Customers – the Focus of Service Management

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    CUSTOMERS – THE FOCUSOF SERVICE MANAGEMENT

    CHAPTER - 3

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    CHAPTER OBJECTIVES

       This chapter is a!"t h!# t!"$%ersta$% a$% %e&e'!p (c"st!)er*re'ati!$ships+, C"st!)ers #h! are the./, 0hat are the e$e1ts !2 retai$i$!!% c"st!)ers/

    , H!# ca$ )a$aers %e&e'!p !!%c"st!)er re'ati!$ships/, H!# ca$ )a$aers %e&e'!p !!%

    "si$ess re'ati!$ships/

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    CUSTOMERS 0HO ARE THE4/

      A (c"st!)er* is the recipie$t a$%!2te$ a's! a pr!&i%er 5c!-pr!%"cer6 i$a ser&ice pr!cess+

      Acc!r%i$ t! Ser&ice !perati!$)a$ae)e$t the #!r% ‘customer’ t! re2er t! a'' the i$%i&i%"a's "$its !r

    e&e$ !ra$i7ati!$s t! #h!) a$%!2te$ #ith #h!) a$ i$%i&i%"a' "$it!r !ra$i7ati!$ pr!&i%es ser&ice+

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    C"st!)ers a$% ser&ices i$ !!8i$a h!'i%a.

      E&er.!$e i$ the %iara) is ac"st!)er !2 s!)e!%.+

      S!)e c"st!)ers are i$%i&i%"a'ss!)e are "$its a$% s!)e are!ra$i7ati!$s+

      Ser&ice is "s"a''. a t#!-#a. pr!cess9

    i+e+ thi$s :!# !th #a.s+  Ser&ices are %e'i&ere% thr!"h

    $et#!r8s+

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    C"st!)ers a$% ser&ices i$ !!8i$a h!'i%a.

       There are i$ter$a' ser&ice pr!&i%ers s"chas the resta"ra$t i$ the h!te' a$% a's!e;ter$a' ser&ice pr!&i%ers s"ch as their

    e&erae s"pp'ier+ Th"s there are !the;ter$a' a$% i$ter$a' c"st!)ers+

     

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    Classifying customers

      0e ca$ c'assi2. !"r c"st!)ers i$t!se&era' r!a% a$% !&er'appi$ t.pes>• e;ter$a' !r i$ter$a' c"st!)ers

    • i$ter)e%iaries !r e$% "sers !r c!$s")ers

    • sta8eh!'%ers> pa.ers e$e1ciaries !rparticipa$ts

    &a'"a'e !r $!t-s!-&a'"a'e c"st!)ers+

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    Customer types

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    Customer types - Ally

      The Ally . These &a'"e% c"st!)ers"s"a''. arri&e i$ a p!siti&e 2ra)e !2)i$% #i''i$ t! he'p a$% i&e p!siti&e2ee%ac8 t! 2aci'itate the ser&ice+

       The )!st he'p2"' A''. is the c"st!)er#h!se !pi$i!$ is respecte% . !thers+

      I2 the A''. is happ. the$ !therc"st!)ers #i'' i$2er that the ser&ice)"st e !!%+

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    Customer types -Hostage

      The Hostage . These c"st!)ersre?"ire ser&ice "t )a. e ('!c8e%i$* t! a partic"'ar ser&ice pr!&i%erc!$tract"a''.+

      An example is c"st!)ers #h! )"stha&e their car ser&ice% . the %ea'er

    app!i$te% . the )a$"2act"rer+

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    Customer types -Anarchist

      The Anarchist . These c"st!)ers %is'i8er"'es a$% s.ste)s+

      I$%ee% $!tices s"esti$ #hat sh!"'%

    a$% sh!"'% $!t e %!$e prese$t acha''e$e+

      It is te)pti$ t! 'et the c"st!)er (eta#a.* #ith $!t 2!''!#i$ the s.ste) "tthis )a. set "p pr!'e)s #ith !therc"st!)ers #h! 2ee' that the. ha&e $!tee$ treate% 2air'.+

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    Customer types -Anarchist

      The Patient . These c"st!)ers are&er. si)i'ar t! the H!stae i$ thatthe. are '!c8e% i$t! the ser&ice+

      e;a)p'es are h!spita' patie$ts !rst"%e$ts at sch!!' !r "$i&ersit.+

       These c"st!)ers )a. e p!siti&e'. !r

    "$e?"i&!ca''. !rie$te% t!#ar%s the!ra$i7ati!$ a$% are #i''i$ t! s")itthe)se'&es t! r"'es a$% re"'ati!$s+

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    Customer types -Patient

      The Patient . These c"st!)ers are&er. si)i'ar t! the H!stae i$ thatthe. are '!c8e% i$t! the ser&ice+

      e;a)p'es are h!spita' patie$ts !rst"%e$ts at sch!!' !r "$i&ersit.+

       These c"st!)ers )a. e p!siti&e'. !r

    "$e?"i&!ca''. !rie$te% t!#ar%s the!ra$i7ati!$ a$% are #i''i$ t! s")itthe)se'&es t! r"'es a$% re"'ati!$s+

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    Customer types – Intolerant

      The Intolerant   These c"st!)ers are se'%!) passi&e

    !r patie$t a$% !2te$ ca"se stress a$%  pr!'e)s #ithi$ the ser&ice 2!r

    the)se'&es the ser&ice pr!&i%ersa$% !ther c"st!)ers+

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    Customer types – Victim

      The Victim . 0he$ s!)ethi$ !es#r!$ i$ ser&ice !ra$i7ati!$s s!)ec"st!)ers appear t! attract a% '"c8+

      S!)e @!s see) t! e %!e% . i''2!rt"$e+

      Victi)s )a. react i$ a $")er !2 #a.s

    perhaps '!#i$ i$ci%e$ts "p !"t !2 a''pr!p!rti!$ !r a'ter$ati&e'. ec!)i$resi$e% t! their i$e&ita'e 2ate+

    C t t

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    Customer types –Terrorist

      The Terrorist . The Terr!rist is thec"st!)er #h! )!"$ts a %a)ai$attac8 #he$ .!" 'east e;pect it+

      A$ e;a)p'e )iht e the c"st!)er#h! %ec'ares their %issatis2acti!$'!"%'. i$ the )i%%'e !2 a cr!#%e%

    resta"ra$t ha&i$ sai% ear'ier h!#!!% the 2!!% #as+

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    Customer types – Incompetent

      The Incompetent . Fr!$t-'i$e sta=sh!"'% pa. partic"'ar atte$ti!$ t! thesec"st!)ers+

      It is p!ssi'e that $e# c"st!)ers )a. ec!$2"se% . the !ra$i7ati!$s pr!ce%"resa$% i2 $!t (trai$e%* . sta= )a. 1$% thee;perie$ce threate$i$ #ith the res"'t

    that the. %! $!t ret"r$+  It is p!ssi'e !2 c!"rse that s!)e

    c"st!)ers are i$capa'e !2 ei$ trai$e%+

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    Customer types – Champion

      The Champion . 0hat a''!ra$i7ati!$s #a$t – &a'"e%c"st!)ers #h! are $!t !$'.s"pp!rti&e !2 their sta= a$% itsser&ice a$% he'p2"''. participate i$the pr!cess "t #h! a's! )a8e a

    p!i$t !2 pr!&i%i$ p!siti&e #!r%-!2-)!"th a!"t the !ra$i7ati!$ itsser&ices a$% sta=+

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    Creating Allies

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    What are the ene!ts ofretaining goo" customers#

      Va'"a'e c"st!)ers>• Are eas. t! %ea' #ith

    • Act as a%&!cates a$% pr!&i%e p!siti&e #!r%-!2-)!"tha%&ertisi$

    Assist i$ ser&ice pr!&isi!$• Re%"ce !perati$ c!sts

    • I$crease re&e$"es

    • He'p the !ra$i7ati!$ )ai$tai$ a$% i)pr!&e its ser&ices

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    Ho$ can managers "e%elopgoo" customer relationships#

      Three types of customerrelationships&•

    Portfolio relationships• Personal relationships• Temporary customer

    relationships

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    Portfolio relationships

      P!rt2!'i! re'ati!$ships i$&!'&e the(capt"re* !2 the c"st!)er "si$ a&ariet. !2 pr!%"cts !r ser&ices+

       Ba$8s 2!r e;a)p'e #!r8 har% t!esta'ish a re'ati!$ship #ith theirc"st!)ers . se''i$ 5a$% i$ !r%er t!

    se''6 )"'tip'e (pr!%"cts* s"ch asc"rre$t acc!"$ts '!a$s h!"se '!a$si$s"ra$ce a$% e;ec"t!r ser&ices+

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    Portfolio relationships -'ene!ts

      Pr!&i%e hiher-&a'"e c"st!)ers  A '!$er-ter) re&e$"e strea)  Opp!rt"$ities t! cr!ss-se'' !ther

    ser&ices !r pr!%"cts t! c"st!)ers#h! are a'rea%. e$ae% #ith the!ra$i7ati!$

      Va'"a'e i$2!r)ati!$ 2r!) a$% a!"tthat c"st!)er ase+

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    Personal relationships

      Pers!$a' re'ati!$ships e;ist i$)a$. pr!2essi!$a' a$% '!#-

    &!'")e hih-)ari$ ser&ices#here there is ti)e a$% &a'"ei$ %e&e'!pi$ !$e-!$-!$ere'ati!$ships #ith c'ie$ts !rc"st!)ers+

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    Personal relationships

      There are 2!"r 8e. e'e)e$ts t! a pers!$a' re'ati!$shipet#ee$ ser&ice pr!&i%er a$% c"st!)er>• Communication . The e;te$t t! #hich there is t#!-#a.c!))"$icati!$9 the ai'it. t! %e'i&er c'ear )essaes a$% the

    ai'it. t! 'iste$ care2"''.+• Trust . The %eree t! #hich !$e part$er %epe$%s !$ the#!r8 !r rec!))e$%ati!$ !2 the !ther #ith!"t see8i$ e;tra @"sti1cati!$ !r c!''a!rati!$+ I$ s!)e cases the part$er )a.c!))it the !ther t! #!r8 #ith!"t pri!r c!$s"'tati!$+

    Intimacy . The e;te$t t! #hich each part$er shares theirp'a$s strateies pr!1ts etc+ ,• Rules . A )"t"a' accepta$ce !2 h!# this partic"'arre'ati!$ship !perates> #hat is accepta'e a$% %esira'e a$%#hat is $!t+

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    Temporary customerrelationships

      Hih-&!'")e c!$s")er ser&ices !2te$re?"ire the 2!r)ati!$ !2 te)p!rar.re'ati!$ships #here c"st!)er

    c!$$ecti!$s are )a%e ?"ic8'.+  Ma$. sa'es pr!cesses %epe$% !$ the

    ai'it. !2 the sa'espers!$ t! esta'ish

    c!))!$ r!"$% #ith the pr!specti&ec"st!)er+

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    Ho$ can managers "e%elopgoo" usiness relationships#

       The %ri&ers 2!r i)pr!&i$ BBre'ati!$ships i$c'"%e>•  Gai$ i$ )ar8et share

    • Ac?"isiti!$ !2 i$te''ect"a' pr!pert. rihts5IPR6 !r tech$!'!.

    • P!rt2!'i! re-a'a$ci$

    • Re%"ce% c!st ase

    • I)pr!&e% pr!%"cti&it.

    • Mari$ r!#th

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    Ho$ can managers "e%elopgoo" usiness relationships#

      a$% the )!st 2re?"e$t'. cite% e$e1 tsarisi$ 2r!) i)pr!&e% "si$essre'ati!$ships are >•

    I)pr!&e% !tt!) 'i$e• !$-ter) %i=ere$tiati!$

    • Gr!#th

    • Shi2ts i$ eha&i!r

    I$crease% tr"st• Fr"it2"' c!-!perati!$• I)pr!&e% #!r8i$ patter$s

    • E$ha$ce% capacit. 2!r pr!'e) s!'"ti!$

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