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14. Improving Service Quality and Productivity - Coggle Diagram
14. Improving Service Quality and Productivity
Integrating Service Quality and Productivity Strategies
Quality and productivity are twin paths to creating value for both customers and companies
Quality focuses on the benefits created for customers; productivity addresses financial costs incurred by firm
Marketing, operations and human resource managers need to work together for quality and productivity improvement
Measuring and Improving Service Quality
Soft measures—not easily observed, must be collected by talking to customers, employees or others. E.g. SERVQUAL
Hard measures—can be counted, timed or measured through audits
The GAP Model – A Conceptual Tool to Identify and Correct Service Quality Problems
What is Service Quality?
Tangibles: Appearance of physical elements
Reliability: Dependable and accurate performance
Responsiveness: Promptness; helpfulness
Assurance: Competence, courtesy, credibility, security
Empathy: Easy access, good communication, understanding of customer
Learning From Customer Feedback
Find Objectives of Effective Customer Feedback Systems
Customer Feedback Collection Tools (Surveys, feedback, reviews)
Find strengths and weakness
Analysis, Reporting and Dissemination of Customer Feedback
Hard Measures of Service Quality
Service quality indexes
Control charts to monitor a single variable
Tools to Analyze and Address Service Quality Problems
Fishbone diagram
Pareto Chart
Blueprinting
Return on Quality
Assess costs and benefits of quality initiatives
Determine optimal level of reliability
Defining and Measuring Productivity
Productivity in a Service Context
Productivity measures the amount of output produced relative to the number of inputs.
Improvement in productivity means an improvement in the ratio of outputs to inputs.
Intangible nature of many service elements makes it hard to measure the productivity of service firms, especially for information-based services
Service Efficiency, Productivity, and Effectiveness
Efficiency -- involves comparison to a standard, usually time-based (e.g., how long employee takes to perform a specific task)
Productivity -- involves the financial value of outputs to inputs
Effectiveness -- the degree to which the firm meets goals
Improving Service Productivity
Generic Productivity Improvement Strategies
Customer-driven Ways to Improve Productivity
Impact of Quality on Productivity Improvements
Cost Reduction Strategies
