Moments of Truth1. Each customer contact is called a
moment of truth.
2. You have the ability to either satisfy or dissatisfy them when you contact them.
3. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.
SAS
The services marketing triangle
Customers
Company
Momentsof truth.
Interactive marketing(Keeping promises)
Int
erna
l mar
ketin
g
(Ena
bling
prom
ises)
External marketing
(Making promises)
Providers
Dimensions of Service Quality
1. Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.
2. Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.
DHL
Costs of Service Quality(Bank Example)
Failure costs Detection costs Prevention costsExternal failure: Process control Quality planning Loss of future business Peer review Training program Negative word-of-mouth Supervision Quality audits Liability insurance Customer comment card Data acquisition and analysis Legal judgments Inspection Recruitment and selection Interest penalties Supplier evaluation Internal failure: Scrapped forms Rework Recovery: Expedite disruption Labor and materials
Dimensions of Service Quality
3.Assurance: Ability to convey trust and confidence.
Example: being polite and showing respect for customer.
4.Empathy: Ability to be approachable . Example: being a good listener. 5.Tangibles: Physical facilities and facilitating
goods. Example: cleanliness.
Relative Importance of SERVICE QUALITY
5.Tangibles
2.Reliability1.Assurance
3.Empathy
4.Responsiveness
Importance : 5 = Essential; 4 = very importance ; 3 = neutral ; 2 = not very importance; 1 = Irrelevant
PengukuranKualitas Services
Ability to perform the promised service dependability andaccurately
Appearance of physical facilities ;equipment,personnel,communication materials
Caring, individualized attentionthe firm provides its customers
Knowledge and courtesy of employees and their ability to conveytrust and confidence
Willingness to help customers and provide prompt service
Satisfaction : 5= Highly Satisfied ; 4 = Satisfied; 3 = Neutral ;
2 = Dissatisfied ; 1 = highly dissatisfied.
Perceived Service Quality
Word of mouth
Personal needs
Past experience
Expectedservice
Perceivedservice
Service Quality Dimensions
ReliabilityResponsiveness
AssuranceEmpathyTangibles
Service Quality Assessment1. Expectations exceeded ES<PS (Quality surprise)2. Expectations met ES~PS (Satisfactory quality)3. Expectations not met ES>PS (Unacceptable quality)
Total
5
4
3
2
1
5Tangibility
4Responsive-
ness
3Empathy
2Reliability
1Assurance
Force ranking : Bobot penting Jasa rental Gen.set …………………………
Total
Jasa Sewa Gen. set…………………………….
Tangibility
Empathy
Responsiveness
Assurance
Reliability
ImportanceServqual Satisfaction Gap
Importance : 5 = Essential; 4 = very importance ; 3 = neutral ; 2 = not very importance; 1 = Irrelevant
Satisfaction : 5= Highly Satisfied ; 4 = Satisfied; 3 = Neutral ; 2 = Dissatisfied ; 1 = highly dissatisfied.
4.5 4.7
Action plan
Tangibility
Empathy
Responsiveness
Assurance
Reliability
ServqualSasaran
perbaikanAction plan
Prio-ritas
: Jasa Rental Gen.set……………………………………..
Service Quality Gap ModelCustomer
Perceptions
Customer
Expectations
Service
Delivery
Service Standards
ManagementPerceptions of
Customer Expectations
Managing the Evidence
Conformance Service Design
Understanding the Customer
Customer Satisfaction GAP 5
Customer / Marketing
Research GAP 1
Conformance GAP 3
Communication GAP 4
Design GAP 2
Service Quality Gap Model
Quality Service by Design
1. Quality in the Service PackageBudget Hotel example
2. Poka-yoke (fail-safing)Height bar at amusement
park3. Quality Function Deployment
House of Quality
BH
Classification of Service Failures
Server ErrorsTask:
Doing work incorrectlyTreatment:
Failure to listen to customerTangible:
Failure to wear clean uniform
Customer ErrorsPreparation:
Failure to bring necessary materials
Encounter:Failure to follow system flow
Resolution:Failure to signal service failure
Achieving Service Quality
Cost of Quality (Juran)
Statistical Process Control (Deming)
Unconditional Service Guarantee
D7D
Control Chart of Departure Delays
60
70
80
90
100P
erce
nta
ge
of
on
tim
e fl
igh
ts
expected
Lower Control Limit
1998 1999
n
pppUCL
1(3
n
pppLCL
1(3
SQ
Unconditional Service Guarantee: Customer View
Unconditional (L.L. Bean) Easy to understand and
communicate (Bennigan’s) Meaningful (Domino’s Pizza) Easy to invoke (Cititravel) Easy to collect (Manpower)
Unconditional Service Guarantee: Management
View
Focuses on customers (British Airways)
Sets clear standards (FedEx) Guarantees feedback (Manpower) Promotes an understanding of the
service delivery system (Bug Killer) Builds customer loyalty by making
expectations explicit
Customer Satisfaction
All customers want to be satisfied.
Customer loyalty is only due to the lack of a better alternative
Giving customers some extra value will delight them by exceeding their expectations and insure their return
Customer Feedback andWord-of-Mouth
The average business only hears from 4% of their customers who are dissatisfied with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems.
The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.
About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly.
A dissatisfied customer will tell between 10 and 20 other people about their problem.
A customer who has had a problem resolved by a company will tell about 5 people about their situation.
Walk-Through-Audit Service delivery system should
conform to customer expectations. Customer impression of service
influenced by use of all senses. Service managers lose sensitivity
due to familiarity. Need detailed service audit from a
customer’s perspective.
Approaches to Service Recovery
1. Case-by-case addresses each customer’s complaint individually but could lead to perception of unfairness.
2. Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.
3. Early intervention attempts to fix problem before the customer is affected.
4. Substitute service allows rival firm to provide service but could lead to loss of customer.