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1Service Encounter
Service Blueprint Interaction with Customers Service Quality Service Recovery
The Service Encounter Triad
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ServiceOrganization
Efficiencyversus
satisfaction
Efficiencyversus
autonomy
CustomersContactPersonnel Perceivedcontrol
2Service Organization
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Employee Selection Training
Control + Empowerment
Strategy + Culture
The service encounter occurs within the context of an organizations culture as well as its physical surroundings.
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arrival
ordering
kitchen cooking
serving payment
departuredining
preparation
billing
Line of Visibility
Interactive line
Line of Support
Design Control: Service Blueprint
F
FF
front office
back office
reservationF
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Failsafing (pokayokes)
Service Encounter = moments of truth
Every customer contact is an opportunity to satisfy the customer.
To improve customers perception of service quality.
Service failures are often caused by interruptions or negligence.
Task to be done Treatment accorded to the customer Tangible features of the service
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Selection1. Abstract Questioning2. Situational Vignette3. Role Playing
TrainingUnrealistic customer expectationsUnexpected service failure
Contact Personnel
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What was your most rewarding past experience and why?
What are you looking for in your next job?
What have you done in the past to irritate a customer?
What flavor of ice cream best describes your personality?
Example: Amys Ice Cream
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Managing Customer-Introduced Variability
A trade-off between cost and service quality (customer satisfaction)
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Managing Customer-Introduced Variability
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Difficult Interactions with Customers
Unrealistic customer expectations1. Unreasonable demands 2. Demands against policies 3. Unacceptable treatment of employees4. Drunkenness 5. Breaking of societal norms6. Special-needs customers
Unexpected service failure 1. Unavailable service 2. Slow performance 3. Unacceptable service
6Satisfaction Mirror
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Higher CustomerSatisfaction
More Familiarity with Customer Needs and Ways of Meeting Them
Greater Opportunity for Recovery from Errors
Higher EmployeeSatisfaction
Higher Productivity
Improved Quality of Service
More RepeatPurchases
Stronger Tendency to Complain about Service Errors
Lower Costs
Better Results
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Dimensions of Service Quality
Reliability: Perform promised service dependably and accurately.
Responsiveness: Willingness to help customers promptly.
Assurance: Ability to convey trust and confidence.
Empathy: Ability to be approachable.
Tangibles: Physical facilities and facilitating goods.
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Service Gap = Perceptions - Expectations Does this restaurant Is speed of service important?provide fast service?
SERVQUAL
Word of mouth
Personal needs
Past experience
Expectedservice
Perceivedservice
Service Quality DimensionsReliability
ResponsivenessAssuranceEmpathyTangibles
Service Quality Assessment1. Expectations exceeded
ESPS (Unacceptable quality)
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THE SERVQUAL INSTRUMENT
EXPECTATIONS PERCEPTIONS This survey deals with your opinions of banks. Please show the extent to which you think banks should posses the following features. Please circle a number that best shows your expectations about institutions offering bank services
The following statements relate to your feelings about the XYZ bank that you chose. Please show the extent to which you believe XYZ has the feature described in the statement. Please circle a number that shows your perceptions about XYZ bank
Strongly Strongly Strongly Strongly Disagree Agree Disagree Agree 1 2 3 4 5 6 7 1 2 3 4 5 6 7
(E)
(P)Gap Score
P - E Tangibles Tangibles E1. Excellent banking companies will have modern looking equipment.
P1. XYZ bank has modern looking equipment.
E2. The physical facilities at excellent banks will be visually appealing.
P2. XYZ Banks physical facilities are visually appealing.
E3. Employees at excellent banks will be neat appearing.
P3. XYZ Banks reception desk employees are neat appearing.
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A Service Recovery is satisfying a previously dissatisfied customer and making them a loyal customer.
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 customer who has had a problem resolved by a company will tell about 5 people about their situation.
A dissatisfied customer will tell between 10 and 20 other people about their problem.
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05
1015202530 Average number of people told
Level of Customer Dissatisfaction
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Server ErrorsTask:
Doing work incorrectlyTreatment:
Failure to listen to customer
Tangible:Failure to wear clean uniform
Customer ErrorsPreparation:
Failure to bring necessary materials
Encounter:Failure to follow system flow
Resolution:Failure to signal service failure
Classification of Service Failures
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The Customer is Not Always Right
Washington Post April 08, 2003
Southwest managers tell employees they are Southwest's No. 1 customer, that the paying customer is not always right. Thinking the paying customer is right all the time, Southwest executives say, only undermines the trust between management and employees.
"The theory goes that if we treat our employees well, they'll treat the customer well," a Southwest executive said. And that translates, most of the time anyway, into profits.
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Case-by-case addresses each customers complaint individually but could lead to perception of unfairness.
Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.
Early intervention attempts to fix problem before the customer is affected.
Substitute service allows rival firm to provide service but could lead to loss of customer.
Approaches to Service Recovery
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Unconditional (L.L. Bean)
Easy to understand and communicate (Bennigans)
Meaningful (Mobile phone service)
Easy to invoke (Internet shopping)
Easy to collect (Amazon)
Service Guarantee: Customer View
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Service Guarantees As Design Drivers Focuses on customers (British Airways)
Sets clear standards (FedEx)
Guarantees feedback (Proactive approach)
Promotes an understanding of the service delivery system (Bug Killer)
Builds customer loyalty by making expectations explicit
Service Guarantee: Management View
Summary
The front-end and back-end of the encounter are not created equal
Pay attention to norms and rituals Training to anticipate possible situations. Customers are the ultimate judges of a
services value. Let the punishment fit the crime in service
recovery
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