6 Managing Service Promises

Provider Gap 4 also termed as Communication Gap represents difference between

Service delivery and external communication to customers. The deliverable
committed by service company through various channels raise customer
expectation which are considered as service quality. An effective and appropriate
mix of internal and external communication is a must.
6.1 Integrated Service Marketing Communication
Communication and service marketing triangle comprises of
a) Internal Communication: Verbal and horizontal communication to employees
b) External Communication: Advertising, Sales promotion, Public relations,
Direct marketing
c) Interactive Marketing Communication: Customer service encounter,
interaction and servicescape
6.1.1 Service Communication Challenges
Service communication is challenging with a various barriers like intangibility of
service has to be addressed, service promise has to be managed, customer
education has to be enhanced and expectation has to be coherent with IMC.
6.1.2 Strategies to match Service Promise with delivery
The purpose is to achieve customer satisfaction and create fair relationship.
Addressing intangibility
a) Use narrative to demonstrate the service experience: A good word of mouth
narrative sets positive expectation.
b) Present vivid information: Pictures and details of lodging, Food and beverage
service creates a distinct mental picture of perceived quality.
c) Use interactive imagery: Mascot in terms of hospitality and healthy dining
imagery
d) Focus on Tangibles: Maintain clean and decorated entrances, lobby and dining
area with well-groomed personnel.
e) Use brand icons: Celebrated customers like movie stars, movie shooting,
prominent events like beauty pageant or conferences like Tedx.
f) Feature service employee in communication: Show the hotel promotional
video with room standards, dining facilities, gym, swimming pool, spa etc.
g) Use buzz words: 5 Star Hotel, business hotel
h) Leverage Social Media: Website content to be updated and engagement
through Facebook page
i) Aim messages to influences: Invite premium customers to annual functions,
food festivals
j) Create advertise that generate traction: Event promotion in various media
channels to get people talking
k) Feature customer reviews in brochures
l) Involve employees in marketing during service encounters

Managing service promise:

a) Every employee is the representation of brand, a healthy and warm
encounter sets positive experience.
b) Coherent external communication with service delivery sets realistic
expectation and standards
Managing customer expectation:
a) Under promise and over perform
b) Documentation of standard services provided at various packages for room
sizes, suites, and dining.
c) Various offers and combos available for rooms, banquet halls and dining
d) Employees empowered to take decisions to customize according to customer
needs and account.
Managing customer education:
a) Communicate role of customer in service delivery
b) Engagement of employees in banquet halls, room service and ordering of
food to be informative
c) Confirm orders, room numbers and billing details
d) Inform about happy hours, discount seasons, value packages and luxury
memberships
Example: Prestige Card for 7000 INR offering 10-20% discount
Manage internal Communication:
a)
b)
c)
d)

Internal mailing distro for each HOD like front desk, F&B, housekeeping etc.
Morning meeting with all HOD and staff call
Creating cross functional teams by mandatory 5hr per month training
Efficient information systems for operations, feedback, SCM, and security
helps employees to serve better

6.1.3 IMC employed by Radisson

The PR and external communication is centrally driven through US. In India the
creatives are outsourced to a firm in Gujarat which is then communicated by a
central marketing team.
a)
b)
c)
d)
e)
f)
g)
h)
i)

Use of TV and radio is limited

The data collected by CRM Medallion helps in communicating offers and deals
Website and Facebook page are impressive
Newspapers serves a major source of local promotion
Magazine covers like Jharkhand tourism, Lifestyle generates awareness
Being a business hotel most of the business rely on word of mouth
Eco friendly activities/ standards promote its corporate responsibility
Individual development plan shared with each employee after review
Employees empowered to take recovery decisions

The customer base is limited in Ranchi as most of the client base is business. There
can few modifications that can be done to attract new customer base.

Ranchi being host to various sports events, a new sports package can be
popularized
Student base can be tapped by offering college discounts
TV Advertisements can strengthen the brand
Create a promotional video like Taj and Oberoi
Have a brand ambassador

6.2 Pricing of Services

Pricing of a service is a complex and every evolving process. It takes in to account
Price perception, Price fairness, Purchasing power and Income distribution. Several
non-monetary factors considered in Radissons pricing are search cost for good
hospitality, convenience as located in the center of the city and psychological cost
as being a 5 star.
6.2.1 Approaches to Pricing Services
The approaches used by Radisson are:

High price, low volume v/s Low price, high volume in different service line
Competition analysis with service quality and price being offered
Client profile with coherence to buying power
Demand based in F&B with happy hours, food festivals

 Set FInal Price

Estimate a pricing structure and level

Estimate Cost, Revenue and Life time

value
Determine Demand based on
COmpetition and offering

Understand Customer Value

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