Week 5 DB Service
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Chapter 11-‹#›
Part 5
DELIVERING AND PERFORMING SERVICE
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Chapter 11-‹#›
CUSTOMER
COMPANY
Service delivery
Gap 3: The Service Performance Gap
Customer-driven
service designs and standards
Provider Gap 3
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Chapter 11-‹#›
Key Factors Leading to Provider Gap 3
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Chapter 11-‹#›
Employees’ Roles in Service Delivery
Service Culture
The Critical Importance of Service Employees
Boundary-Spanning Roles
Strategies for Delivering Service Quality Through People
Customer-Oriented Service Delivery
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Chapter
11
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Chapter 11-‹#›
Objectives for Chapter 11: Employees’ Roles in Service Delivery
Demonstrate the importance of creating a service culture in which providing excellent service to both internal and external customers is a way of life.
Illustrate the pivotal role of service employees in creating customer satisfaction and service quality.
Identify the challenges inherent in boundary-spanning roles.
Provide examples of strategies for creating customer-oriented service delivery through hiring the right people, developing employees to deliver service quality, providing needed support systems, and retaining the best service employees.
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Chapter 11-‹#›
Service Culture
“A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”
- Christian Grönroos
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Chapter 11-‹#›
The Critical Importance of Service Employees
They are the service.
They are the organization in the customer’s eyes.
They are the brand.
They are marketers.
Their importance is evident in:
the services marketing mix (people)
the services triangle
the service-profit chain
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Chapter 11-‹#›
They are the service.
in many cases, the contact employee is the service
- we often DO NOT DISTINGUISH between the person and the firm
(haircutting, child care, counseling, legal services)
in these cases, the offering is the employee
- other examples?
They are the organization in the customer’s eyes.
employees represent the firm to the client
may be the ONLY contact they have with the firm
e.g., Dixon Pest Control
everything they say and do can influence perceptions of the organization
even “off-duty” employees can influence perceptions
They are marketers.
they are walking “billboards”
they represent the company and influence customer satisfaction
they are salespersons
(waiters selling dessert; AT&T operators cross-selling)
The Service Marketing Triangle (Figure 11.1)
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Chapter 11-‹#›
Aligning the Triangle
Organizations that seek to provide consistently high levels of service excellence will continuously work to align the three sides of the triangle.
Aligning the sides of the triangle is an ongoing process.
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Chapter 11-‹#›
Making Promises
Understanding customer needs
Managing expectations
Traditional marketing communications
Sales and promotion
Advertising
Internet and web site communication
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Keeping Promises
Service delivery
Reliability, responsiveness, empathy, assurance, tangibles, recovery, flexibility
Face-to-face, telephone & online interactions
The Customer Experience
Customer interactions with sub-contractors or business partners
The “moment of truth”
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Chapter 11-‹#›
Enabling Promises
Hiring the right people
Training and developing people to deliver service
Employee empowerment
Support systems
Appropriate technology and equipment
Rewards and incentives
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Chapter 11-‹#›
The Service Profit Chain (Figure 11.2)
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The Effect of Employee Behaviors on Service Quality Dimensions
Reliability: delivering the service as promised is often totally within the control of front line employees.
Responsiveness: front line employees may exhibit a range of responses in terms of promptness and willingness to help.
Assurance: highly dependent on employees’ ability to communicate their credibility and inspire trust.
Empathy: implies that employees will pay attention, listen, and adapt to customers’ needs.
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The Critical Role of Boundary Spanners (Figure 11.3)
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Chapter 11-‹#›
Boundary Spanners
Provide a critical link between the external customer environment and the internal operations of the organization
May be order-takers, front desk clerks, truck drivers, teachers, and doctors!
Serve a critical function in understanding, filtering, interpreting information and resources to and from the organization and its external constituencies
High stress!!!
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Chapter 11-‹#›
Boundary-spanning Roles
What are these jobs like?
Emotional labor
The labor that goes beyond the physical or mental skills needed to deliver quality service.
Often requires suppression of true feelings
Many sources of potential conflict
person/role
organization/client
interclient
Quality/productivity tradeoffs
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Chapter 11-‹#›
Strategies for Delivering Service Quality through People (Figure 11.4)
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Chapter 11-‹#›
Strategies for Delivering Service Quality through People
Hire the right people
Compete for the best people
Hire for service competencies and service inclination
Be the preferred employer
Develop people to deliver service quality
Train for technical and interactive skills
Empower employees
Promote teamwork
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Chapter 11-‹#›
Benefits and Costs of Empowerment (Exhibit 11.2)
Benefits:
Quicker responses to customer needs during service delivery
Quicker responses to dissatisfied customers during service recovery
Employees feel better about their jobs and themselves
Employees tend to interact with warmth/enthusiasm
Empowered employees are a great source of ideas
Great word-of-mouth advertising from customers
Costs:
Potentially greater dollar investment in selection and training
Higher labor costs
Potentially slower or inconsistent service delivery
May violate customers’ perceptions of fair play
Employees may “give away the store” or make bad decisions
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Chapter 11-‹#›
Strategies for Delivering Service Quality through People (continued)
Provide needed support systems
Measure internal service quality
Provide supportive technology and equipment
Develop service-oriented internal processes
Retain the best people
Include employees in the company’s vision
Treat employees as customers
Measure and reward strong service performers
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Chapter 11-‹#›
Customer-Focused Organizational Chart
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Chapter 11-‹#›
Inverted Service Marketing Triangle
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