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SERVICE MANAGEMENTA QUICK ONCE OVERA QUICK ONCE OVER
1
THE SERVICE SOCIETYPART 1
2
The Service Society
THE SERVICE SOCIETY
30%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1970 1980 1990 2000 2010
Extraction industries
Goods producingindustries
Service industries
The Service Society1 of 2
WHY ARE WE A SERVICE SOCIETY
4
The Service Society2 of 2
SERVICES DOMINANT LOGICPART 2
5
Services Dominant Logic
SERVICES AS PROCESSES
6
Goods – are a resource – something you get
Services – are a process – activities that happen over time
Services Dominant Logic
1 of 7
CUSTOMER AS CO-PRODUCER
7
Goods – you are not involved in the production process
Services – you may be involved in the production process
Services Dominant Logic
2 of 7
SIMULTANEITY
8
Goods – can be produced, then consumed later
Services – are often produced and consumed at the same time
Services Dominant Logic
3 of 7
PERISHABILITY
9
Services – Cannot be stored – lost opportunities are lost forever
Goods – can be stored – for sale later
Services Dominant Logic
4 of 7
INTANGIBILITY
10
Goods – Are often tangible so can be tried before buying
Services – Intangible services cannot be tried out before buying
Services Dominant Logic
5 of 7
HETEROGENEITY
11
Goods – are focused on things and are alike
Services – are focused on people and vary from customer to customer
Services Dominant Logic
6 of 7
VALUE IN EXCHANGE V.S. VALUE IN USE
12
Goods – Customers exchange for goods and use them how they want
Services – Customer get value from services by using them
Services Dominant Logic
7 of 7
SERVICE QUALITYPART 3
13
Services Quality
WHAT IS SERVICE QUALITY
14
Services Quality
Expectation Experienceversu
s
1 of 3
EXPECTATION V.S. EXPERIENCE
15
Services Quality
Expectation
(What I w
anted)E
xperience(W
hat I got)
A B C
2 of 3
DIMENSIONS OF SERVICES
16
Services Quality
Process is Important
Outcome is Important
Both Process and Outcome are Important
3 of 3
SERVICE QUALITY: EXPECTATIONSPART 4
17
Service Quality: Expectations
SOURCES OF EXPECTATIONS
18
Service Quality: Expectations
Sales/ Marketing
Information
Corporate Brand & Image
What Other Customers Say
Past Experience with Service
Relationship with Service
ProviderExperiences with Other Services
1 of 2
Customer Expectations
TYPES OF EXPECTATIONS
19
Service Quality: Expectations
Explicit Unrealistic: “make me look like Brad
Pitt”
Fuzzy: “make me look like a rockstar”
Explicit Realistic: “Short back and sides”
Implicit: “why didn’t you ask me first?”
Make
explici
t
Make realistic
Make explicit
2 of 2
SERVICE QUALITY: EXPERIENCEPART 5
20
Service Quality: Experience
THE SERVICE SEQUENCE
21
1
23
4
56
7
8 9Expected Service
Above expectation (great service)
Below expectation (poor service)
Zone of Tolerance
Service Quality: Experience
1 of 3
THE CUSTOMER/PROVIDER RELATIONSHIP: 2
22
Relationship
SequenceSequence
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Relationship with a
hotelA stay at a
hotel
Dinner at the hotel
Ordering dessert
Act: Also known as ‘Moments of Truth’
Service Quality: Experience
2 of 3
THE CUSTOMER/PROVIDER RELATIONSHIP: 2
23
Relationship
SequenceSequence
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Relationship
SequenceSequence
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Episode
Act
Act
Act
Poor Relationship
Good Relationship
Service Quality: Experience
3 of 3
QUALITY FACTORS AND MEASURES PART 6
24
Quality Factors & Measures
WHAT WE RESPONSIBLE FOR?
25
Quality Factors & Measures
The equipment
Actions (& inactions) of staff
The systems
The processesActions of the
customer
Actions of other customers
The expectations
The facilities and environment
This
But not
this
1 of 4
EXAMPLE: MANAGING CUSTOMERS
26
Quality Factors & Measures
We limit their choices
We restrict their movement
We tell them what to do
2 of 4
TYPES OF QUALITY
27
Quality Factors & Measures
Enhancer FactorsSanitary Factors
3 of 4
MEASURING QUALITY
NPSAsk customers how likely they would be to recommend a service to a friend or colleagueSimpleEasy to get a good response rateCollects limited dataFast to implementRisks becoming a scoreImplied comparison between expectation and experience
ServqualAsk customers what they expected versus what they got for each aspect of a serviceComplexRequires customer effortComes with good dataSlow to implementMaintains focus on service aspectsExplicitly compares expectation against experience 28
Quality Factors & Measures
4 of 4
SERVICE FAILUREPART 7
29
Service Failure
WHAT IS SERVICE FAILURE
30
Service Failure
Expectation
(What I w
anted)E
xperience(W
hat I got)
A B C
1 of 3
PROMISES MODEL
31
Service Failure
Delivery Customers
Marketing/ Sales
Making Prom
isesEn
ablin
g Pr
omise
s
Delivering Promises
2 of 3
GAPS IN PROMISES LEAD TO SERVICE FAILURE
32
Service Failure
Keeping Promises
Making
Promises
“This is pest control, how may I help
you?”3 of 3
SERVICE RECOVERYPART 8
33
Service Recovery
ARE COMPLAINTS GOOD?
34
Service Recovery
Prevents bad word of mouth
Lets provider respond to issues
The alternative is customers leaving
Make issues visible
1 of 2
YES NO
WHAT ARE CUSTOMERS LOOKING FOR?
35
Service Recovery
Procedural
Interactional
Distributive
2 of 2
The Three Justices
SERVICE GUARANTEESPART 9
36
Service Guarantees
SERVICE GUARANTEES
37
Service Guarantees
If a customer can’t try before they buy, you can still reduce the risk to the customer to make the service more attractive
1 of 1
SERVICE PRODUCTIVITYPART 10
38
Services Productivity
PRODUCTIVITY
39
Services Productivity
Internal: Cost to provide a service instance to a customer. How much does it cost to provide the service.
External: Cost to provide a level of service experience a customer. How much does it cost to make the customer like the service?
1 of 2
WORKED EXAMPLE
40
Services Productivity
Internal Productivity: Cost to produce a DVD
External Productivity: The cost to make it something that people will recommend or come back to
2 of 2
WASTEPART 11
41
Waste
WASTE IN SERVICES
42
Services – Customers are ‘stored’ when there is too little capacity
Goods – Inventory is a buffer between production and demand
Waste
1 of 2
MANAGING QUEUES
43
Services – Manage Demand (yield management)
Goods – Manage Waiting (make it more bearable)
Waste
2 of 2
SELF SERVICE AND AUTOMATIONPART 12
44
Self Service & Automation
SERVICE PROCESS MATRIX
45
Degree of Specialisation/Customisation
Low High
Degree of C
ustomer C
ontact
Low Car wash Pest control
High
School Physician
Easy to automate
Hard to automate
Self Service & Automation
1 of 1
SERVICE CULTUREPART 13
46
Services Culture
SERVICE CULTURE
Shared Values (values, beliefs, behaviours, paradigm) Leadership Training Empowerment/Rules Trust Roles and Responsibilities
47
Services Culture
1 of 1
STUFF THAT GOT LEFT OUT
48
Hybrid~Goods~and~ServicesHidden~ServicesServicescapeInseparability~of~CustomersExplicit~vs~Implicit~ServicesNew~Service~DevelopmentService~DesignService~Quality~by~DesignApproaches~to~Service~RecoveryService~ImprovementManaging~Capacity~and~DemandYield~ManagementQueuing~ModelsThe~Psychology~of~Waiting~Supply~Chain~ManagementRelationship~QualityCustomer/Supplier~BondsQuality~Gap~AnalysisCost~of~QualityCustomer~SacrificeSelf~Service~AttractorsService~Guarantee~RequirementsOpportunistic~ClaimsSqueaky~WheelService~Recovery~SequenceService~Recovery~ParadoxPsychological~Impact~of~Service~FailureTypes~of~Service~Guarantees