1/12/14 8:38 PM
1/12/14 8:38 PM Evaluation of Services Quality (benefits created for customer) and productivity (addresses financial costs for firm) are twin paths to creating value for both customers and companies •
If service processes are more productive, this may not result in better quality experience for customers
Quality relates to managerial delivery of the service, while satisfaction reflects customers’ experiences with that service •
Satisfaction: consumption specific o
Provides little insight into the customer’s attitude towards a company
•
Service quality: long-run overall evaluation of firm’s performance o
Expectations drive service quality perceptions
o
Important to know and understand expectations before quality is delivered
Benefits of service quality and customer satisfaction 1. Insulates customers from competitors 2. Can create sustainable advantage 3. Reduces failure costs 4. Encourages repeat patronage and loyalty 5. Enhances and promotes positive WOM 6. Lowers costs of attracting new customers Experience to Profits Model
Measuring customer satisfaction •
Qualitative Research: focus groups, one-on-one interviews, critical incident technique, laddering technique
•
Understand key drivers / determinants: identify the key attributes and influences on satisfaction and dissatisfaction
•
Questionnaire design: use logical structures and appropriate wording
•
Data analysis: two key result areas are overall satisfaction and attribute performance
•
Service performance index (SPI): helps to make comparisons between regions, branches, individuals
•
Importance - performance analysis: a useful management which may help to direct resources
Identifying and Correcting Service Quality Problems The GAP Model > To close the service quality gap: •
Gap 6: Service Quality or Customer Gap o
The difference between what a customer expects of a service and his/her actual perceptions of that service
1. The Knowledge Gap a. Not knowing what customers expect i. Inadequate market research orientation
ii. Lack of upward communication iii. Insufficient relationship focus iv. Inadequate service recovery – not learning from bad customer experiences etc. 2. The Policy / Standards Gap a. Not selecting the right service designs and standards i. Poor Service Design ii. Absence of Customer-Driven Standards – no consideration of what customers deem acceptable iii. Inappropriate Physical Evidence and Servicescape •
Develop correct processes and standards to meet customer expectations
3. The Delivery Gap a. Not delivering to service designs and standards i. Deficiencies in Human Resource Policies ii. Customers who do not fulfil roles – co-creation iii. Problems with Service Intermediaries iv. Failure to Match Supply and Demand 4. The Communications Gap a. Not matching performance to promises i. Lack of Integrated Services Marketing Communications ii. Ineffective Management of Customer Expectations iii. Overpromising iv. Inadequate Horizontal Communications – between staff etc. •
Close internal & external communications gap
5. The Perception Gap a. Difference between what is actually delivered and what customers feel they have received because they are unable to accurately judge service i. Make service quality tangible and communicate the service quality delivered ii. Provide physical evidence iii. Keep customers informed during service delivery and debriefs for high credence services iv. Consistency of physical environment and level of service provided Closing the Service Quality Gaps 1. Building a Service Information System
•
Analysis of customers’ complaints
•
Post-transaction surveys
•
Ongoing surveys of account holders
•
Focus groups, mystery shopping
•
Employee surveys
Measuring Service Quality Soft Measures •
Not easily observed, must be collected by talking to customers / employees
•
Receive direction, guidance and feedback by measuring customer perceptions and beliefs
•
SERVQUAL, surveys etc.
> Measuring service quality •
Reliability – providing service as promised, performing services right the first time
•
Assurance – making customers feel safe in their transaction, consistently courteous employees
•
Tangibles – modern equipment, visually appealing facilities
•
Empathy – giving customers individual attention, having the customers best interest at heart, convenient business hours
•
Responsiveness – prompt service to customers, willingness to help customers, readiness to respond to customers requests
Hard Measures •
Can be counted, times or measured through audits
•
Typically operational processes or outcomes
•
Standards on which a particular measure is achieved
Improving Service Quality •
Carefully control of costs at every step in process
•
Reduce wasteful use of materials or labor
•
Teach employees how to work more productively
•
Provide employees with equipment and databases to work faster and to a higher quality
If service processes are more productive, this may not result in better quality experience for customers
Quality relates to managerial delivery of the service, while satisfaction reflects customers’ experiences with that service •
Satisfaction: consumption specific o
Provides little insight into the customer’s attitude towards a company
•
Service quality: long-run overall evaluation of firm’s performance o
Expectations drive service quality perceptions
o
Important to know and understand expectations before quality is delivered
Benefits of service quality and customer satisfaction 1. Insulates customers from competitors 2. Can create sustainable advantage 3. Reduces failure costs 4. Encourages repeat patronage and loyalty 5. Enhances and promotes positive WOM 6. Lowers costs of attracting new customers Experience to Profits Model
Measuring customer satisfaction •
Qualitative Research: focus groups, one-on-one interviews, critical incident technique, laddering technique
•
Understand key drivers / determinants: identify the key attributes and influences on satisfaction and dissatisfaction
•
Questionnaire design: use logical structures and appropriate wording
•
Data analysis: two key result areas are overall satisfaction and attribute performance
•
Service performance index (SPI): helps to make comparisons between regions, branches, individuals
•
Importance - performance analysis: a useful management which may help to direct resources
Identifying and Correcting Service Quality Problems The GAP Model > To close the service quality gap: •
Gap 6: Service Quality or Customer Gap o
The difference between what a customer expects of a service and his/her actual perceptions of that service
1. The Knowledge Gap a. Not knowing what customers expect i. Inadequate market research orientation
ii. Lack of upward communication iii. Insufficient relationship focus iv. Inadequate service recovery – not learning from bad customer experiences etc. 2. The Policy / Standards Gap a. Not selecting the right service designs and standards i. Poor Service Design ii. Absence of Customer-Driven Standards – no consideration of what customers deem acceptable iii. Inappropriate Physical Evidence and Servicescape •
Develop correct processes and standards to meet customer expectations
3. The Delivery Gap a. Not delivering to service designs and standards i. Deficiencies in Human Resource Policies ii. Customers who do not fulfil roles – co-creation iii. Problems with Service Intermediaries iv. Failure to Match Supply and Demand 4. The Communications Gap a. Not matching performance to promises i. Lack of Integrated Services Marketing Communications ii. Ineffective Management of Customer Expectations iii. Overpromising iv. Inadequate Horizontal Communications – between staff etc. •
Close internal & external communications gap
5. The Perception Gap a. Difference between what is actually delivered and what customers feel they have received because they are unable to accurately judge service i. Make service quality tangible and communicate the service quality delivered ii. Provide physical evidence iii. Keep customers informed during service delivery and debriefs for high credence services iv. Consistency of physical environment and level of service provided Closing the Service Quality Gaps 1. Building a Service Information System
•
Analysis of customers’ complaints
•
Post-transaction surveys
•
Ongoing surveys of account holders
•
Focus groups, mystery shopping
•
Employee surveys
Measuring Service Quality Soft Measures •
Not easily observed, must be collected by talking to customers / employees
•
Receive direction, guidance and feedback by measuring customer perceptions and beliefs
•
SERVQUAL, surveys etc.
> Measuring service quality •
Reliability – providing service as promised, performing services right the first time
•
Assurance – making customers feel safe in their transaction, consistently courteous employees
•
Tangibles – modern equipment, visually appealing facilities
•
Empathy – giving customers individual attention, having the customers best interest at heart, convenient business hours
•
Responsiveness – prompt service to customers, willingness to help customers, readiness to respond to customers requests
Hard Measures •
Can be counted, times or measured through audits
•
Typically operational processes or outcomes
•
Standards on which a particular measure is achieved
Improving Service Quality •
Carefully control of costs at every step in process
•
Reduce wasteful use of materials or labor
•
Teach employees how to work more productively
•
Provide employees with equipment and databases to work faster and to a higher quality
