Final-customer Participation in Service Delivery

7/30/2019 Final-customer Participation in Service Delivery

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the importance of creating a service culture in

which providing excellent service to both

internal and external customers is a way of life. the critical importance of service employees in

creating customer satisfaction and service

quality. the primary channels through which services are

delivered to end customers.


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Service Culture The Critical Importance of Service Employees

Boundary-Spanning Roles Strategies for Delivering Service Quality

Through People Customer-Oriented Service Delivery


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A culture where an appreciation for goodservice exists, and where giving good service

to internal as well as ultimate, externalcustomers, is considered a natural way of lifeand one of the most important norms byeveryone in the organization.

- Christian Gronroos(1990)


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They are the service.

They arethe organization in the customers eyes.

They are the brand.

They are marketers.

Their importance is evident in: the services marketing mix (people) the service-profit chain the services triangle


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Internal Marketing

Interactive Marketing

External Marketing

Company(Management)

CustomersEmployees

Enabling the promise

Delivering the promise

Making the promise


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Focus on a service organization. In the contextyou are focusing on, who occupies each of thethree points of the triangle?

How is each type of marketing being carried outcurrently?

Are the three sides of the triangle well aligned?

Are there specific challenges or barriers in any ofthe three areas?


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Overall Strategic

Assessment

How is the serviceorganization doing on allthree sides of thetriangle?

Where are the

weaknesses?

What are the strengths?

Specific Service

Implementation

What is being promotedand by whom?

How will it be deliveredand by whom?

Are the supportingsystems in place todeliver the promisedservice?


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Who are they?

boundary spanners

What are these jobs like? emotional labor

many sources of potential conflict

quality/productivity tradeoffs


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Internal Environment

External Environment


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Person versus role

Organization versus client

Client versus client

Quality vs. Productivity


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Hire the Right People Compete for the Best People Hire for Service Competencies and Service Inclination Be the Preferred Employer

Develop People to Deliver Service Quality Train for Technical and Interactive Skills Empower Employees Promote Teamwork

Provide Needed support systems

Measure Internal Service Quality Provide Supportive Technology and Equipment Develop Service-Oriented Internal Processes

Retain the best People Include Employees in the Companys Vision

Treat Employees as Customers Measure and Reward Strong Service Performers


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Provideneeded support

systems

Hire theright people

Retain the

best

people

Develop

people to

deliver

service

quality

Hire for service

competencies and

service

inclinationCompete for

the best

people

Measure and

reward strongservice

performers

Treat

employeesas

customers

Includeemployees in

the

companys

visionDevelop

service-oriented

internal

processes

Provide

supportive

technology

and

equipment

Measure

internal service

quality

Promote

teamwork

Empoweremployees

Train for

technical andinteractive

skills

Be the

preferred

employer

Customer-

Oriented

Service

Delivery


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Benefits:

quicker responses to

customer needs during

service delivery

quicker responses to

dissatisfied customers

during service recovery

employees feel better about

their jobs and themselves

employees tend to interact

with warmth/enthusiasm empowered employees are

a great source of ideas

great word-of-mouth

advertising from customers

Drawbacks:

potentially greater dollar

investment in selection

and training

higher labor costs

potentially slower or

inconsistent service

delivery

may violate customers

perceptions of fair play

employees may giveaway the store or make

bad decisions


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Manager

Supervisor

Front-line

Employee

Customers

Front-line

Employee

Front-line

Employee

Front-line

Employee

Supervisor

Front-line

Employee

Front-line

Employee

Front-line

Employee

Front-line

Employee


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Manager

Supervisor

Front-line

Employee

Customers

Front-line

Employee

Front-line

Employee

Front-line

Employee

Supervisor

Front-line

Employee

Front-line

Employee

Front-line

Employee

Front-line

Employee


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Customers Roles in Service

Delivery


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Lack of understanding of their roles

Not being willing or able to perform theirroles

No rewards for good performance

Interfering with other customers

Incompatible market segments


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Other customers can detractfrom satisfaction:

disruptive behaviors

overly demanding behaviors excessive crowding

incompatible needs

Other customers can enhance satisfaction:

mere presence

socialization/friendships

roles: assistants, teachers, supporters, mentors


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Productive Resources

Contributors to

Service Qualityand Satisfaction

Competitors


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customers can be thought of as partialemployees contributing effort, time, or other resources to the

production process

customer inputs can affect organizationsproductivity

key issue: should customers roles be expanded? reduced?


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Customers can contribute to:

their own satisfaction with the service

by performing their role effectively by working with the service provider

the quality of the service they receive

by asking questions by taking responsibility for their own satisfaction

by complaining when there is a service failure


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customers may compete with the serviceprovider

internal exchange vs. external exchange

internal/external decision often based on: expertise capacity resources capacity time capacity

economic rewards psychic rewards trust control


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These are the services produced entirely by thecustomer without any direct involvement withthe firms employees.

A proliferation of new SSTs. Customer usage of SSTs.

Success with SSTs.


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1 2 3 4 5 6Gas Station Illustration

1. Customer pumps gas and pays at the pump with automation

2. Customer pumps gas and goes inside to pay attendant

3. Customer pumps gas and attendant takes payment at the pump

4. Attendant pumps gas and customer pays at the pump with automation

5. Attendant pumps gas and customer goes inside to pay attendant

6. Attendant pumps gas and attendant takes payment at the pump

Customer Production Joint Production Firm Production


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Define customers jobs helping oneself

helping others

promoting the company

Recruit, educate, and reward customers recruit the right customers

educate and train customers to perform effectively

reward customers for their contributions avoid negative outcomes of inappropriate customer participation

Manage the customer mix


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Thank you

Final-customer Participation in Service Delivery

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