Low touch model – Explained

The low-touch model is a business strategy in which the customer interacts with a company through self-service technologies, such as online portals or automated phone systems, rather than through personal interactions with employees. This approach reduces the amount of direct human involvement in a transaction, and thus the cost of providing service to the customer.

Low-touch models are becoming increasingly popular in various industries, including retail, banking, and telecommunications. The low-touch approach offers customers convenience and flexibility, as they can access services and make transactions at any time of day, without having to wait for business hours or speak with a representative. For companies, the low-touch model can help to reduce operating costs, increase efficiency, and improve customer satisfaction by providing faster service.

However, low-touch models can also have drawbacks. Some customers may prefer personal interactions and may not be comfortable using self-service technologies. Additionally, low-touch models may not be appropriate for complex or sensitive transactions that require human expertise. In such cases, customers may need to interact with a live representative in order to resolve their issue.

Related: High touch model – Explained

Few examples of companies using a low-touch model in their business:

  1. Retail: Online shopping platforms like Amazon and Walmart provide a low-touch shopping experience, allowing customers to browse, select, and purchase products without interacting with sales associates.
  2. Banking: Many banks have implemented online and mobile banking services that allow customers to manage their accounts, make payments, and access account information without visiting a physical branch.
  3. Telecommunications: Automated phone systems and self-service portals are commonly used by telecommunications companies to handle customer service inquiries, such as billing questions or plan changes.
  4. Healthcare: Telemedicine services, such as virtual doctor consultations, are becoming increasingly popular as a low-touch alternative to in-person doctor visits.
  5. Travel: Online travel booking websites like Expedia and provide a low-touch way for customers to book flights, hotels, and rental cars without speaking with a travel agent.

In conclusion, the low-touch model is a business strategy that emphasizes the use of self-service technologies to provide customer service, while minimizing direct human interaction. It offers advantages such as increased efficiency and convenience, but also has limitations such as limited ability to handle complex transactions.

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