The Service Encounter

Moments of TruthEach customer contact is called a moment of truth. You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

Cycle of ServiceBegin Service EncounterEnd Service Encounter= MOT

The Service Encounter Triad ServiceOrganizationEfficiencyversussatisfactionEfficiencyversus autonomyCustomerContactPersonnelPerceived control

7-*CultureEmpowermentControl Systems The Service Organization

Definitions of CultureSchwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organizations members.Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others.Hoy and Miskel (1991) - Culture is shared orientations that hold the unit together and give a distinctive identity.

The Service OrganizationCulture ServiceMaster (Service to the Master) Disney (Choice of language)Empowerment Invest in people Use IT to enable personnel Recruitment and training critical Pay for performance

Contact PersonnelSelection 1. Abstract Questioning 2. Situational Vignette 3. Role PlayingTraining Unrealistic customer expectations Unexpected service failure

Difficult Interactions with CustomersUnrealistic customer expectations Unexpected service failure 1. Unreasonable demands 1. Unavailable service 2. Demands against policies 2. Slow performance 3. Unacceptable treatment of 3. Unacceptable service employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customers

Use scripts to train for proper response

The CustomerExpectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customerCustomer as Co-Producer

Service Encounter Success Factors

Customer

Service Provider

Human Machine

Human

Employee selection

Interpersonal skills

Support technology

Engender trust

User friendly

Verification

Security

Easy to access

Machine

Easy to access

Fast response

Verification

Remote monitoring

Compatibility

Tracking

Verification

Security

Satisfaction MirrorHigher Customer Satisfaction

Service Profit ChainInternal quality drives employee satisfactionEmployee satisfaction drives retention and productivityEmployee retention and productivity drives service value.Service value drives customer satisfaction.Customer satisfaction drives customer loyalty.Customer loyalty drives profitability and growth.

InternalServiceQualityEmployeeSatisfactionEmployeeRetentionEmployee ProductivityExternalServiceValueCustomer SatisfactionCustomerLoyaltyRevenueGrowthProfitability workplace design job design employee selection and development employee rewards and recognition tools for serving customers

Service concept:results for customersservice designed and delivered to meet targeted customers' needsretentionrepeat businessreferralOperating Strategy andService Delivery SystemThe Links in the Service-Profit Chain

The Cycle of CapabilityCareful employee and customer selectionHigh-quality trainingWell-designed support systemsGreater latitude to meet customers needsClear limits on expectations of employeesAppropriate rewards and recognitionSatisfied employeesEmployee referrals of job candidates