Service quality and customer satisfaction

Service quality and customer satisfaction

1. service profit chain

   • economics of service
     • Frontline workers and clients need to be the center of management concern
       • important factors
         • investment to people
         • technology to support frontline workers
         • innovative recruitement and training practices
         • compensation linked to the performance of the employees
   • establishes relationships between
     • profitability
     • customer loyalty
     • employee satisfaction
     • loyalty
     • productivity
   • customer satisfaction
     • Customers tell us that value means the results they receive in relation to the total costs
       • loyalty = customer satisfaction
   • value is created by satisfied, loyal, and productive employees
     • Employee satisfaction --> results from high-quality support services that enable employees to deliver results to customers.

2. Service quality

   • How a service meets the customer needs and expectations
     • 3 important gaps that has direct relationship with customers
       • Customer expectation vs management perceptions
         • customer expectations and their perception of the service delivered
           • customer expectations and employees perceptions

3. SERVQUAL methology

   • measures customer expectations and perceptions
     • can also apply to the employees
   • used to compare customers expectations before a service encounter and their perception of the service delivered
     • 5 dimensions to measure performance
       • tangibles: appearance of personnel, equipement, etc.
         • Reliability: ability to perform the promised service
           • Responsiveness: Willingness to help customers and provide prompt service
             • Assurance: courtesy of employees and their ability to inspire trust
               • Empathy: understanding the customer
   • benefits of SERVQUAL
     • allows yearly comparisions
       • used for bechmarking purposes
         • determine how service improvements have affected the customers perceptions and expectations
           • determine the effectiveness of the service delivered

4. internal quality

   • working environment contributes most to employee satisfaction
     • measured by the feelings that employees have toward
       • jobs
       • colleagues
       • companies

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