Service Marketing

Service Marketing

1. Service profit chain

   • Shows relation between
     • Profitability
     • Customer and employee satisfaction
   • Links in the chain
     • Internal Quality
       • Employee satisfaction
         • Employee Loyalty
           • Employee productivity
             • Value of services
               • Costumer Satisfaction
                 • Costumer Loyalty
                   • Profitability and growth
                   • Most important determinant of profit
                     • +5% in loyalty results in +60% profitability
                 • quantify costumer satisfaction
                   • Can be made with Polls with points scales
               • Results given in relation to costs
             • Good managment
               • Organization with
                 • Schedules
                 • Company practices
                 • Color-code process
           • The real cost of turnover is the cost of low productivity
         • Dissatisfied employees are likely to leave the company
       • Feelings of employees toward the job
       • Attitudes between one another

2. Leadership

   • Create corporate culture centered on
     • Service to customers
     • service to fellow employees
   • Willingness to listen

3. Service profit chain audit

   • Determine what drives their profit
   • Obtain answers to questions
     • Service
       • External service value
         • How do you measure service value?
         • To what extent are measures taken of differences between customers’ perceptions of quality delivered and their expectations before delivery?
           • Service Quality
             • "extent to which a service meets customers needs or expectations"
               • Expectations > performance
                 • -quality
             • Measurement
               • Allows comparison before and after changes
               • SERVQUAL method
             • Gaps in the model
               • tasks associated with service delivery to customers.
                 • 7 gaps
                   • .
                   • Gaps 1-4 and 6-7
                     • functions of the way in which service is delivered
                   • Gap 5
                     • Focus on customer
                       • SERVQUAL method
                         • Tangibles
                           • Physical resources
                         • Reliability
                           • Ability to perform the promised
                         • Responsiveness
                           • Willingness to help
                         • Assurance
                           • ability to inspire trust and confidence.
                         • Empathy
                           • attention to its customers.
                         • Example: 7 point likert scale measuring both customer expectations and perceptions though the 5 dimension
     • Clients
       • Profit and Growth
         • How do we define loyal customers?
         • Do measurements of customer profitability include profits from referrals?
       • Customer satisfaction
         • Are customer satisfaction data gathered in an objective, consistent, and periodic fashion?
         • How is information concerning customer satisfaction used to solve customer problems?
     • Employees
       • Employee productivity
         • How do you measure employee productivity?
       • Employee loyalty
         • How do you create employee loyalty?
       • Employee satisfaction
         • Are employee selection criteria and methods geared to what customers, as well as managers, believe are important?
       • Internal Service quality
         • Do employees know who their customers are?
   • Suggest actions to improve

4. Service quality

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