managing services 222
TRANSCRIPT
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Part 3: Communication plan
(Bahrain Training Institute)
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Studying with CIM
Managing Services
1. Managing customer relationship
2. Managing service quality
3. Managing service productivity
4. Managing service staff and positioning services
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Managing Customer Relationship
Attracting
Retaining- when it is applicable:
When there is an ongoing periodic or desire for theservice by the customer
When the customer controls the selection of a serviceprovider
When the customer has alternative from which tochoose.
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Benefit of developing and maintaining customerrelationship
Increase Purchase
Lower cost
Lifetime value
Sustainable competitive advantage
Word of mouth
Employee satisfaction and retention
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Benefits to customers
Risk & stress reduction
Higher quality service
Avoidance of switching costs
Social and status benefits
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Developing customer retention strategies
1. Targeting customers for retention (High Value, frequentuse)
2. Bonding
a) Level 1: financial incentives(discount, loyalty points, )
b) Level 2: + Social relationship (Personal relationship
c) Level 3: Structural bonds ( providing solutions tocustomers' problems
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Developing customer retention strategies
3. Internal Marketing: training, communicating andmotivating.
What is expected from staff?
Benefit of retaining staff
4. Promise fulfillment
a) Making realistic promises
b) Enabling staff & service systems to deliver onpromises made
c) Keeping those promises during service delivery
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Developing customer retention strategies
5. Building trust (keep in touch, provide guarantees tosymbolize the confidence they feel in service delivery as
well as reducing their customers perceived risk ofpurchase, and to operate a policy of fairness and highstandards of conduct with their customers
6. Service recovery: solve problems and restore the
customers trust and improve the system (trackingsystem, suggestion boxes
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Managing Service Quality
4 Barriers to the matching of expected and perceivedservice levels
1. Misconception barrier: this arises from Managementmisunderstanding of what the customer expects.Lack of marketing research may lead managers tomisconceive the important service attributes that
customers use when evaluating a service
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Barriers to the matching of expected and perceivedservice levels
2. Inadequate resources: Mangers may understandcustomer expectations but be unwilling to provide the
resources necessary to meet them. This may arisebecause of a cost reduction
3. Inadequate delivery barrier : fail to select, train andreward staff adequately.
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Barriers to the matching of expected and perceivedservice levels
4. Exaggerated promises barrier: a gap between customerexpectations and perceptions can still arise through
exaggerated promises .
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Meeting customer expectations
The key to providing service quality is the understandingand meeting of customer expectations
Ten criteria may be used when evaluating the outcomeand experience of service encounter
1. Access: is the service provided at convenientlocations and time with little waiting
2. Reliability: is the service consistent and dependable?
3. Credibility: can customers trust the service companyand its staff?
4. Security: can the service be used without risk
5. Understanding the customers: does it appear thatthe service provider understand customerexpectations
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Meeting customer expectations
6. Responsiveness: how quickly do service staffrespond to customer problems, requests andquestions?
7. Courtesy: do service staff act in a friendly and politemanner?
8. Competence: do service staff have the requiredskills and knowledge?
9. Communication: is the service described clearly anaccurately?
10. Tangibles: how well manages is the tangibleevidence of the service(eg. Staff appearance, dcor
layout)
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Measure service quality
SERVQUAL is a multiple-item scale that aims to measurecustomer perceptions and expectation so that gaps can
be identified (Likert scale Mystery Shoppers)
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Managing service productivity
Productivity is a measure of the relationship between aninput and an output
Clearly a balance must be struck between productivity andservice quality. At some point quality gains become soexpensive that they are not worthwhile. However they areways of improving productivity without compromising
quality. Technology
Customer involvement production
Balancing supply demand
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Managing service staff
Jhon Carlzon Moments of truth
Treating staff
Selection of suitable people
Socialization
Empowered
Maintaining a motivated workforce
Service Evaluation
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Positioning services
1-Choose of target Market (Where to compete)2- creation of a differential advantage (how to compete
Target customer needs
Wide selection
Value
Prestige
Guarantees
Credit
Comfort
Privacy
Technical advice
Target customer needs
Accessibility
Reliability Credibility
Security
Responsiveness
Courtesy
Competence
Confidence
Target Segment
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Differential advantagethe services marketing mix1. Product
Brand name ( four characteristics of successful bran
names )A. Distinctiveness: it immediately identifies the service
provider and differentiates it from the competition
B. Relevance: it communicates the nature of the service
and the service benefitsC.Memorability: it is easily understood and remembered
D.Flexibility: it is broad enough to cover foreseeable newventures
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the services marketing mix2. Promotion: Tangible cues
Personal selling
Word of mouth
Persuading satisfied customer to inform others oftheir satisfaction
Developing materials that customers can pass on to
others Targeting opinion leaders in advertising campaigns
Encouraging potential customers to talk to currentcustomers
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Finally, best of luck with your studies!