Customers role in services delivery

1. CUSTOMERS’ ROLE IN
SERVICE DELIVERY
RADHIKA GUPTA 32-MBA -14
HANUL
VIDIT

2. CUSTOMERS’ ROLE IN
SERVICE DELIVERY
1. Service is all about experience.
2. In “ The future of competition” Venkat Ramaswamy says
active customer interaction creates a far higher value than a
static product offer. Its not just about putting customer at the
centre, but experience. Its about creating value together.

3. CUSTOMERS’ ROLE IN
SERVICE DELIVERY
3. Service delivery is all about customer driven approach, unlike the 4P’s
approach which is product driven focusing on 4A’s :
Awareness,Availability, Accessibility, Affordability
• Customers play a very vital role in successful delivery of service as
customers are often present in the place where service is produced
(Delivered)
• Customers alone can influence whether the delivered service is as per
customer defined specifications.
• Other customers who are present in the Service scape can also influence
the Service positively or negatively.

4. THE IMPORTANCE OF CUSTOMERS IN
SERVICE DELIVERY
Low: Consumer Presence
Required during Service
Delivery
Products are standardized
Service is provided
regardless of any individual
purchase
Payment may be the
Only required customer
Input.
End Consumer Examples
Airline travel
Motel stay
Fast-food restaurant
Business–to Business
Customer Examples
Uniform cleaning service
Pest control
Interior greenery maintenance
service
Moderate: Consumer Input
Required for Service Creation
Client inputs customize a standard
service
Provision of service requires customer
Purchase
Customer inputs ( information materials)
Are necessary for an adequate outcome,
but the service firm provides the service
Haircut
Annual Physical exam
Full-service restaurant
Agency created advertising
Campaigning
Payroll service
Freight transportation
High: Customer Co creates the
Service Product
Active client participation guides the
customized service.
Service cannot be created apart from the
customer’s purchase and active
participation.
Customer inputs are mandatory
And cocreate the outcome.
Marriage Counseling
Personal training
Weight reduction program
Major illness or surgery
Management consulting
Executive Management seminar
Installation of computer network.
Level of Customer Participation:

5. LEVEL OF CUSTOMER PARTICIPATION
• The level of participation of customers varies from Service to
Service.
• In “High level of participation.” Eg. B to B projects like
providing software solutions & consultancies.
• In “Moderate level of participation” customers inputs are
necessary to facilitate effective delivery of service.

6. LEVEL OF CUSTOMER PARTICIPATION
• In entertainment service very “low level of participation” is
required. Service provider provides the Service & only the
customer’s presence is required to avail the service
• In many Service deliveries other customers also affect the
service delivery in a positive or negative way. This can
influence the customer’s perceptions of Service quality and
affect customer satisfaction.

7. HOW CUSTOMERS WIDEN GAP 3
• Lack of understanding of their roles
• Not being willing or able to perform their roles
• No rewards for “good performance”
• Interfering with other customers
• Incompatible market segments

8. STRATEGIES FOR ENHANCING
CUSTOMER PARTICIPATION
 Define customers’ job
1. Helping oneself: through active participation,
customers may become productive resources.
2. Helping others: mentoring programs in university.
3. Promoting the company: recommendation
4. Individual differences: not every one want to
participate

9. STRATEGIES FOR ENHANCING
CUSTOMER PARTICIPATION
 Recruit, educate and reward customers
1. Recruit the right customers who are comfortable with
roles and communicate responsibilities.
2. Educate and train customers through socializing org.
values, abilities and skills, customer orientation
(universities), customer education (hospitals) and
customer information (McDonald's)
3. Reward customers for their contributions
4. Avoid negative outcomes of inappropriate customer
participation

10. STRATEGIES FOR ENHANCING
CUSTOMER PARTICIPATION
 Manage the customer mix
Compatibility management: a process of first attracting
homogeneous consumers to the service environment, then
actively managing both the physical environment and
customer to customer encounters in such a way as to
enhance satisfying encounters and minimizing
dissatisfying customers.
Strategies:
1. Homogeneous customers
2. Locational proximity
3. Codes of conduct ( dresses and smoking attitudes)