customer focus in hospitality management

1. • THC 3
Quality
Service
Management
in Tourism
and
Hospitality
ManagementPrepared by Genevieve L. Cavaiani

5. Importance of Customer
Satisfaction and Loyalty
– Customer satisfaction occurs when products and services meet or exceed customer
expectations QUALITY
– Organization must deliver every improving value to its customers
– VALUE is defined quality related to price consumers no longer buy solely basis of price.
They compare the total package of products and services that a business offers ( called:
consumer benefit package) with the price and with competitive offerings
– The consumer benefit package influences the perception of quality and includes the
physical product and its quality dimension: PERSALE SUPPORT, SUCH AS FIELD SERVICE,
WARRANTIES, AND TECHNICAL SUPPORT
– If competitors offer better choices for a similar price, consumers will rationally select the
package with the highest perceived quality.

6. – If a competitor offers the same quality package of goods and service at a lower price,
customers would generally choose the one having the lower price,
– Lower price require lower costs if the firm is to continue to be profitable.
– Quality improvements in operations reduce cost.
– Understanding exactly what customers want their perception of VALUE is absolutely
crucial to competitive success
– Business must focus on both continually improving the consumer benefit package and
improving quality of their internal operations

7. – Value, satisfaction and loyalty are influenced greatly by service quality, integrity
, and relationships that organizations build with customers
– Base on a study that customers are five times more likely to switch because of
perceived service problems than for price concerns or product quality issues
– “ We build customer loyalty by telling our customers the truth, whetehr it is
good or bad news” stated by SBO

8. CREATING SATISFIED
CUSTOMER
- Process in which customer needs and expectations are translated into
PERCEPTIONS during the DESIGN, PRODUCTION and DELIVERY PROCESS.
1. Expected quality- true customer needs and expectations, what the customer
assumes will received from the product. The producer identifies these needs
and expectations and translates them into specifications for products and
services.
2. Actual quality- is the outcome of the production process and what is delivered
to the customer, actually it may differ from expected quality if information get
lost or is misinterpreted form one step to the next . Designers of products and
services may develop specifications that inadequately reflect these needs.

9. 3. Perceived quality- by comparing their expectations (expect quality)with what
they received ( actual quality). If expected quality is higher than actual quality, then
the customer will probably be dissatisfied. If Actual quality exceeds expectations
then the customer will be satisfied or even surprisingly delighted.
– Perceived quality drives consumer behavior, producers should make every effort
to ensure that actual quality conforms to exceed quality
– One complications comes from the customer who sees and believes that the
quality of the product is considerably different from what he or she actually
receives ( actual quality), which might be shaped by advertising or prior
negative experiences

10.  Thus perception are not always accurate and may even change over time.
Understand the relationship requires a system of customer satisfaction measurement and the
ability to use customer feedback for improvement.
 An organization’s focus is often reflected by the measures that it used to evaluate its
performance, principal focus is production schedules and cost, productivity, or output
quantity rather than ease of product use, availability, or cost of ownership, it is difficult to
create a customer-focused culture.
 Many causes of dissatisfaction are not attributable to production or service defects or
employees mistakes.
 Customers may not use the product correctly or may have unreasonable expectations about
what it can do, marketing sometimes makes promises it cannot keep, or advertising is
misleading.
 Best thing to do that companies need to pay greater attention to overall customer
experiences that affect perceptions such as might include better use manuals or information
on product packaging and unambiguous advertising.

20. Identifying Customers
– To understand customer needs , a company know who its customer are.
– Most employees think that “ customers” are those people who ultimately and
use a company product these end users or consumers certainly are an
important group.
– Identifying customers is a top management task related to the company’s
mission and vision, consumers are not the only customer group of concern
business and so the easiest way to identify customers is to think in terms of
customer-supplier relationships.

21. Three levels of Quality
1. Organizational Level
– External customers- who may fall between the organization and the consumer
who have distinct needs and expectations. The retail stores are external
customers of the manufacturers. They have specific needs for timely delivery,
appropriate product displays, accurate invoicing because these allocates shelf
space for manufactures products they represent important customers.

22. 2. Process level, departments and key cross functional processes within company :
– INTERNAL customers who contribute to the company’s mission and depend on
the department’s function’s product or services to ultimately serve consumers
and external customers

23. 3. Performance level
- Each employee receives inputs from others and produces some output for their internal
customers such as internal customers may be the assembly line worker at the next
station, an executive secretary, the order taker who passes along orders to the food prep
at restaurant, or X ray technician who must meet a physician’s request.
- FUNDAMENTALS QUESTIONS:
1. What products or services are produced?
2. Who uses these products and services?
3. Who do employees call, write to, or answer questions for?
4. Who supplies the inputs to the process?

24. Overview
1. Everyone can better understand their role in satisfying not only their internal customers, but also the
external customers.
If an organization remembers that its customers includes its employees and the public, then it
consciously maintains a work environment conducive to the well-being and growth of all employees.
2. Efforts in this area should go beyond the expected training and job-related education
The public is the important customer of business. A company must look ahead to anticipate public
concerns and assess the possible impacts on society of its products, services, and operations.
3. Business ethics, environmental concerns and safety are important societal issues. Companies can
have a powerful influence on communities as corporate citizens through their contributions to
charitable activities and the personal involvement of their employee.
4. Based on company’s action in promoting education, health care, and ethical conduct, the public
judges a company’s community behavior , which, in turn , can affect sales and profitability.
5. Everyone is his or her own customer, quality must be personalized or it will have little meaning at any
other level. As Robert Galvin, former CEO MOTORLA “ Quality is a very personal obligation. If you cant
talk about quality in the first person… then you have not moved to the level of involvement of quality
that is absolutely essential.”

34. Reference:https://www.userlike.com/en/blog/6-proven-
methods-for
6 Proven Methods for Measuring Customer Satisfaction
-measuring-your-customer-satisfaction
1Customer Satisfaction Surveys
– The customer satisfaction survey is the standard approach for collecting data on customer
happiness. It consists of asking your customers how satisfied they are, with or without follow up
questions. Three useful variations:
– In-App Surveys
– Post-Service Surveys
– Long Email Surveys

35. – In-App Surveys. With this you integrate a subtle feedback bar inside your
website, with generally not more than one or two questions. It’s one of the
methods with the highest response rates, thanks to the fact that the customer
is asked for her opinion while she’s engaged with your company. In-app surveys
are especially handy to measure some of the standard customer satisfaction
metrics, like NPS or CES covered below.

36. – Post Service Surveys. This type of survey focuses on the customer’s satisfaction
with a specific service she’s just received. You ask it right after the delivery,
when it's still fresh in the mind. This can be done in email support with a rating
link in the mail, or in live chat with a rating view that appears after the chat. It
can also be done over the phone, but it's somewhat problematic because it
takes more time from the customer, and she might not feel comfortable sharing
an unfiltered opinion.

37. – Email Surveys. The above survey methods aren't suitable for in-depth insights
about your customer happiness. Why are they happy or unhappy? Email
surveys, on the other hand, are a good tool for this. Although they have a
downside of low response rates (10% - 15%, according to SurveyGizmo ), they
do allow your customer to take their time in answering multiple
questions. Google Forms is an excellent free tool for this purpose. Find a survey
template here . Also check out this list of Survey Questions Do's and Dont's .

38. 2. Customer Satisfaction Score
(CSAT)
– This is the most standard customer satisfaction metric, asking your customer to
rate her satisfaction with your business, product, or service. Your CSAT score is
then the average rating of your customer responses.
– The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger range is not
always better, due to cultural differences in how people rate their
satisfaction. An article in Psychological Science , for example, showed that
people in individualistic countries choose the more extreme sides more
frequently than those in collectivistic countries.
– An American is more likely to rate a service as “amazing” or “terrible” than for
example a Japanese, who will stick to “fine” or “not satisfactory." Such
differences are important to be aware of with an international customer base.

39. – Simpler scales are more robust to cultural differences and more suited for
capturing service quality. This is why the US government uses a simple emoji-
based CSAT question for its feedback, and why the live chat survey example
above uses a 5-star rating.
– The charm of the CSAT metric comes from its directness. The downside,
however, is that satisfaction is hard to estimate, even for the customer. It’s
directed at a sentiment , which is fleeting and mood dependent.

40. 3. Net Promoter Score (NPS)
– The Net Promoter Score (NPS) measures the likeliness of a customer referring
you to someone, and it’s probably the most popular way of measuring customer
loyalty . Customer are asked how likely they are to recommend you on a scale
from 1 to 10.

41. – The strength from NPS is that it's not about an emotion of satisfaction, but about your intention
of referring – which is easier to answer. It cuts down to the question of whether the product is
good enough to put your own reputation on the line.
– Calculating your NPS score is quite easy. Take the percentage of respondents who fall within the
‘promoter’ category (10 - 9) and subtract the percentage of ‘detractors’ (0 - 6).
– Some tools for measuring NPS work with email questionnaires. Examples are Trustfuel NPS (free)
and Promoter.io (paid). Others work with in-app surveys, like Wootric (freemium). The Net
Promoter Network offers a a benchmark report to give you insight about how you compare in
your industry.
– One added benefit of NPS is that it directs your customers’ attention towards referring, an
option they might not have thought about before.

42. 4. Customer Effort Score (CES)
– With this method, customers aren’t asked for their satisfaction or likeliness of
referring, but for the effort it took them to have their issue solved — generally
on a scale from 1 (very low effort) to 7 (very high effort).
– Your aim is, of course, to lower this average score. According to CEB , 96% of
customers with a high effort score showed reduced loyalty in the future, while
that was the case with only 9% of those who reported low effort scores.

43. – This idea for a customer satisfaction metric was introduced in the Harvard
Business Review article Stop Trying to Delight Your Customers .
– It challenges the accepted idea that excellent customer service equals
exceeding customer expectations. Through their analysis, the authors found
that customers are much more likely to punish bad service than to reward good
service.
– They showed that the costs of exceeded customer expectations are high, while
the payoffs are minimal.

44. Instead of putting all that effort into delighting the customer, the authors argue it
should be invested in making the customer experience and problem resolution as
easy as possible .
The authors found that the the ease of having your problems resolved was a much
better predictor for satisfaction than having expectations exceeded. Improve the
customer experience by easifying your customer’s journey.
This new service philosophy requires different measurements, which is why the CES
was developed. They showed that CES is superior to CSAT and NPS in predicting
consumer behavior .
Don’t ask, “How satisfied are you with this service?” ; ask, “How easy was it to get in
contact/make a purchase/have your issue resolved?”
Relevance is crucial here. The time to pop the question is right after your customer
had her experience. Otherwise, the ease of the experience might have been
forgotten. It can be asked in-app (ease of the website/app experience), via live chat,
or via email (ease of the service).
CheckMarket offers a free template to create your own CES survey. With some
tweaking, many customer service tools are suited for this purpose. Read more in our
post on how to get to the right customer effort score question .

45. 5. Social Media Monitoring
– Social media has had an immense impact on the relationship between business
and customer. Where before, a great or poor service experience would maybe
be shared with the closest family and friends, social media offered an outlet and
reach to potentially millions of people.
–

46. – Because of that, it’s the perfect place to hear what your customers are really thinking about you. If you
have the right tools to track this, that is.
– Facebook and Twitter are of course relevant platforms to track, but also platforms like Quora, Yelp,
TripAdvisor, etc.
– Some helpful tools:
– Google Alerts . This Google service notifies you when your brand appears in a prominent position.
– Mention . A powerful freemium tool that gives you a heads up whenever your brand is mentioned on
the web. It’s especially handy for social media tracking, for which Google Alerts is not suitable.
– Socialmention . A free tool that analyzes social mentions of your brand on the web. Among others, it
shows the likeliness of your brand being discussed on the web, the ratio of positive to negative
mentions, the likelihood of people mentioning your brand repeatedly and the range of influence.

47. 6. Things Gone Wrong
– This metric originates from the Lean Six Sigma approach , and measures the number of complaints,
or "Things Gone Wrong," per 100, 1000, or up to a 1,000,000 units of survey responses, units sold,
or other.
– The standard approach to measure TGW is through complaint sections in customer surveys, but you
could also maintain internal metrics. In the worst case scenario your score is 1 or higher, meaning
that you get at least 1 complaint per chosen unit.
– Once you start measuring, you can start optimizing. And optimizing your customer satisfaction is
the best investment you can make.
– For related topics on measurement methods, check out our posts on measuring customer
loyalty , how to measure service quality , and customer service KPIs .Keep Performance Indicators