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Chapter 3: The Guest Experience
•CH 3: The guest experience
The service environment
Service model
Gaps in service
Supp...
Why manage experiences?
The Cost of Poor Hospitality
Copyright © 2007 by John Wiley &
Sons, Inc. All rights reserved
 Service America! by Albrech...
7/12/2013 4
Possible Levels of Customer Expectations (1/2)
Ideal expectations or
desires
“Everyone says this restaurant is...
THE CUSTOMER…..
 Discuss Johnson and Layton‟s quote
“It is only through the eyes of a customer that definition
of service...
Customer Defined
 A customer is the receiver of goods or
services.
 This involves an economic transaction in which
somet...
Customer experience?
We are the music makers, and
we are the dreamers of dreams
Customer Expectations of Service
 Customer Expectations
 Beliefs about ________________
 Serve as reference points agai...
The Service Environment
“Customers do not buy service delivery, they buy
experiences; they do not buy service quality,
the...
Flow Experiences
• Happiness
• process of total involvement in life”
• optimal experience”
• the best moments of our lives...
The service model
There
Were No
Guest
Towels In
The Room
!!
Don‟t Call
Me Late At
Night
Restaurant
Service
Was Slow
!!
• Hotels Are Not Listening To Their Guests.
Frequently Asked Questions About
Customer Expectations
 What does a service marketer do if customer
expectations are “unr...
Customer
Experience
Management
vs
Customer
Relationship
Management
Customer-Driven Quality
Slide 1 of 2
Customer-Driven Approach
Customer driven quality represents a proactive approach to s...
Customer Experience Management…
Customer Centric
Give customers what they want
Business Strategy
Make money and beat the
c...
Dissatisfiers vs. Satisifiers
Copyright © 2007 by John Wiley &
Sons, Inc. All rights reserved
 Discuss Cadotte and Turgeo...
Dissatisfiers v. Satisfiers cont’d.
Copyright © 2007 by John Wiley &
Sons, Inc. All rights reserved
 3. Critical variable...
What is the Voice of the Customer?
 The Voice of the Customer
 The voice of the customer represents the wants,
opinions,...
Customer-Relationship Management
Slide 1 of 8
 Customer-Relationship Management
 This view of the customer asserts that ...
Customer-Relationship Management
Slide 2 of 8
Figure 3.1
Complaint
resolution
Feedback
Guarantees
Corrective
action
Custom...
Customer-Relationship Management
Slide 3 of 8
 Complaint Resolution
 Complaint resolution is an important part of the
qu...
Customer-Relationship Management
Slide 4 of 8
Complaint Resolution (or recovery) Process
Apologize to
the customer
(contri...
Customer-Relationship Management
Slide 5 of 8
 Feedback
 There are two main types of feedback
 feedback to the customer...
Customer-Relationship Management
Slide 6 of 8
 Guarantees
 A guarantee outlines the customer‟s rights.
 The guarantee i...
Customer-Relationship Management
Slide 7 of 8
To be effective, guarantees should be:
Unconditional
Painless to invoke
Mean...
Customer-Relationship Management
Slide 8 of 8
 Corrective Action
 When a service or product failure occurs, the failure
...
Serv.qual models
Service Quality Theories
• Parasuraman, Zeithaml, and Berry in 1985 discovered 10 widely
cited service quality determinant...
Measuring service quality:
SERVQUAL Model
(Parasuraman, Zeithaml & Berry 1985, 1988)
Service
Quality
Reliability
Responsiv...
Class Discussion
The Five-Gap Model
of Service Quality
Question: Describe ways in which you as
a Manager could use the fiv...
The Gap Approach to Service
Design
 The Gap
 The gap refers to the differences between desired
levels of performance and...
The Gaps Model of Service Quality
Consumer
Past
experience
Expected service
Perceived service
Service delivery
(including ...
• Not knowing what customers expect
• Not selecting the right service
standards and designs
• Not delivering to service st...
Customer’s
expectations
Company’s perceptions of
customer expectations
 Inadequate marketing research orientation
 Lack ...
Translation of perceptions into
service quality specifications
Management perceptions of
customer expectations
 Poor serv...
 Poor human resource policies
 Failure to match supply and demand
 Customer not fulfilling their roles
 Problems with ...
External communications to
consumers
Service delivery
 Lack of integration of marketing communications
 Inadequate manag...
Closing the gaps
 Refer to table 4.2, p. 104
 Gap 1: Learn what customers expect
 Gap 2: Establish the right service
qu...
Closing gap 1: Learn what customers
expect
 Use research, complaint analysis,
customer panels
 Increase direct interacti...
Closing gap 2: Establish the right
service quality standards
 Top management commitment to providing
service quality
 Se...
 Prioritise tasks
 Gain employee acceptance of
goals and priorities
 Measure performance of service
standards and provi...
Closing gap 3: Ensure that service
performance meets standards
 Attract the best employees
 Select the right employees
...
 Retain good employees
 measure and reward service
quality achievements
 develop equitable and simple
reward systems
Yo...
Closing gap 4: Ensure that service
delivery matches promises
 Seek input from operations personnel on what
can be done
 ...
 In advertising, focus on service
characteristics that are important
to customers
 Manage customer‟s expectations
 What...
Service Satisfaction Information
System
 Customer Complaints
 Surveys
 Employee Surveys
 Focus Groups
 „Mystery shopp...
Measuring Satisfaction
 Qualitative Research
 Understand key drivers / determinants
 Questionnaire design
 Data analys...
Best Practices
 Service Guarantees by Hampton Inns
 Unconditional guarantees
 Specific guarantees
 Implicit guarantees...
Module 3 the guest experience hard copy
Module 3 the guest experience hard copy
Module 3 the guest experience hard copy
Module 3 the guest experience hard copy
Module 3 the guest experience hard copy
Module 3 the guest experience hard copy
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  • You'll face moments of truth every day of your life. You'll make decisions and take the consequences. The consequences can be good, or they can be bad. There are consequences for every action you take.
  • The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate. Traditionally, managing the customer relationship has been the domain of Customer Relationship Management (CRM). However, CRM strategies and solutions are designed to focus on product, price and enterprise process, with minimal or no focus on customer need and desire. The result is a sharp mismatch between the organization's approach to customer expectations and what customers actually want, resulting in the failure of many CRM implementations.
  • Transcript of "Module 3 the guest experience hard copy"

    1. 1. Chapter 3: The Guest Experience •CH 3: The guest experience The service environment Service model Gaps in service Supplier-customer relationships and total quality
    2. 2. Why manage experiences?
    3. 3. The Cost of Poor Hospitality Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved  Service America! by Albrecht and Zemke).  96% of unhappy customers are never heard from.  For every complaint received, the average company in fact has 26 customers with problems, 6 of which are serious problems.  Complainers are more likely than non-complainers to do business again with the company that upset them, even if the problem isn‟t satisfactorily resolved.  The average customer who has had a problem with an organization recounts the incident to more than 20 people.  Customers who have complained to an organization and had their complaints satisfactorily resolved tell an average five people about the treatment they received.
    4. 4. 7/12/2013 4 Possible Levels of Customer Expectations (1/2) Ideal expectations or desires “Everyone says this restaurant is as good as one in France and I want to go somewhere very special for my anniversary.” Normative “should” expectations “As expensive as this restaurant is, it ought to have excellent food and service.” Experience-based norms “Most times this restaurant is very good, but when it gets busy the service is slow.” HIGH LOW
    5. 5. THE CUSTOMER…..  Discuss Johnson and Layton‟s quote “It is only through the eyes of a customer that definition of service quality can be obtained.”
    6. 6. Customer Defined  A customer is the receiver of goods or services.  This involves an economic transaction in which something of value has changed hands.  Internal customers  Employees receiving goods or services from within the same firm.  External customers  Bill-paying receivers of work.  The ultimate people we are trying to satisfy.  End user  Another term that describes customers.
    7. 7. Customer experience? We are the music makers, and we are the dreamers of dreams
    8. 8. Customer Expectations of Service  Customer Expectations  Beliefs about ________________  Serve as reference points against which performance is judged  In evaluating service quality, customers compare ____________of performance with ____________
    9. 9. The Service Environment “Customers do not buy service delivery, they buy experiences; they do not buy service quality, they buy memories; they do not buy food and drink, they buy meal experiences; they do not buy events or functions, they buy occasions” Today's‟ consumers are looking for experience; experience that are personal, memorable and add value to their lives
    10. 10. Flow Experiences • Happiness • process of total involvement in life” • optimal experience” • the best moments of our lives” • the state in which people are so involved in an activity that nothing else seems to matter: the experience itself is so enjoyable that people will do it even at great cost for the sheer sake of doing it” • Involves stretch/difficult/worthwhile • Autotelic experiences – intrinsic pleasures
    11. 11. The service model
    12. 12. There Were No Guest Towels In The Room !! Don‟t Call Me Late At Night Restaurant Service Was Slow !!
    13. 13. • Hotels Are Not Listening To Their Guests.
    14. 14. Frequently Asked Questions About Customer Expectations  What does a service marketer do if customer expectations are “unrealistic”?  Should a company try to delight the customer?  How does a company exceed customer service expectations?  Do customer service expectations continually escalate?  How does a service company stay ahead of competition in meeting customer expectations?
    15. 15. Customer Experience Management vs Customer Relationship Management
    16. 16. Customer-Driven Quality Slide 1 of 2 Customer-Driven Approach Customer driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about our customers to learn their needs and preferences and then providing products and services that satisfy the customer.
    17. 17. Customer Experience Management… Customer Centric Give customers what they want Business Strategy Make money and beat the competition
    18. 18. Dissatisfiers vs. Satisifiers Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved  Discuss Cadotte and Turgeon‟s survey results. 1. Dissatisfiers – complaints for low performance, e.g. parking 2. Satisfiers – unusual performance elicits compliments, but average performance or even the absence of the feature will probably not cause dissatisfaction or complaints, e.g. atrium type lobbies
    19. 19. Dissatisfiers v. Satisfiers cont’d. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved  3. Critical variables – capable of eliciting both positive and negative feelings, depending on the situation, e.g. cleanliness, quality of service, employee knowledge and service, and quietness of surroundings 4. Neutrals – factors that received neither a great number of compliments nor many complaints are probably either not salient to guests or easily brought up to guest standards.
    20. 20. What is the Voice of the Customer?  The Voice of the Customer  The voice of the customer represents the wants, opinions, perceptions, and desires of the customer.  Quality Function Deployment (QFD)  “House of quality,”  Translates customer wants into a finished product design.
    21. 21. Customer-Relationship Management Slide 1 of 8  Customer-Relationship Management  This view of the customer asserts that he or she is a valued asset to be managed.  The tangibles meet the intangibles to provide a satisfying experience for the customer.  Four important design aspects  Complaint resolution  Feedback  Guarantees  Corrective action or recovery
    22. 22. Customer-Relationship Management Slide 2 of 8 Figure 3.1 Complaint resolution Feedback Guarantees Corrective action Customer Relationship Management Components of a Customer-Relationship Management Process
    23. 23. Customer-Relationship Management Slide 3 of 8  Complaint Resolution  Complaint resolution is an important part of the quality management system.  Three common types of complaints  regulatory complaints  employee complaints  customer complaints.  The complaint-resolution process involves the transformation of a negative situation in one in which the complainant is restored to the state existing prior to the occurrence of the problem.  Complaint-recovery process
    24. 24. Customer-Relationship Management Slide 4 of 8 Complaint Resolution (or recovery) Process Apologize to the customer (contrition) Compensate people for losses Make it easy for the complainant to resolve his or her problem
    25. 25. Customer-Relationship Management Slide 5 of 8  Feedback  There are two main types of feedback  feedback to the customer  feedback to the firm as a basis for process improvements  Feedback to the firm should occur on a consistent basis with a process to monitor changes resulting from the process improvement.  Some customer data is solicited and other data is provided without solicitation.
    26. 26. Customer-Relationship Management Slide 6 of 8  Guarantees  A guarantee outlines the customer‟s rights.  The guarantee is both a design and an economic issue that must be addressed by all companies before the first sale occurs.  To be effective, a guarantee should be:  Unconditional  Meaningful  Understandable  Communicable  Painless to invoke
    27. 27. Customer-Relationship Management Slide 7 of 8 To be effective, guarantees should be: Unconditional Painless to invoke Meaningful Understandable Communicable
    28. 28. Customer-Relationship Management Slide 8 of 8  Corrective Action  When a service or product failure occurs, the failure is documented and the problem is resolved in a way that it never happens again.  Corporate teams or committees should be in place to regularly review complaints and to improve processes so the problems don‟t recur.
    29. 29. Serv.qual models
    30. 30. Service Quality Theories • Parasuraman, Zeithaml, and Berry in 1985 discovered 10 widely cited service quality determinants, i.e., the basic criteria that customers use to analyse quality irrespective of the type of service: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, and tangibles. • This model identifies the different sources of gaps or differences between the service quality that a customer expects to receive from a service provider and the customer perception of the service actually received. • The model identifies 5 different types of gaps. The first four gaps are called company gaps, and the last or fifth gap is called customer gap - that is, the gap as perceived by customer. The customer gap is the resultant effect of the four company gaps.
    31. 31. Measuring service quality: SERVQUAL Model (Parasuraman, Zeithaml & Berry 1985, 1988) Service Quality Reliability Responsiveness Assurance Empathy Tangibles
    32. 32. Class Discussion The Five-Gap Model of Service Quality Question: Describe ways in which you as a Manager could use the five-gap model of service quality ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
    33. 33. The Gap Approach to Service Design  The Gap  The gap refers to the differences between desired levels of performance and actual levels of performance.  The formal means for identifying and correcting these gaps is called gap analysis.
    34. 34. The Gaps Model of Service Quality Consumer Past experience Expected service Perceived service Service delivery (including pre- and post- contacts) External communications to consumers Translations of perceptions into service quality specifications Management perceptions of consumer expectations GAP 5 GAP 3 GAP 2 GAP 1 GAP 4 Personal needs Word-of-mouth communications Marketer
    35. 35. • Not knowing what customers expect • Not selecting the right service standards and designs • Not delivering to service standards • Not matching performance to promised Customer expectations Customer perceptions Reasons for Customer Gap 5
    36. 36. Customer’s expectations Company’s perceptions of customer expectations  Inadequate marketing research orientation  Lack of upward communication  Insufficient relationship focus  Inadequate service recovery Reasons for provider gap I
    37. 37. Translation of perceptions into service quality specifications Management perceptions of customer expectations  Poor service design  Absence of customer-defined service standards  Inappropriate physical evidence and servicescape Reasons for provider gap 2
    38. 38.  Poor human resource policies  Failure to match supply and demand  Customer not fulfilling their roles  Problems with service intermediaries Service delivery Customer-driven service designs and standards Reasons for provider gap 3
    39. 39. External communications to consumers Service delivery  Lack of integration of marketing communications  Inadequate management of customer expectations  Overpromising  Inadequate horizontal communications Reasons for provider gap 4
    40. 40. Closing the gaps  Refer to table 4.2, p. 104  Gap 1: Learn what customers expect  Gap 2: Establish the right service quality standards  Gap 3: Ensure that service performance meets standards  Gap 4: Ensure that delivery matches promises
    41. 41. Closing gap 1: Learn what customers expect  Use research, complaint analysis, customer panels  Increase direct interactions between managers and customers  Improve upward communications  Act on information and insights listen to customers
    42. 42. Closing gap 2: Establish the right service quality standards  Top management commitment to providing service quality  Set, communicate, and reinforce customer- oriented service standards  Establish challenging and realistic service quality goals  Train managers to be service quality leaders  Be receptive to new ways to deliver service quality  Standardise repetitive tasks
    43. 43.  Prioritise tasks  Gain employee acceptance of goals and priorities  Measure performance of service standards and provide regular feedback  Reward managers and employees for achievement of quality goals Service Quality Awards
    44. 44. Closing gap 3: Ensure that service performance meets standards  Attract the best employees  Select the right employees  Develop and support employees  train employees  provide appropriate technology & equipment  encourage and build teamwork  empower employees  internal marketing Can I take your order?
    45. 45.  Retain good employees  measure and reward service quality achievements  develop equitable and simple reward systems You are a Star Service Provider
    46. 46. Closing gap 4: Ensure that service delivery matches promises  Seek input from operations personnel on what can be done  „Reality‟ advertising  real employees, real customers, real situations  Seek input from employees on advertising  Gain communications between sales, operations and customers  Internal marketing programs  Ensure consistent standards in multi-site operations
    47. 47.  In advertising, focus on service characteristics that are important to customers  Manage customer‟s expectations  What are realistic expectations?  Explain industry realities  Tiered service options  Offer different levels of service - user pays Why do we always have to wait?
    48. 48. Service Satisfaction Information System  Customer Complaints  Surveys  Employee Surveys  Focus Groups  „Mystery shopping‟ research  Competitive market surveys - benchmark
    49. 49. Measuring Satisfaction  Qualitative Research  Understand key drivers / determinants  Questionnaire design  Data analysis  Service performance index (SPI)  Importance - performance analysis
    50. 50. Best Practices  Service Guarantees by Hampton Inns  Unconditional guarantees  Specific guarantees  Implicit guarantees ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
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