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SM

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SMSM

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Chapter 12

Customers’ Role in Service Delivery

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SMThe importance of customers The importance of customers

in service deliveryin service delivery

Customer participation at some level is inevitable in service delivery.

Services are actions or performances, typically produced and consumed simultaneously.

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SMThe importance of customers The importance of customers

in service deliveryin service delivery

In many situations employees, customers and even others in the service environment interact to produce the ultimate service outcome. Because they participate, customers are indispensable to the production process of service organizations, and they can actually control or contribute to their own satisfaction.

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SMThe importance of customers The importance of customers

in service deliveryin service delivery

1. Customer Receiving the Service

2. Other Customers

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SMThe Importance of Customers in The Importance of Customers in

Service DeliveryService Delivery

Low: Consumer Presence

Required during Service

Delivery

Products are standardized

Service is provided

regardless of any individual

purchase

Payment may be the

Only required customer

Input.

End Consumer Examples

Airline travel

Motel stay

Fast-food restaurant

Business–to Business

Customer Examples

Uniform cleaning service

Pest control

Interior greenery maintenance

service

Moderate: Consumer Input

Required for Service Creation

Client inputs customize a standard service

Provision of service requires customer Purchase

Customer inputs ( information materials)

Are necessary for an adequate outcome, but the service firm provides the service

Haircut

Annual Physical exam

Full-service restaurant

Agency created advertising

Campaigning

Payroll service

Freight transportation

High: Customer Co creates the Service Product

Active client participation guides the customized service.

Service cannot be created apart from the customer’s purchase and active participation.

Customer inputs are mandatory

And cocreate the outcome.

Marriage Counseling

Personal training

Weight reduction program

Major illness or surgery

Management consulting

Executive Management seminar

Installation of computer network.

Level of Customer Participation:

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SM Other CustomersOther Customers

There are direct customers and other customers. direct customers directly receive the services and other customers are present in the service environment and can affect the nature of the services outcome or process.

Other customers can either enhance or detract from customer satisfaction and perceptions of quality.

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SM Other CustomersOther Customers

Some of the ways other customers can negatively affect the service experiences are by exhibiting disruptive behaviors, causing delays, overusing, excessively crowding, and manifesting incompatible needs.

Crying babies, smoking patrons and loud unruly groups.

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SM Customer RolesCustomer Roles

1. Customers as productive resources

2. Customers as contributors to service Quality

3. Customers as Competitions

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SMCustomers as productive Customers as productive

resourcesresources

Partial employees Effort, time & other resources Customer input Qualities of (input) & quality of output

Two issues1. Delivery system should be isolated from inputs due to

uncertainty of customers’ uncontrollable actions.2. Can be delivered efficiently if customers are viewed as

partial employee.

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SMCustomers as Contributors Customers as Contributors

to Service Qualityto Service Quality

Health care, education, personal fitness and weight loss.

Performing roles effectively Influence quality of outcome Satisfaction Productivity Variation in participation, variation In quality

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SMCustomers as Contributors Customers as Contributors

to Service Qualityto Service Quality

Situations

What they did- Technical quality of customer inputsI clearly explained what I wanted the bank employee to do.

How they did it- Functional qualityI was friendly to the bank employee.

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SM Customers as CompetitionsCustomers as Competitions

Customers become competitor of company by performing self services, such as child care or marriage counseling.

Internal exchange or external exchange

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SM Customers as CompetitionsCustomers as Competitions

In house or outsourcing production depends on:

1. Expertise capacity2. Resource capacity3. Time Capacity4. Economic rewords5. Psychic rewards6. Trust7. Control

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SMSelf Service Technologies- The Self Service Technologies- The

Ultimate in Customer Ultimate in Customer ParticipationParticipation

Self Service technologies are services produced entirely by the customer without any direct involvement or interaction with the firm’s employee.

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SMSelf Service Technologies- The Self Service Technologies- The

Ultimate in Customer Ultimate in Customer ParticipationParticipation

A proliferation of New SSTs

1. ATMs2. Pay at the pump3. Airline cheek-in4. Hotel cheek- in and cheek out5. Automated car rental6. Automated filing of legal

claims7. Online driver’s license testing8. Automated betting machines9. Electronic blood pressure

machine10. Various vending service11. Tax preparation software

12. Self-scanning at retail stores13. Internet banking14. Vehicle registration online15. On line auctions16. Home and car buying online17. Automated investment

transaction 18. Insurance online19. Package tracking20. Internet shopping21. Internet information search22. Interactive voice response

phone systems.23. Distance education.

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SM Success with SSTsSuccess with SSTs

Strategy (cost saving, revenue, growth or competitive advantages)

Benefits and customer’s capacity to receive benefits

Motivation, roles and capacity to perform roles Technology readiness Customer involvement Customer education

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SMStrategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation

Define customers’ job1. Helping oneself: through active

participation, customers may become productive resources.

2. Helping others: mentoring programs in university.

3. Promoting the company: recommendation4. Individual differences: not every one want

to participate

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SMStrategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation

Recruit, educate and reward customers1. Recruit the right customers who are comfortable

with roles and communicate responsibilities.2. Educate and train customers through socializing

org. values, abilities and skills, customer orientation (universities), customer education (hospitals) and customer information (McDonald's)

3. Reward customers for their contributions4. Avoid negative outcomes of inappropriate customer

participation

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SMStrategies for Enhancing Strategies for Enhancing Customer ParticipationCustomer Participation

Manage the customer mix

Compatibility management: a process of first attracting homogeneous consumers to the service environment, then actively managing both the physical environment and customer to customer encounters in such a way as to enhance satisfying encounters and minimizing dissatisfying customers.

Strategies:1. Homogeneous customers2. Locational proximity3. Codes of conduct ( dresses and smoking attitudes)