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Lecture 6

MKT 723 Lecture 6: Week 6 (Service Marketing: Process)

6 Pages

Course Code
MKT 723

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Service Marketing – week 6 7 ps of service marketing: Process The service encounter - The moment of truth - Any time the customer interacts with the firm - Critical in determining customer satisfaction and loyalty - Is an opportunity to: o Build trust o Reinforce quality o Build brand identity o Increase loyalty - Flowcharting: displaying the sequence of steps when a customer flows through the service process o Ex: getting a haircut from starting to finish o GROUP PROJECT: NEED TO CREATE A FLOW CHART - Service flowchart: o You should be able to map the service o Not all steps are equally important ▪ For example: • Ritz Carleton: Kualalampoor • 1. Check in o The bell person takes luggage to the room • 2. Personal butler o Restaurant meal o Clothes returned cleaned and pressed • 3. Wake up call o Check-out Types of service encounters o Remote encounters: company website, bank ATM, communications received in the mail ▪ Service encounter frame can be used here • Build trust • Reinforce quality • Build brand identity • Increase loyalty o Technology – mediated encounters: telephone, live chat ▪ Rogers, Apple Chat o Face to Face Encounters: verbal and nonverbal behaviours ▪ Example: for a funeral - you don’t want someone who’s super happy ▪ Example: Netflix chat Service blueprint components: o Physical evidence ▪ Customer action: line of interaction o Visible contact employee actions ▪ Line of visibility o Invisible contact employee actions ▪ Line of internal interaction o Support ProcessExample: overnight delivery Service blueprint components: o Physical evidence ▪ Customer action: line of interaction ▪ (Customer give package) ----- (Customer received package) o Visible contact employee actions ▪ Line of visibility ▪ (Driver picks up package) ----- (driver delivers package) o Invisible contact employee actions ▪ Line of internal interaction ▪ (driver takes package to central warehouse) o Support Process (behind the scenes) ▪ Dispatch driver ▪ Airport received and loads ▪ Fly to sort counter ▪ ************** circles around the customer actions Benefits o Provides a platform for innovation o Recognize roles and interdependence o Transfers and knowledge o Design moments of truth from the customers point of view o Suggest critical points of measurement o Clarifies competitive positioning o Provides understanding of the ideal customer experience - Once we understand what the customer requirements are and we have mapped the service, we need to create services quality standards and goals for the organization - GOAL: set service standards that address customer expectations Factors necessary for appropriate service standards o Standardization of service behaviours ▪ Goal: produce a consistent service product from one transaction to the next • How: substitute of technology for personal contact and human effort: example ATM • And / or • Improvement in work methods: H&R block ▪ Standardization always the best option ? • Customization usually refers to some level of tailoring to the individual customer o Formal service targets and goals ▪ Setting specific targets for individual behaviours and actions • What if critical to our customers • What does high quality service look like? • As a company how can we measure ourselves to that standard? Service standards o Standards are based on the most important customer expectations and reflect the customer views of these expectations.Company defined standards: (not right for a long term business) o Productivity implications o Cost implications o Company process blue print o Company view of quality Customer defined standards o Customer expectations o Customer process blueprint o Customer experience observations - Customer defined service standards: may or may not be globally applicable don’t assume service standards in one country will work for all countries - Hard standards and measure: o Things that can be counted, timed or observed through audits (time, number of events) - Soft standards and measures o Opinion-based measures that cannot be observed and must be collected by talking to customers( perception, beleifs) ▪ Especially important for person to person interactions ▪ Rader On - Example Ford Oval certified 1. Appointment available within one day - hard 2. Write up beings within 4 minutes -hard 3. Service needs are courteously -soft - Process for setting customer defined standards 1. Identify existing or desired service encounter sequence 2. Translate customer expectations into behaviours/actions 3. Determine appropriate standards (criteria for standard) 4. Develop measurements for standards 5. Establishing target levels for standards 6. Track measure against standards 7. Provide feedback about performance to employees 8. Update target levels and measures - The customer has an important role o Involved in the service delivery and co creation o Customers can contribute to or detract from the successful delivery of the service and to their own satisfaction o In some cases, customers are largely responsible for their own satisfaction Levels of customer’s participation
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