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Importance of Importance of Service Culture and Service Culture and its its Impact on Impact on Performance Performance

Service culture impact on perfomance

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Page 1: Service culture impact on perfomance

Importance of Service Importance of Service Culture and its Culture and its

Impact on PerformanceImpact on Performance

Importance of Service Importance of Service Culture and its Culture and its

Impact on PerformanceImpact on Performance

Page 2: Service culture impact on perfomance

Author: Subir GhoshPresident – Aegis Global AcademyAn Essar Enterprisewww.aegisglobalacademy.com

Acknowledgement: - Prof. Deepak JainInsead Business School

- Janelle M. BarlowTMI, United States of America

- SQ CentreSingapore

Page 3: Service culture impact on perfomance

Broadening the Marketing Concept

Focus Means End

Sales Concept Product / Service Selling & Promos Profit thru Volumes

Marketing Concept Customer needs Integrated

MarketingProfit thru Customer

Satisfaction

The New Marketing Concept

Customer needs & Resources

Holistic Marketing

Profit thru customer retention & growth, i.e.

CLTV

• Marketing needs to now focus on not just ‘what’ the needs is but ‘how’ does the customers go about satisfying that need.

• Need to enhance the product definition of a product or service to ‘providing customer experience’

Page 4: Service culture impact on perfomance

Creating and Delivering Customer Value

• Companies today fundamentally are focused on price and features aspect which gets matched by competition almost overnight

• The focus is on the competitor than on the customer

Psychological Relationships

Functional i.e Features

Economic Price

Page 5: Service culture impact on perfomance

How Firms Deliver Value

• Both aspect of Innovation & Standardization are staccato i.e. they can occur only after time intervals.

• The customization angle is however more sustained• Thus points B & C are more likely to be ‘points of parity’ while point A

would be the ‘point of difference’

CustomizationCustomer Intimacy

Service/Brand/Trust/i.e. Consumer Experience

CustomizationCustomer Intimacy

Service/Brand/Trust/i.e. Consumer Experience

Innovation

Leading Edge Products

Innovation

Leading Edge ProductsStandardisation

Cost Efficiency

Standardisation

Cost Efficiency

Page 6: Service culture impact on perfomance

Sustaining Customer Value

• Customer Value = Consumption Value + Transaction Value• Consumption Value

– The benefits customers seek in consuming a particular product– Meeting the needs

• Transaction Value– The benefits customers seek in getting the product.– How the “needs” are being met

• Sustaining Customer Value– Develop a better understanding of not only customer’s needs but how

customers go about satisfying them – Customer Resources

Need to fly vs need to be transported from home to destinationNeed to fly vs need to be transported from home to destination

Page 7: Service culture impact on perfomance

The New Competitive Paradigm

• Adapting to changing market conditions and customer needs– From Product lifecycle to customer lifecycle

• Understanding customer value– Customer needs to customer resources

• Sustaining competitive edge– Tangible to Intangibles

• Need to focus on total consumer experience– Lakmé salons / Reebok health clubs / VIP travel advisory / Citibank

wealth management

Page 8: Service culture impact on perfomance

Significance of Customer ServiceStrategy Service Organization Behaviour Likely Results

CS as a cost

Seen as short term Don't trust either customers or staff

Customers buy on price & availability

Not seen as necessary Make no exception Staff stay based on salary levels - low engagement

Organization first, customer second

Organization operates as a commodity

Short terms focus, guidelines

CS as a necessity

Required because competitors are offering it Limited empowerment to staff Repeat business mainly due to

customer inertiaSeen as a cost, rather than marketing investment

Do only what is necessary to hold customers

Organization operates as a commodity

Concerns primarily with reacting to customer problems

CS as a Competitive Advantage

Strategic measure to develop business Exceed customer expectations High level of repeat business

Adequate staff empowerment Positive engagement with company Create Customer Delight

CS as an Expression of the Brand

Seen as the brand in action Brand promise reflected in policies & procedures Customers as brand advocates

Tailored brand education for everyone Engaged and empowered staff

Increased brand equity & higher profits

Page 9: Service culture impact on perfomance

Organisational Blind-spots

• Obsessed with competition than with the customers• Operate mostly as transaction mode than on relationship mode –

new customers frequently end up getting better deals than existing ones

• The quarterly result syndrome• The means versus the ends dilemma – what is the core purpose?

– Making money by serving customers– Serving customer to make money

• The silo structure – who owns the customer?• Branding related fallacies – Is branding about creating a promise or

delivering customer expectations arising out of the promise.• External service quality is independent of internal service quality

Page 10: Service culture impact on perfomance

Creating the Service Culture

Shared values – Basic attitudes towards Service – cost / necessity / competitive advantage / brand

•Manifestations :– Concept of internal customers– Empowerment – All levels engaging in customer contact– Rewards & recognition for outstanding services delivered– Service guarantees

•Systems & Process :– T A Ts– Escalation mechanism– Service recovery process– Blue printing and fail-safing of processes

Page 11: Service culture impact on perfomance

Creating the Service Culture

• Recruitment, Training & Development :

– All existing and potential employees undergo service

attributes testing

– Training programs focused primarily on reinforcing key

service attribute

– Product and Brand related knowledge testing and

refreshers

Page 12: Service culture impact on perfomance

The Core Service Attitudes

• Customer First Mindset– To go out of one’s way, even to the point of being inconvenienced to ensure

satisfaction.

• Positive Outlook– Display a “can-do” attitude. Take set-backs in stride.

• Professional Acumen– Strive to be as knowledgeable as possible about job-related issues.

• People Orientation– Take initiative to establish rapport

Recognise – Measure – Train – Practice - LiveRecognise – Measure – Train – Practice - Live

Page 13: Service culture impact on perfomance

• Basic Respect– Show common courtesy to everyone

• Resourcefulness– Find a “YES” for the customer, suggest alternatives

• Personalized Responsiveness– Understand the customer’s needs and customise responses

• Reliability– Deliver as promised

The Core Service Attitudes

Recognise – Measure – Train – Practice - LiveRecognise – Measure – Train – Practice - Live

Page 14: Service culture impact on perfomance

Let’s begin…