Retail Observer

RETAILOBSERVER.COM JUNE 2023 56 C hange is inevitable – and trying to push the river back upstream is an exercise in futility. In the early 1900s, people who'd once tended horses had to adapt to a new world of cars. Later, mechanics had to learn to service fuel-injected cars, and now they're being forced to learn to service hybrid and electric vehicles. The point is, people can either continue to scrape for low-skill jobs that technology will eventually outdate, or they can advance their skill sets through education and continue to remain relevant and employable in the future. I recently attended a manufacturer's roundtable at the UASA Appliance Service Training Institute (ASTI), where the attendees asked the national service managers of GE, LG, Samsung, Whirlpool, Electrolux, and Miele about the future of smart appliances and how the industry would protect the independent service providers. I've got a secret for you – it won't! Years ago, I predicted that smart appliances would one day be built with secondary components that enabled them to repair themselves or be repaired remotely by the manufacturer. We may not quite be there yet, but instead of resisting that very possible future, we need to embrace it by changing our business now. We need to welcome and adopt the latest technology and help our technicians acquire the new skills that will get them ready for the future of appliance repair. Also, we need to train all of service staff on the workings of domestic wi-fi and how to connect to it. The manufacturers at the ASTI roundtable revealed that fewer than 30% of consumers now connect their appliances to household Wi-Fi networks, and that the biggest obstacles are privacy concerns and connection difficulties. When I suggested that the service managers consider paying servicers an extra $25 per warranty claim to connect a customer's appliance, Tracey Janey, the GE director of Customer Care, thought it was a good idea and told me at the subsequent AVB Summit that, in fact, GE pays Allstate contractors to do just that. Moreover, GE is spending a lot more than the $25 I proposed, and with servicers already in the home for a warranty repair, the uptake on connectivity would increase significantly. While I was writing this article, my newsfeed buzzed with the latest news of Elon Musk. It seems that Elon and hundreds of tech leaders and futurists have signed a letter calling for artificial intelligence labs to stop developing powerful AI systems for at least six months, citing the "profound risk to society and humanity." In early tests, ChatGPT-4 technology was able to pass licensing exams, draft lawsuits, and build a working website from a hand-drawn sketch. The letter stated: "Recent months have seen AI labs locked in an out-of-control race to develop and deploy ever more powerful digital minds that no one, not even their creators, can understand, predict, or reliably control." While tech leaders try to damn the river and stop the progress of digital technology, countries like China and Russia will continue their development, possibly taking yet another step toward world dominance. I doubt that NATO will be able to stop the global digital tech phenomenon any more effectively than the World Health Organization was able to stop the global COVID pandemic. While global leaders figure out how to control the digital future, only you can take the necessary steps to prepare your company for the smart technology that is driving more and more appliances. I advise service companies to embrace this technology and train their teams on connecting customers' appliances to their homes' Wi-Fi networks. The future is coming faster than we realize, and it's going to be tough for those who try to push against the stream. GETTING SMART ABOUT SMART APPLIANCES A new wave of products are making old skills obsolete Paul Mac.Donald Service Trends Paul MacDonald, AVB's senior ServiceSource lead, ran his own 38-tech service business and is a past president of the UASA. Paul currently operates The Expert Service Program which helps servicers run their operations more efficiently and profitably. You can reach him at (647) 500-7785 or paul.m.macdonald@pmdgroup.ca. RO

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