managing services 222

8/2/2019 Managing Services 222

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Part 3: Communication plan

(Bahrain Training Institute)


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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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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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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!

managing services 222

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