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CUSTOMER SATISFACTION AND SERVICE QUALITY
(GAP MODEL)
PRESENTATION OVERVIEW
Measuring service qualityServQual model
Gaps model of service qualityReasons for the gapsStrategies for closing the gaps
Measure customer satisfaction
What is service quality?
What do we mean when we speak of service quality? Company personnel need a common understanding in order to be able to address such issues as the measurement of service quality, the identification of causes of service quality shortfalls, and the design and implementation of corrective actions.
Perspectives on service quality
The word quality means different things to people according to the context. DEVID GARVIN identifies five perspectives on quality-
1. The transcendent view of quality is synonymous with innate excellence: a mark of uncompromising standards and high achievement.
2.The product-based approach sees quality as a precise and measurable variable.
Perspectives on service quality
3.User-based definitions start with the premise that quality lies in the eyes of the beholder. these definitions equate quality with maximum satisfaction.
4.The manufacturing based approach is supply based and is concerned primarily with engineering and manufacturing practices.
5.Value-based definitions define quality in terms of value and price.
Measuring service quality: SERVQUAL Model
(Parasuraman, Zeithaml & Berry 1985, 1988)
ServiceQuality
ServiceQuality
ReliabilityReliability
ResponsivenessResponsiveness
AssuranceAssurance
Empathy
TangiblesTangibles
Servqual Dimensions
1. RELIABILITY
DependabilityDelivering on promisesAccuracyConsistency
Get it right the first time!
Servqual Dimensions
2. RESPONSIVENESS
PromptnessHelpfulness
Servqual Dimensions
3. ASSURANCE
competence courtesy credibility security
I feel safe
Servqual Dimensions
4. EMPATHY
Easy accessGood communicationCustomer understandingPersonalised attention
Servqual Dimensions
5. TANGIBLES
Physical evidenceMaterial (e.g., brochures or statements)
People look smart
The gaps model of service quality
Where are things going wrong?What leads to poor service quality
Gaps model of service qualityCustomer gap
difference between customer’s expectations and perceptions of performance
Four provider gapseach may lead to the customer gap
Customer Needs And Expectations
Management Definition Of These Needs
Translation Into Design /Design Specs
Execution Of Design/Delivery Specs
Customer Perceptions Of Product Execution
Customer Experience Relative To Expectations
Advertising And Sales Promises
Customer Interpretation Of Communications
1.The knowledge Gap
4.The internal communication Gap
6.The interpretation Gap
2. The standards Gap
3.The delivery Gap
5.the perception Gap
7.The service Gap
CUSTOMER
MANAGEMENT
THE GAPS MODEL OF SERVICE QUALITY
4
1.THE KNOWLEDGE GAP
Is the difference between what service providers believe customers expect and customers actual needs and expectations.
2. THE STANDARDS GAP
Is the difference between management’s perceptions of customer expectations and the quality standards established for service delivery.
3.THE DELIVERY GAP
Is the difference between specified delivery standards and the service provider’s actual performance on these standards.
4.THE INTERNAL COMMUNICATION GAP
Is the difference between what the company’s advertising and sales personnel think are the products features, performance, and service quality level and what the company is actually able to deliver.
5.THE PERCEPTION GAP
Is the difference between what is, in fact, delivered and what customers perceive they received (because they are unable to accurately evaluate service quality).
6.THE INTERPRETATION GAP
Is the difference between what the service communication efforts (in advance of service delivery) promise and what a customer thinks was promised by these communications.
7.THE SERVICE GAP
Is the difference between what customer expect to receive and their perceptions of the service that is delivered.
Customer’s expectationsCustomer’s expectations
Company’s perceptions of customer expectations
Company’s perceptions of customer expectations
Inadequate marketing research orientation
Lack of upward communication
Insufficient relationship focus
Inadequate service recovery
Reasons for
providergap
I
Reasons for
providergap
I
Translation of perceptions into service quality specifications
Translation of perceptions into service quality specifications
Management perceptions of customer expectations
Management perceptions of customer expectations
Poor service design
Absence of customer-defined service standards
Inappropriate physical evidence and servicescape
Reasons for
provider gap
2
Reasons for
provider gap
2
Poor human resource policies Failure to match supply and demand Customer not fulfilling their roles Problems with service
intermediaries
Service deliveryService delivery
Customer-driven service designs and standards
Customer-driven service designs and standards
Reasons for
provider gap
3
External communications to consumersExternal communications to consumers
Service deliveryService delivery
Lack of integration of marketing communications
Inadequate management of customer expectations
Overpromising
Inadequate horizontal communications
Reasons for
provider gap 4
Reasons for
provider gap 4
• Not knowing what customers expect
• Not selecting the right service standards and designs
• Not delivering to service standards
• Not matching performance to promised
Customer expectations
Customer expectations
Customer perceptions Customer perceptions
Reasons for
Customer Gap 5
Reasons for
Customer Gap 5
CLOSING THE GAPS
Gap 1: Learn what customers expectGap 2: Establish the right service quality standards
Gap 3: Ensure that service performance meets standards
Gap 4: Ensure that delivery matches promises
Closing gap 1: Learn what customers expect
Use research, complaint analysis, customer panels
Increase direct interactions between managers and customers
Improve upward communicationsAct on information and insights
listen to customers
Closing gap 2: Establish the right service quality standardsTop management commitment to providing service quality
Set, communicate, and reinforce customer-oriented service standards
Establish challenging and realistic service quality goals
Train managers to be service quality leadersBe receptive to new ways to deliver service quality
Standardise repetitive tasks
Prioritise tasksGain employee acceptance of goals and priorities
Measure performance of service standards and provide regular feedback
Reward managers and employees for achievement of quality goals
Service Quality Awards
Closing gap 3: Ensure that service performance meets standards
Attract the best employeesSelect the right employeesDevelop and support employees train employees provide appropriate technology &
equipmentencourage and build teamworkempower employees internal marketing
Can I take your
order?
Retain good employeesmeasure and reward service quality achievements
develop equitable and simple reward systems
You are a
Star Service
Provider
Closing gap 4: Ensure that service delivery matches promises
Seek input from operations personnel on what can be done
‘Reality’ advertising real employees, real customers, real situations
Seek input from employees on advertisingGain communications between sales, operations and customers
Internal marketing programsEnsure consistent standards in multi-site operations
In advertising, focus on service characteristics that are important to customers
Manage customer’s expectationsWhat are realistic expectations?Explain industry realities
Tiered service optionsOffer different levels of service - user
pays
Why do we always have to wait?
Service Satisfaction Information System
Customer Complaints Surveys Employee Surveys Focus Groups ‘Mystery shopping’ research Competitive market surveys - benchmark
Measuring Satisfaction
Qualitative Research Understand key drivers / determinants Questionnaire design Data analysis Service performance index (SPI) Importance - performance analysis
CONCLUSION
Just as the SERVQUAL model is extensively used to assess external service quality, the instrument can also be modified to assess the quality of the internal service provided by departments and divisions within a company to employees in other departments and division.