersonal services seem to be the industry standard. So is it better for your customers to deal with grumpy service reps or to fly by the seat of their pants online?

There are several types of services you can use online or through automated phone services. They include:

• Online bill pay
• EFTPS (Electronic Federal Tax Payment System)
• Credit card processing
• Payroll processing
• Phone trees
  

In some cases you can actually use a combination of human interaction with automated services to suit your needs, but let's analyze the pros and cons of each type.

Pros of automated services:

Online Bill Pay

This allows you to make payments through your business's bank. These banks can make automated debit payments, send checks to anyone, and transfer money to other accounts by scheduling any of them for an instant transfer or a future date. In this article about online bill pay, the author suggests it as a great way to reduce waste and help the environment by not using paper business checks. In many instances, you can also request your bills be sent electronically as well.

EFTPS

This is a feature that the IRS provides to citizens and business owners to make automatic tax payments online. The system requires that you enroll but allows you to schedule automatic debit payments from your bank account so you can ensure you're never late.

Credit Card Processing

This is multi-faceted in the sense that it can be done to process online credit card payments, or in-office payments and can be done through a number of different services.

Payroll Processing

Usually done through a payroll service, they can automatically debit your account for your payroll, taxes, and in some cases, insurance. Payroll processing is one service that is usually coupled with a human representative to manage your account.

Phone trees

A phone tree is that list of automated options when you call a company on the phone. It's usually something like: press 1 for billing, 2 for technical support, etc. This can be a helpful way to direct traffic to the appropriate person. The system may even be capable of solving some problems, especially those that are common and simple to fix automatically.

All of these services are generally easy to use, but not all offer the support when you need it.

Cons of automated services:

Online Bill Pay

It's often difficult to get a bank representative on the phone, especially one that is in tune with your needs. You're often tossed back and forth between departments to answer your specific question. Many smaller banks offer the same online services and more personal attention; however, because of the state of the economy, some of these smaller institutions are in trouble, so beware. You'll also want to pay special attention to when you schedule payments to be made. Banks will physically send a check to a vendor if they don't currently have an online partnership with them. They often send the check the day the payment is scheduled, which can make your account past due. Be sure to schedule arrangements in advance of the due date.

EFTPS

If you've ever tried to call the IRS you know how difficult it is to get someone on the phone let alone a cheerful and helpful representative. They are not customer service oriented and while their payment system seems to be pretty accurate, you never know what might happen and the penalties for late payments are extreme.

Credit Card Processing

While the different credit card companies have customer service reps, there are also very long hold times and you will rarely want to accept only one type of credit card. There are credit card processing services that accept all major credit cards, but you're going to encounter the same types of customer service issues. These companies don't really solicit customers since they mostly come to them, so their service skills aren't strong. It is also very often difficult to rectify mistakes made with billing credit cards.

Payroll Processing

It can be a great benefit to use automatic account debit for your payroll, but it may not be feasible when your payroll changes from week to week. It can also be a problem if the payroll company takes the money from your account prior to your payroll date.

Phone Trees

It's not difficult to understand why automated phone trees can be a pain to use. The items they ask you to choose from are often not a bucket your business issues fall into. It's quite common to waste your time following a series of numbers and buttons only to find out that where you've ended up is not the right place. In many instances, pressing zero will get you to an operator, but some phone trees have eliminated the option.

In most cases, you can decide which works better for your business and your customers. Whether you are the do-it-yourself type or prefer to use a company's human services, almost all automated services offer both.

Many companies are now realizing that perhaps taking the human touch out of business services was a step in the wrong direction. Human Interaction Management (HIM) is defined as a set of management principles, patterns and techniques complementary to Business Process Management; ultimately bringing back the power of relationships. Because of the backlash of these automated services and the lack of support for them, businesses are re-evaluating the old school norm that work requires human knowledge and human interaction.

In business, I've often looked to these automated services as a means to streamline repetitive procedures. However, when things go wrong, and I must speak with a human they often have ill equipped staff and are rarely able to solve a problem on the first try. Ultimately, it sometimes makes business procedures longer and more frustrating than it would have been had I used human assistance in the first place. Ideally, automated services would have the best of both worlds: a user-friendly interface for automated tasks and a professional and knowledgeable customer service team. All processes require a bit of trial and error to determine whether or not it's worth it for your company, but don't let it deter you. Automating tasks and services may be your saving grace if you or your staff have trouble remembering to do things or are constantly plagued by late payments, but it can also be more hassle than it's worth. If you're considering implementing automated services for your customers to use, be sure to put yourself in their shoes first. If it saves you time but causes severe headaches for them, it's probably not worth it.