Moments of Truth

Each customer contact is called a moment of truth.

An episode when a customer comes in contact with any aspect of your business
and gets an impression of the quality of its service You have the ability to either satisfy or dissatisfy them when you contact them Defining points in service delivery where customers interact with employees or equipment

High-Contact and Low-Contact Services

High Contact Services
Customers visit service facility and remain throughout service delivery
Active contact between customers and service personnel Includes most people-processing services

Low Contact Services

Little or no physical contact with service personnel Contact usually at arms length through electronic or physical distribution channels New technologies (e.g. Web) help reduce contact levels

Levels of Customer Participation across Different Services

Low: Customer presence required during service delivery
products standardized service regardless of individual purchase payment only required customer input

Moderate: Customer inputs required for service creation

client inputs customize a standard service service requires customer purchase customer inputs needed but firm provides service

High : Customer co-produces the service product

active participation guides customized service creation involves customer purchase, active participation customer inputs mandatory, co-produce outcome

In a Restaurant

Moments of Truth 1 & 2

The initial contact
Impressions are formed long before entering the establishment

The entrance area

Parking lot, foyer, sidewalk by front door doors etc. are critical customer contact points

Moments of Truth 3 & 4

The host/ess area
The host/ess is the first employee and salesperson that the guest meets Critical contact point

The cocktail server/bartender

Cocktail/bar staff should be trained to ensure that the guest is happy

Moments of Truth 5 & 6

Table
Condiments, menu, table tents

Busser/Service Assistant
Should be taught to respond to commonly asked questions Appearance

Moments of Truth 7 & 8

Servers
Spend more time with guest than any other member of staff

Manager
Demonstrate presence One cannot manage from an office in the back

Moments of Truth 9 & 10

Food
Appearance Observe expressions on the face of the guests

Bathroom
Clean and keep supplies stocked Routine checks

Moments of Truth 11 & 12

Check presentation
This is the point at which the guest is deciding the servers tip!

The Farewell
Last impression should be positive Thank the guest Invite the guest back

Traditional Organizational Pyramid

CEO
DIVISIONAL MANAGERS UNIT MANAGERS

SERVICE WORKERS

A SUPERIOR ORGANIZATIONAL PYRAMID

CUSTOMERS
SERVICE EMPLOYEES

SUPPORT UNITS

Moments of Truth

MANAGERS

Yield Management
A pricing model that aims to maximize the yield to the seller by charging buyers different prices according to the value they place on the purchase. Also known as Value Pricing. Common in the hospitality industry (happy hours, apex fares)