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4  Strategy For Formulating A Plan
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4 Strategy For Formulating A Plan

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  • 1. “ Managers do not control the quality of the product when the product is a service . . . . The quality of the service is in a precarious state – it is in the hands of the service workers who ‘produce’ and deliver it.” -Karl Albrecht
  • 2. The strategy for developing a customer service framework Customer Care Week Four
  • 3. Objectives
    • Describe a service culture
  • 4. Learning Criteria
    • Explain the central role of the customer in a business and services environment
  • 5. Five key components of a strategy
  • 6. Strategy:
    • A plan for positive action.
  • 7. Planning:
    • Finding a recognizable direction to focus on. More specifically, planning is the establishment of specific customer service goals.
  • 8. Importance of Infrastructure
    • Customer service depends on the existence of an appropriate infrastructure.
  • 9. Infrastructure:
    • Made up of the networks of people, physical facilities, and information that support the production of customer service.
  • 10. Culture:
    • Composed of the values, beliefs, and norms shared by a group of people.
  • 11. Examples of Culture in Hospitality
    • Typical workday hours
    • Industry ‘lingo’
    • Peer accountability
    • Teamwork
    • High levels activity ‘pinch points’
    • Low wages
    • Transitory staff
  • 12. Service Culture
    • ‘ a culture where an appreciation for good service exists, and where giving good service to internal and external customers is considered a natural way of life and one of the most important norms for everyone’ (Gronroos C)
  • 13. Three Ways to Create a Customer Friendly Culture
    • Practice the Golden Rule.
    • View internal customers as number one.
    • Work hard, play hard.
  • 14. Management Focus
    • Developing a service culture
      • Front Line Contact
      • Decision making decentralised
      • Empowerment
      • Flexibility
      • Performance & Feedback
  • 15. High-touch customers:
    • Requires a high level of customer interaction.
  • 16. Examples of High Touch
    • Bank lobbies
    • Specialty stores
    • Hotel lobbies
    • Purchase of real estate
    • Lawyers and accountants
    • Prestige restaurants
  • 17. Low-touch customers:
    • Expect a low level of customer service.
  • 18. Examples of Low Touch
    • Self check-in
    • Automatic teller machines
    • Express rental car checkout
    • Hotel bill viewing on television and express checkout
    • Pay-at-the-pump petrol
    • Fast-food drive-up windows
    • Serve yourself buffet
    • Online bill paying
    • Online account management
  • 19. Consumption behavior:
    • Refers to the customer’s usage and payment patterns.
  • 20. When identifying consumption behaviour, ask the following:
  • 21. When identifying consumption behaviour, ask the following:
    • What are customers buying?
    • Why did they buy it?
    • Why did they buy more today that they did in our last interaction?
    • Why did they call with a question?
    • What was their question?
    • How much did they buy?
    • Have they bought from us before?
    • How did they pay?
    • When will they be installing/assembling the product?
    • What else have they bought recently?
  • 22. Guidelines for Creating a Strategy
    • Segment your customers.
    • Identify the largest and most profitable customer groups.
    • Determine your customers’ expectation.
    • Develop a plan to achieve their expectations efficiently.
    • Implement the plan.
    • Set an evaluation timeline.
    • Evaluate and continue to improve the strategy.
  • 23. Market Segmentation:
    • Dividing customers into groups with similar characteristics.
  • 24. Sample Customer Service Segments
    • Types of service needed or desired
    • Similarities among your current customers
    • Peak hours of your business and the specific customers doing business at those times.
    • The among of service desired
    • Creation of your own segments that are appropriate to your product or service
  • 25. Customer Attributes:
    • Characteristics that allow customers to be categorized according to demographic, psychographic, or firmographic information.
  • 26. In class
    • Subway customers
    • Who are they?
  • 27. Demographic information:
    • Characteristics such as:
  • 28. Demographic information:
    • age
    • income
    • marital status
    • education
    • stage in the family life cycle
    • home ownership
      • sex
      • ZIP code
      • occupation
      • household size
      • mobility patterns
      • ethnic background
      • religion
    • Characteristics such as:
  • 29. Psychographic information:
  • 30. Psychographic information:
    • lifestyles
    • modes of living
    • needs
    • motives
    • attitudes
    • reference groups
    • culture
    • social class
    • family influences
    • hobbies
    • political affiliation
    • etc.
  • 31. Firmographic information:
    • Characteristics about a company such as:
      • how many employees they have
      • the kind of business they are in
      • whether they are retail, wholesale, or a service provider
      • their hours of operation
  • 32. Factors Influencing Consumer Behaviour © 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  • 33. Psychological Factors
    • Motivation
      • Maslow’s Theory of Motivation
        • Sought to explain why people are driven by particular needs at particular times
      • Herzberg’s Theory
        • A two-two factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction)
  • 34.  
  • 35.
    • What might be the potential management problems associated with allowing service employees to exercise judgement in meeting customer needs?
    • Does Empowerment lead to Organisational commitment?
    • ……… .For everyone?
  • 36.
    • Seminar (from last week)
    • Evaluate brochures in terms of tangibilising
    • Price of 5 star hotel this weekend one night inc breakfast
  • 37.
    • Next Week
    • Branding – each group identify their favourite brand and why?