A STUDY OF THECUSTOMER SATISFACTION ON SERVICES OFFERED BY FMCG RETAIL STORES By Twinkle K Antony Ullas Udayakumar Viniprasad Vinayraj B Vipindas KC Vishnu Jayan
A Brief Through . . . Introduction and Background Service Marketing Mix Service Gaps Positioning & Differentiation Service Quality Model – RATER Role of Customers & Employees Customers Satisfaction Survey – NPS Growth Plan & Challenges
Introduction & Background A Service Provider (Retailer) services the needs of large number of individuals Inception long back from un-organized retail stores in Village Fairs, Melas etc. Major Share in GDP – expected 20%+ Expected Value – 2 Lakh Crores rupees according to Ministry of Commerce & Industry Expected Employment – 10 – 15 jobs in 5 yrs Major Players – Tata, Future, Reliance, Public Sector Outlets etc. etc.
Service Marketing Mix – The 7 Ps Product – Here the Services being offered Prices Promotion Place Process The 3 Ps of Physical Evidence Service Marketing People
The 3 Ps of Service Marketing Process ◦ Systems used for Service Delivering ◦ Faster Customer Response ◦ Should match with the Service Provided ◦ Should match with the Local Culture ◦ ‘Self – Service’ in Retail Sores ◦ Should be adaptable ◦ Customer Attraction Schemes ◦ Use of Technology for ease of shopping ◦ Customer Redressal Mechanisms
Physical Evidence ◦ Where is the Service being delivered? ◦ Allows Customer’s Judgment on Organization ◦ The ‘Ambience’ should be there ◦ Customer Perceptions created ◦ Shop Layout, Lighting, Packaging, Displaying, In-Shop POPs, Staff Uniform, The Bill etc. etc.
People ◦ Right type of Staff ◦ Right number of Staff ◦ Interpersonal Training must be given ◦ Proper Aptitude & Service Knowledge necessary for staff ◦ Staff can ‘ Make or Break’ ◦ Customer also need to know his responsibility ◦ Need of proper ‘Feedback’ from Customer
Servicescapes Impact of Physical Environment in which the Services are being offered. One-Stop-Shop for all purchases – Groceries, Fresh Fruits and Vegetables Shop Layout – Lighting, Displays, In Shops etc. Arrangement of items in display racks, cooled racks, freezers Categorized arrangement of items ‘Self – Service’ system – customer can choose his product in any quantity
Freedom to spend time in the store Trained employees Uniformed Employees Monitoring of Service Encounter Offers – during off seasons also Membership Cards for Customers Packings etc. etc.Good memory of the Service Encounterto the Customer
Service Gaps Customer Gap Expected Service Perceived Service
Provider Gaps ◦ Knowledge Gaps not knowing what the Customer Expects ◦ Service Design & Standard Gap not having the right service designs & standards ◦ Service Delivery Gap not delivering to standards ◦ Communication Gap not matching performances to promises
Provider Gap Located Communication Gap ◦ Promises and Performances not matched ◦ Customers given over-expectations in factors like Price ◦ Conditional advertisements
Market Positioning Advertising on TV, on billboards, in magazines and in other media outlets Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy Promotional Mix ◦ Advertisements – TV, Print, Radio, hoardings ◦ Events/programs – Big Bazaar in GKSF ◦ Seasonal Sales Promotions – Special Packages during Onam, Diwali etc.
Service Differentiation Very difficult to differentiate due to intangibility factor Servicescapes Introducing exclusive ‘House Brands’ at low prices like ‘DJ & C’ and ‘Koryo’ of Big Bazaar Sweepstakes, Scratch-N-Wins, Discounts, Offers, Bundles etc. etc.
Service Quality Model - RATERReliabilityAssuranceTangibilityEmpathyResponsiveness
Reliability ◦ Majority of the players are Reliable ◦ Major factor in Service Differentiation ◦ Efforts for delivering best service encounter experience
Assurance ◦ Ensure best prices ◦ Ensure best quality ◦ Ensures best ‘purchase experiences’ ◦ Ensures best store interactions ◦ Ensures best ambience
Tangibility ◦ Packings bearings Brand Logo ◦ Souvenirs ◦ Gift Vouchers through third parties ◦ Free Samples, Gifts etc. ◦ Bill Slips ◦ Pamphlets, Brochures etc. ◦ Happy Calls, SMSs etc.
Empathy ◦ Price tags ◦ Ensuring In-Shop Customer Assistance ◦ Well trained employees ◦ Fast customer redressal mechanisms ◦ Performance as Promised ◦ Customer Privacy ◦ Value Customer Relations
Responsiveness ◦ Willful Helping and Courtesy ◦ Personal Attention to Customers ◦ ‘No Grumbling’ Policy of More Retail ◦ Employee Discipline ◦ On-time Customer Redressal
Role of Customers to improvethe Quality of Service Delivery Responsibility of Customers to give proper feedback Customer must demand for what is being promised Customer must understand the differentiations and should respond
Role of Employees to improvethe Quality of Service Delivery Employee is the ‘Maker or Breaker’ Interpersonal Skills much important Personalized Business Service Encounters must be made memorable Must aim Customer Loyalty
Customer Satisfaction Survey Went with ‘Net Promoter Score’ Approach
Growth Plans & ChallengesTrends Growing Trends – in Inflection Point Expected Value – 2 Lakh Crores rupees Aims for 30%+ of GDP 10 – 15 Lakhs employments in 5 yearsChallenges Increase in organized retail players Liberalization in FDI terms Change in Customer Outlook Growth of ‘Etailing’
ConclusionConcluding with a Success Mantra “ The highest compliment that our customer can give is the referral of their friends and family”