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Customer Service Excellence - Lecture 7

Customer Service Excellence - Lecture 7






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  • We know that O2’s current strategy is to rebalance the focus between customer acquisition and retention. Customer acquisition will always be of high importance, but if it’s a strategic imperative to retain more customers, it’s vital to ensure the right resources are in place to support that.
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Customer Service Excellence - Lecture 7 Customer Service Excellence - Lecture 7 Presentation 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??
    • Customer need/Product
    • Cost/Price
    • Convenience/Place
    • Communication/Promotion
  • Service quality
    • 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
      • Tangibles
      • Reliability
      • Responsiveness
      • Assurance
      • Empathy
    • Xerox 3R+V ( Reliability, Responsiveness, Relationship + Value )
  • The 5 ServQual Factors
    • Tangibles
    • Reliability
    • Responsiveness
    • Assurance
    • Empathy
    • 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)
  • Measuring Service Quality SERVQUAL
    • Five service
    • quality
    • dimensions
    • Tangibles
    • Reliability
    • Responsiveness
    • Assurance
    • Empathy
    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
  • Customer Loyalty Branded customer experience drives loyalty Random Experience Predictable experience Branded experience Customer loyalty
    • Consistent
    • Intentional
    • Consistent
    • Intentional
    • Differentiated
    • Valuable
  • Developing brands
    • 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
    • Product benefits
    • Service benefits
    • Relational benefits
    • Image benefits
    • Monetary costs
    • Time costs
    • Energy costs
    • Psychological costs
    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