Customer service


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Customer service

  1. 1. Marketing
  2. 2.  Manufacturing ◦ Apple, Nike Advertising ◦ HUL, P&G Marketing ◦ Film producers IT Infrastructure ◦ Cloud based servicesWhat can be Outsourced
  3. 3.  Aspirations ◦ Successful Businesses are aspirations realized Ideas ◦ Successful Businesses are about implementation of innovative ideas. Relationships ◦ Relationships creates trust, commitment, positive energy ◦ Provide information, investments, reputationWhat cannot be outsourced?
  4. 4.  Customer Value can be Tangible and Intangible ◦ Tangible benefits can be imitated by competition ◦ Tangible benefits and resultant advantages are difficult to maintain ◦ Customer Satisfaction of tangibles is a moving target. Customers expect more when they get more. ◦ Expensive to create and maintain . Consumer Intangibles ◦ Symbolic Consumption (Imagery, aspirations) ◦ Hedonic Consumption (A superior Experience) ◦ Value we can capture can be more than the cost of Marketing is Customer Value creating it Brand Premium
  5. 5.  On tangibles? ◦ Certainly yes ◦ Lower the cost of production, sourcing, operations, have the least operating margins ◦ Provide the convenience , assortment, quality assurance , longer working hours, quick billing ◦ Have Economies of Scale, have large scale Be BigWhere do we want to compete?
  6. 6.  On Intangibles? ◦ Certainly yes Build a Brand ◦ Create aspiration in consumers to associate : What I get is more than the price product will fetch in the market. ◦ Create symbolic Value Provide a unique consumption experience difficult to duplicate ◦ Create hedonic value ◦ Personal relations, warmth, recognition, emotional bondWhere do we want Customer Experience ◦ Service differentiation and to compete? Management  Customization
  7. 7.  What is the unique value you want to provide the consumer? ◦ Functional /Utilitarian (Tangibles) ◦ Symbolic Aspirational brand(Intangible) ◦ Hedonic Experience (Intangible) A Marketing strategy involves your choice of ◦ What type of consumers to serve? ◦ What value to provide? ◦ Communicating and Influencing the consumerStrategic Marketing
  8. 8.  Types of mental responses ◦ Affect : Feel  A state of Mind  Feeling responses ◦ Cognition : Thought  Mental process  Thinking responses ◦ Behavior : Act  Overt or Covert ABC Model of InfluenceInfluencing Consumers
  9. 9.  Emotion to Mood ◦ Joy, Love, Fear, Guilt, Anger, Warmth, Disgust, Sadness, Calm, Blue, Boredom, Dislike, Melancholy ◦ Positive and negative ◦ Strong or Weak ◦ Innate or learned Mental BiasesAffect
  10. 10.  Thought ◦ Information processing Thoughts about ◦ Benefits ◦ Comparisons ◦ Advantages ◦ Apply previous learningCognition
  11. 11.  Consumption behavior ◦ Purchase ◦ Selection ◦ Choice of a store ◦ Join a scheme ◦ Recommendation and referral ◦ Repeat PurchaseBehaviour
  12. 12. Love MarriagesABC
  13. 13. Cognition > Affect > Behaviour
  14. 14. Cognition > Behaviour > Affect
  15. 15. Affect > Behaviour > Cognition
  16. 16. Affect > Cognition > Behaviour
  17. 17. Behaviour > Affect > Cognition
  18. 18.  Please recall the experience as a customer you were most dissatisfied? ◦ Please Describe on a sheetCustomer Service
  19. 19. Customer ExperienceManagement Service Quality ◦ How do customers perceive and evaluate service quality? ◦ What are managers’ perceptions about service quality? ◦ Do discrepancies exist between the perceptions of customers and those of managers? ◦ How can Retailers improve customer service and achieve excellence?
  20. 20.  A Customers can be Satisfied and Dissatisfied at the same time ◦ Different factors cause satisfaction and dissatisfaction ◦ Identify factors (hygiene factors) that cause dissatisfaction and remove them ◦ Identify factors (Satisfiers) that cause Satisfaction and Implement.Service Quality andSatisfaction
  21. 21. Determinants of PerceivedService Quality Word of Personal Past Mouth Needs Experience External Expected Communication Service to Customers Service Quality Perceived Gap Service Quality Perceived Service
  22. 22. A “GAPS” MODEL OF SERVICE QUALITY CUSTOMER RETAILER Market Organization’s Service Information Understanding Standards Gap of Expectations Gap Customers’ Service Organization’sExpectations GAP Service 1 GAP Standards 2 Service Service GAP Quality Performance Gap 5 GAP Gap 3 GAP Organization’sCustomers’ 4 Service Service PerformancePerceptions Organization’s Internal Communications Communicatio to Customers n Gap
  23. 23. The Five Dimensions ofService QualityReliability Ability to perform the promised service dependably and accurately.Assurance Knowledge and courtesy of employees and their ability to convey trust andTangibles confidence.Empathy Physical facilities, equipment, and appearance of personnel.Responsiveness Caring, individualized attention the firm provides its customers.
  24. 24. Five ExpectationCategories Reliability - deliver what is promised Responsiveness - do it promptly Assurance - know how to do it Empathy - do it with respect and understanding Tangibles - ensure that buildings, surroundings, and materials are attractive
  25. 25. Service Quality ASSURANCE  Employees who instill confidence in customers  Making customers feel safe in their transactionsRELIABILITY  Employees who are consistently courteous  Employees who have the knowledge to Providing service as promised answer customer questions Dependability in handling customers’ service problems EMPATHY Performing services right the first time  Giving customers individual attention Providing services at the promised time  Employees who deal with customers in a Maintaining error-free records caring fashion  Having the customer’s best interest at heart  Employees who understand the needs ofRESPONSIVENESS their customers Keeping customers informed as to  Convenient business hours when services will be performed TANGIBLES Prompt service to customers  Modern equipment Willingness to help customers  Visually appealing facilities Readiness to respond to customers’  Employees who have a neat, requests professional appearance  Visually appealing materials associated with the service
  26. 26. Relative Importance of Service Dimensions When Respondents Allocate 100 Points RELIABILITY 32% TANGIBLES 11%RESPONSIVENES S EMPATHY 16% 22% ASSURANCE 19%
  27. 27.  Reliability: accuracy of billing, meeting promised delivery dates Assurance (trust): guarantees and warranties, return policies, Faith Tangibility: appearance of store and salespeople Empathy: personalized service,, recognition by name, understanding the requirements Responsiveness: returning calls and emails, giving prompt serviceAssessing ServiceCharacteristics