From the customer’s point of view, the most vivid impression of service occurs in the service encounters or “Moment Of Truth,” when the customer interacts with the service firm. This is the foundation to “Satisfaction of Service Quality” — it is where the promises are kept or broken. The concept of service encounter was put forth by Richard Norman, taking the metaphor from Bull Fighting. Most services are results of social acts, which take place in direct contact between the customer and the service provider. At this stage the customer realizes the perceived service quality. Every “Moment of Truth” is Important — according to Scandinavian Airlines, each one of their 10 million customers come in contact with 5 employees. Thus the airlines say there 50 million moments of truth — each one is managed well and “They prove they are the BEST”. Encounter Cascade The encounter cascade refers to a Continue reading
Services Marketing
Dealing With Customer Complaints
The Customer is always right! There are occasions when the customer is right, however there are also times when the customer is not entirely right or when their behavior in making a complaint is such that they need to be appropriately challenged so that the substantive issue is dealt with. Tactics for Dealing with Customer Complaints When dealing with customer complaints, mangers can use tactics based on a five-category scheme called conflict-handling modes: competing, compromising, collaborating, accommodating and avoiding. Competing: (It has been decided that enough is enough, if the customer sues, you’ll meet them in court) Repeat what you have said Remind them that they can have their goods back Warn the customer that you will not continue the conversation if they become abusive Note what is said (possibly need to use in court) Keep calm yourself and remain professional Recognize when the conversation has gone on long Continue reading
Customer Journey Mapping
Every time a customer contacts the organization or its representatives, there is an opportunity for a customer “moment of truth”. These “moments of truth” are opportunities for the organization to make a good or bad impression on the customer and are key moments in the customer journey. This concept of ‘moment of truth’ was first introduced by Jan Carlzon, the former president of Scandinavian Airlines, in his 1986 book titled Moments of Truth. Carlzon defines the moment of truth in business as: “Anytime a customer comes into contact with any aspect of a business, how ever remote, is an opportunity to form an impression.” Customer journey mapping builds on this concept by providing a strategic tool to start the process of ensuring that every interaction with your organization is a positive one. Customer journey mapping is a tool organizations use to help them see what their customers truly want — Continue reading
Branding of Services
Branding for Service Industries Although the principles for branding of goods and services are generally the same there occur some differences. These arise from the different natures of both categories. The main differences that influence branding policies are that services; Have a changing level of quality, The consumer has to become involved in the consumption of a service actively, They are intangible and not storable. When a brand in general gives the consumer more confidence in his choice this is even more important for services. Their quality and other features are more difficult to asses. Because of their intangibility and complexity it is harder for the customer to distinguish between the offers from the wide range of service companies are working in the market place. Brand Structures for Services Industries As for services, marketers use the companies name – a so called corporate brand – as the overall family brand Continue reading
Service Failure and Recovery
Service Failures Even with the best service organizations, failures can just happen — they may be due to the service not available when promised, it may be delivered late or too slowly (some times too fast??), the outcome may be incorrect or poorly executed, or employees may be rude or uncaring. All these types of service failures bring about negative experiences. If left unfixed they can result in customers leaving, telling others about the negative experiences or even challenging through consumer courts. Research has shown that resolving the problems effectively has a strong impact on the customer satisfaction, loyalty, and bottom-line performance. Customers who experience service failures, but are ultimately satisfied based on recovery efforts by the firm, will be more loyal. The Recovery Paradox It is suggested that customers who are dissatisfied, but experience a high level of excellent service recovery, may be more satisfied and more likely Continue reading
Introduction to Services
A service is the non-ownership equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership and is claimed to be a process that creates benefits by facilitating either a change in customers, a change in their physical possessions, or a change in their intangible assets. By composing and orchestrating the appropriate level of resources, skill, ingenuity and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying stock (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition which has equally few physical restrictions. Many so-called services, however, require large physical structures and equipment, and consume large amounts of resources, such as transportation services and the military. Service Characteristics A service Continue reading