“ Managers do not control the quality of the product when the product is a service . . . .  The quality of the service is ...
The strategy for developing a customer service framework Customer Care Week Four
Objectives <ul><li>Describe a service culture </li></ul>
Learning Criteria <ul><li>Explain the central role of the customer in a business and services environment </li></ul>
Five key components of a strategy
Strategy: <ul><li>A plan for positive action. </li></ul>
Planning: <ul><li>Finding a recognizable direction to focus on.  More specifically, planning is the establishment of speci...
Importance of Infrastructure <ul><li>Customer service depends on the existence of an appropriate infrastructure. </li></ul>
Infrastructure: <ul><li>Made up of the networks of people, physical facilities, and information that support the productio...
Culture: <ul><li>Composed of the values, beliefs, and norms shared by a group of people. </li></ul>
Examples of Culture in Hospitality <ul><li>Typical workday hours </li></ul><ul><li>Industry ‘lingo’ </li></ul><ul><li>Peer...
Service Culture <ul><li>‘  a culture where an appreciation for good service exists, and where giving good service to inter...
Three Ways to Create a Customer Friendly Culture <ul><li>Practice the Golden Rule. </li></ul><ul><li>View internal custome...
Management Focus <ul><li>Developing a service culture </li></ul><ul><ul><li>Front Line Contact </li></ul></ul><ul><ul><li>...
High-touch customers: <ul><li>Requires a high level of customer interaction. </li></ul>
Examples of High Touch <ul><li>Bank lobbies </li></ul><ul><li>Specialty stores </li></ul><ul><li>Hotel lobbies </li></ul><...
Low-touch customers: <ul><li>Expect a low level of customer service. </li></ul>
Examples of Low Touch <ul><li>Self check-in </li></ul><ul><li>Automatic teller machines </li></ul><ul><li>Express rental c...
Consumption behavior: <ul><li>Refers to the customer’s usage and payment patterns. </li></ul>
When identifying consumption behaviour, ask the following:
When identifying consumption behaviour, ask the following: <ul><li>What are customers buying? </li></ul><ul><li>Why did th...
Guidelines for Creating a Strategy <ul><li>Segment your customers. </li></ul><ul><li>Identify the largest and most profita...
Market Segmentation: <ul><li>Dividing customers into groups with similar characteristics. </li></ul>
Sample Customer Service Segments <ul><li>Types of service needed or desired </li></ul><ul><li>Similarities among your curr...
Customer Attributes: <ul><li>Characteristics that allow customers to be categorized according to demographic, psychographi...
In class <ul><li>Subway customers </li></ul><ul><li>Who are they? </li></ul>
Demographic information: <ul><li>Characteristics such as: </li></ul>
Demographic information: <ul><li>age  </li></ul><ul><li>income </li></ul><ul><li>marital status </li></ul><ul><li>educatio...
Psychographic information:
Psychographic information: <ul><li>lifestyles </li></ul><ul><li>modes of living </li></ul><ul><li>needs </li></ul><ul><li>...
Firmographic information: <ul><li>Characteristics about a company such as: </li></ul><ul><ul><li>how many employees they h...
Factors Influencing Consumer Behaviour © 2006 Pearson Education, Inc.  Marketing for Hospitality and Tourism, 4th edition ...
Psychological Factors <ul><li>Motivation </li></ul><ul><ul><li>Maslow’s Theory of Motivation </li></ul></ul><ul><ul><ul><l...
 
<ul><li>What might be the potential management problems associated with allowing service employees to exercise judgement i...
<ul><li>Seminar (from last week) </li></ul><ul><li>Evaluate brochures in terms of tangibilising </li></ul><ul><li>Price of...
<ul><li>Next Week </li></ul><ul><li>Branding – each group identify their favourite brand and why? </li></ul>
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4 Strategy For Formulating A Plan

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4 Strategy For Formulating A Plan

  1. 1. “ Managers do not control the quality of the product when the product is a service . . . . The quality of the service is in a precarious state – it is in the hands of the service workers who ‘produce’ and deliver it.” -Karl Albrecht
  2. 2. The strategy for developing a customer service framework Customer Care Week Four
  3. 3. Objectives <ul><li>Describe a service culture </li></ul>
  4. 4. Learning Criteria <ul><li>Explain the central role of the customer in a business and services environment </li></ul>
  5. 5. Five key components of a strategy
  6. 6. Strategy: <ul><li>A plan for positive action. </li></ul>
  7. 7. Planning: <ul><li>Finding a recognizable direction to focus on. More specifically, planning is the establishment of specific customer service goals. </li></ul>
  8. 8. Importance of Infrastructure <ul><li>Customer service depends on the existence of an appropriate infrastructure. </li></ul>
  9. 9. Infrastructure: <ul><li>Made up of the networks of people, physical facilities, and information that support the production of customer service. </li></ul>
  10. 10. Culture: <ul><li>Composed of the values, beliefs, and norms shared by a group of people. </li></ul>
  11. 11. Examples of Culture in Hospitality <ul><li>Typical workday hours </li></ul><ul><li>Industry ‘lingo’ </li></ul><ul><li>Peer accountability </li></ul><ul><li>Teamwork </li></ul><ul><li>High levels activity ‘pinch points’ </li></ul><ul><li>Low wages </li></ul><ul><li>Transitory staff </li></ul>
  12. 12. Service Culture <ul><li>‘ a culture where an appreciation for good service exists, and where giving good service to internal and external customers is considered a natural way of life and one of the most important norms for everyone’ (Gronroos C) </li></ul>
  13. 13. Three Ways to Create a Customer Friendly Culture <ul><li>Practice the Golden Rule. </li></ul><ul><li>View internal customers as number one. </li></ul><ul><li>Work hard, play hard. </li></ul>
  14. 14. Management Focus <ul><li>Developing a service culture </li></ul><ul><ul><li>Front Line Contact </li></ul></ul><ul><ul><li>Decision making decentralised </li></ul></ul><ul><ul><li>Empowerment </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Performance & Feedback </li></ul></ul>
  15. 15. High-touch customers: <ul><li>Requires a high level of customer interaction. </li></ul>
  16. 16. Examples of High Touch <ul><li>Bank lobbies </li></ul><ul><li>Specialty stores </li></ul><ul><li>Hotel lobbies </li></ul><ul><li>Purchase of real estate </li></ul><ul><li>Lawyers and accountants </li></ul><ul><li>Prestige restaurants </li></ul>
  17. 17. Low-touch customers: <ul><li>Expect a low level of customer service. </li></ul>
  18. 18. Examples of Low Touch <ul><li>Self check-in </li></ul><ul><li>Automatic teller machines </li></ul><ul><li>Express rental car checkout </li></ul><ul><li>Hotel bill viewing on television and express checkout </li></ul><ul><li>Pay-at-the-pump petrol </li></ul><ul><li>Fast-food drive-up windows </li></ul><ul><li>Serve yourself buffet </li></ul><ul><li>Online bill paying </li></ul><ul><li>Online account management </li></ul>
  19. 19. Consumption behavior: <ul><li>Refers to the customer’s usage and payment patterns. </li></ul>
  20. 20. When identifying consumption behaviour, ask the following:
  21. 21. When identifying consumption behaviour, ask the following: <ul><li>What are customers buying? </li></ul><ul><li>Why did they buy it? </li></ul><ul><li>Why did they buy more today that they did in our last interaction? </li></ul><ul><li>Why did they call with a question? </li></ul><ul><li>What was their question? </li></ul><ul><li>How much did they buy? </li></ul><ul><li>Have they bought from us before? </li></ul><ul><li>How did they pay? </li></ul><ul><li>When will they be installing/assembling the product? </li></ul><ul><li>What else have they bought recently? </li></ul>
  22. 22. Guidelines for Creating a Strategy <ul><li>Segment your customers. </li></ul><ul><li>Identify the largest and most profitable customer groups. </li></ul><ul><li>Determine your customers’ expectation. </li></ul><ul><li>Develop a plan to achieve their expectations efficiently. </li></ul><ul><li>Implement the plan. </li></ul><ul><li>Set an evaluation timeline. </li></ul><ul><li>Evaluate and continue to improve the strategy. </li></ul>
  23. 23. Market Segmentation: <ul><li>Dividing customers into groups with similar characteristics. </li></ul>
  24. 24. Sample Customer Service Segments <ul><li>Types of service needed or desired </li></ul><ul><li>Similarities among your current customers </li></ul><ul><li>Peak hours of your business and the specific customers doing business at those times. </li></ul><ul><li>The among of service desired </li></ul><ul><li>Creation of your own segments that are appropriate to your product or service </li></ul>
  25. 25. Customer Attributes: <ul><li>Characteristics that allow customers to be categorized according to demographic, psychographic, or firmographic information. </li></ul>
  26. 26. In class <ul><li>Subway customers </li></ul><ul><li>Who are they? </li></ul>
  27. 27. Demographic information: <ul><li>Characteristics such as: </li></ul>
  28. 28. Demographic information: <ul><li>age </li></ul><ul><li>income </li></ul><ul><li>marital status </li></ul><ul><li>education </li></ul><ul><li>stage in the family life cycle </li></ul><ul><li>home ownership </li></ul><ul><ul><li>sex </li></ul></ul><ul><ul><li>ZIP code </li></ul></ul><ul><ul><li>occupation </li></ul></ul><ul><ul><li>household size </li></ul></ul><ul><ul><li>mobility patterns </li></ul></ul><ul><ul><li>ethnic background </li></ul></ul><ul><ul><li>religion </li></ul></ul><ul><li>Characteristics such as: </li></ul>
  29. 29. Psychographic information:
  30. 30. Psychographic information: <ul><li>lifestyles </li></ul><ul><li>modes of living </li></ul><ul><li>needs </li></ul><ul><li>motives </li></ul><ul><li>attitudes </li></ul><ul><li>reference groups </li></ul><ul><li>culture </li></ul><ul><li>social class </li></ul><ul><li>family influences </li></ul><ul><li>hobbies </li></ul><ul><li>political affiliation </li></ul><ul><li>etc. </li></ul>
  31. 31. Firmographic information: <ul><li>Characteristics about a company such as: </li></ul><ul><ul><li>how many employees they have </li></ul></ul><ul><ul><li>the kind of business they are in </li></ul></ul><ul><ul><li>whether they are retail, wholesale, or a service provider </li></ul></ul><ul><ul><li>their hours of operation </li></ul></ul>
  32. 32. Factors Influencing Consumer Behaviour © 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  33. 33. Psychological Factors <ul><li>Motivation </li></ul><ul><ul><li>Maslow’s Theory of Motivation </li></ul></ul><ul><ul><ul><li>Sought to explain why people are driven by particular needs at particular times </li></ul></ul></ul><ul><ul><li>Herzberg’s Theory </li></ul></ul><ul><ul><ul><li>A two-two factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction) </li></ul></ul></ul>
  34. 35. <ul><li>What might be the potential management problems associated with allowing service employees to exercise judgement in meeting customer needs? </li></ul><ul><li>Does Empowerment lead to Organisational commitment? </li></ul><ul><li>……… .For everyone? </li></ul>
  35. 36. <ul><li>Seminar (from last week) </li></ul><ul><li>Evaluate brochures in terms of tangibilising </li></ul><ul><li>Price of 5 star hotel this weekend one night inc breakfast </li></ul>
  36. 37. <ul><li>Next Week </li></ul><ul><li>Branding – each group identify their favourite brand and why? </li></ul>

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