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“Service Marketing”Desales University
Rodolfo Cremer www.marketingdeservicios.com
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whatdo youexpect?
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agenda
1. What is Marketing (a XXI century view)
2. What is Service (and why it fail)?
3. What is Quality (and how to manage it in services)
4. Marketing (XXI) + Service + Quality
Rodolfo J. Cremer, Phd (c)Director and professor of Strategic Marketing and Service Marketing at undergraduate & postgraduate schoolUniversidad Peruana de Ciencias Aplicadas - UPC
Doctorando (Phd) in Business Administration in Universidad Politécnica de Cataluña, Spain. MBA by the UQÀM (Université du Quebec à Montreal), Canada, and MBA by the Universidad San Ignacio de Loyola (Lima, Peru). In both MBA programs occupied the first place in his promotion.
Actually, is the Director of the Working Adult Program at the UPC (Universidad Peruana de Ciancias Aplicadas) and Director of the Instituto de Marketing de Servicios (IMdS) for Peru, Spanish company leader in relational marketing and services strategies. He is also director of InnovAcción, company of the ACP group, leaders in microfinances in Latin American.
Professor Cremer is lecturer of Strategic Marketing and Service Marketing at UPC Undergraduate and Graduate School, and has been lecturer in subjects as strategic planning and balanced scorecard, loyalty programs and service marketing strategies in other universities, master programs and postgraduate schools, as well as in open seminaries. He was also lecturer in the international event BALAS 2006 (Business Association of Latin American Studies) and in the XI Seminary and I International Congress of Marketing and Advertising in Bucaramanga, Colombia (2007).
He is Business Administrator with more than 15 years of professional experience in multinational companies of consultancy, commercial and services, where it has held the positions of director, marketing manager and commercial manager. Its professional experience is concentrate in subjects as strategic planning and the construction of commercial and marketing plans, and developing loyalty programs (CRM). He has worked for companies such as Pepsico, Price Waterhouse Coopers, Yamaha Motor of Peru, Kawasaki, Suzuki of Peru, General Motors, Mibanco, Los Delfines-Summit Hotel & Casino, Banco Financiero, Atlantic City Casino. He has developed consultancy programs and in-house seminaries for Interbank, Nissan, LAN, Asosiación Peruano-Britpanico, Constructora Líder, Impulse Telecom, Belcorp, Telepónica, Prosegur, among others.
When we are in a learning process our mind should work as a parachute
It’s better when is It’s better when is open.open.
please do me…
One favor
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well
“What is marketing?”
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And what is…
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1 de cada 4 empresas españolas (25.4%) prevé perder este año entre el 10% y el 30% de sus clientes.
Encuesta a más de 2.000 directores generales, directores comerciales y directores de Marketing de las más relevantes empresas nacionales y multinacionales de varios sectores.
El 19,9% de las compañías cree que perderá entre el 10% y el 20%.
Mientras, un 5,5% prevé que la tasa de abandono se situará entre el 20% y el 30%.
7% de las empresas consultadas admite que su tasa de churn puede dispararse por encima de un alarmante 30%.
Numerosas empresas optan por asumir tasas de abandono de forma natural, redoblando sus esfuerzos de captación de nuevos clientes.
La estrategia aconsejable, sin embargo, es la de definir y aplicar Estrategias de Prevención del Churn, que pasen por el establecimiento de planes de Fidelización y Retención de Clientes.
Introducción
Fuente: IMdS. www.marketingdeservicios.comDon’t worry
is not in
spanish!
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1 de cada 4 empresas españolas (25.4%) prevé perder este año entre el 10% y el 30% de sus clientes.
Encuesta a más de 2.000 directores generales, directores comerciales y directores de Marketing de las más relevantes empresas nacionales y multinacionales de varios sectores.
El 19,9% de las compañías cree que perderá entre el 10% y el 20%.
Mientras, un 5,5% prevé que la tasa de abandono se situará entre el 20% y el 30%.
7% de las empresas consultadas admite que su tasa de churn puede dispararse por encima de un alarmante 30%.
Numerosas empresas optan por asumir tasas de abandono de forma natural, redoblando sus esfuerzos de captación de nuevos clientes.
La estrategia aconsejable, sin embargo, es la de definir y aplicar Estrategias de Prevención del Churn, que pasen por el establecimiento de planes de Fidelización y Retención de Clientes.
Introduction
Source: IMdS. www.marketingdeservicios.com
1 of each 4 Spanish companies (25,4%) anticipates to lose
this year between 10% and 30% of its customers.
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1 de cada 4 empresas españolas (25.4%) prevé perder este año entre el 10% y el 30% de sus clientes.
Encuesta a más de 2.000 directores generales, directores comerciales y directores de Marketing de las más relevantes empresas nacionales y multinacionales de varios sectores.
El 19,9% de las compañías cree que perderá entre el 10% y el 20%.
Mientras, un 5,5% prevé que la tasa de abandono se situará entre el 20% y el 30%.
7% de las empresas consultadas admite que su tasa de churn puede dispararse por encima de un alarmante 30%.
Numerosas empresas optan por asumir tasas de abandono de forma natural, redoblando sus esfuerzos de captación de nuevos clientes.
La estrategia aconsejable, sin embargo, es la de definir y aplicar Estrategias de Prevención del Churn, que pasen por el establecimiento de planes de Fidelización y Retención de Clientes.
Source: IMdS. www.marketingdeservicios.com
19.9% of the companies think that they will lose between 10% and 20%.
While, a 5.5% anticipate that the rate of abandonment will be placed between 20% and 30%.
7% of the consulted companies admit that its rate of churn can go over an alarming a 30%.
They “choose” to assume rates of abandonment (churn) in a natural form, redoubling their efforts (focusing on) to pick up new customers
Introduction
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“Service is our main product”
a store message during our travel between Bethlehem and Allentown
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Consulted on the reason for abandonment, 73% of the consumers alluded to "customer service" like the main reason, against 21% of the managers.
50% of the managers attributed to the factor price the flight of customers, while only a 24% of the “desertor customers" alluded to the prices like detonating.
This disparity speaks by itself on the understanding effort that is forced to be made in the companies (if they want to stop the "sangría" of customers) and to know exactly how to retain them.
Introduction
Source: IMdS. www.marketingdeservicios.com
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What
happend?[where is marketing]
What is “Marketing”?
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Marketing
Es un proceso socialproceso social y de gestióngestión a través del cual los individuosindividuos y grupos obtienen lo que grupos obtienen lo que necesitan y deseannecesitan y desean, creando, ofreciendo e intercambiando productosproductos, bienesbienes y serviciosservicios de de valor para otrosvalor para otros..
Según Philip Kotler
Marketing (and it’s traditional definitions)
It is a social & management process through what the individuals
and groups obtain what they need
and wish, creating, offering and
interchanging products, goods and services of value for others.
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Marketing
Según Jerome McCarthy
El marketing contribuye decisivamente a ofrecerle a los clientes bienesbienes y serviciosservicios y, en términos más generales, a lograr su lograr su satisfacciónsatisfacción. En una palabra la satisfacción del cliente es la medida en que una compañía atiende sus atiende sus necesidadesnecesidades, deseosdeseos y expectativasexpectativas..
Marketing decisively contributes to offer to the clients goods and services, in more general
terms, to obtain its satisfaction.
In a word the customer satisfaction is the measurement in which a company takes care of its needs, desires and expectations.
Marketing (and it’s traditional definitions)
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La paradoja de lasatisfacción
Source: IMdS. www.marketingdeservicios.com
(The paradox of satisfaction)
Why
marketing is not satisfaction?
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““satisfaction issatisfaction is NOTNOT loyalty”loyalty”
Completely Satisfy
Completely Satisfy Very SatisfyVery Satisfy SatisfySatisfy Very UnsatisfyVery Unsatisfy Completely
Unsatisfy
Completely Unsatisfy
80%10% 10%
80% + 10% = 90%Churn factor = 75%
It only renews with the same brand 15%
La paradoja de la satisfacciónIn the automobile industry …
Source: IMdS. www.marketingdeservicios.com
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4PProductPricePlacePromotion
Mentality of management dominated by the optics of the supply (point of view of the offer)optics of the supply (point of view of the offer)
The “service companies” not even were seen like “service producers”.
El nacimiento del marketingThe Birth Of Marketing
Source: IMdS. www.marketingdeservicios.com
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El nacimiento del marketing
Source: IMdS. www.marketingdeservicios.com
The Birth Of Marketing
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El nacimiento del marketing
Source: IMdS. www.marketingdeservicios.com
The Birth Of Marketing
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So there was no other option …
The services did not have more remedy
than to adopt marketing as it had been
conceived for products.
Marketing Evolution …
(in spite of the evident
differences between products and services)
Source: IMdS. www.marketingdeservicios.com
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The intangibility [of the service]
Simultaneity production–consumption
Production Process
Contact company–client
Heterogeneity of the services, and
Participation of the client [in the service production process]
The 6 Key Differences Between Products and Services
Source: IMdS. www.marketingdeservicios.com
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Pure adoptionI Born
4Ps
ApplicabilityIII adaptation
TraditionalMarketing
InternalMarketing
RelationalMarketing
A freedom shoutII Evolution1977: “Breaking Free From Product Marketing”(Liberémonos del marketing de productos)G. Lynn Shostack, Vicepresidenta del CitiBank
Sou
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IMdS
. ww
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Marketing Evolution …
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For Shostack, the key criteriakey criteria is: ApplicabilityApplicability
The fundamental function of marketing is to maintain the relation between the company and its market.
But in a production company the customer practically does not make contact with “the company” [and when he does, he is under the control of the organization].
Nevertheless… in the service company all the employees make contact with the customer.
Marketing “Aplicability”: The key Factor!
Source: IMdS. www.marketingdeservicios.com
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so…so…
It is necessary It is necessary
a a differentdifferent approachapproach
(tridimensional)(tridimensional)
The Aplicability Stage
Source: IMdS. www.marketingdeservicios.com
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TraditionalMarketingComunicate the promise
InternalMarketingallow to give the promise (fulfills)
RelationalMarketingDelivery the promise and manages the relation
New Tridimensional Marketing Perspective
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MarketingTradicionalcomunicación de la promesa
MarketingInternoPermite que se entregue lo prometido (cumple)
MarketingRelacionalEntrega de lo prometido y gestiona la relación
4Ps ProcessStandards
CRM
PeopleEmpowermentExperiences
ProductPricePlace
Promotion
Process &PhysicalEvidence
People &“True momets”
Homogenous Sales Points:
Tareas, herramientas,
formación, guiones, prestaciones
estandarizadas ,,,
Emotional Conection:
Habilidades, emociones,
actitudes, vocación de servicio, “salirse
del guión” ,,,
Customer“true moments”
New Tridimensional Marketing Perspective
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Product - ServiceProduct - Service
Physical EvidencePhysical Evidence[Perceptions][Perceptions]
PlacePlace ProcessProcess
PricePrice PeoplePeople
PromotionPromotionPrestación–entrega Prestación–entrega [giving the benefit; [giving the benefit; the “true moment”] the “true moment”]
Nuevo Enfoque Adaptado Al S. XXI (marketing ampliado)
Source: IMdS. www.marketingdeservicios.com
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What is marketing?
[So…]
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MarketingSegún G. Lynn Shostack
Marketing is the area in charge to maintain the
relation between the
company and its customers¿components of a relation?
Source: IMdS. www.marketingdeservicios.com
Marketing (and it’s XXI Century Definition)
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What is inside Marketing?
vinculo = relación¿components of a relation?¿components of a relation?
Satisfacción
Confianza
Respeto
Comunicación
Una relación: Ganar – Ganar
Lealtad
Fidelidad
Pasión
Amor + Conveniencia
Perdón
Conocimiento
No son lo mismo
Satisfaction
Confidence
Respect
Communication
A relation: win - win
Loyalty
Fidelity
Passion
Love + Convenience
Pardon
Knowledge
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Question?
¿and now …What is aservice?
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What is a service?
Servidumbre = servitude o servants
“water” (inodoro) = toilet
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Servicio: según la RAEMarketing Y Sus Definiciones
Source: www.rae.es
1. m. Acción y efecto de servir.
2. m. Conjunto de criados o sirvientes.3. m. servicio doméstico.4. m. Culto religioso.5. m. Mérito que se adquiere sirviendo al Estado o a otra entidad o persona.6. m. servicio militar.7. m. Favor que se hace a alguien.8. m. En la época preconstitucional, contribución votada por las Cortes.9. m. orinal.
10. m. retrete (‖ aposento). U. t. en pl. con el mismo significado que en sing.11. m. enema2.12. m. Cubierto que se pone a cada comensal.13. m. Conjunto de alimentos que se ponen en la mesa.14. m. Conjunto de vajilla y otros utensilios, para servir la comida, el café, el té, etc.15. m. Hablando de beneficios o prebendas eclesiásticas, residencia y asistencia personal.16. m. Organización y personal destinados a cuidar intereses o satisfacer necesidades del público o de alguna
entidad oficial o privada. Servicio de correos, de incendios, de reparaciones17. m. Contribución que se pagaba anualmente por los ganados.18. m. Función o prestación desempeñadas por estas organizaciones y su personal.19. m. Dep. saque (‖ acción de sacar).
20. m. Econ. Prestación humana que satisface alguna necesidad social y que no consiste en la producción de bienes materiales.
Human benefit that satisfies some social necessity and that it does not consist of the
production of material goods
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¿Why service is imprtant for customers & our company?
Greater loyalty from the consumers, clients and users.
Increase sales & yield (the high quality, among other things, allows to fix prices higher than the competition).
More frequent sales, greater repetition of businesses with the same clients, users or consumers.
A high level of individual sales to each client, consumer or user (the satisfied clients buy more of the same services and products).
More crossed sales, since the satisfied clients are more arranged to buy the other services or products of the company.
More new clients caught through the communication mouth-to-mouth, the references of the satisfied clients, etcetera.
Smaller expenses in (traditional) marketing activities (publicity, promotion of sales and advertising): the companies that offer low quality are forced to make majors investments in marketing for “replacing” the clients who are continuously lost.
Sou
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IMdS
. ww
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¿Why service is imprtant for customers & our company?
Less complaints and claims (and, consequently, smaller expenses caused by its management).
Better image and reputation of the company.
A clear differentiation of the company with respect to its competitors (although they are products and services similar to those of the competitors, perceive them to the clients like different and, even, unique).
A better internal climate, since the employees are not pressed by the continuous complaints of the consumers, users and clients.
Better internal relations between the personnel since all work, unified, towards a same objective.
Less complaints and absenteeism on the part of the personnel (more high productivity).
Reduce rotation of the personnel.
Better market share.
Source: IMdS. www.marketingdeservicios.com
Question?
And finally…
¿ what isquality?
Durante un viaje por la carretera me detuve en un poblado Durante un viaje por la carretera me detuve en un poblado para comprar algo de comer.para comprar algo de comer.
Al entrar en la pizzería vi un letrero que decía:Al entrar en la pizzería vi un letrero que decía:
““Quality, Service and Good Price. Quality, Service and Good Price. Choose only twoChoose only two.”.”
Selecciones del Reader’s DigestPp 101, agosto 2007
Quality. Until where?
¿ what is
quality?
¿ what is
quality?
Principle
What gets measured, gets done. !
Source: IMdS. www.marketingdeservicios.com
Destiny
Is not a matter of chance;
it is a matter of choice.
The other option …
standards¿is possible to establish & measure
in services?
How can we establish standards in services?
Source: IMdS. www.marketingdeservicios.com
To turn the
customer expectations [and the promises of the company]
in perceived attributes by the client, of obligatory fulfillment, with the purpose to guarantee that they
are present during the service process (benefit).
Standards in Services
YES
Source: IMdS. www.marketingdeservicios.com
qualities¿how can we measure human
such as:the attention
courtesyamiability
service vocation ?
But how?
Source: IMdS. www.marketingdeservicios.com
It is perfectly possible if we admit, that a
service quality
measurement (or service standard) does not have to be
necessarily quantitative.
Jacques Horovitz (“La Qualite de Service”)
J. Horovitz Principle
Source: IMdS. www.marketingdeservicios.com
IMdS Principle:IMdS Principle:
“When in the company do not exist clear and concrete quality standards,
we left into the hands of personnel the daily decision on what it must be
the final quality that will have products and services in the
organization.”
Artículo: Los Estándares de Calidad en el Servicio, de IMdS
Standards
Source: IMdS. www.marketingdeservicios.com
IMdS corollary :IMdS corollary :
“¡¡Best wises (desire) and the good faith of our
employees do not assure that their
CRITERION agrees with the CUSTOMER
EXPECTATIONS!!”
Standards
Source: IMdS. www.marketingdeservicios.com
C = P – EQ = B - E
(2) Benefit (“prestación” in spanish) (Process + People +
4Ps)
(1) Expectations
The Quality Ecuation
Source: IMdS. www.marketingdeservicios.com
RECUERDAN: C = P - ERemember …
Customer comes
stimulated by this promise
But remembers and it remains
with his experience
(and tell it to the rest!!)
What a LADA sales people said to a customer:
““A LADA automobile will be for A LADA automobile will be for ““all your lifeall your life”…””…”
What the sales people din´t said:
“… “… because nobody because nobody it is going to buy it it is going to buy it
from you laterfrom you later”.”.
Example: The Quality Ecuation: C = P - E
Source: IMdS. www.marketingdeservicios.com
In not enough to do things correct;We have to do correctly, the correct things”
“Is no longer enough to focus on customer satisfaction; we have to delight,
and even to astonish him.”
Artículo: La medición de la satisfacción del cliente (Juan Carlos Alcaide, director del IMdS)
IMdS Principle (Instituto de Marketing de Servicios)
Fuente: IMdS. www.marketingdeservicios.com
“They are not the products, but the processes that
create products, those that contribute to the long term success of
the companies”.
Michael Hammer & James Champy Reengineering the Corporation: A Manifesto for Business
Revolution
The Process ¿More Important than the Product?
Fuente: IMdS. www.marketingdeservicios.com
“If we rendered to the services in the street the same
attention that we give to products in the factory,
without a doubt would appear a great number of new
opportunities”.Theodore Levitt
The Procees is more important than Product
Fuente: IMdS. www.marketingdeservicios.com
Quality ¿is enought?
Fuente: IMdS. www.marketingdeservicios.com
QualityCustomer Connection
Exceptional Operation
1980 – 1990 2000 – 200?
TechnicalQuality
Human QualityHuman “excellence”+
+
Source: IMdS. www.marketingdeservicios.com
Quality effects
Quality Systems + Smiles
• El modelo americano• McDonald’s: la
fábrica de servicios• Estandarización de
procesos• Métricas• Medido y
cuantificado• El ejemplo de “la
fábrica de tornillos” al servicio
• Recuerde: “la mejor improvisación es aquella que está totalmente preparada”
• Puedo salirme del guión dentro de parámetros.
• Empowerment• Coaching• Información
compartida
Quality effects
Source: IMdS. www.marketingdeservicios.com
Quality Systems + Smiles
Hard StandardsHard Standards• Ningún cliente
esperará más de 30” antes de ser atendido
• El índice de robos será 0
• La solicitud será atendida en menos de 8’
• Su llamada será atendida antes de tres timbradas
Soft StandardsSoft Standards• Nuestra gente sonríe
espontáneamente?• Recibió un trato
amable?• Respetuoso?• Se siente como “en
casa”?• “Lo escuchamos” con
atención?
Processobjectives
Emotionalobjectives
Source: IMdS. www.marketingdeservicios.com
““Not everything you can Not everything you can
count, counts;count, counts;
not everything you are not everything you are
counting, counts”.counting, counts”.
Albert Einstein
Principle: Quality + Customer Connection= 10
IMdS Principle: Quality + Customer Connection
Source: IMdS. www.marketingdeservicios.com
““The essential is invisible to the eyesThe essential is invisible to the eyes”.”.Antoine de Saint-Exupéry
en El Principito
IMdS Principle: Quality + Customer Connection
Relationscan not be installed…
must be
adopted.
1 to 1
Marketing 1-2-1 Principle
Keep In Mind: Customer
SatisfactionSatisfaction versus Customer
SuccessSuccess
[ something to have present … ]
“The essential difference between
emotion and reason is that …
[ Algo para tener presente … ]
“The essential difference between
emotion and reason is that …
emotion leads to action while
reason leads to conclusions.”
Kevin Roberts [Lovemarks: the future beyond brands]