Maintaining Service Quality

Price vs. value

• Its not only about price, its about value.

Why Bother Striving for Service Excellence?

Excellent service is a profit strategy because it results

in:

• More new customers• More business with existing customers, fewer lost

customers • More insulation from price competition - excellent

businesses can charge a premium price• Fewer mistakes requiring the re-performance of services.

Service Quality

• “A comparison of expectations with performance”• Satisfaction= f (Perception)

Customer Perceptions of Service Quality and Customer Satisfaction

ServiceQuality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

ProductQuality

PricePersonalFactors

CustomerSatisfaction

SituationalFactors

Two Approaches

• Reactive approach• Proactive approach

Reactive Approach

• Planning after results• Measures taken hoping for a better future• Example: post transaction surveys, complaint analysis,

control charts.

Proactive Approach

• Entails actively reaching out to customers and trying to gather their feedback on service quality and suggested areas of improvement.

• Example: Gap analysis, Staff training, Questionnaire, Surveys , Feedbacks, fish bone chart, pareto charts, blueprinting.

Where are we now?Where are we now?

Current Service Quality

Current Service Quality

ServiceExcellence

ServiceExcellence

Where do we want to be?

Where do we want to be?

Defining Service Goals

Defining Service Goals

How will we get there?How will we get there?

Action PlanningAction

Planning

How will we know we are getting there?

How will we know we are getting there?

Measuring Service Quality

Measuring Service Quality

Gap analysis

Past ExperiencePersonal Needs

Expected Service

Perceived Service

Service Delivery External communication to consumers

Word-of-mouthCommunication

Converting perceptions into service quality specifications

Management perceptions of consumer expectations

GAP 5

GAP 2

GAP 3

GAP 4

GAP 1

Marketer

Service Provider

Service Quality Gaps

Service Quality Ring

……???......

• Why is promising a service quality so difficult?• How can we measure the service quality?