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the customers role in service delivery ft4
- 1. 1 SM 4 th McGraw-Hill © 2000 The McGraw-Hill Companies McGraw-Hill © 2000 The McGraw-Hill Companies
- 2. 2 SM Chapter 12 Customers’ Role in Service Delivery McGraw-Hill © 2000 The McGraw-Hill Companies McGraw-Hill © 2000 The McGraw-Hill Companies
- 3. 3 The importance of customers SM in service delivery Customer participation at some level is inevitable in service delivery. Services are actions or performances, typically produced and consumed simultaneously. McGraw-Hill © 2000 The McGraw-Hill Companies
- 4. 4 The importance of customers SM in service delivery In many situations employees, customers and even others in the service environment interact to produce the ultimate service outcome. Because they participate, customers are indispensable to the production process of service organizations, and they can actually control or contribute to their own satisfaction. McGraw-Hill © 2000 The McGraw-Hill Companies
- 5. 5 The importance of customers SM in service delivery 1. Customer Receiving the Service 2. Other Customers McGraw-Hill © 2000 The McGraw-Hill Companies
- 6. 6 The Importance of Customers in SM Service Delivery Level of Customer Participation: Low: Consumer Presence Moderate: Consumer Input High: Customer Co creates the Required during Service Required for Service Creation Service Product Delivery Client inputs customize a standard Active client participation guides the service customized service. Products are standardized Provision of service requires customer Service cannot be created apart from the Service is provided Purchase customer’s purchase and active regardless of any individual participation. Customer inputs ( information materials) purchase Customer inputs are mandatory Are necessary for an adequate outcome, Payment may be the And cocreate the outcome. but the service firm provides the service Only required customer Input. Haircut End Consumer Examples Marriage Counseling Annual Physical exam Airline travel Personal training Full-service restaurant Motel stay Weight reduction program Fast-food restaurant Major illness or surgery Agency created advertising Business–to Business Campaigning Customer Examples Management consulting Payroll service Uniform cleaning service Executive Management seminar Freight transportation Pest control Installation of computer network. Interior greenery maintenance service McGraw-Hill © 2000 The McGraw-Hill Companies
- 7. 7 SM Other Customers There are direct customers and other customers. direct customers directly receive the services and other customers are present in the service environment and can affect the nature of the services outcome or process. Other customers can either enhance or detract from customer satisfaction and perceptions of quality. McGraw-Hill © 2000 The McGraw-Hill Companies
- 8. 8 SM Other Customers Some of the ways other customers can negatively affect the service experiences are by exhibiting disruptive behaviors, causing delays, overusing, excessively crowding, and manifesting incompatible needs. Crying babies, smoking patrons and loud unruly groups. McGraw-Hill © 2000 The McGraw-Hill Companies
- 9. 9 SM Customer Roles 1. Customers as productive resources 2. Customers as contributors to service Quality 3. Customers as Competitions McGraw-Hill © 2000 The McGraw-Hill Companies
- 10. 10 Customers as productive SM resources Partial employees Effort, time & other resources Customer input Qualities of (input) & quality of output Two issues 1. Delivery system should be isolated from inputs due to uncertainty of customers’ uncontrollable actions. 2. Can be delivered efficiently if customers are viewed as partial employee. McGraw-Hill © 2000 The McGraw-Hill Companies
- 11. 11 Customers as Contributors SM to Service Quality Health care, education, personal fitness and weight loss. Performing roles effectively Influence quality of outcome Satisfaction Productivity Variation in participation, variation In quality McGraw-Hill © 2000 The McGraw-Hill Companies
- 12. 12 Customers as Contributors SM to Service Quality Situations What they did- Technical quality of customer inputs I clearly explained what I wanted the bank employee to do. How they did it- Functional quality I was friendly to the bank employee. McGraw-Hill © 2000 The McGraw-Hill Companies
- 13. 13 SM Customers as Competitions Customers become competitor of company by performing self services, such as child care or marriage counseling. Internal exchange or external exchange McGraw-Hill © 2000 The McGraw-Hill Companies
- 14. 14 SM Customers as Competitions In house or outsourcing production depends on: 1. Expertise capacity 2. Resource capacity 3. Time Capacity 4. Economic rewords 5. Psychic rewards 6. Trust 7. Control McGraw-Hill © 2000 The McGraw-Hill Companies
- 15. 15 Self Service Technologies- The SM Ultimate in Customer Participation Self Service technologies are services produced entirely by the customer without any direct involvement or interaction with the firm’s employee. McGraw-Hill © 2000 The McGraw-Hill Companies
- 16. 16 Self Service Technologies- The SM Ultimate in Customer Participation A proliferation of New SSTs 12. Self-scanning at retail stores 1. ATMs 13. Internet banking 2. Pay at the pump 14. Vehicle registration online 3. Airline cheek-in 15. On line auctions 4. Hotel cheek- in and cheek out 16. Home and car buying online 5. Automated car rental 17. Automated investment 6. Automated filing of legal transaction claims 18. Insurance online 7. Online driver’s license testing 19. Package tracking 8. Automated betting machines 20. Internet shopping 9. Electronic blood pressure 21. Internet information search machine 22. Interactive voice response 10. Various vending service phone systems. 11. Tax preparation software 23. Distance education. McGraw-Hill © 2000 The McGraw-Hill Companies
- 17. 17 SM Success with SSTs Strategy (cost saving, revenue, growth or competitive advantages) Benefits and customer’s capacity to receive benefits Motivation, roles and capacity to perform roles Technology readiness Customer involvement Customer education McGraw-Hill © 2000 The McGraw-Hill Companies
- 18. 18 Strategies for Enhancing SM Customer Participation Define customers’ job 1. Helping oneself: through active participation, customers may become productive resources. 2. Helping others: mentoring programs in university. 3. Promoting the company: recommendation 4. Individual differences: not every one want to participate McGraw-Hill © 2000 The McGraw-Hill Companies
- 19. 19 Strategies for Enhancing SM Customer Participation Recruit, educate and reward customers 1. Recruit the right customers who are comfortable with roles and communicate responsibilities. 2. Educate and train customers through socializing org. values, abilities and skills, customer orientation (universities), customer education (hospitals) and customer information (McDonald's) 3. Reward customers for their contributions 4. Avoid negative outcomes of inappropriate customer participation McGraw-Hill © 2000 The McGraw-Hill Companies
- 20. 20 Strategies for Enhancing SM Customer Participation Manage the customer mix Compatibility management: a process of first attracting homogeneous consumers to the service environment, then actively managing both the physical environment and customer to customer encounters in such a way as to enhance satisfying encounters and minimizing dissatisfying customers. Strategies: 1. Homogeneous customers 2. Locational proximity 3. Codes of conduct ( dresses and smoking attitudes) McGraw-Hill © 2000 The McGraw-Hill Companies