Customer Service Excellence - Lecture 7Presentation Transcript
Lecture seven Managing Expectations Customer Service Excellence
An organisation to implement Strategy Style Systems Structure Staff Skills Source: McKinsey 7S framework Shared purpose
Strategy Evaluation and Choice Acquisition Retention Retention Acquisition Retention Strategic Focus Budgets and Resources Customer Branded Experience Customer branded experience Sales promotions and sales packages Acquisition Customer branded experience Sales promotions and sales packages Retention Acquisition
Focussing on the customer??
Competitive advantage can be obtained by delivering consistently higher quality service than competitors
Customer service expectations must be exceeded
Internal marketing essential
Needs top management commitment
Standards must be set
Performance must be monitored
‘ ServQual’ – Assessing Service Quality
Developed by Zeithaml, Parasuraman & Berry
It’s been about for a while (book 1990)
Examines importance & performance and identifies gaps
5 Dimensions of Service Quality
Xerox 3R+V ( Reliability, Responsiveness, Relationship + Value )
The 5 ServQual Factors
Appearance of physical facilities, equipment, personnel
Ability to perform the promised service dependably & accurately
Willingness to help customers & provide prompt service
Knowledge & courtesy of employees & conveying of trust
Caring, individualized attention the firm provides for customers
Source: Zeithaml, Parasuraman & Berry
5 SERVQUAL elements in action
Tangibles: Physical evidence of the service –
Reliability : Consistency and dependability in performing the service
Responsiveness : Willingness or readiness of employees to provide the service
Assurance: Knowledge/competence of employees and ability to convey trust and confidence
-Empathy : Caring and individual attention provided by employees
Appearance of physical facilities
Appearance of personnel
Tools or equipment used to provide the service
Accuracy of billing or record keeping
Performing services when promised
Returning customer phone calls
Providing prompt service
Knowledge and skills of employees
Company name and reputation
Personal characteristics of employees
Listening to customer needs
Caring about the customer’s interests
Providing personalised attention
Adapted from Parasuramann, Berry & Zeithaml (1985)
DIMENSION EVALUATION CRITERIA
Measuring Service Quality SERVQUAL
Customer expectations of excellent firms in the specific service sector Customer perceptions of the organisation being evaluated Measurement
Determinants of perceived service quality Dimensions of quality Access Credibility Knowledge Reliability Security Competence Communication Courtesy Responsiveness Tangibles Word of Past Buyers’ Advertising mouth experience needs Expected service Perceived service Perceived service quality
Experiencing The Brand Brand Essence Brand Promise Branded Customer Experience Translates into Translates into What you communicate The value you commit to deliver to customers Delivery of your brand promise through every interaction your customers have with your organisation
Branding the Experience Branded customer experience Brand values Brand image Translates into Translates into Creating a unique experience through every interaction your customers have with your organisation The value your customers come to expect and rely on What you become known for in the marketplace
Brands in 2009
Best Global Brands 2009: Trust | The Businessweek Video Library
Branding allows marketers to create added values that distinguish one brand from another (e.g.)
‘ Crisps are crisps’ so how have Walkers added value to distinguish themselves ?
Brand building involves a deep understanding of both the functional and emotional values that customers use to choose between brands.
Why do Customers Buy?
It’s important to remember that customers do not buy features, products and/or services but solutions to their problems.
They have needs, and require products or services which satisfy those needs.
They are searching for benefits - and generally have a combination of benefits in mind.
We succeed by offering the marketing mix which best meets the customer’s needs
Interbrand | Back to brand basics: Focus on the customer | brands
Customers have Wants Needs Demands £ Basic requirements to satisfy A want supported by willingness & ability to pay SA Esteem Social Safety Physiological A desire to satisfy an underlying need Customers’ needs, wants and demands
A Customer Relationship Credo
If you’re good to your customers, they'll keep coming back, because they like you.
If they like you, they’ll spend more money
If they spend more money, you’ll want to treat them better
If you treat them better, they’ll keep coming back
Customers for Life : Carl Sewell, 1990.
(The world’s most successful Cadillac dealer)
Creating Customer Value
Positive Negative Customer Value Perceived benefits Perceived sacrifice Minus Mr Kotler
SERVQUAL model… Expectations Perceptions Service Delivery Service Standards Management Perceptions External Communications Gap 1 Gap 5 Gap 2 Gap 3 Gap 4 Organisation Customer
www.interbrand.com Current thinking on branding issues….. Inspirational Dean Cruickshank 2012