Customer Service Management

Expectations
Participant

????????

Facilitator

Let us not have Santas story..

Dear Santa, This year for Christmas I would like to have a slim body and a fat purse. Please do not mix up the requests like you did last year! Yours truly

So what are your expectations?

Stated Expectations
To understand elements of customer service in

hospital management How do I manage service issues in my hospital? To create a world class service organisation To be able to create high levels of customer satisfaction and ensure repeat customers

Unstated Expectations

Why is customer service important

Differentiation Profits Referrals

Good Customer Service Pays

CATEGORY OF SERVICE 0% Automotive Auto/Home Insurance Bank Branch Deposits Professional Publishing Credit Cards Life Insurance Corp. Insurance Advertising Agencies 35% PROFIT INCREASE AFTER CUSTOMER RETENTION RISE OF 5% 70% 105% 140%

Source:The Service Edge.1992 Vol 5

Phases of an Organisation
CUSTOMER DRIVEN ORGANISATION
Description of End Product Customer Needs Assessment Process Quality Assurance Mechanisms Customer Assessed Quality Parameters PHASE 1 Mass Manufactured Product Market Research on Customer Needs QCs, Suggestion Schemes Tangibles and Product Reliability

PHASE 2

Ditto But Adapted to Individual Needs and Options

Input from Individual Customers

Computerised Production Plannng & Control and Flexible Manufacturing Systems

Responsiveness to Customer Needs

PHASE 3

Customer Sensitive Service Bundled with Product

Customer Dialogue

Empowered Front Line Empathy of Front Line Staff Staff

PHASE 4

Customer Empowerment

Customer Engagement

Boundary less Process Assurance (Fairness, trust Oriented Speedy and long term relationship) Organism

Source: VS Mahesh published in ICA journal March 1994

What is service operations management

Term used to cover activities, decisions and responsibilities of operations

managers

Service 0perations Managers are responsible for delivering service to the

customers

Service is the combination of outcomes and experiences delivered to a and

received by a customer

The service experience is the customers direct experience of the service

process and concerns the way the customer is dealt with by the service provider
judgements and intentions

The service outcome includes tangible outputs, plus value, emotions,

Session Details

World Class Organisations Service Concept Understanding Customer Needs Mapping Moments of Truth Service Quality Gap Analysis Service Performance Network Empathy Its all about Attitude Fish Action Plans

World Class service

World class service organisations have superior business

performance and understand relationships between their operations decisions and business performance
The characteristics of world class organisations at a

corporate level include

Great leadership

Clear vision
Clarity of concept Supportive culture A well developed strategy

World Class Service

The Characteristics of world class service at an operations

level include
Willingness to listen to customers Continuous process development Consistency of service Responsiveness Can do attitude Big and little thinking Supportive and committed staff Excellent performance management Lack of complacency

Session Details

World Class Organisations Service Concept Understanding Customer Needs Mapping Moments of Truth Service Quality Gap Analysis Service Performance Network Empathy Its all about Attitude Fish Action Plans

The Service Concept

Strategy Supplier Relationship s Customer Relationship s

Service Delivery Performance Managemen t

MGM Dizzy World Service Concept

Organisation MGM Dizzy world Organising Idea : A great day out at a theme park
Service Concept Summary: A theme park that provides an inclusive package of over 100 rides and attractions to suit all ages and tastes with thrills, fun, fantasy, fast food

Service Experience
Quick and easy to buy ticket Exhilarating and entertaining Fun and lively for all ages Range of attractions Plenty of food and drinks long queues for main rides at park

Service Outcome
Great day out Family fun Thrilling rides Never a dull moment Great experience with friends/family exhausting

Service Operation:
Good signage to the park Large car parks Clear site maps Different queuing systems Range of food outlets Over 100 rides and attractions

Service Value
All inclusive price Car parking extra Expensive ticket but well worth it Few additional costs Food reasonably priced Overall excellent value for money

Session Details

World Class Organisations Service Concept Understanding Customer Needs Mapping Moments of Truth Service Quality Gap Analysis Service Performance Network Empathy Its all about Attitude Fish Action Plans

Defining Expectations
The service quality factors are those attributes of

service about which customers have expectations and which need to delivered at some specified level
Hygiene factors dissatisfy not delight Neutral factors no effect on satisfaction Enhancing factors will dissatisfy but may delight Critical factors both dissatisfy and delight

Who is my customer
Our most typical customer is going to be ; Pen sketch / picture What are his major needs
What are the three things our customer should like

most about doing business with us What are his/her options Why would our customer switch loyalty What should I do to keep I tune with his changing needs

Exercise : Are you listening

Different Methods of listening to the Customer

Market Research Customer Panels Customer Comment Forms Customer Service Desks Handling Complaints positively Make the frontline employees your ears /eyes Managers should experience front line jobs Be a customer Media Comments Ghost Audit Competition analysis Check customer defection rates Beware the Head Waiter Syndrome

Session Details

World Class Organisations Service Concept Understanding Customer Needs Mapping Moments of Truth Service Quality Gap Analysis Service Performance Network Its all about Attitude Fish Action Plans

Mapping Moments of Truth

Tools to engineer Service Processes

Process Mapping Walk through Audits Service Transaction Analysis

Consumer Behaviour
Where does the customer fit into the service operation? What perceived risks to customers face in purchasing and using

services? How do customers form expectations and differentiate between desired and adequate service levels Why do people often have difficulty in evaluating the services that they use How does reducing or increasing the level of customers contact with a service supplier affect the nature of their service experiences What insights can be gained from viewing service delivery as a form of theater?

Customer Categories
The Ally,

The Hostage, The Anarchist, The Patient, The Tolerant, The Intolerant, The Victim, The Terrorist, The Incompetent and the Champion

Customer types
Tolerant Positive Patient ATTITUDE Incompetent Negative Victim Ally Champion

Hostage Intolerant Anarchist Terrorist

Passive

ACTIVITY

Active

Managing Customers
Customers are often Service Providers
Key roles taken by customers are Service provider Service Specifier Quality Inspector Trainer/Role Model Key issues in managing customers include defining

customer competence,selection, training, motivation and removal

Service Processes and their Importance

A Service set of interrelated activities together in

sequence Good service processes created satisfied customers, reduce costs and underpin financial performance Processes must be understood and managed end to end

The nature of service processes

Runners / Repeaters /Strangers
Value may be added in front office or back office with

varying degrees of customer involvement Volume/variety matrix helps identify the key attributes Process Profiling can help identify what needs to be changed to reposition a process

Controlling Service Processes

Reliability and consistency are important
Capable processes can be created through

implementation of statistical process control

Quality systems should not only provide process

definition but also be a catalyst for quality improvement

Service Recovery
All organisations need to have service recovery procedures

in place Service recovery is the act of dealing with service failures Service recovery should lead to
Increased customer satisfaction Retention process imporvements Improved financial performance

Service recovery has three essential ingredients Prevention of repetitions Excellent complaint handling Proactive service recovery

Customer Satisfaction and Service Quality

Satisfaction is the result of a customers assessment

vis-a vis his expectations and perceptions of service delivery Service quality is about consistently meeting services specification for that service Excellent service entails delivering the promise and dealing well with problems and queries There may be gaps between expectations, perceptions and service quality delivered

Delighting and dissatisfying factors

HIgh

Hygiene Potential To dissatisfy Neutral

Critical

Enhancing

Lo w

Potential to delight

HIgh

Session Details

World Class Organisations Service Concept Understanding Customer Needs Mapping Moments of Truth Service Quality Gap Analysis Service Performance Network Its all about Attitude Fish Action Plans

Five Dimensions of Service Quality Scale (SERVQUAL)

Tangibles Reliability Responsiveness Assurance Empathy

Gap 1 Customer Expectations

Key Factors Insufficient market research Inadequate use of market research Lack of interactions between management and customers Insufficient comunication between contacgt employees and managers Too many layers between contact personnel and top management

Gap 2 Service Quality Specifications

Key Factors Inadequate management commitment to service quality Absence of formal process for setting service quality goals Inadequate standardisation of tasks Perception of infeasibility that customer expectations cannot be met

Gap 3 Service Delivery

Key Factors Lack of teamwork Poor employee job fit Poor technology job fit Lack of perceived control Inappropriate evaluation /compensation system Role conflict among contact employees Role ambiguity among contact employees

Gap 4 External Communication to Customers

Key Factors Inadequate communication between salespeople and operations Inadequate communication between advertising and operations Difference in policies and procedures across branches or departments Puffery in advertising Puffery in personal selling

Gap 5 Expected Service and Perceived Service

Word of Mouth Personal Needs Past Experience

Expected Service

Perceived Service

Session Details
World Class Organisations Service Concept Understanding Customer Needs Mapping Moments of Truth Service Quality Gap Analysis

Service Performance Network

Its all about Attitude Action Plans

Service Performance Network

Vision

Processes

Staff Satisfaction

Attraction

Concept Leadership

People

Service Delivery

Financial Performance

Culture

Resources

Loyalty
Strategy Networks/Tech

Customer Satisfaction

The service performance network

The servicer performance network documents many of

the cause-effect linkages beween operational drivers and business results

The key stages in developing a network are: Create a model by capturing several threads through the network, collect data, and analyse the data to understand the relationships between the variables

Repositioning Service
There are pressures to change their nature
Organisations must manage the gap between what is

marketed and what is delivered Four ways of repositioning

Build capability through systems and training Build capability through incremental development Moving to a commodity by constraining flexibile

resources Moving to a commodity through investment in process capability

The Service Triangle

The Service Strategy

Internal Marketing The customer

The Systems

The People

Service People Pressure on Service Providers

Service employees have pressure from Organisation - requiring high levels of quality and productivity Customers - unrealistic expectations, incompetence and anxiety

Fish! The Movie

An excellent formula to enthuse staff and make work fun! Play have Fun at work Make Their Day Be there Choose your attitude

Its all about attitude

Exercise

Reference Material
Service Operations Management Lovelock and Lewis Fish / Fish Tales / Fish Sticks Stephen C Lundin, John Cristensen, Harry Paul

Thank you!