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Service Quality and Professional Etiquette (Dimensions of Service Quality…
Service Quality and Professional Etiquette
Dimensions of Service Quality [RATER] – Week 08
Tanigbles
The appearance of physical facilities, equipment, personnel, and communication materials
(e.g. the hotel facilities are attractive or the brochure is easy to understand)
Empathy
Easy assess, good communication & understanding the customers
(e.g. easy for customer to talk to a supervisor when they have a problem)
Assurance
Credibility of service organisations and personnel, security from risk, knowledge or competence of service and courtesy of employees.
(i.e. the ability to convey trust and confidence
)
Responsiveness
Willingness to help customers and provide prompt service
(e.g. staff pick up phone call fast, reply email fast, give specific time when the technician will arrive)
Reliability
Ability to perform the promised service dependably and accurately
(e.g. Courts repaired a faulty TV right the first time)
The Model Gap – Week 08
Delivery Gap
company may have failed to train their employees
employees may have a lack of product knowledge and have difficulty managing customer questions and issues
-
if there is a rule being set by the management and the staff did not adhere to the rule, this means that staff is the one triggering the problem
Communication Gap
company's advertising team may have over-promised on the service delivery as compared to what the company can actually deliver
E.g. customer were informed that 50% was only valid for weekdays when the advertisement stated it was applicable on weekends too
Policy Gap
company may experience difficulties translating consumer expectation into specific service quality delivery
Company may make a policy decision not to delivery what they think customer expect because of cost and feasibility
-
E.g. The management did not set any standard (management problem), thus staff use their phones at the counter
Perception Gap
could be due to customer's 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
E.g. Product you see online is different from what you have received (hard to judge)
Knowledge Gap
Company unaware or have not interpreted the customer's expectation
company is trying to meet wrong or non-existing consumer needs due to insufficient customer research
E.g. customers are unhappy with the use of smartphone payment system as they prefer the traditional NETS payment instead
Service Guarantee – Week 11
3 Charactieris of Service Guarantee
Specific performance
Compensation
at least one key attribute
Power of Service Guarantees
Understand fail points
– set systems to get customers feedback / organisation to understand fail points
Build Marketing Muscle
– reduce risk of purchase decision / build long-term loyalty
Customers Focus
– Focus on customer expect / set clear standards
Criteria of effective service guarantee
(all has to be met to be effective)
meaningful to the customer
compensation must be enough to cover the failure (e.g. full refund // replace a new set)
Easy to invoke
A customer who is already unhappy should not be made to go through many steps to validate the guarantee.
easy to understand and communicate
It should be written in simple and concise language
that pinpoint the promise.
Easy to collect
The procedure should be simple // It should not require customers several steps (such as fill up multiple forms) to collect the promised service guarantee such that they would rather forfeit the compensation
unconditional
whatever is promised in the guarantee should be without conditions // customers can return a product at anytime and get a compensation
Credible
The guarantee should be realistic and people should believe the guarantee is valid (e.g. pizza scenario (deliver 30mins time), if says it can be delivered within 5mins, its not realistic)
Types of specific service guarantee
Multiple Attributes
Fall satisfaction
Single attribute
Meeting the service guarantee
Conduct
continuous assessment
(e.g. how many product they sold within a month)
Provide relevant training
to improve employees competency
Reward employee
s who have met the standards (e.g. reward the staff if they hit sales target)
Develop
structured system
to support the service guarantee
Service Design and Blueprinting – Week 12
What service designer do?
Prototype
- Test service idea to see what works to improve
service experience
Repeat
- Repeat ideas to better understand the problems
and polish them to provide a good service solution
Brainstorm
- Create service ideas that will improve service
Deliver
- Share with stakeholders to come up with a plan for
implementing, sustaining and evolving over time
Research
- Find out what the stakeholders want in order to
satisfy their needs
Hierarchy of New Service Development Categories
Service Improvements
- Minor changes in performance of product
(e.g. extended hours of service/improved speed of wifi access)
Supplementary service innovations
- Add or enhance new service element
Style Changes
- Visible changes in service design or scripts
(e.g. new inform, new colours)
Process Line extensions
- New ways of delivering existing products
(e.g. collaborating with Grabfood to deliver to customers)
Product line extensions
- Additions to current product line
(e.g. Restaurant serving food to both owners and pets / Banks selling travel insurance)
Major process innovations
- Use new processes to deliver existing core products in a new ways with additional benefits
(e.g. Amazon Go)
Major service innovation
- New core products for the markets that have not been previously defined. Include new service characteristic and radical new process.
Service Blueprint
A visual map of the sequence of activities
Front stage elements
Back stage elements
Linkages between front and back stage
Line of visibility
Advantages
Show how customers and employees interact, and the support by backstage activities and systems
Highlight possible fail points, take preventive measures; prepare contingency
Differentiate between what customers experience “front stage/onstage” and the activities of employees and support processes “back stage”
Pinpoint stages in the process customers commonly have to wait
Understanding the customers – Week 09
Customer Feedback Collection Tools
unsolicited comments (passive)
feedback cards (passive)
surveys (active)
feedback from staff (active)
service review (active)
focus group discussion (active)
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 tho ones that take the initiative to provide their feedback and views to companies
Strategies to close gap – Week 08**
Policy Gap (establish the right service processes and specify standards)
standardize repetitive work tasks
Set and reinforce measurable customer-oriented service standards
Ensure that employees understand and accept goals, standards and priorities
Delivery Gap (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 (e.g. smiling at customers)
empower managers & employees to resolve service failures
Knowledge Gap (Educate management about what customers expect)
conduct market research
implement effective customer feedback system
increase interactions between customers and management
Communication Gap (ensure that communications promises are realistic and correctly understood by customers)
ensure communications content sets realistic customer expectations
ensure all staff know what is communicated to customers and fulfil it
Perception Gap (tangibilise and communicate the service quality delivered)
- development physical evidence cues that are consistent with the service
Service Delivery Technology – Week 10
Level of customer participation in service delivery
Moderate: customer inputs required for service creation
(e.g. hair wash (partially involved in the service), annual medical exam, full service restaurant)
**High: customer co-creates the service product – highly involved in the outcome of the service
(e.g. marriage counselling, personal training, weight-reduction programme)
Low: customer presence is required during the service delivery
(e.g. airline travels, motel stay, dining at fast-food restaurant)
Factors impacting choice of service delivery channels by customer
Confidence & knowledge of service
e.g. if you are an elderly at the airport, you might not use the sst as you don't know how to navigate the machine
Convenience
e.g. want to buy a dress, feel more convenient buying it online
for convenience people would prefer technology (e.g. ntuc using self-checkout)
Perceived risk
when perceived risk is high, customer would prefer to have a face to face interaction (e.g. going to the atm to draw a huge sum of money (there are risk), customer would rather talk to the teller)
Functional vs Social motives
social motive
→
if i want to interact/talk with someone (e.g. if you want to go dating, you would have to go face to face to know more about the person)
function motive
(use sst)
→
e.g. using Grab app/machine to buy food (pay → collect → go off)
Factors to consider on service delivery channels by service provider
Ability
(including the time & resources) of company to maintain and manage the SSTs
Alignment
with industry norm
Availability
of technology 24/7 and in multiple location
Cost
of setup, design and implementation
Complexity
of the service being delivered
Impact of self-service technologies on service providers
Advantages
consistent standardized services
low cost per interaction
customer convenience / quick customer feedback
save cost and manpower
Disadvantages
technology may not be readily available / lower interpersonal touch / may be costly to setup
Service Recovery – Week 13
Types of service failure
Outcome failure
- basic service (e.g. can't eat the food)
Process failure
- food did not reach customers on time
Customer's reaction to service failure
Loyalty
→ no real action & returns to the
organisation
Exit
*→ leaves the organisation
Voice
→ complains to the organisation
Key elements of service recovery
Empathise
- with a sincere expression of feeling for the
customers’ inconvenience (e.g. "we were very shocked and devastated")
Apologize
Explain
- "our staff was not knowledgeable as he is still an intern and he is still learning"
Solve
- train the staff / do necessary changes
Compensate
- voucher or full refund
Extra Value
- Provide extra value, in the form of coupons or extra services, to demonstrate regret and appreciation of business
Acknowledge
- don't blame the customers & admit mistake (e.g. "yes i know that our product are faulty")
Follow up
- give a customer a call/email if the service recovery was etiquette
Customers’ Perception of Service Recovery
Interactional Justice
- Involves employees of the firm who provide the service recovery and their behaviour toward the customer (staff interaction → are they friendly/. they did answer your questions well?)
Outcome Justice
- Concerns compensation a customer receives as a result of the losses and inconveniences incurred because of a service failure (E.g. was the compensation fair for you? - did they manage to resolve what was faulty?)
Procedural Justice
- Concerns policies and rules that any customer has to go through to seek fairness (e.g. convenient, customer doesn't have to go through troublesome process to get the compensation)
Effective Service Recovery System
Taught
- service recovery needs to be initiated on the spot, ideally before customers have chance to complain
(e.g. only deploy staff who are trained to do service recovery / provide training)
Planned
- contingency plans have to be developed for service failures, especially for those that can occur regularly and cannot be designed out of the system
(e.g. free shuttle busses for SMRT breakdown)
Proactive
- service recovery needs to be initiated on the spot, ideally before customers have chance to complain
(e.g. service staff checking on customers on their meals, etc)
Empowered
- service recovery efforts should be flexible and employees should be empowered to use their judgment and communication skills to develop solutions that will satisfy complaining customers