The 1st step of
Establishment of Service Culture
Rina Suprina, M.Hum, M.SiPar
Ivan Prasetya M.Par
An internal marketing program flows
out of a service culture
• a service marketing program is doomed
to failure if its organizational culture
doesn’t support serving customers
An internal marketing program
requires a strong commitment
A major barrier to most internal marketing
programs is middle management
• managers have been trained to watch
costs, increase profits
• reward systems are based on achieving
certain cost levels
If management expects employee attitudes
to be positive toward customers,
management must have
a positive attitude toward the customer &
Too often, organizations hire trainers to
come in for
a day to get their customer-contact
employees excited about providing high-
quality customer service.
The effect is usually short lived because the
organizations do little to support the customer-
• managers tell receptionists to be helpful &
friendly, yet often the receptionists are
Management must develop a service
culture: a culture that supports customer
service through policies, procedures, reward
systems, and actions.
An organizational culture is the pattern of
shared values & beliefs giving members of an
organization meaning, providing them with
rules for behavior in the organization.
A strong culture helps organizations in two
• it directs behavior
• it gives employees a sense of purpose &
makes them feel good about their
Culture serves as glue to hold an organization
together, and when an organization has a
strong culture, the organization & employees
act as one.
A strong service culture influences
employees to act in customer-oriented ways
and is the first step toward developing a
Developing a customer-oriented organization
requires a commitment from management of
both time and financial resources.
• management must be committed to these
changes, they do not result from a
memorandum sent by the CEO
In some companies, including Hyatt,
McDonald’s, and Hertz, management spends
time working alongside customer-contact
employees serving customers.
• this makes it clear management doesn’t
want to lose touch with operations and cares
about employees & customers
A service culture & internal marketing program
can’t be developed without the support of
Organizations cannot expect their employees
to develop a customer-oriented attitude if it is
not visibly supported by company
The Internal Marketing Process
In firms that have weak corporate
cultures, there are few or no common
values and norms.
• employees are often bound by policies
& regulations that may make no sense
from a customer service perspective
Employees become insecure
about making decisions outside
the rules and regulations.
Because there are no established
values, employees do not know how
the company wants them to act.
• they spend time trying to figure out how
When they come up with a
solution, they must get a
supervisor’s permission before
Supervisors, in turn, may feel the
need to pass the responsibility
• during the decision process, the
guest is kept waiting
In a company with a strong service
culture, employees know what to do,
and they do it.
• customers receive a quick response to
& quick solutions to their problems
When you come into contact
with an organization that has a
strong service culture, you
recognize it right away.
Turning the organizational structure upside down.
The Internal Marketing Process
• Conventional organizational structure is
• In a hotel the chief
executive officer (CEO)
& chief operating (COO)
officer are at the peak
• The general manager is
next level, followed by department heads,
employees & customers
• The problem with a conventional
organizational structure is that
everyone is working for their boss.
• everyone is concerned with satisfying
them and very little attention is paid to the
• When a company has a service
culture, the organizational chart is
turned upside down.
• customers are now at the top of the
and corporate management is at the
• In this type of organization,
everyone is working to serve the
• In a hotel with a conventional
organizational structure, if any
employee makes a mistake, they hope
their supervisor never finds out about it.
• they may even try to cover it up because
they know if
their supervisor finds out, they may be
• When you turn the organization
upside down, everyone works to
serve the guest.
• When you have a conventional
everyone works to please the