2. What are the new service realities?

What are the new service realities?

DESIGNING & MANAGING SERVICES

Service firms once lagged behind manufacturers in their use of marketing, because !

1) They were small; or 2) They were professional businesses that didn’t use marketing; or 3) They faced large demand or little competition.

But today, some

of the most

skilled marketers

are service firms

Savvy services marketers are recognising the new services realities such as: the importance of the newly empowered customer, customer coproduction, and the need to engage employees as well as customers.

Customer Empowerment

Today’s customers are smarter. !They may demand separate service element and the right to select the elements they want. !Internet has also empowered them to broadcast their views about a bad service.

Customer Coproduction

Customers play an active role in the

delivery of a service. !

Shift is growing towards self-service

technologies, but this can increase

customer dissatisfaction

arising out of their own faults.

Satisfying Employees as well as Customers

Positive employees promote stronger customer loyalty. Strong customer orientation in employees increases

their job satisfaction and commitment.

Created by Anngad Singh, Delhi Technological University,

during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com