DELIVERING AND PERFORMING SERVICEDELIVERING AND PERFORMING SERVICE

Key Factors Leading to Provider Gap 3

Service Culture

“A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”

- Christian Grönroos (1990)

The Critical Importance of Service Employees

• They are the service.

• They are the organization in the customer’s eyes.

• They are the brand.

• They are marketers.

The “Power of One”• Every encounter counts

• Employees are the service

• Every employee can make a difference

• Through their actions, all employees shape the brand

The Services Marketing Triangle

Aligning the Triangle

• Organizations that seek to provide consistently high levels of service excellence will continuously work to align the three sides of the triangle.

• Aligning the sides of the triangle is an ongoing process.

The Service Profit Chain

Service Employees

• Who are they?– “boundary spanners”

• What are these jobs like?– emotional labor– many sources of potential conflict– quality/productivity tradeoffs

Boundary-Spanning Workers Juggle Many Issues

• Person versus role

• Organization versus client

• Client versus client

Strategies for Delivering Service Quality through People

• Hire the right people

• Develop people to deliver service quality

• Provide needed support systems

• Retain the best people

Traditional Organizational Chart

Manager

Supervisor

Front-lineEmployee

Customers

Front-lineEmployee

Front-lineEmployee

Front-lineEmployee

Supervisor

Front-lineEmployee

Front-lineEmployee

Front-lineEmployee

Front-lineEmployee

Customer-Focused Organizational Chart

CUSTOMERS’ ROLES IN SERVICE DELIVERY

Creating Value

• By participating in the service delivery process, customers create value for themselves

How Customers Widen the Service Performance Gap

• Lack of understanding of their roles

• Not being willing or able to perform their roles

• No rewards for “good performance”

• Interfering with other customers

• Incompatible market segments

Levels of Customer Participation across Different Services

Customer Roles in Service Delivery

Productive Resources

Contributors to Quality and Satisfaction

Competitors

Customers as Productive Resources

• customers can be thought of as “partial employees”– contributing effort, time, or other resources to the production

process

• customer inputs can affect organization’s productivity

• key issue:– should customers’ roles be expanded? reduced?

Customers as Contributors toService Quality and Satisfaction

• Customers can contribute to:– their own satisfaction with the service• by performing their role effectively• by working with the service provider

– the quality of the service they receive• by asking questions• by taking responsibility for their own satisfaction• by complaining when there is a service failure

Customers as Competitors

• customers may “compete” with the service provider• “internal exchange” vs. “external exchange”• internal/external decision often based on: – expertise capacity– resources capacity– time capacity– economic rewards– psychic rewards– trust– control

A Proliferation of Self-Service Technologies

ATMsPay at the pumpAirline check-inHotel check-in, outAutomated car rentalBlood pressure

machinesTax prep softwareSelf-checkout

Online bankingOnline vehicle

registrationOnline auctionsHome and car buying

onlinePackage trackingInternet shoppingIVR phone systemsDistance education

Importance of Other (“Fellow”) Customersin Service Delivery

• Other customers can detract from satisfaction:– disruptive behaviors– overly demanding behaviors– excessive crowding– incompatible needs

• Other customers can enhance satisfaction:– mere presence– socialization/friendships– roles: assistants, teachers, supporters, mentors

Strategies for Enhancing Customer Participation

Strategies for Enhancing Customer Participation

• Define customers’ roles– Helping oneself– Helping others– Promoting the company

• Recruit, educate, and reward customers– Recruit the right customers– Educate and train customers to perform effectively– Reward customers for their contributions– Avoid negative outcomes of inappropriate customer

participation

• Manage the customer mix