The impact of technology on customer service

Chapter 9

© Hudson & Hudson. Customer Service for Hospitality & Tourism

Topics Covered

o Technological developments and communication

o Technology and the consumer decision journey

o Online tourism marketing 

o Service and the consumer decision journey

o Advantages and disadvantages of electronic distribution of services

‘At Your Service’ Spotlight: Virgin Atlantic Airways

Virgin Atlantic is about fun, energy, pioneering, and a love of flying. We try to live our brand when communicating with

customers 

o Social media enhances engagement with consumers

• Brand reinforcement tool

• Customer relationship management

• Develop trust, loyalty and preference

o Advertising conversation-centric not campaign-centric

o VAA social media

• Resolve customer issue

• Dependable service delivery, via instant updates

• Changing needs and service improvements

o Customer led conversations

• Information, stories, advice, insights

• Market relevancy

 

 

The impact of technological developments on communication

o Rapidly changing communications environment

• Dominated by digital technology

• Social networks supplanting brand networks

• Ethical considerations

o Consumers increasingly in control

• More access to information

• More ‘promiscuous’ in brand relationships

• How and when advertising is received

o Post-purchase consumers behavior

• Customer review

o Tourism marketers

• Internet growth in populous, developing nations

• Annual online sales increasing

• Touch points have changed

The traditional purchase funnel

Table 9.1

The consumer decision journey today

Figure 9.2 (Source: Adapted from Court et al. 2009)

Stage 1: Consider Top-of-mind consideration set from recent touch point

Stage 2: Evaluate Consumers add or subtract brands as they evaluate what they want

Stage 3: Buy Consumer selects a brand at

POINT OF PURCHASE

Stage 4: Enjoy, advocate, and bond After purchasing, consumer builds expectation based on experience to help the next decision journey

The Loyalty Loop

Active evaluation: info gathering, shopping

Post-purchase experience: Ongoing exposure

The consumer decision journey 

o ‘Zero Moment of Truth’ (ZMOT)

o Consideration stage

• Social media campaigns to drive traffic to websites

o Evaluation stage

• Product-comparison sites increasing influential

• Digital ambassadors

• Incentives e.g. free vacations

• Virtual tours and virtual worlds

o Buy stage

• Point of purchase

o Enjoy, advocate, and bond

• After purchase brand connection

• Crowd sourcing and brand innovation

• Consumer complaints

Service Snapshot: Barbados leveraging social media

Healthy Mind, Body, Program

o Augmented reality and interactive TV

o Active social media strategy

• BFC Facebook page patient community

o Fertility application for iPhone and iPad

• Information video with interactive buttons

• Ovulation calendar

• Medication alerts, push notifications, lifestyle tips, Medical glossary

o Palm tree ‘QR code’

• Relaxing, health lifestyle, location

o Flat graph of success rates

o ‘Pay per click’ sponsored words

Online tourism marketing 

o Success factors

• Attracting users

• Engaging users’ interest and participation

• Retaining and repeat users

• Learning about user preferences

• Customized interactions

e-Servicescape, website trust and purchase intentions

Figure 9.3 (Source: Adapted from Harris and Goode, 2010)

Online Servicescape

Aesthetic Appeal

* Visual Appeal * Originality of Design * Entertainment Value

Layout & Functionality

* Usability * Interactivity * Customization * Relevance of Information

Financial Security

* Ease of Payment * Perceived Security

Ease of

Trust in Website

Purchase Intention

Advantages and disadvantages of electronic distribution of services

Table 9.1 (Source: Adapted from Harris and Goode, 2010)

Advantages Disadvantages Consistent delivery for standardized services

Privacy and ethical issues

Low cost Inability to customize with highly standardized services

Customer convenience Security concerns

Wide distribution Competition from widening geographies

Customer choice and ability to customize

Price competition

Quick customer feedback Loss of control over the consumer evaluation process

Potential for building customer relationships

Keeping abreast of changes in technology

Vast amounts of consumer data Ability to data mine

Case Study:Vail Resorts apps and customer experience

o Smart card technology

• Ski lift pass doubles as resort credit cards

• Multiple ski hills, resorts

o EpicMix ski app

• Log runs, lifts taken

• Vertical mileage

• Pins for achievements

o EpicMix account

• Personal and professional photos

• Trail map

• GPS hook up with friends and family

o Social media

• Encourages story sharing

Capturing memories on mountain and being able to share with friends and family is particularly important on a ski vacation.