Flashcards
Lecture 7
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- 1Employees’ role in service delivery: Service cultureA 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.
- 2Exhibiting Service LeadershipEmployees are more likely to embrace service values not when they are bestowed on them, but when they see leadership living up to that culture.
- 3Developing a Service CultureHR and internal Marketing practices can help to achieve it.
Adapt culture to the contemporary service norms and customers’ expectations. - 4Transporting Service Culture to new geographic area- Language barriers;
- Legal barriers;
- Cultural barriers; - 5Importance of service employees- They are the service;
- They are the organization in the customer’s eyes;
- They are the brand;
- They are marketers; - 6Boundary spanning roleThe front-line service employees who have the contact with customers and outside environment in general (as
opposed to service employees which are below the visibility line). - 7Emotional labourThe labour that goes beyond the physical and mental skills need to deliver quality service.
This “type” of labour includes:
- delivering smiles, making eye contact, showing sincere interest and engaging in friendly conversation with people who are essentially strangers and who may or may not ever be seen again.
- Friendliness, courtesy,
empathy and responsiveness towards customers requires huge amounts of emotional labour. - 8Sources of conflict for emotional labour- Personal/role Conflicts; conflict between the job(role) requirements and the employee persona values and believes. (ex. to wear colorful uniform for a goth).
- Organisation/client Conflicts; employee believes the organisation is wrong in its policies and must decide to help the customer and lose the job or follow the polices.
- Inter-client Conflict; when a service employee must serve many customers at the same time. - 9Quality/quantity trade-offTechnology (e.g. CRM systems) can also help to increase quantity of customers served without huge compromise on the quality of both the service and the staff. (ex. front-line employees often burnout);
- 10Customer oriented service delivery: strategies for delivering service quality through people1. Hire the right people:
- Compete for the best people;
- Hire for service competencies and service inclinations;
- Be the preferred employer;
2. Retain the best people:
- Measure and reward strong service performance;
- Treat employees as customers;
- Include employees in the company's vision;
3. Provided needed support systems:
- Develop service-oriented internal processes;
- Provide supportive technology and equipment;
Measure internal service quality;
4. Develop people and deliver service quality:
- Promote teamwork;
- Empower employees;
- Train for technical and interactive skills; - 11Customer orientated service deliveryIn a service orientated organisation, the most important actors are the customers and the employees who deliver the service.
- 12Customers’ roles in service delivery Gap 3: service performance gapBecause customers are participants in service production and delivery they can help to close Gap 3 (service performance gap).
Gap 3: when employees do not perform well. (take too much time, do not know what to do, etc., do not follow rules of performane) - 13The importance of customers in the service co-creation and deliveryThe more the customers’ roles are deeply involved in a service creation and delivery, the more important they are. (Low: Airline, hotel - standardized services; Medium: Haircut, tax advice - needs customer's input to customize the service; High: Personal trainer, Marriage counselling - requires active participation, customer guides the customizations.
- 14Fellow (other) customers in the service co-creation and deliveryOther customers can detract from satisfaction:
• disruptive behaviors
• overly demanding behaviors
• excessive crowding
• causing delays
• manifesting incompatible needs
Other customers can enhance satisfaction:
• mere presence
• socialization/friendships
• roles: assistants, teachers, supporters, mentors - 15Customers’ Roles in the service co-creation and delivery: Customers as productive resourcesCustomers can be thought of as “partial employees”: contributing effort, time, or other resources to the production process.
There is a dilemma should the customers be allowed to play role as producers or not, especially when it comes to delivery. - 16Customers as contributors to service quality and satisfactionOften customers care little about how they have increased the productivity of a service organisation. However, they are much more interested if they are able to increase their satisfaction.
Customers can contribute to their own satisfaction with the service:
‒ by performing their roles more effectively - patient listening to doctor’s orders, fat people following the gym trainer instructions closely, students participating actively in lectures, etc.
‒ by working with the service provider;
Customers can increase the quality of the service they receive:
‒ by asking questions in order to understand their role better.
‒ by taking responsibility for their own action and therefore satisfaction
‒ by complaining when there is a service failure, and thus making sure that a failure would not linger too long unattended.
Researches show that customers who are contributing/participating to service are more satisfied and less likely to complain from the service provider, since they may perceive the fail to be in their actions and not the service provider. - 17Customers as competitorsIf customers are able to produce service and to increase their own satisfaction by doing so, it is only natural to assume that customers can act as competitors to a service provider. That is expressed entirely in the sense of Do It Yourself (DIY) culture.
- 18Customers as competitors That decision encompasses a few criteria:- Expertise Capacity: does the customer know how to perform the service in question;
- Resource capacity: do they have the necessary resources (tools, cash, etc.) to perform the service;
- Time Capacity: does the customer have the time to perform the service;
- Economic rewards: is there significant monetary difference between DIY or using a service provider
- Psychic rewards: what are the degrees of satisfaction, enjoyment, gratification or happiness from DIY or using an external service provider;
- Trust: does the customer trust more the service provider or their own capabilities to get the job done;
- Control: if the service in question is crucial to one’s core activities, they might want to exercise greater control in order to receive the desired outcome. - 19Strategies for enhancing customers’ participationThere are 3 main roles a company may want to 'recruit' customers for:
- To help themselves;
- To help others (student buddy programme at uni, welcome programs, membership organisations, etc);
- To promote the company;
For an affective customer participation:
1. Define customer's job; (level of participation, role)
2. Recruit, educate and reward customer;
3. Manage the customer mix; (asses compatibility of segments; isolate incompatible segments; enhance segment compatibility) - 20Delivering service through electronic channelsUnlike other service distribution channels, the electronic channels do not require direct human interaction.
Require a predesigned service and an electronic vehicle (PCs, phones, tablets, cars, watches, etc.) - 21Benefits of electronic channels- Consistent delivery for standardised service: no human interaction – no alteration of the delivery of the service
- Low cost
- Customer convenience: opened 24/7 in the comfort of the customer’s home… or anywhere else these days.
- Wide distribution
- Customer choice and ability to customise
- Quick customer feedback - 22Challenges to distributing services through electronic channels- Price competition
- Inability to customise with highly standardized services
- Lack of consistency due to customer involvement
- Changes in consumer behavior
- Security concerns
- Competition from widening geographies - 23Other forms of Service Distribution distributing services through electronic channelsDelivering of service through intermediaries.
Roles:
1. Service Principal or Originator - the service producer who creates the service concept;
2. Service Deliverer – the service intermediary who interacts with the customer at the time of execution of the service; - 24Direct or company owned channels: Own the delivery channelsAdvantages:
- Complete control over outlets (ex. banks) in order to maintain consistency in service provision. Service standards will be carried out since the company can easily monitor itself and correct when necessary;
- Control over hiring, firing and training employees.
- Freedom to expand or contract service outlets, without the fear of breaching contract with external service deliverer
- The most important benefit of company owned channels is that way the company owns and nourishes the relationship;
Disadvantages:
- The company bears all the financial burden and risk
- Large companies rarely have understanding of local markets;
When the disadvantages outweigh the advantages, a service provider usually enters into a partnership with
another organisation to deliver the service. - 25FranchisingFranchise works well with services that can be standardised, duplicated through the delivery process, service polices, warrantees, guaranties, promotion and branding.
- 26Agents and BrokersAgent is an intermediary who acts on behalf of either the service principal or the customer and is authorised to
make agreements on their behalf. An agent who is working for the principal I called Selling Agent and the one
who is working for the customer is called Purchasing Agent.
Broker is an intermediary who brings service seller and buyer together and assists them with the negotiation.
Brokers rarely become involved with finance or assuming risk. Broker is paid by whomever hired him. - 27Benefits of agents and brokers- Reduced selling and distribution costs;
- Possession of special skills and knowledge;
- Wide representation;
- Knowledge of local markets;
- Customer choice (ex. travel agent); - 28Challenges of delivering service through agents and brokers- The most important challenge is the loss of control over pricing – since agents are independent, they are often choosing the end price of a service;
- Representation of multiple service principals – A&Bs often represent a few providers and competition for the end user may become more fierce; - 29Common issues involving intermediaries- Channel conflict over objectives and performance; (ex. principle is competing with a ffranchisee)
- Difficulty controlling quality and consistency across outlets;
- Tension between empowerment and control; (ex. franchisees like to operate on themselves with no control of others)
- Channel ambiguity; When the roles and responsibilities are unclear, it often leads to confusion and conflict. - 30Strategies for effective service delivery through intermediariesControl strategies. Some franchisors believe in exercising total control over their intermediaries. There are two ways to control:
- Measurement: measures for everything, from the input to the output through systems that are reporting straight to the franchisor. (sales, bills);
- Review reviews of contracts on a time period basis (month, quarter, year, etc.);
Empowerment strategies:
- Help the intermediary to develop customer-orientated service process;
- Provide needed support systems;
- Cooperative management structures;
Partnering strategies:
- Alignment of goals;
- Consultation and cooperation;
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- Flashcards on Lecture 7, created by Roberta Daugelai on 29/03/2016.
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- Roberta Daugelai
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