Service EncounterByDr. Nripendra SinghJaypee Business School, Noida

Agenda The Service Triad Culture in Service Organizational Control Service Profit Chain Case Study: Amys Ice Cream

The Service Triangle ServiceOrganizationEfficiencyversussatisfactionControlversus autonomyCustomerContactPersonnelPerceived controlNote: Perceived control determines if a relationship or encounter is established between contact personnel and customer.8-*

The Service Encounteris the moment of truthoccurs any time the customer interacts with the firmcan potentially be critical in determining customer satisfaction and loyaltytypes of encounters:remote encounters, phone encounters, face-to-face encounters is an opportunity to:build trustreinforce qualitybuild brand identityincrease loyalty

Check-InRequest Wake-Up CallCheckoutBellboy Takes to Room Restaurant Meal Service Encounter Cascade for a Hotel Visit

Sales CallOrdering SuppliesBillingDelivery and Installation ServicingA Service Encounter Cascade for an Industrial Purchase

Critical Service Encounters ResearchGOAL - understanding actual events and behaviors that cause customer dis/satisfaction in service encountersMETHOD - Critical Incident TechniqueDATA - stories from customers and employeesOUTPUT - identification of themes underlying satisfaction and dissatisfaction with service encounters

Service Encounter Success Factors 8-*

Customer

Service Provider

Human Machine

Human

Employee selection

Interpersonal skills

Support technology

Engender trust

User friendly

Verification

Security

Easy to access

Machine

Easy to access

Fast response

Verification

Remote monitoring

Compatibility

Tracking

Verification

Security

Sample Questions for Critical Incidents Technique StudyThink of a time when, as a customer, you had a particularly satisfying (dissatisfying) interaction with a service employee.When did the incident happen?What specific circumstances led up to this situation?Exactly what was said and done?What resulted that made you feel the interaction was satisfying (dissatisfying)?

The CustomerExpectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customerCustomer as Coproducer8-*

The Service OrganizationCulture Empowerment Invest in people Use IT to enable personnel Recruitment and training critical Pay for performance8-*

Organizational Control8-*

ControlSystemObjectiveEmployeeChallengeManagement ChallengeKey IssuesBeliefContributeUncertainty about purposeCommunicate core values and missionIdentify core valuesBoundaryCompliancePressure or temptationSpecify and enforce rulesRisks to be avoidedDiagnosticAchieveLack of focus Build and support clear targetsCritical performance variablesInteractiveCreateLack of opportunity or fear of risk takingOpen organizational dialogue to encourage learningStrategic Uncertainties

Contact PersonnelSelection 1. Abstract Questioning 2. Situational Vignette 3. Role PlayingTraining Unrealistic customer expectations Unexpected service failure8-*

Difficult Interactions with CustomersUnrealistic customer expectations Unexpected service failure 1. Unreasonable demands 1. Unavailable service 2. Demands against policies 2. Slow performance 3. Unacceptable treatment of 3. Unacceptable service employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customers

Use scripts to train for proper response8-*

Examples of Unethical Behaviors8-*

Misrepresenting the Nature of the ServiceCustomer ManipulationGeneral Honesty and Integrity Promising a nonsmoking room when none is available Using bait-and-switch tactics Creating a false need for service Misrepresenting the credentials of the service provider Exaggerating the benefits of a specific service offering Giving away a guaranteed reservation Performing unnecessary services Padding a bill with hidden charges Hiding damage to customer possessions Making it difficult to invoke a service guarantee Treating customers unfairly or rudely Being unresponsive to customer requests Failing to follow stated company policies Stealing customer credit card information Sharing customer information with third parties

Service Profit ChainInternal

Operating strategy and service delivery system

Service concept

Target market

Servicevalue

Customers

Loyalty

Productivity&Outputquality

Servicequality

Capability

Satisfaction

Employees

Satisfaction

Loyalty

Revenuegrowth

External

Profitability

Customer orientation/quality emphasisAllow decision-making latitudeSelection and developmentRewards and recognitionInformation and communicationProvide support systemsFoster teamwork

Quality & productivity improvements yield higher service quality and lower cost

Attractive ValueService designed& delivered tomeet targetedcustomers needsSolicit customerfeedback

Lifetime valueRetentionRepeat BusinessReferrals

8-*

Common Themes in CriticalService Encounters ResearchRecovery:Adaptability:Spontaneity:Coping:Employee Responseto Service DeliverySystem FailureEmployee Responseto Customer Needsand RequestsEmployee Responseto Problem CustomersUnprompted andUnsolicited EmployeeActions and Attitudes

Amys Ice CreamDescribe the service organization culture at Amys Ice Cream.What are the personality attribute of the employees who are sought by Amys Ice Cream?Design a personnel selection procedure for Amys Ice Cream using abstract questioning, a situational vignette, and/or role playing.8-*

AMYS ICE CREAM QuestionsWhat was your most rewarding past experience and why?What are you looking for in your next job?What have you done in the past to irritate a customer?What flavor of ice cream best describes your personality?8-*

Amys Ice Cream Facility8-*

AMYS ICE CREAMSituational Vignette A particular customer has the irritating habit of always showing up about two minutes before closing and staying late. Often this occurs on the night when weekly store meeting are held after closing time. This delays starting the meeting and furthermore employees are on the clock waiting for the customer to leave. What would you do? 8-*

AMYS ICE CREAMSituational Vignette As a new employee at a busy store, you have been routinely performing clean-up tasks (garbage removal and restroom cleaning). Company policy dictates that these are tasks to be shared. It has become clear that two employees consistently avoid these jobs in favor of more pleasant duties. How would you handle this situation?8-*

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