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Service (Contents of Lesson 9 (Service Delivery (Definition
i. Service…
Service
Contents of Lesson 13
Service Failure
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Customers' reaction to service failure
i. Voice: Complains to the organisation
ii. Loyalty: No real action & returns to the organisation
iii. Exit: Leaves the organisation
Service Recovery
Key elements
i. Acknowledge the problem or failure
ii. Explain the reasons for the failure, wherever possible
iii. Empathise with a sincere expression of feeling for the customers’ inconvenience
iv. Apologise where appropriate
v. Solve the problem as quickly as possible
vi. Compensate the customers appropriately
vii. Extra value in the form of coupons or extra services to demonstrate regret and appreciation of business
viii. Follow up with a phone call, letter or other communication
Customers' perception
i. Procedural Justice: Concerns policies and rules that any customer has to go through to seek fairness
ii. Interactional Justice: Involves employees of the firm who provide the service recovery and their behaviour toward the customer
iii. Outcome Justice: Concerns compensation a customer receives as a result of the losses and inconveniences incurred because of a service failure
Solutions
i. Proactive: Initiative
ii. Taught: Staff Competence
iii. Planned: Contingency
iv. Empowered: Staff flexibility to offer solutions
Contents of Lesson 9
Service Delivery
Definition
i. Service delivery is concerned with where, when and how the service or product is delivered to the customer
ii. Service delivery is a process or a series of actions typically involving multiple steps that often need to take place in a defined sequence
3 types of interactions between customers and service providers
i. Customer goes to the service provider
ii. Service provider goes to the customer
iii. Interaction at arm’s length (via the internet, telephone, mail, etc)
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Contents of Lesson 8
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a. Gap Model
1. Knowledge Gap
Definition
Difference between what the senior management believes customers expect and what customers actually need and expect
Reasons why the gap occur
i. Company is not aware or have not correctly interpreted the customer's expectation
ii. May mean company is trying to meet wrong or non-existing customer needs due to insufficient customer research
Solution
Educate management about what customers expect
- Conduct market research
- Implement effective customer feedback system
- Increase interactions between customers and management
- Facilitate & encourage between front-line employees and management
2. Policy Gap
Definition
Difference between what the company believes customers expect and what the company set as service standards
Reasons why the gap occur
i. Company may experience difficulties translating consumer expectation into specific service quality delivery.
ii. Company may make a policy decision not to deliver what they think
customers expect because of cost and feasibility
Solution
Establish the right service processes and specify standards
• Standardise repetitive work tasks
• Set and reinforce measurable customer oriented service standards
• Ensure that employees understand and accept goals, standards and
3. Delivery Gap
Definition
Difference between what the company set
as service standards and what the company set as service standards
Reasons why the gap occur
• Company may have failed to train their employees
• Employees may have a lack of product knowledge and have difficulty managing customer questions and issues
• Organisations have poor human resource policies (e.g. resulting in shortage of manpower)
• Lack of cohesive teams and the inability to deliver
Solution
Ensure that performance meets standards
• Recruit suitable employees with a focus on employee job fit
• Train employees on technical and soft skills required for the jobs
• Clarify employees’ roles
• Empower managers and employees to resolve service failures
• Provide regular feedback
• Reward customer service team and individual performance on attaining quality goals
4. Communications Gap
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Reasons why the gap occurs
• Company’s advertising team may have over-promised on the service delivery as compared to what the company can actually deliver
• Lack of integrated internal communications across the different departments of the company
Solution
Ensure that communication promises are realistic and correctly understood by customers
• Seek inputs from front line employees and operations personnel
• Ensure communications content sets realistic customer expectations
• Ensure all staff know what is communicated to customers and fulfill it
• Communicate the types of service given clearly
6. Service Quality Gap
Definition
Difference between what the customers feel they have received and what the customers expect of the service
Reasons why the gap occurs
• Customer perception is totally subjective and is based on the customer’s interaction with the product or service
• Perception is derived from the customer’s satisfaction of the specific product or service and the quality of service delivery
• Company raises customer’s expectations but provides service lower than expected, so customer develops a poor perception of the service
Solution
Close gaps 1 to 5 to consistently meet customer expectations
• Gap 6 is the accumulated outcome of all the preceding gaps
• Will be closed when all the gaps have been addressed
5. Perception Gap
Definition
Difference between what the service delivery teams’ actual performance on the standards and what the customers feel they have received
Reasons why the gap occurs
• Could be due to customers’ inability to accurately judge the service quality
• Customers unsure of what can be done by the service provider possibly due to the lack of physical evidence
Solution
Tangibilise and communicate the service quality delivered
• Develop physical evidence cues that are consistent with the service
• Keep customers informed during service delivery on what is being done
Contents of Lesson 12
Service Design
5 steps
i. Research: Find out what the stakeholders want in order to satisfy their needs
ii. Brainstorm: Create service ideas that will improve service
iii. Prototype: Test service idea to see what works to improve service experience
iv. Repeat: Repeat ideas to better understand the problems and polish them to provide a good service solution
v. Deliver: Share with stakeholders to come up with a plan for implementing, sustaining and evolving over time
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Service Blueprinting
Definition
i. A key tool use to design new services (or redesign existing ones)
ii. More complex form of flow-charting
Consists of
i. Front-stage elements
ii. Back-stage elements
iii. Linkages between front and back stage
iv. Line of visibility
Developing a service blueprint
i. Identify all key activities involved in creating and delivering a service blueprint
ii. Specify the linkages between these activities
- Physical evidence for front stage activities
- Customer actions
- Line of interaction
- Front stage actions by customer contact personnel
- Line of visibility
- Backstage actions by customer contact personnel
- Support processes involving other service personnel
- Support processes involving information technology
Advantages
i. Differentiate between what customers experience “front stage/onstage” and the activities of employees and support processes “back stage”
ii. Show how customers and employees interact and the support by backstage activities and systems
iii.Highlight possible fail points, take preventive measures; prepare contingency
iv. Pinpoint stages in the process customers commonly have to wait
Contents of Lesson 11
Service Guarantee
Definition
A promise that if service delivery fails to meet certain standards, the customer is entitled to one or more forms of compensation, such as, an easy to claim replacement, refund or credit
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Power
i. Customers Focus
• Focus on customers
• Set clear standards
ii. Understand Fail Points
• Set systems to get
customers feedback
• Organisation to
understand fail points
iii. Build Marketing
Muscle
• Market who they are and
what value they create
• Reduce risk of purchase
decision
• Build long-term loyalty
Criteria of Effective Service Guarantee
i. Unconditional
ii. Easy to understand and communicate
iii. Meaningful to the customer
iv. Easy to invoke
v. Easy to collect
vi. Credible
To leave a clear stamp of
an effective service guarantee on customers, the guarantee must meet the above 6 criteria
Types of Specific Service Guarantee
i. Single Attribute
ii. Multiple Attribute
iii. Full Satisfaction Guarantee
Measure to consider for operations
i. Understand the needs of customer
ii. Employees and departments must work together
iii. Employees and department must be able to fulfill the promised service guarantee
iv. Employees must be proactive to meet the operational functions
Meeting the Service Guarantee
i. Reward who have met the employees standards
ii. Conduct continuous assessment and revise service standards
iii. Provide relevant training to improve employees competency
iv. Develop structured system to support the service guarantee