Chapter 8

Designing and Managing Service Processes

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

8- 1

Developing a Blueprint Some Basic Advice

Identify key activities in creating and

delivering the service

Distinguish between front stage (what

customers experience) and back stage

Chart activities in sequence Show how interactions between customers

and employees are supported by backstage activities and systems

Establish service standards for each step Identify potential fail points Focus initially on big picture (later, can drill
down for more detail in specific areas)

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

8- 2

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 personnel 9. Support processes involving IT
Where appropriate, show fail points and risk of excessive waits

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

8- 3

Simplified Example: Blueprinting a Hotel Visit

(extract only)

Physical Evidence Stage

Hotel exterior, lobby, employees, key Make Customer reservation Actions Employee Actions Face-to-face Phone Contact Rep. records, confirms Valet Parks Car Enter data Register guest data
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Elevator, corridor, room, bellhop Go to room

Arrive, valet park

Doorman greets, valet takes car

Check-in at reception
Receptionist verifies, gives key to room

Line of Interaction Front Line of Visibility Backstage

Make up Room

Slide 2004 by Christopher Lovelock and Jochen Wirtz

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Improving Reliability of Processes by Failure Proofing

Analysis of reasons for failure often reveals opportunities

for failure proofing to reduce/eliminate risk of errors

Errors include:
treatment errorshuman failures during contact with customers

Fail-safe procedures include measures to prevent omission

of tasks or performance of tasks
incorrectly in wrong order too slowly not needed or specified

tangible errorsfailures in physical elements of service

Need fail-safe methods for both employees and customers

Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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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

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

8- 6

Customers as Co-Producers: Levels of Participation in Service Production

Low Employees and systems do all the work Medium Customer inputs required to assist provider
Provide needed information, instructions Make personal effort May share physical possessions

High Customer works actively with provider to

co-produce the service

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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Self Service Technologies (SSTs)

Self-service is ultimate form of customer involvement in

service production
Customers undertake specific activities using facilities or systems

provided by service supplier

Customers time and effort replace those of employees

Concept is not newself-serve supermarkets date from

1930s, ATMs and self-serve gas pumps from 1970s

Today, customers face wide array of SSTs to deliver

information-based services, both core and supplementary

Many companies seek to divert customers from employee

contact to Internet-based self-service
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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Service Firms as Teachers: Well-trained Customers Perform Better

Firms must teach customers roles

as co-producers of service

Customers need to know how to

achieve best results

Education can be provided through:

Brochures Advertising Posted instructions Machine-based instructions Websites, including FAQs Service providers Fellow customers

Employees must be well-trained to

help advise, assist customers
Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

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Managing Customers as Partial Employees to Increase Productivity and Quality

1. Analyze customers present roles in the business and compare to managements ideal 2. Determine if customers know how to perform and have necessary skills 3. Motivate customers by ensuring that will be rewarded for performing well 4. Regularly appraise customers performance; if unsatisfactory, consider changing roles or termination

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

8 - 10

The Problem of Customer Misbehavior Identifying 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 Try to avoid attracting potential jaycustomers Institute preventive measures Control abusive behavior quickly Take legal action against abusers BUT firm must act in ways that dont alienate other customers
Services Marketing 5/E

What should a firm do about them?

Slide 2004 by Christopher Lovelock and Jochen Wirtz

8 - 11

Six Types of Jaycustomer

Thief seeks to avoid paying for service Rule breaker ignores rules of social behavior and/or procedures for
safe, efficient use of service

Belligerent angrily abuses service personnel (and sometimes other

customers) physically and/or emotionally

Family Feuders fight with other customers in their party Vandal deliberately damages physical facilities, furnishings, and
equipment

Deadbeat fails to pay bills on time

Can you think of others? How should firms deal with each of these problems?

Slide 2004 by Christopher Lovelock and Jochen Wirtz

Services Marketing 5/E

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