6. Module 7 Session 7 - Service Process
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Transcript of 6. Module 7 Session 7 - Service Process
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8/2/2019 6. Module 7 Session 7 - Service Process
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 1
Chapter 8
Designing and ManagingService Processes
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 2
Ultimately, only one thing really matters in serviceencounters
the customers perceptions of what occurred.
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 3
Service Processes
Processes describe the method and sequence in which serviceoperating systems work and create the service experience.
A distinctive character of many services is the way in which thecustomer is involved in their creation and delivery.
In high contact services, customers themselves become an integral partof the operation.
Badly designed services are likely to annoy customers and makes itdifficult for frontline staff to do their jobs well, resulting in low productivityand increase the risk of service failure.
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 4
Developing a Blueprint
Services are delivered in real time with customers present in the servicefactory and pose distinct challenges.
A key tool in service design is blueprinting, a more sophisticated versionof flowcharting.
To design services, as opposed to designing products, a tool is aService Blueprint.
In contrast to the physical architecture of a building, ship, or piece of
equipment, service processes have a largely intangible structure, thatmakes them all the more difficult to visualize.
These blueprints show what the product should look like and detail thespecifications to which it should conform.
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 5
Developing a Blueprint Some Basic Advice
Identify all key activities in creating anddelivering the service
Distinguish between front stage(whatcustomers experience) and back stage
Between the two lies the Line of visibility
Chart activities in sequence
Show how interactions between customersand employees are supported by backstageactivities and systems
Establish service standards for each step
Identify potential fail points
Focus initially on big picture (later, can drilldown for more detail in specific areas)
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 6
Service Blueprinting: Key Components
1. Define standards for frontstage activities
2. Specify physical evidence
3. Identify principal customer actions
4. ------------line of interaction (customers and front stage personnel)--------
5. Front stage actions by customer-contact personnel
6.------------line of visibility (between front stage and backstage)--------------
7. Backstage actions by customer contact personnel
8. Support processes involving other service personnel9. Support processes involving IT
Where appropriate, show fail points and risk of excessive waits
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Simplified Example: Blueprinting a Hotel Visit(extract only)
PhysicalEvidence
CustomerActions
Employee
ActionsFace-to-faceF
ron
t
Stage
PhoneContact
Backstage
Makereservation
Rep.
records,
confirms
Arrive,valet park
Check-inat reception
Doorman
greets, valet
takes car
Enter
data
Valet
Parks Car
Make up
Room
Register
guest data
Receptionist
verifies, gives
key to room
Go to
room
Hotel exterior, lobby,employees, key
Elevator, corridor,room, bellhop
Line ofInteraction
Line ofVisibility
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Act I: Introductory Scene
Act I begins with making a reservation - an interaction conducted by (1)
telephone with an unseen employee, often hours or even days in advance ofvisiting the restaurant.
On a customers arrival at the restaurant, (2) a valet parks their car, & they(3) leave their coats in the coatroom, & (4) they enjoy a drink in the bar area
while waiting for their table.
The act concludes with their (5) being escorted to a table & seated.
These 5 steps constitute the customers initial experience of the restaurantperformance, with each involving an interaction with an employee- by phoneor face-to-face. By the time the customers reach their table in the dinningroom, they have been exposed to several supplementary services & havealso encountered a sizeable cost of characters, including 5 or more contactpersonnel, as well as many other customers.
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Cont
Standards can be set for each service activity but should be based on agood understanding of guests expectations.
Below the line of visibility, the blueprint identifies key actions that shouldtake place to ensure that each front- stage step is performed in a mannerthat meets or exceeds those expectations. These actions include recordingreservation, preparing & delivering food, maintaining facilities & equipment,training & assignment of staff for each task, & using information technologyto access, input store & transfer relevant data.
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Act II: Delivery of the core product
The customers are finally about to experience the core service they came for-
Reviewing the menu & placing the order are two separate activities.
Assuming that all goes well, the guest will have an excellent meal, nicelyserved in a pleasant atmosphere.
But if the restaurant fails to satisfy customer expectations during Act II , it isgoing to be a serious trouble. There are numerous potential fail points:
Is the menu information complete? Is everything listed on the menu available in the evening? Will explanations & advice be given in a friendly manner for guests who have
questions about specific menu items or are unsure about which wine to order?
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Cont
After the guest decides on their meals, they place their order with theserver, who must then pass on the details to personnel in the kitchen, bar &billing desk. Mistakes in transmitting information are a frequent cause ofquality failures in many organizations. Bad handwriting or unclear verbal
requests can lead to delivery of the wrong items altogether or of the rightitems incorrectly prepared.
In subsequent scenes of Act II, customers may evaluate not only thequality of food & drink but also how promptly it is served & the style ofservice.
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Act III- Conclusion
The meal may be over, but much is still taking place both front-end &
backend.
Most customers expectations would probably include the following:
An accurate bill is presented promptly as soon as the customer requests
it.
Payment is handled politely (with all major credit cards accepted); theguests are thanked for their patronage & invited to come again.
Customers visiting the restrooms find them clean.
The customers car is brought to the door promptly, in the same conditionas when it was left; the attendant thanks them again & bids them a goodevening.
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Improving Reliability of Processesby Failure Proofing
Careful analysis of the reasons for failure in service processes oftenreveals opportunities for failure proofing certain activities in order toreduce or even eliminate the risk of errors.
1.Fail-Safe methods for service personnel:The goal of fail-safe procedures is to prevent errors, such as performing
tasks incorrectly, in the wrong order, or too slowly, or doing work thatwasnt requested in the first place. Solutions may vary from industry toindustry.
Treatment errors occur during the contact between the server & thecustomer, such as lack of courteous, professional behavior. Such errors
may include failure to acknowledge, listen, or react appropriately to thecustomer. Koren Theme Park.
Tangible errorsrelate to failures in the physical elements of the service,& preventive measures include standards of cleaning facilities & uniforms& appropriate control & adjustment of noise, odors, light & temperature.
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Cont
2. Fail- Safe methods for the customer:
Customer error in the preparation stage before the serviceencounter:
Marketing communications can help shape prior expectations & inform
the customers on how to access the service correctly. E.g. marketers at theservice division of one computer manufacturer provide customers with asimple flowchart that clarifies the correct way to place a service call.
Customer errors during a service encounter:
It can slow down service processes, waste employees time & eveninconvenience other customers.
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Cont
To control Customer error :
Chains to configure waiting lines.
Locks that must be turned on inside the aircraft lavatory doors in order toswitch on the lights and simultaneously activate the occupied sign on the
outside.
Child care centers use toy outlines on walls & floors to show where toysshould be placed after use.
In growing number of hotels, the key cards that open the doors to guestrooms must be placed in a wall socket inside the room in order to switch onthe lights.
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Service process redesign
Service process redesign revitalizes processes that have becomeoutdated.
Managers in charge of service process redesign projects often do notwant to spend more money on better quality. Rather, they aim to achievea quantum leap in both productivity & service quality at the same time.
Redesign efforts typically focus on achieving the following keyperformance measures:
1.Reduced number of service failures
2.Reduced cycle time from customer initiation of a service process to itscompletion.
3.Enhance productivity
4.Increased customer satisfaction
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Process Redesign: Principal Approaches(Table 8-1)
Eliminating non-value-adding steps
Shifting to self-service
Delivering direct service
Bundling services
Redesigning physical aspects of service processes
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Cont
Service process redesign efforts can be categorized into a number of typesincluding:
Eliminating non-value adding steps:E.g. a customer wanting to rent a
car is not interested in filling out forms . Service redesign streamlines thesetasks by trying to eliminate non-value-adding steps. The outcomes aretypically increased productivity & customer satisfaction.
Shifting to self-service: Significant productivity & sometimes evenservice quality gains can be achieved by increasing self-service when
redesigning services.
Banks now provide automated phone menu and encourage net banking
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Delivering direct service: This type of redesign involves bringing theservice to the customer instead of bringing the customer to the service firm.
Physiotherapy at home Pizza delivery
Bundling services: It involves bundling or grouping multiple servicesinto one offer, focusing on well-defined customer group. Bundling can helpincrease productivity.
Better consumer insight Leads to cross selling & up selling
Redesigning the physical aspects of service processes: Physicalservice redesign focuses on the tangible elements of a service process&includes changes to the service facilities & equipment to improve the serviceexperience.
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The Problem of Customer MisbehaviorIdentifying and Managing Jaycustomers
What is a jaycustomer?A customer who behaves in a thoughtless or abusive
fashion, causing problems for the firm itself, employees,
other customers
Why do jaycustomers matter?
Can disrupt processes Affect service quality May spoil experience of other customers
What should a firm do about them?
Try to avoid attracting potential jaycustomers
Institute preventive measures Control abusive behavior quickly Take legal action against abusers BUTfirm must act in ways that dont alienate other
customers
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Six Types of Jaycustomer
Thief seeks to avoid paying for service
Rule breaker ignores rules of social behavior and/or procedures forsafe, efficient use of service
Belligerentangrily abuses service personnel (and sometimes other
customers) physically and/or emotionally Family Feuders fight with other customers in their party
Vandaldeliberately damages physical facilities, furnishings, andequipment
Deadbeat fails to pay bills on time
Can you think of others?
How should firms deal with each of these problems?