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Presentation by

E-TEAM

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Who is a customer..?

CUSTOMER IS THE KINGCUSTOMER IS THE KING

A customer is not dependent on us. We aredependent on him. A customer is not aninterruption of our work, he is the purpose of it.We are not doing a favor by serving him. He isdoing us a favor by giving an opportunity to do so.A customer is not some one to argue. No one has

won an argument with a customer.A customer is a person who brings us his wants. Itis our job to handle them profitably to him and toourselves.

CUSTOMER IS ALWAYS RIGHTCUSTOMER IS ALWAYS RIGHT

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Aspects of Service QualityService: it is what provided by

organization to its Customers.

Quality : it means what customer wants

(a) within a given time

(b) at a price

(c) what he/she is willing to pay

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Why Quality ?The drivers of quality are:

To Survive

Customer is demanding Competition

Profitability

Strive for excellence

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Five principles of QualityFocus on Customer

Do it Right

Communicate & EducateMeasure & Record

Do it together

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What is Service Quality?Customer satisfaction with service qualitycan be measured by comparing the

perceptions of service received, withservice expected.

Service Expected Service Received =Service Expected Service Received = Customer SatisfactionCustomer Satisfaction

When, S.R > S.E = Service is of excellent qualityWhen, S.R > S.E = Service is of excellent qualityS.R = S.E = Service is satisfactoryS.R = S.E = Service is satisfactory

S.R < S.E = Service is unsatisfactoryS.R < S.E = Service is unsatisfactory

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Quality is an attitude..

Attitude is what differentiatesbetween excellence and mediocrity.Positive attitude leads to highquality and vice-versa.

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Common attitudinal blocks to

Quality1. We tried it before, I know it wont work

2. It wont work, the way you think

3. It may work in Japan, but not in this country

4. It is a good idea, but we dont have the budget for it

5. Everybody knows it, what is new in it?

6. If you introduce this idea, it will create some other

problems7. Why do you want to change it ? Now we are ok

8. Let us discuss it some other day

9. These ideas are more complicated than what you

understand.

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Dimensions of Service

Quality

Word of Mouth Personal Needs Past Needs

Expected Service

Perceived Service

Reliability

Assurance

Empathy

Responsiveness

Tangible

Quality DimensionPerceived Service

Quality

E.S >P.S (Surprise)

E.S = P.S

(Satisfactory)

E.S

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Reliability This refers to the ability to perform thepromised service independently and

accurately. Reliability means, every timethe service has to be accomplished ontime and in the same manner withouterrors.

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Responsiveness

This refers to the willingness to help customers toprovide prompt service,without keeping the

customer waiting for no apparent reasons. Thiscreates negative perceptions of quality.

In the event of service failure, the ability to

recover quickly with professionalism, can create avery positive perception of quality

E.g Roller Discs from NEC

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AssuranceThis refers to the courtesy of employeesand their ability to convey trust and

confidence. i.e. competence to performthe service, politeness and respect for thecustomer, effective communication withthe customer , and general attitude

E.g Efficiency v/s Effectiveness

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Empathy

This refers to caring and individualizing

attention to the customer.

Empathy includes approachability, senseof security and efforts to understand

customer needs.

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How do customers asses your

Quality?

Tangibles Appearance of physical facilities, Equipment,Communication material

Reliability Dependability & Accuracy

Responsiveness Willingness o help customers and provide service

Competence Possessing the required knowledge and skills toperform the service

Courtesy Politeness, Respect, Friendliness

Credibility Trustworthiness, believability, honesty of serviceprovider

Access The case of contact and approachability

Communication Keeping customers informed in a language they know

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Service Quality Model

Word of Mouth Personal Needs Past Experience

Expected Service

Perceived Service

Delivering the Service

Service Quality Specification

Management Perception of Customer Expectation

External

Communication

to CustomersGap 3

Gap 4

Gap 1

Gap 5

Gap 2

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GAP 1 CausesGap between Customer ExpectationsGap between Customer Expectations

and Management Perception ofand Management Perception of

Customer ExpectationCustomer Expectation

Inadequate market research Lack of interaction between

management and customers Inadequate upward communicationToo many levels

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Market Research No MR is done

MR is done but not made use of

Concentrating on Day to Day Operations

In MR Data regarding customer expectations not collected Data regarding customer perceptions not collected Complaint made by customer neglected Even if findings are available-not made use of because

of the following reasonsToo busy Research are very complex Research is too technical Lack of confidence in research

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Inadequate Upward

Communication Personal Customer Contact v/s Top

Management Inadequate upward communication

Upward communication blocked

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Too many levels Acts as an impediment to upward

communication

At various levels information getsdistorted

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Remedies to close GAP 1

Collect data regarding expectations and perceptionof the customers.

Improve upward communication have aperiodical meeting between management andcustomer contact staff; informal or formal

Direct interaction by the top management with

customer wherever possible Reduce levels helps in faster decision making

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GAP 2 CausesGap between Management PerceptionGap between Management Perception

of Customer Expectation and Serviceof Customer Expectation and Service

Quality SpecificationQuality Specification Inadequate management

commitment to service quality

Perception of infeasibility Absence of goal setting

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Lack of Commitment Operation orientation

Lack of support from middlemanagement due to lack ofmotivation and incentive

Middle management attitudewhatis in it for me

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Perception of Infeasibility It involves finance

Our personnel may not be capable of

delivering customer expectations -shortage of skills required (9 blocks)

Lack of technology available

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Absence of Goal Setting Goals are not set

Set goals are not clear

SMART Goal setting

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Remedies to close GAP 2 Mind set:

Remove the mind block open mindedness;Can Do attitude

Willingness to investing money to buytechnology;spend time with employees tosatisfy customer requirements

Middle Management to be involved all the

more in Quality programmes Train the employees Lack of time concept should be converted

to enough time by following the principlesof time management

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Contd Absence of goal setting

Most goals on quality should be based

on : Customer requirement Specific Acceptable to employees

Realistic Designed to meet customer specifications Should not become a pious intention Have a proper feedback system

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GAP 3 CausesGap between Service QualityGap between Service Quality

Specification and Service DeliverySpecification and Service Delivery

Role ambiguity Role conflict

Job fit

Inappropriate supervisory control system

Lack of perceived control

Lack of team work

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Role Ambiguity Lack of information from the top

Lack of training to perform the job

Uncertainty about superiorsexpectations

Method of evaluation by superiors

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Role Conflict Conflict between role expectations and

perceptions

Personal attention requirement from customervis-a-vis time limit from employee side

Management constraints and customerexpectations

Varied customer demands

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Job Fit Making job psychograph v/s individual

psychograph

Hiring of people qualified for the job Do management spend enough time and

resources on hiring the best people who are indirect contact with customer?

Skills required for the job v/s existingemployee skills

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Inappropriate Supervisory Control

System

Do the employees know what aspect of theirjob will be stressed more in performanceevaluation?

Are employees evaluated on how will theyinteract with customers?

Do employees who make special efforts to servethe customer receive increased financial rewardof recognition?

Do employees get a word of appreciation fortheir contribution?

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Lack of Perceived Control Are employees given the freedom to make the

individual decision to satisfy the customer

needs? Are employees required to get approval from

another department before delivering theservice to the customer?

Are they encouraged to learn new ways ofservicing the customer better?

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Lack of Team Work

Do managers and employees contribute a teameffort in servicing the customer?

Do employees of other departments providegood service to customer contact employees?

Are there any competition amongst employeesto impress some one at the cost of team work?

Do they help each other than pulling each otherto reach a goal?

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Remedies to close GAP 3 Improve communication Train the employee in time management

Train the employee in prioritizing the task

Top management must spend enough time inhiring and selection of employees

Hire and use appropriate technology

Pushing down decision to lower levels

Avoid too many people in decision making

Encourage team work concept of internalcustomer

Job rotation and job training

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GAP 4 CausesGap between Service Delivery and ExternalGap between Service Delivery and External

Communication to CustomerCommunication to Customer

Inadequate horizontal communication

Differences in policies and procedures acrossbranches or departments

Over promising

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Inadequate Horizontal

Communication Coordination between Marketing & HR

Corporate Advertising & Operations

Advertisement & Public Relations

In general this refers to the internalcommunication between departments

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Over Promising Time Dimensions

Quantity Dimensions

When promise do not match delivery, theservice quality suffers

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Remedies to close Gap 4 Opening channels of communication between

advertising and operations

Opening channels of communication betweensales and operations

Opening channels of communication betweenHR, Marketing and Operations

Providing consistent service across branchesor outlets

Developing appropriate and effectivecommunications about service quality

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Communications on Service

Quality Emphasize primary quality

determinants

Managing customers expectations Customer role in service delivery

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The Service Struggle

4 1

3 2

Unwillingness

to Serve

Willingnessto Serve

Inability

to Serve

Ability

to Serve

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Getting Started

Get ready to work hard Base decisions on Data

Use a portfolio of research methods Do on going research Do employee research Share findings with employees

Organize for change Create service improvement rules Create an integrative mechanism Develop a statement of direction Involve many and emphasis teamwork Think evolution rather than revolution

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Getting Started contd

Leverage the freedom factor

Symbolize service quality

Promote the right people tomanagement positions Identifying leaders

The footprints-in-the-sand test

The stand-for-something test

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Challenges Ahead

Designing quality into service Service blue-printing Hard but worthwhile work

Making technology as a servant Combining high tech with high touch Use technology to support the service strategy Focus technology on the customer

Attacking the labor shortfall Mismatch Need for innovative approaches

Raising our service aspirations

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Thank You