customer management summary

7/31/2019 Customer Management Summary

1/23

Manag ing

Cu st om er s inServ ices

Philip Moscoso&

Alejandro Lago


2/23

2P. Moscoso & A. Lago

Ser vi ces =

Services = I + I + I

The client DEMANDS

UNPREDI CTABLE an dUNPREDI CTABLE an d

FAN CI FULFAN CI FUL

AT THEI R FREE W I LL an dAT THEI R FREE W I LL an dW I THOUT TI ME FORW I THOUT TI ME FOR

REACTI ONREACTI ON

SUBJECTI VELYSUBJECTI VELY

The client EVALUATES

The clients ACTS

EXPECTATI ONS an dPERCEPTI ONS

I NTANGI BLE

PERSONALI NTERACTI ONS

I NTERACTI VE

CAPACI TI ES an dW A I T I N G S

I MMEDI ATE


3/23


An OPERATIONAL definition of a services

I n ser v i ce p rocesses, t he cust om er p r ov idessign i f i can t i npu t i n t o t he p r oduct i on p r ocess.

Fuente: Sampson and Froehle 2006

Without customerthere is no service

possible

What shall

we do?

a

miracle.


4/23


Reviewing customer role in services

1.Customer as a buyer

2.Customer as co-producer

3.Customer as a partner


5/23


Traditional operations view: demandvariability and utilization

Ut i l i za t i on

=1

W a i t i n g

Increase Variability

=0

HOW CAN CUSTOMERS I NTRODUCE

VARI ABI LI TY I NTO OUR SYSTEM?


6/23


Customer implications (3Is) on servicemanagement

Managem ent cha l len ges Managem ent ch a l lenges

How to manage cus tom er va r i ab i l i t y without reducing

customer exper ience?

How to acco m m od at e v ar iab i l i t y without increasingmuch cos ts?

ArrivalsWhen?

ServicesWhat?

Cus tom er as a buy e r

Capacidad(Habilidad,

esfuerzo)

Motivacin yesfuerzo

El cl ie n t e co m oag en t e Act i vo

( P r o d u c t i v o )

PreferenciasExp - Percep

El cl ien t e co m oag en t e Em o t iv o

(Eva luado r )

Source: Adapted from Frei, 2006


7/23


Ex cess capac i t y p er t yp e

Po lyva len t resou r ces( t r a n s v e r s a l )

Manage back - o f f i ce( cen t r a l i zed ) / au t o m a t e

Sel f -serv ice

Reserva t ions ( p r ese lect iono f r equest s)

Redu ce o f f e r

Segm en t cl i en t s

Persuade cl i en t s

Var iab i l i t y i nserv ices

d e m a n d e d

Ex cess capaci t y Flex ib le open ing s

Back - o f f i ce cen t ra l i za t ion

Mask w ai t in gs

Sel f -serv ice

H ig h / l ow sea so n p r i ci n g Reserva t ions

Li m i t o p e n in g t i m es

A lt e rna t i ve se rv i ces w i thco m p l em e n t a r y d e m a n d

Subcon t rac t

Var iab i l i t y i na r r i va l s

A cco m m o d a t e( w i t h or w / o costs)

Reduce( w i t h or w / o reduc ing

e x p e r i e n c e )

Managing customervariability

Arrivals

When?

Services

What?


8/23


Reviewing customer role in services





9/23


Where/when to put the customer to work anambitious example


10/23


Where and how I want the customer to work?

Cost f o r t he f i rm larger than the p ercei ved va l u e/ co st f o rt h e cu s t o m e r (i.e., gas station)-No scalable

-Easy and acceptable for the customer

H ig h d e m a n d v a r i ab i l i t y difficult to control (i.e., AVR)

Cus tom er con t ro l s better the f i n a l r esu l t (i.e., sugaredcoffees)

Candidate activities to outsource to customer

Delay th e de l i ve ry of the main service process (e.g. fill in infosheet)

NOd i f f e ren t i a l activities in the overall service delivery (e.g.

auto-check-in for economy class?)


11/23


The challenging tasks ofachieving collaboration

Future Bank Migrate clients tocheaper electronic channels and

ATMs- Greeters: employees at entranceindicating options and explaining use

Clients hand-over cars to other

clients (per hour rent)


12/23


From a pasive buyer to an active collaborator

ArrivalsWhen?

ServicesWhat?

Cus t om er as a b u y e r

CapabilitiesMotivationand effort

Cus to m er as anact i ve agen t( p r o d u c t i v e )

Managem ent ch a l lenges Managem ent cha l len ges

A cco m m o d a t e or reduce variability with reasonable costs

Cont ro l cl i en t s im pact o n ser v i ce opera t i ons-Where and how should the client collaborate?

-Can and is (s)he willing to collaborate?

-How may I control him/her?

PreferenciasExp - Percep

El cl ien t e co m oag en t e Em o t iv o

(Eva luado r )

Source: Adapted from Frei, 2006


13/23


Managing variability incollaborations

Em p loyees w i th expe r i ence( and sens ib i l i t y )

Em p loyees per fo r m a l lw o r k

Flex ib i l i t y i n serv i ceo p e r at i o n ( e g . a u t o m a t i o n )

I n t e r a ct i o n cl ie n t - c l i en t

I n ce n t i v e / p en a l i ze e f f o r t s( i n s t r u m e n t a l )

Segm en t cl i en t s by e f f o r tleve l

Mot i va t e d i scre t i ona ryef f o r t ( n o r m at i v e)

Var iab i l i t yin Ef f o r t

Em p loyees per fo r m a l lw o r k

Em p loyees w i th expe r i ence

Flex ib i l i t y i n serv i ce

de l ive ry ( eg . l e vel o fa u t o m a t i on o rs e g m e n t a t i o n )

Ot he r cl i en t s as t r a ine rs

Requ i re t r a in ing( i n st r u m en t a l o r v o l u n t a r y)

Focus on c l ien t s accord ingt o capab i l i t y

Var iab i l i t yin

capab i l i t i es

A cco m m o d a t e( w i t h o r w / o costs)

Reduce( w i t h o r w / o reduc ing

e x p e r i e n c i e )

ArrivalsWhen?

ServicesWhat?

CapabilitiesMotivationand Effort

M i th li t F i t t l


14/23


Managing the client: From an instrumentalto a normative approach

Targets rational part

Economic incentive

- i.e, discount on low season-Late fee

Service recovery protocols

Focus on individuals

Individual supervision by thecompany

Provides moral excuse (eg.kindergarden)

Targets emotional part

Incentive by service convenience

-e.g., Rush hour traffic informationShame feeling

Service prevention protocols

Focus on groups

Quality control by other clients (Peerpressure)

Fr om t he st i ck andca r r o t

t o t he p r oudn essan d sh a m e


15/23


Understand client failure root causes

Process

Complexity

Ease of use

Support

Cl ients

CommunicationFit

Capability

Employees

Attitudes and effort

Training

Contex t

Layout

Ambience

Indications

Techno logy

Functionality

Access

Realiability

Ease of use

Clarity of roles

Prevent clients from failing

Fuente: Tax et al. 2006


16/23


Final step: the client exists, therefore thinks

SatisfactionExp - Percep

Cl ien t as ane m o t i o n a l a g en t

(Eva lua to r )

Managem ent cha l len ges Managem ent cha l len ges

Accommodate or reduce variability with reasonable costs

Control clients impact on service operations

Con t ro l ex pect a t i ons and pe rcep t i ons o f t he c l i en t , and t hose o ft h e o t h e r c l i en t s, a s w e l l as t h e w o rk q u a l i t y o f a l l o f t h e m

Source: Aspated from Frei, 2006

ArrivalsWhen?

ServicesWhat?



Cus to m er as an

act i ve agen t( p r o d u c t i v e )


17/23


Managing preferences

Ver y expe r iencedem p l oy ees ( a n d w i t hsens ib i l i t y

Sel f -se r v ice ( in c reasecus tom er s i n f l uence onser v ice r esu l t s )

I n t e r a ct i o n cl ie n t - c l i en t

Manage exp ect a t i ons

Segm en t cl i en t s byp r e fe rences ( eg .m an iacs vs . I don t ca re )

Preferencesan d

sat i s fac t ion

(Expec ta t i ons -Percept ions)

Accomoda te( w i t h o r w / o costs)

Reduce( w i t h o r w / o reduc ing

serv i ce e xp er i e n ce )

ArrivalsWhen?

ServicesWhat?

CapabilitiesMotivationand Effort

Satisfaction


18/23


Defining the information & control system

Expectations Perceptions

SERVICE MODEL

DESIGN

SERVICE

DELIVERY(Control)

COMUNICATION

TO CUSTOMER/RECOVERY

CUSTOMER

EXPECTATIONSinto VALUE PROP

Customer

Satisfaction

MARKET TEST

Global market surveys

Customer panels

Focus groups interviews

OBJETI VE QUALI TY ( PROCESS)

Service process reviews

Front-office employees reports

Mystery shoppers

PERCEI VED QUALI TY

Transactional surveys

New customers /defectorsurveys

Complaint letters Guarantee executions

Customer side

Company side


19/23


Anlisis del rol del cliente en servicios




Point of arrival: how far to go with customer


20/23


Cl ien t co l l abor a t i on sys t em( Se l l i ng , Def in i t i on , De l ive r y an d Con t r o l )

( Opera t i ona lEf f ic iency )

Point of arrival: how far to go with customerinvolvement?

Expectations Perceptions

SERVICE MODELDESIGN

SERVICEDELIVERY

(Control)

COMUNICATIONTO CUSTOMER

/RECOVERY

Server/Company side

Customer side

CUSTOMEREXPECTATIONS

into VALUE PROP

Customer

Satisfaction

l l


21/23


Client as a partner some examples

Higher satisfaction

-Customization

-Identification (participates actively)

-Thinks it will be cheaper

Less costs

Better variability management Market intelligence (R&D)

Develops content

Our best selling agents

Life can be easier for employees Helps us t o im p rov e st ead i l y

Advan tagesExamp les

K M


22/23


Key Message

Intell igence

Cl ien t as a Par t n er(Eva lua to r )

Source: Aspated from Frei, 2006

ArrivalsWhen?

ServicesWhat?



Cus to m er as anact i ve agen t( p r o d u c t i v e )

We need reconsider and extend thecustomer participation in the process

M 2 S t ti l ti


23/23


Message 2: Systematic evaluation

#1. Understand what the customer wants and what hecontributes with

-Value equation, price but also personal cost and uncertainty level

#2. Where and how I need the customer to participate?-Consider the customer noise: demand level, variability of servic

offered but also capabilities and effort required from customer

-Do not forget to consider what we want him absolutely not to do!!

#3. How do I manage to make the customer work as required- Normative vs Instrumental!!!

- Preventive design!!!

SERVI CE DESI GN

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