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Managingpeople1.pptx

Managing People

Marketing Services 6

Why are service personnel important?

They are service firm and brand

They are marketers

They directly affect customer loyalty

They determine productivity

They affect service quality

They can be a source of competitive advantage

Backstage staff have direct impact on service performance

“Partners are instrumental in all that we do. Our Partners own our business so have a vested interest in its success. They are at the heart of our service offering, embodying our values of trust, respect and fairness and they are the energy and passion that drives our work to be an evermore responsible and sustainable business.”

Sir Charlie Mayfield, Chairman, John Lewis Partnership

Service personnel as boundary spanners

Operate at the boundary of the firm:

Interact with customers

Interact with colleagues

Link the organization with customers

Represent the firm

Pass information in both directions

Conflict

Person/role conflict

Role inconsistent with individual’s personality

Emotional labour: supressing personal feelings in favour of a ‘public display’ of happiness

Role ambiguity and role overload

Organization/client conflict

Personnel are expected to be efficient but also delight customers

Inter-customer conflict

Being flexible in serving the needs of one customer can lower service quality for another customer

Mediating between conflicting customers

Reducing role stress

Employee training

Re-design operating procedure

Manage customer expectations

Segment customer groups to minimise conflict

Delivering quality through people

Intelligent hiring Hire for service inclination Be the preferred employer and compete for the best
Intensive training Train for technical and interactive skills Provide supportive technology and equipment Empower Promote teamwork
Incessant monitoring Develop service-oriented internal processes Measure internal service quality Gather customer feedback
Inspiring rewards Provide feedback Reward strong performers to retain the best

Hiring

‘The right people are your most important asset.

The wrong people are a liability that is often difficult to get rid of’ (anon)

Training

Firm’s culture

Technical skills

Product/service knowledge

Empowerment

Empowering the frontline to make discretionary decisions:

rectify service failures promptly

respond to customer requests promptly

motivates staff

encourages feedback about service design improvements

Most appropriate where:

service is personalized

transactions are extended rather than short-term

service environment is unpredictable

employees have good interpersonal skills

But not always appropriate

Low-contact and/or standardized services

Not all employees want empowerment

Requires appropriate attitudes and skills

Likely to result in higher salaries

Can cause inefficiencies and inconsistency

Reward

Extrinsic motivation

Intrinsic motivation

Important to reward quality service provision

Important to reward good discretionary decisions

Important in order to retain staff

Service-profit chain

Internal Service Quality

(employee

selection,

development, motivation)

Employee Satisfaction

Employee Retention,

Competence

and Productivity

Delivery of External Service Value to Customer

(benefits exceed costs)

Customer Satisfaction

Customer Loyalty

(retention & WOM)

Profitability & Growth

(cheaper to retain existing customers than to attract new customers)

Heskett et al. (1994)

Service culture

Where an appreciation for good service exists and where giving good service to internal as well as external customers is considered the only way to work

(Grönroos, 2007)

Service culture

Requires

Well-defined and communicated service concepts (what, to whom, how)

Appropriate organizational structure (cooperation, communication)

Leadership

Customer-oriented attitude

Customer-oriented attitude

Organizational support

(resources, training, support)

Customer participation

(leading to positive perception of customer)

Deep acting behaviour

(more genuine and authentic)

(Yoo and Arnold, 2016)

Internal marketing

A programme of creating and maintaining internal relationships between people in the organization so that they feel motivated to provide services to internal and external customers in a customer-focused way, and have the skills required and support needed to fulfil their roles as part-time marketers.

(Grönroos, 2007)

Internal marketing

Ensure employees know what is being promised to customers

Ensure employees understand their role in maintaining relationships with customers and have skills and motivation to do so

Sell the brand internally

Ensure channels exist for frontline staff to communicate with senior management

Ensure channels exist for communication across functions

Ensure communication is targeted to back-office personnel

Employees seen as internal customers of the organization who need to be

attracted, motivated, and retained

Customer participation

Customers often co-produce: customization, convenience, speed, productivity, cost reduction, enjoyment

Quality of delivery and outcome can be reduced by lack of knowledge, error, or unwillingness to participate

Customer co-production

Clearly define customer role

Teach customers how to co-produce

Benefits to offset customer resource input

Make participation easy and reliable

Attract appropriate customers

Value co-creation

Co-production is one dimension of a concept called value co-creation (Vargo and Lusch, 2004)

The second dimension is value-in-use, where value is derived from the experience of using the service offering during or after the exchange process

The customer inputs and integrates resources (knowledge, skills, time) with those of the service provider to create value

Customers are ‘partial employees’

References

Grönroos, C. (2007) Service Management and Marketing. 3rd ed. Chichester; Wiley.

Heskett, J. et al. (1994) Putting the service-profit chain to work. Harvard Business Review. 2 (March-April), 164-174.

Vargo, S. and Lusch, R. (2004) Evolving to a new dominant logic for marketing. Journal of Marketing. 68 (1), 1-17.

Yoo, J. and Arnold, T. (2016) Frontline employee customer-oriented attitude. Journal of Service Research. 19 (1), 102-117