Managing & Designing Customer Experience

Managing
Designing
Services
Roy Cadongonan - AGSB Sta. Rosa
Differentiate Your Company to Others by…
and
https://www.linkedin.com/in/roycadongonan

1) How do we define and classify services
and how do they differ from goods?
2) What are the new services realities?
3) How can we achieve excellence in services
marketing?
4) How can we improve service quality?
5) How can goods marketers improve
customer support services?
Chapter Questions

Creating Memorable Customer
Experience
Outline
1) Differentiate Services from Goods.
2) Realities of New Services.
3) Achieving Excellence in Services
Marketing.
4) Improving Service Quality.
5) Improving Customer Product-Support
Services.

What is Service?
1) Differentiating Services from Goods
Act of performance
that is offered that is intangible,
may or may not be tied to a
physical product.

Services are Everywhere….
1) Government
2) Private non-profit
3) Business sector
4) Manufacturing
5) Retail

Distinctive Characteristics of Services
1) Intangibility – services can’t be seen,
tasted, felt, heard, or smelled before
it is performed. Buyers look for
“evidence” of quality.
Which of the salon will give better quality?

2) Inseparability – provider is part of
the service. Provider-client interaction is
a special feature
Your favorite Manong Barbero

3) Variability – quality of services
depends on who provides them,
making it highly variable.
Who’s your doctor?

4) Perishability – services can’t be
stored, there will be problem when
demand fluctuates

Savvy service marketers recognizes
new service realities
2) Realities of New Services
1) Customer Empowerment – internet
has empowered customers by letting
them vent bad & reward good services.

2) Customer Coproduction – customers
don’t merely purchase & use a service,
they an active role in its delivery
Client – salesman discussion
on construction details

3) Satisfying employees as well as
customers – positive employee attitudes
will promote stronger customer loyalty.
One of Top Companies To Work For In The Philippines

Services requires excellence in 3
broad areas…
3) Achieving Excellence in Services Marketing

broad areas…
1) External Marketing – normal work of
preparing, pricing, distributing, &
promoting the service to customers

broad areas…
2) Internal Marketing – training &
motivating employees to serve
customers well.

broad areas…
3) Interactive Marketing – employees’
skill in serving the client

Best Practices of Top Service
Companies
1) Strategic Concept – “customer
obsessed”, clear sense of strategies to
fulfill customers needs.

Companies
2) Top-Management Commitment–
thorough commitment to service
quality. Concerns not only on financials
but also on service performance.

Companies
3) High Standards – best service
providers sets high quality standards

Companies
4) Profit Tiers – customers in high-profit
tiers get special discounts, promotional
offers & lots of special service.

Companies
5) Monitoring System – audit service
performance both their own &
competition. Use “voice of customer” to
probe satisfaction.

Companies
6) Satisfying Customer Complaints –
systematic approach for addressing
service failures.

Maintain these lessons in improving
service quality
4) Improving service quality
1) Listening – understand
what customers really
want by continuous
learning
2) Reliability – single most
important dimension &
must be the priority

service quality
3) Basic Services – deliver basic
value to customer
4) Service Design – holistic
view of the service while
managing its details

service quality
5) Recovery – satisfying
customer during service failure
6) Surprising Customers –
surprising them with
uncommon expectations

service quality
7) Fair Play – be fair or
demonstrate fairness
8) Teamwork – improving
employee motivation &
capabilities

service quality
9) Employee Research –
research with employee to
reveal why service problem
occurs
10) Servant Leadership –
inspired leadership in the
organization that reflects
corporate culture

Identifying the services customer
value most
5) Improving customer product-support services
1) Facilitating Services – installation,
staff training, maintenance, repair &
financing

value most
2) Value-augmenting services – set of
associated services and other benefits
that are provided to a consumer in
addition to the actual product that
they are purchasing

value most
3) Service Contracts – sellers agree to
provide free maintenance & repair
services for a specified period.

Experience
Outline
1) Services are intangible, inseparable,
variable & perishable.
2) Realities of New Service; customers
empowerment, customer coproduction
and satisfying employee is satisfying
customers.

Experience
Outline
3) Achieving excellence in services
marketing thru these best practices;
strategic concept, top management
commitment, high standards, profit tiers,
monitoring systems & satisfying customer
complaints

Experience
Outline
4) Maintaining these lessons in
improving service quality; listening,
reliability, basic services, service design,
recovery, surprising customer, fair play,
teamwork, employee research & servant
leadership.

Experience
Outline
5) Improving customer product-support
services by performing; facilitating
services, value augmenting services &
service contracts.

Managing & Designing Customer Experience

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