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How to become the Ritz-Carlton of Aged Care


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With the change to Consumer Directed Care (CDC) in the aged care industry this year, you'll need to offer exceptional customer service in order to remain competitive. Discover how you can meet - and exceed - the needs of your customers, by becoming the Ritz-Carlton of Aged Care.
As presented at the Leading Age Services Australia (LASA) Tri-State Conference held in February, 2014.

Published in: Marketing
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How to become the Ritz-Carlton of Aged Care

  1. 1. Kevin Dwyer
  2. 2.  Exceptional customer value  Engaged staff who put in discretionary effort  Engaged staff who want to stay  Superior customer service – above the fair value line What does it mean to be the Ritz Carlton of Aged Care?
  3. 3.  Act or performance offered by one party to another  An economic activity that creates value and provides benefits for customers at specific times  The process of helping guests addressing their wants and needs with respect and dignity in a timely manner1 What is customer service? 1 (Ninemeier et al 2005)
  4. 4. Providing Superior Customer Service – The Fair Value Line PerceptionofCost Perception of Service Superior Service Bad Service
  5. 5. What is Fair Value?
  6. 6. Providing Superior Customer Service – The Fair Value Line PerceptionofCost Perception of Service Superior Service Bad Service
  7. 7. Why is Customer Service Important?
  8. 8. Transitioning to CDC – Consumers drive what we do Employees Systems & Processes Government and Compliance Driven Consumer Directed Care Government MARKET • Consumers • Government Government Regulators Employees Systems & Processes MARKET • Consumers • Government Government Regulators Consumer
  9. 9.  Determine what consumers segments you wish to serve  Assess exactly what the segments value  Develop practical ways that systems can be modified or developed to consistently deliver value to consumers  Design and implement revised standards of operation  Train and empower service staff to deliver value  Evaluate and modify service delivery systems against standards of operation The Impact of Reforms on Customer Service Provision – What to do?
  10. 10. Lessons from Ritz - Carlton
  11. 11.  Gold standards  Moments of Truth Mapping How do Ritz-Carlton Deliver Consistent High Quality Service?
  12. 12.  Gold Standards are the foundation of The Ritz-Carlton Hotel Company. They encompass the values and philosophy by which they operate and include:  The Credo  The Motto  The Three Steps of Service  Service Values  The 6th Diamond  The Employee Promise Ritz-Carlton: What are Gold Standards?
  13. 13. What is a Moment of Truth? A Moment of Truth is any opportunity to create a lasting perception in our customer’s mind. In the Hospitality industry, there are a minimum of twenty or thirty moments of truth in its provision of service.
  14. 14. Good and bad Moments of Truth in the Hospitality Industry
  15. 15. How to Map Moments of Truth
  16. 16. Example of Basic Moments of Truth Mapping – Health Centre Contact with Health Centre Current Situation Desired Situation User comes to health centre Peeling paint, long lines Attractive building, short waiting time User comes to registration desk Unfriendly, busy receptionist Friendly, welcoming receptionist User waits to see doctor User waits up to 2 hours to see doctor User waits for doctor no longer than 30 minutes User has visit with doctor Doctor seems rushed and impatient Doctor visit is brief but helpful; user feels satisfied User leaves health centre Long line of patients waiting to get in Feels like she had a pleasant visit, doesn't see many people waiting
  17. 17.  Segment the market  Evaluate which interactions leave a lasting impression of the value of service delivered How to Map
  18. 18. Transitioning to CDC – Traditional segmentation High care Low care
  19. 19. Transitioning to CDC – New segmentation? Tech. savvy Tech. averse
  20. 20. Transitioning to CDC – New segmentation? Family Work status Culture
  21. 21.  Map a generic customer’s experience and determine the moments of truth.  Make a view of each significant target segment.  Survey customers’ actual experiences – e.g. phone surveys  Functional – was the room clean?  Emotional – did you have a sense of well being?  Customer complaints  However only a small percentage of customers who are dissatisfied actually complain.  Use employee observations.  “Day in the life of” observations. Mapping Moments of Truth – Do’s
  22. 22. Don’t use “satisfaction” surveys  The design of most satisfaction surveys is usually poor.  Asks an opinion of but not the importance  Satisfaction surveys tend to condition recipients to give a response.  Study 1:  Customer retention levels of around 40% correlated to an average rating of “satisfied” and did not reach 80% until the average rating reached “very satisfied”1.  Study 2:  80% of customers who churned from an internet service provider had responded that they were “satisfied” or “very satisfied” with their service. Mapping Moments of Truth – Don’ts 1 Harvard Business Review in 1995, Jones and Sasser 2 Mercer
  23. 23. Moments of Truth in Aged Care
  24. 24. Moments of Truth Map Examples in Aged Care Contacts with Organization Current Situation Desired Situation First appearance of the facility Concrete, no garden, no shade, uninviting Garden entrance, inviting to consumer and relatives Home visit Over-friendly carer who does not respect privacy Friendly carer who is sensitive to the customer’s need for privacy Catering – resident’s lunch Unimaginative meals with little variety – resident does not look forward to lunch Imaginative meals appropriate for residents tastes presented appealingly – resident looks forward to lunch Exercise activities Overzealous instructor with monotonous routines Instructor capable of varying activities to customer’s capability and desire Resident visits the doctor Long line of patients waiting to get in to see the doctor who is uncommunicative Short line of patients, sees an engaging caring doctor on time
  25. 25. What to do with a Moment of Truth Map?
  26. 26.  Create a Standard of Operation  Complete a Training Needs Analysis  Use a competency dictionary  Design and develop training  Reconsider the current performance management approach  Consider restructure service delivery options  Recruit on attitude to deliver service What to do with a Moment of Truth Map?
  27. 27. In Conclusion
  28. 28. How will you rate in a consumer driven environment?
  29. 29.  Address: 122/838 Collins Street, Victoria Harbour, Victoria 3008 Australia  Phone: (03) 9614 8177  Email: Contact Us