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Services Management - End to End Overview
- 1. SERVICE MANAGEMENT A QUICK ONCE OVER A QUICK ONCE OVER 1
- 2. THE SERVICE SOCIETY PART 1 2 The Service Society
- 3. THE SERVICE SOCIETY 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1970 1980 1990 2000 2010 Extraction industries Goods producing industries Service industries The Service Society 1of2
- 4. WHY ARE WE A SERVICE SOCIETY 4 The Service Society 2of2
- 5. SERVICES DOMINANT LOGIC PART 2 5 Services Dominant Logic
- 6. SERVICES AS PROCESSES 6 Goods – are a resource – something you get Services – are a process – activities that happen over time Services Dominant Logic 1of7
- 7. CUSTOMER AS CO-PRODUCER 7 Goods – you are not involved in the production process Services – you may be involved in the production process Services Dominant Logic 2of7
- 8. SIMULTANEITY 8 Goods – can be produced, then consumed later Services – are often produced and consumed at the same time Services Dominant Logic 3of7
- 9. PERISHABILITY 9 Services – Cannot be stored – lost opportunities are lost forever Goods – can be stored – for sale later Services Dominant Logic 4of7
- 10. INTANGIBILITY 10 Goods – Are often tangible so can be tried before buying Services – Intangible services cannot be tried out before buying Services Dominant Logic 5of7
- 11. HETEROGENEITY 11 Goods – are focused on things and are alike Services – are focused on people and vary from customer to customer Services Dominant Logic 6of7
- 12. VALUE IN EXCHANGEV.S.VALUE IN USE 12 Goods – Customers exchange for goods and use them how they want Services – Customer get value from services by using them Services Dominant Logic 7of7
- 13. SERVICE QUALITY PART 3 13 Services Quality
- 14. WHAT IS SERVICE QUALITY 14 Services Quality Expectation Experienceversus 1of3
- 15. EXPECTATIONV.S. EXPERIENCE 15 Services Quality Expectation (WhatIwanted) Experience (WhatIgot) A B C 2of3
- 16. DIMENSIONS OF SERVICES 16 Services Quality Process is Important Outcome is Important Both Process and Outcome are Important 3of3
- 17. SERVICE QUALITY: EXPECTATIONS PART 4 17 Service Quality: Expectations
- 18. SOURCES OF EXPECTATIONS 18 Service Quality: Expectations Sales/ Marketing Information Corporate Brand & Image What Other Customers Say Past Experience with Service Relationship with Service Provider Experiences with Other Services 1of2 Customer Expectations
- 19. TYPES OF EXPECTATIONS 19 Service Quality: Expectations Explicit Unrealistic: “make me look like Brad Pitt” Fuzzy: “make me look like a rockstar” Explicit Realistic: “Short back and sides” Implicit: “why didn’t you ask me first?” M ake explicit Make realistic Make explicit 2of2
- 20. SERVICE QUALITY: EXPERIENCE PART 5 20 Service Quality: Experience
- 21. THE SERVICE SEQUENCE 21 1 2 3 4 5 6 7 8 9Expected Service Above expectation (great service) Below expectation (poor service) Zone of Tolerance Service Quality: Experience 1of3
- 22. THE CUSTOMER/PROVIDER RELATIONSHIP: 2 22 Relationship SequenceSequence Episode Act Act Act Episode Act Act Act EpisodeAct Act Act Episode Act Act Act Relationship with a hotel A stay at a hotel Dinner at the hotel Ordering dessert Act: Also known as ‘Moments of Truth’ Service Quality: Experience 2of3
- 23. THE CUSTOMER/PROVIDER RELATIONSHIP: 2 23 Relationship SequenceSequence Episode Act Act Act Episode Act Act Act Episode Act Act Act Episode Act Act Act Relationship SequenceSequence Episode Act Act Act Episode Act Act Act Episode Act Act Act Episode Act Act Act Poor Relationship Good Relationship Service Quality: Experience 3of3
- 24. QUALITY FACTORS AND MEASURES PART 6 24 Quality Factors & Measures
- 25. WHAT WE RESPONSIBLE FOR? 25 Quality Factors & Measures The equipment Actions (& inactions) of staff The systems The processes Actions of the customer Actions of other customers The expectations The facilities and environment This But not this 1of4
- 26. EXAMPLE: MANAGING CUSTOMERS 26 Quality Factors & Measures We limit their choices We restrict their movement We tell them what to do 2of4
- 27. TYPES OF QUALITY 27 Quality Factors & Measures Enhancer FactorsSanitary Factors 3of4
- 28. MEASURING QUALITY NPS Ask customers how likely they would be to recommend a service to a friend or colleague Simple Easy to get a good response rate Collects limited data Fast to implement Risks becoming a score Implied comparison between expectation and experience Servqual Ask customers what they expected versus what they got for each aspect of a service Complex Requires customer effort Comes with good data Slow to implement Maintains focus on service aspects Explicitly compares expectation against experience 28 Quality Factors & Measures 4of4
- 29. SERVICE FAILURE PART 7 29 Service Failure
- 30. WHAT IS SERVICE FAILURE 30 Service Failure Expectation (WhatIwanted) Experience (WhatIgot) A B C 1of3
- 31. PROMISES MODEL 31 Service Failure Delivery Customers Marketing/ Sales MakingPromises EnablingPromises Delivering Promises 2of3
- 32. GAPS IN PROMISES LEAD TO SERVICE FAILURE 32 Service Failure Keeping Promises Making Promises “This is pest control, how may I help you?” 3of3
- 33. SERVICE RECOVERY PART 8 33 Service Recovery
- 34. ARE COMPLAINTS GOOD? 34 Service Recovery Prevents bad word of mouth Lets provider respond to issues The alternative is customers leaving Make issues visible 1of2 YES NO
- 35. WHAT ARE CUSTOMERS LOOKING FOR? 35 Service Recovery Procedural Interactional Distributive 2of2 The Three Justices
- 36. SERVICE GUARANTEES PART 9 36 Service Guarantees
- 37. SERVICE GUARANTEES 37 Service Guarantees If a customer can’t try before they buy, you can still reduce the risk to the customer to make the service more attractive 1of1
- 38. SERVICE PRODUCTIVITY PART 10 38 Services Productivity
- 39. PRODUCTIVITY 39 Services Productivity Internal: Cost to provide a service instance to a customer. How much does it cost to provide the service. External: Cost to provide a level of service experience a customer. How much does it cost to make the customer like the service? 1of2
- 40. WORKED EXAMPLE 40 Services Productivity Internal Productivity: Cost to produce a DVD External Productivity: The cost to make it something that people will recommend or come back to 2of2
- 42. WASTE IN SERVICES 42 Services – Customers are ‘stored’ when there is too little capacity Goods – Inventory is a buffer between production and demand Waste 1of2
- 43. MANAGING QUEUES 43 Services – Manage Demand (yield management) Goods – Manage Waiting (make it more bearable) Waste 2of2
- 44. SELF SERVICE AND AUTOMATION PART 12 44 Self Service & Automation
- 45. SERVICE PROCESS MATRIX 45 Degree of Specialisation/Customisation Low High DegreeofCustomerContact Low Car wash Pest control High School Physician Easy to automate Hard to automate Self Service & Automation 1of1
- 46. SERVICE CULTURE PART 13 46 Services Culture
- 47. SERVICE CULTURE SharedValues (values, beliefs, behaviours, paradigm) Leadership Training Empowerment/Rules Trust Roles and Responsibilities 47 Services Culture 1of1
- 48. STUFF THAT GOT LEFT OUT 48 Hybrid~Goods~and~Services Hidden~Services Servicescape Inseparability~of~Customers Explicit~vs~Implicit~Services New~Service~Development Service~Design Service~Quality~by~Design Approaches~to~Service~Recovery Service~Improvement Managing~Capacity~and~Demand Yield~Management Queuing~Models The~Psychology~of~Waiting~ Supply~Chain~Management Relationship~Quality Customer/Supplier~Bonds Quality~Gap~Analysis Cost~of~Quality Customer~Sacrifice Self~Service~Attractors Service~Guarantee~Requirements Opportunistic~Claims Squeaky~Wheel Service~Recovery~Sequence Service~Recovery~Paradox Psychological~Impact~of~Service~Failure Types~of~Service~Guarantees