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Use Behavioral Science To Perfect Your Company's Service

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This presentation tries to summarize an article by Richard B. Chase & Sriram Dasu which appeared in HBR June 2001 edition.

This presentation tries to summarize an article by Richard B. Chase & Sriram Dasu which appeared in HBR June 2001 edition.

Published in Business , Education , Technology
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  • 1. Richard B. Chase & Sriram Dasu
    Want to Perfect Your Company’s Service?
    Use Behavioral Science
    Summarized by,
    AnubhavVanmali
    Sharadkumar R Bhatt
    Siddharth Anand
    Symbiosis Institute of Business Management, Bangalore
  • 2. Introduction
    Examining Service Encounters from the customer’s point of view
    The feelings that customers experience during these encounters
    Insights from behavioral science into better service management
    Translating these into operating principles for service-encounter management
  • 3. Applied Behavioral Science
    In any service encounter – from a simple pizza pickup to a complex, long-term consulting engagement-
    “perception is reality”
  • 4. Sequence Effects
    When people recall experiences, they remember snapshots, not movies
    Experiences are assessed based upon:
    • Trend in the sequence of pain/pleasure
    • 5. The high & low points
    • 6. The ending
    They pay attention to the rate of improvement in a sequence
  • 7. Duration Effects
    People who are mentally engaged in a task don’t notice how long it takes
    They overestimate the time elapsed
    Increasing the number of segments in an encounter lengthens its perceived duration
    Unless an activity is much longer or much shorter than expected, people pay little attention to its duration
    The pleasurable content & how it is arranged dominate assessments
  • 8. Rationalization Effects
    Counterfactual Thinking/ Second-guessing
    • People desperately want things to make sense
    • 9. If there’s no handy explanation, they’ll concoct one
    People:
    View the likely cause as a discrete thing
    Conclude that deviations from rituals/norms caused the unexpected
    Tend to ascribe credit/ blame to individuals, not systems
    (Put a human face on the problem)
  • 10. Principle 1 : Finish Strong
    The end is far more important because it remains in the customer’s recollections
    People’s innate preference for improvement
    Examples:-
    Commercial websites
    Consulting: Schedule the project so that a golden nugget or two appear at the end of the engagement
    Airlines: Focus on the last encounter- Baggage Collection
  • 11. Principle 2 : Get the Bad Experiences Out of the Way Early
    People prefer to have undesirable events come first- so they can avoid dread- and to have desirable events come at the end- so they can savor them
    Unfortunately, service providers dread delivering bad news, so they delay it until the last possible moment - Exactly the wrong thing to do
  • 12. Principle 3 : Segment the Pleasure, Combine the Pain
    Gambling - Prefer winning $5 twice over $10 once
    Clinics – Let patients spend more time in waiting room so they don’t have to endure a second, third or fourth wait in the examining rooms
    Service companies should cut the number of steps to reach the final destination, thereby reducing the pain of waiting
    • Trade Shows
    • 13. Disney’s Theme Parks ( Two 90 Sec rides better than One 3 min ride)
    Both halves of the principle:
  • 14. Principle 4 : Build Commitment Through Choice
    People are happier and more comfortable when they believe they have some control over a process, particularly an uncomfortable one
    Patients, when involved in decisions, feel less helpless, less hopeless & more committed to making the process work
    Hotels – Alarm clock vs. Wake-up call
    Xerox Servicing - Choice over schedule
  • 15. Principle 5 : Give People Rituals, and Stick to Them
    Rituals are used to mark key moments in the relationship, establish professional credentials, set expectations, and get feedback
    “McKinsey grunt—uh-huh, uh-huh”
    Not getting the weekly call from the consultant on a project, not copying the CEO on a progress report, not returning phone calls immediately – any of these lapses can be blamed after the fact for a failure
  • 16. The Right Remedy
    Process-based remedies should be applied to process-based problems and outcome-based remedies should be applied to outcome-based problems
  • 17. Conclusion
    Service encounters can be engineered to enhance the customer’s experience during the process and his/ her recollection of the process after it is completed
    Behavioral science, applied with equal doses of empathy and imagination, can improve service delivery
    • It can change the impressions that your customers remember
  • Thank You!