Module 3 the guest experience


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Module 3 the guest experience

  1. 1. Chapter 3 The Guest Experience Are Hotels Doing The Right Thing?
  2. 2. Chapter content: •CH 3: The guest experience The service environment Service model Gaps in service Supplier-customer relationships and total quality
  3. 3. Why manage experiences?
  4. 4. The Cost of Poor Hospitality • Service America! by Albrecht and Zemke). • 96% of unhappy customers are never heard from. • For every complaint received, the average company in fact has 26 customers with problems, 6 of which are serious problems. • Complainers are more likely than non-complainers to do business again with the company that upset them, even if the problem isn‟t satisfactorily resolved. • The average customer who has had a problem with an organization recounts the incident to more than 20 people. • Customers who have complained to an organization and had their complaints satisfactorily resolved tell an average five people about the treatment they received. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved
  5. 5. 7/12/2013 5 Possible Levels of Customer Expectations (1/2) Ideal expectations or desires “Everyone says this restaurant is as good as one in France and I want to go somewhere very special for my anniversary.” Normative “should” expectations “As expensive as this restaurant is, it ought to have excellent food and service.” Experience-based norms “Most times this restaurant is very good, but when it gets busy the service is slow.” HIGH LOW
  6. 6. THE CUSTOMER….. • Discuss Johnson and Layton‟s quote “It is only through the eyes of a customer that definition of service quality can be obtained.”
  7. 7. Customer Defined • A customer is the receiver of goods or services. – This involves an economic transaction in which something of value has changed hands. • Internal customers – Employees receiving goods or services from within the same firm. • External customers – Bill-paying receivers of work. – The ultimate people we are trying to satisfy. • End user – Another term that describes customers.
  9. 9. • Customer Expectations – Beliefs about ________________ – Serve as reference points against which performance is judged – In evaluating service quality, customers compare ____________of performance with ____________ Customer Expectations of Service
  10. 10. We are the music makers, and we are the dreamers of dreams
  11. 11. The Service Environment “Customers do not buy service delivery, they buy experiences; they do not buy service quality, they buy memories; they do not buy food and drink, they buy meal experiences; they do not buy events or functions, they buy occasions”
  12. 12. Flow Experiences • Happiness • process of total involvement in life” • optimal experience” • the best moments of our lives” • the state in which people are so involved in an activity that nothing else seems to matter: the experience itself is so enjoyable that people will do it even at great cost for the sheer sake of doing it” • Involves stretch/difficult/worthwhile • Autotelic experiences – intrinsic pleasures
  14. 14. There Were No Guest Towels In The Room !! Don’t Call Me Late At Night Restaurant Service Was Slow !!
  15. 15. • Hotels Are Not Listening To Their Guests.
  16. 16. Frequently Asked Questions About Customer Expectations • What does a service marketer do if customer expectations are “unrealistic”? • Should a company try to delight the customer? • How does a company exceed customer service expectations? • Do customer service expectations continually escalate? • How does a service company stay ahead of competition in meeting customer expectations?
  17. 17. Customer Experience Management vs Customer Relationship Management
  18. 18. Customer-Driven Quality Slide 1 of 2 Customer-Driven Approach – Customer driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about our customers to learn their needs and preferences and then providing products and services that satisfy the customer.
  19. 19. Customer Experience Management… Customer Centric Give customers what they want Business Strategy Make money and beat the competition
  20. 20. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Dissatisfiers vs. Satisifiers • Discuss Cadotte and Turgeon‟s survey results. 1. Dissatisfiers – complaints for low performance, e.g. parking 2. Satisfiers – unusual performance elicits compliments, but average performance or even the absence of the feature will probably not cause dissatisfaction or complaints, e.g. atrium type lobbies
  21. 21. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Dissatisfiers v. Satisfiers cont‟d. • 3. Critical variables – capable of eliciting both positive and negative feelings, depending on the situation, e.g. cleanliness, quality of service, employee knowledge and service, and quietness of surroundings 4. Neutrals – factors that received neither a great number of compliments nor many complaints are probably either not salient to guests or easily brought up to guest standards.
  22. 22. What is the Voice of the Customer? • The Voice of the Customer – The voice of the customer represents the wants, opinions, perceptions, and desires of the customer. • Quality Function Deployment (QFD) – “House of quality,” – Translates customer wants into a finished product design.
  23. 23. Customer-Relationship Management Slide 1 of 8 • Customer-Relationship Management – This view of the customer asserts that he or she is a valued asset to be managed. – The tangibles meet the intangibles to provide a satisfying experience for the customer. • Four important design aspects – Complaint resolution – Feedback – Guarantees – Corrective action or recovery
  24. 24. Customer-Relationship Management Slide 2 of 8 Figure 3.1 Complaint resolution Feedback Guarantees Corrective action Customer Relationship Management Components of a Customer-Relationship Management Process
  25. 25. Customer-Relationship Management Slide 3 of 8 • Complaint Resolution – Complaint resolution is an important part of the quality management system. – Three common types of complaints • regulatory complaints • employee complaints • customer complaints. – The complaint-resolution process involves the transformation of a negative situation in one in which the complainant is restored to the state existing prior to the occurrence of the problem. – Complaint-recovery process
  26. 26. Customer-Relationship Management Slide 4 of 8 Complaint Resolution (or recovery) Process Apologize to the customer (contrition) Compensate people for losses Make it easy for the complainant to resolve his or her problem
  27. 27. Customer-Relationship Management Slide 5 of 8 • Feedback – There are two main types of feedback • feedback to the customer • feedback to the firm as a basis for process improvements – Feedback to the firm should occur on a consistent basis with a process to monitor changes resulting from the process improvement. – Some customer data is solicited and other data is provided without solicitation.
  28. 28. Customer-Relationship Management Slide 6 of 8 • Guarantees – A guarantee outlines the customer‟s rights. – The guarantee is both a design and an economic issue that must be addressed by all companies before the first sale occurs. • To be effective, a guarantee should be: – Unconditional – Meaningful – Understandable – Communicable – Painless to invoke
  29. 29. Customer-Relationship Management Slide 7 of 8 To be effective, guarantees should be: Unconditional Painless to invoke Meaningful Understandable Communicable
  30. 30. Customer-Relationship Management Slide 8 of 8 • Corrective Action – When a service or product failure occurs, the failure is documented and the problem is resolved in a way that it never happens again. – Corporate teams or committees should be in place to regularly review complaints and to improve processes so the problems don‟t recur.
  32. 32. Service Quality Theories • Parasuraman, Zeithaml, and Berry in 1985 discovered 10 widely cited service quality determinants, i.e., the basic criteria that customers use to analyse quality irrespective of the type of service: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, and tangibles. • This model identifies the different sources of gaps or differences between the service quality that a customer expects to receive from a service provider and the customer perception of the service actually received. • The model identifies 5 different types of gaps. The first four gaps are called company gaps, and the last or fifth gap is called customer gap - that is, the gap as perceived by customer. The customer gap is the resultant effect of the four company gaps.
  33. 33. Measuring service quality: SERVQUAL Model (Parasuraman, Zeithaml & Berry 1985, 1988) Service Quality Reliability Responsiveness Assurance Empathy Tangibles
  34. 34. Class Discussion The Five-Gap Model of Service Quality Question: Describe ways in which you as a Manager could use the five-gap model of service quality ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  35. 35. The Gap Approach to Service Design • The Gap – The gap refers to the differences between desired levels of performance and actual levels of performance. – The formal means for identifying and correcting these gaps is called gap analysis.
  36. 36. The Gaps Model of Service Quality Consumer Past experience Expected service Perceived service Service delivery (including pre- and post- contacts) External communications to consumers Translations of perceptions into service quality specifications Management perceptions of consumer expectations GAP 5 GAP 3 GAP 2 GAP 1 GAP 4 Personal needs Word-of-mouth communications Marketer
  37. 37. • Not knowing what customers expect • Not selecting the right service standards and designs • Not delivering to service standards • Not matching performance to promised Customer expectations Customer perceptions Reasons for Customer Gap 5
  38. 38. Customer’s expectations Company’s perceptions of customer expectations • Inadequate marketing research orientation • Lack of upward communication • Insufficient relationship focus • Inadequate service recovery Reasons for provider gap I
  39. 39. Translation of perceptions into service quality specifications Management perceptions of customer expectations • Poor service design • Absence of customer-defined service standards • Inappropriate physical evidence and servicescape Reasons for provider gap 2
  40. 40. • Poor human resource policies • Failure to match supply and demand • Customer not fulfilling their roles • Problems with service intermediaries Service delivery Customer-driven service designs and standards Reasons for provider gap 3
  41. 41. External communications to consumers Service delivery • Lack of integration of marketing communications • Inadequate management of customer expectations • Overpromising • Inadequate horizontal communications Reasons for provider gap 4
  42. 42. Closing the gaps • Refer to table 4.2, p. 104 • Gap 1: Learn what customers expect • Gap 2: Establish the right service quality standards • Gap 3: Ensure that service performance meets standards • Gap 4: Ensure that delivery matches promises
  43. 43. Closing gap 1: Learn what customers expect • Use research, complaint analysis, customer panels • Increase direct interactions between managers and customers • Improve upward communications • Act on information and insights listen to customers
  44. 44. Closing gap 2: Establish the right service quality standards • Top management commitment to providing service quality • Set, communicate, and reinforce customer- oriented service standards • Establish challenging and realistic service quality goals • Train managers to be service quality leaders • Be receptive to new ways to deliver service quality • Standardise repetitive tasks
  45. 45. • Prioritise tasks • Gain employee acceptance of goals and priorities • Measure performance of service standards and provide regular feedback • Reward managers and employees for achievement of quality goals Service Quality Awards
  46. 46. Closing gap 3: Ensure that service performance meets standards • Attract the best employees • Select the right employees • Develop and support employees – train employees – provide appropriate technology & equipment – encourage and build teamwork – empower employees – internal marketing Can I take your order?
  47. 47. • Retain good employees – measure and reward service quality achievements – develop equitable and simple reward systems You are a Star Service Provider
  48. 48. Closing gap 4: Ensure that service delivery matches promises • Seek input from operations personnel on what can be done • „Reality‟ advertising – real employees, real customers, real situations • Seek input from employees on advertising • Gain communications between sales, operations and customers • Internal marketing programs • Ensure consistent standards in multi-site operations
  49. 49. • In advertising, focus on service characteristics that are important to customers • Manage customer‟s expectations – What are realistic expectations? – Explain industry realities • Tiered service options – Offer different levels of service - user pays Why do we always have to wait?
  50. 50. Service Satisfaction Information System • Customer Complaints • Surveys • Employee Surveys • Focus Groups • „Mystery shopping‟ research • Competitive market surveys - benchmark
  51. 51. Measuring Satisfaction • Qualitative Research • Understand key drivers / determinants • Questionnaire design • Data analysis • Service performance index (SPI) • Importance - performance analysis
  52. 52. Best Practices • Service Guarantees by Hampton Inns – Unconditional guarantees – Specific guarantees – Implicit guarantees ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  53. 53. The State University Experience • Wow! That State University video was really cool. It has lots of majors; it‟s close to home so I can keep my job; and Mom and Dad loved it when they visited. I wish I could know what it‟s really like to be a student at State. Hmmm, I think I‟ll ask mom and dad to take a campus tour with me….. • • I‟m sure that we took our tour on the hottest day of the summer. The campus is huge – it took us about two hours to complete the tour and we didn‟t even see everything! I wasn‟t sure that the tour guide knew what he was doing. We went into a gigantic lecture hall and the lights weren‟t even on. Our tour guide couldn‟t find them so we had to hold the doors open so the sunlight could come in. About three – fourths of the way through our tour, our guide said, “State University isn‟t really a bad place to go to school; you have to learn the system.” I wonder what he meant by that?
  54. 54. The State University Experience • This application is really confusing. How do I let the admissions office know that I am interested in physics, mechanical engineering, and industrial design? Even my parents can‟t figure it out. I guess I‟ll call the admissions office for some help… • I‟m so excited! Mom just handed me a letter from State! Maybe they‟ve already accepted me. What? What‟s this? They say I need to send my transcript. I did that when I mailed in my application two weeks ago. What‟s going on? I hope it won‟t affect my application. I‟d better check with Admissions……….. • You can‟t find my file? I thought you were missing only my transcript. I asked my counselor if she had sent it in yet. She told me that she sent it last week. Oh, you‟ll call me back when you locate my file? OK..
  55. 55. The State University Experience • Finally, I‟ve been accepted! Wait a minute. I didn‟t apply to University College; that‟s a two – year program. I wanted physics, M.E., or industrial design. Well, since my only choice is U. College and I really want to go to State, I guess I‟ll send in the confirmation form. It really looks a lot like the application. In fact, I know I gave them a lot of the same information. I wonder why they need it again. Seems like a waste of time………….. • Orientation was a lot of fun. I‟m glad they straightened out my acceptance at U. College. I think I will enjoy State after all. I met lots of other students. I saw my advisor and I signed up for classes. All I have left to do is pay my tuition bill. Whoops. None of my financial aid is on this bill. I know I filled out all of the forms because I got an award letter from the state. There is no way my parent and I can pay for this without financial aid. It says at the bottom, I‟ll lose all my classes if I don‟t pay the bill on time…. • I‟m not confirmed on the computer? I sent in my form and the fee a long time ago. What am I going to do? I don‟t want to lose all of my classes. I have to go to the admissions office or my college office and get a letter that says I am a confirmed student. OK. If I do that tomorrow, will I still have all of my classes?...... • I can‟t sleep; I‟m so nervous about my first day…….. • DISCUSSION QUESTIONS • 1. What breakdowns in service processes has this student experienced? How might these be a function of organizational design? • 2. What types of process management activities should State University administrators undertake?