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Service Quality & Etiquette (Service Recovery (Service failure (types…
Service Quality & Etiquette
Managing Service quality
Dimensions of service quality (RATER)
Reliability
to provide reliable and accurate services (ability to perform the promised service dependably (as promised) and accurately)
Assurance
the knowledge and courtesy of staff and their ability to convey trust and confidence (credibility, security, competence, courtesy)
Tangibles
appearance of physical facilities, equipment, personnel and communication models (appearance of things; visible)
Empathy
caring, individualized attention provided to customer, approachability , ease of contact and communicating to customers (easy access, good communication, understanding the customer)
Responsiveness
willingness to help customers and provide prompt services
five dimensions which customers use when evaluating service quality
The Gap Model
Knowledge gap: What customer actually need and expects vs what the company believes customers expect
Policy Gap: what the company believes customers expect vs what the company set as service standards (standards set by company
Delivery gap: what the company set as service standards vs what the service delivery teams' actual performance on the standards
Communication Gap : what the company communicate to the customers vs what the service delivery teams' actual performance to the customer
Perception Gap: what the service delivery teams' actual performance on the standard vs what the customers feel they have received
Service Quality gap: the difference between what customers expected and what they think was delivered
Gap 1-5 leads to the sixth gap
As long as one of the first five gap takes place, the service quality gap would take place.
factors influencing customer's expectation and perception of services
desired service (nice to have) is the level of service which customers hope to receive
it affected by:
personal needs (the stronger the personal need, will increase the expectation level of service expectations)
belief about what is possible
Zone of tolerance (should have) is the zone where customers are willing to accept variation of service given
if certain service not provided, customer would not be dissatisfied
Adequate service (refers to basic service level) -> must have
It is affected by:
situational factors (beyond the control of service provider)
perceived service alterations (presence service alterations)
Understanding the customers
Mystery Shoppers
get in-depth insight for coaching, training and performance evaluation.
asses skills of service staff in relation to the standard set
Types of listening posts/feedback tools
Active Listening posts - companies would take the initiative to find out from and understand their customers
Passive Listening posts - customers are the ones that take the initiative to provide their feedback and views to companies
customer feedback collection tools
Service review (ACTIVE) - it is a in-depth one on one interview
Surveys (ACTIVE) - a method of data collection and individual questions that can be analysed
Feedback from service staff (ACTIVE)
employers obtain feedback from staff to get a clearer perception of the service conducted within the front line sector - help understand the current dynamics of the workplace
Focus group discussions (ACTIVE) - face to face meeting with a group of customers that helps you learn about their needs and perspectives
Service feedback cards (PASSIVE & ACTIVE) - commonly placed near cashier
Unsolicited comments (PASSIVE) - used to monitor quality and highlight improvements needed to service design and delivery
Service Delivery Technology
Level of customer participation
Low (customer presence required during service delivery)
service is standardized, all customers have to do is to be present
easier to have Self-service technology (SST)
Moderate (customer inputs are required for service creation)
client inputs customize a standard service
High (customer co-creates the service product)
active client participation guides the customized service
Factors impacting consumer preference on service delivery channels
perceived risk - If it is low, would go for SST. If it is high, would prefer face to face interactions
confidence & knowledge of the service
how confident are you to use it?
high confidence -> would use SST
low confidence -> face to face
Convenience - people who like convenience would opt for SST
Functional vs social motives
functional: more to transactions -> would go for SST
Social motive: must have connection with the person you interact with (want to befriend that person) -> prefer/would go for face to face interaction
Advantages of SST - consistent delivery for standardized services, customer convenience, saves cost and manpower, ability to track and improve service quality in real time
Disadvantages of SST - may be costly to set up, security concerns, lower personal touch, often require customers to be proactive, hence may require changes in consumer behaviour
Service Guarantee
3 characteristics of service guarantee:
At least one key attribute (e.g. delivery time, quality of food)
Specific performance (E.g. food is serviced within 30 minutes, E.g. hot, fresh, and great tasting)
Compensation (E.g. free regular pizza voucher)
Criteria of effective service guarantee
Unconditional - no terms and conditions when want exchange or refund
Easy to understand & communicate - it is to be in simple language, no jargon, easy for customers to comprehend
Meaningful to customers - guarantee aspects are important to customers, also should be meaningfully financially (E.g. full refunds, exchange)
Easy to invoke - easy to appeal for refunds, need no processes or documents needed to get refund or exchange
Easy to collect - able to get immediately / on the spot , should not require a few steps to collect the promised service guarantee
Credible - should be valid , realistic and believable
It is not an effective service guarantee if did not meet all the six criteria
Types of specific service guarantee
Single-attribute - one key attribute is covered by the guarantee
Multi-attribute - a few important attributes of the service are covered by the guarantee
Full-satisfaction - all aspects of the service are covered by the guarantee
To meet the service guarantee, companies should:
reward employees who have met the standards
provide relevant training to improve employees competency
Service Design and Blueprinting
Service designers - research, brainstorm, prototype, repeat, deliver
Service categories
Style changes - typically involve no changes in either processes or performance but are highly visible (e.g. a store refurnished)
service innovations - minor changed in performance of products (e.g. extended hours of service)
supplementary service innovations - add or enhance new service elements (e.g. hair salon, but have nail service or massage service too)
Process Line extensions - new ways of delivering existing products (e.g. delivery service, have website to purchase things from such as NTUC)
Product line extension - additions to current product line (E.g. starbucks - sell coffee; main product, but they also sell sandwich, cake, cups, mugs,yoghurt, tea
Major process innovation - use new processes to deliver existing core products in new ways with additional benefits (E.g. Amazon Go - they do not want customers to change their behaviour so they make virtual card and customers charged based on taking what they took out from the shelves and add value as they just go out without any queue)
Major service innovations ( different from people in the industry; new core products for markets that have not been previously defined. Include new service characteristics and radical new processes) - E.g. Grab - allows people to just register and be taxi drivers in a sense
from 1 being the easiest and 7 being the hardest
Service Blueprint
helps to ensure that everything flows smoothly
identify possible points where something would go wrong (identify fail points) - fail points have to come from the service company aspect
highlight possible fail points, take preventive measures; prepare contingency
helps to highlight key potential fail points or bottlenecks
identify opportunities for service improvements
Service Recovery
Service failure
occurs when customers experience dissatisfaction as the service was not delivered as expected or planned
may be due to customer had better service (prior experience), heard something from others, but expectation not met when went there for the service
types of service failure
Outcome failure - basic service was not performed
Process failure - created by people, process and technology required to deliver the service (E.g. rude and unprofessional staff)
four characteristics of service
Inseparability: affected more as service is done at the same time it is delivered (there is no way to correct it )
Variability: service provided varies, some staff would be rude, etc
key elements of service recovery
Acknowledge: company should aware/acknowledge and admit that it is their fault
Explain: explain to customer why it happened after investigating
Empathize: company should understand how they feel from patient's point of view
Apology: company should apologize for incident that happened
Solve: company should give solution in how they are going to solve it
Compensation (e.g. complimentary drink)
Extra value (e.g. free gift)
follow-up: ask customer whether the issue have been resolved adequately?
customer's perception of service recovery
procedural justice: Is it easy to invoke?
Interactional Justice: Was staff nice and patient assisting customer?
Outcome justice : Is compensation received?
effective service recovery system
Proactive: service recovery needs to be initiated on the spot, ideally before customers have a chance to complain
Taught: effective training for front-line staff so they would be able to manage/handle patients
Planned: contingency plans have to be developed for service failures
Empowered: employees should be empowered to use their own judgement and communication to develop solutions to help satisfy complaining customers