Transcript Customer Care - University of Wollongong

Customer Care
IACT 918 July 2004
Gene Awyzio
SITACS University of Wollongong
Overview
• Service success and customer satisfaction
comes from the benefits that the enterprise is
constantly able to provide to its customers,
including design and features of its products
and services, quality, service-courtesy,
friendliness, having what the customer needs
when needed – and image.
Value is real, and hard-won: it is not created
by advertising campaigns or hype…
Hilmer (1989)
2
Customer Needs
• Service should be determined by customers’ wants &
needs. Therefore, all enterprises must research and
understand:
– Which products, services and service characteristics are
important to the customer
– The relative importance of these customer wants
– The level of performance on each product and service
characteristic which will meet customer expectations
• Without a clear understanding of these, there will be a
‘gap’ between customer expectations and the
products/services delivered by the enterprise
3
Cost of service failure
• Costs much more than the loss of just one customer
• Technical Assistance Research Program (TARP)
(Clemmer 1992) results indicate that a dissatisfied
customer tells 16 others, whereas a satisfied
customer only tells 8 others!
The original customer who wont return
Potential customers lost because the original customer told them how
dissatisfied they were
Potential customers NOT gained because the original customer didn’t tell
them how satisfied they were
Total customers lost from ONE unhappy customer
Clemmer 1992
4
1
16
8
25
Customer service gaps
Expected service
Customer
Company
Perceived service
Service delivery
Customer-driven
service designs and standards
Company perceptions of
Customer expectations
5
Source: Zeithaml (1996)
External
communications
to customers
Gap 1: Customer & Company
expectations of service
Expected service
Customer
Perceived service
Company
Service delivery
Customer-driven
service designs and standards
Company perceptions of
Customer expectations
6
Source: Zeithaml (1996)
External
communications
to customers
Gap 1: Customer & Company
expectations of service
• Inadequate marketing research
orientation
– Insufficient market research
– Research not focussed on service quality
– Inadequate use of market research
Source: Zeithaml (1996)
7
Gap 1: Customer & Company
expectations of service
• Lack of upward communication
– Lack of interaction between management
and customers
– Insufficient communication between contact
employees and managers
– Too many layers between contact
employees and upper management
Source: Zeithaml (1996)
8
Gap 1: Customer & Company
expectations of service
• Insufficient relationship focus
– Lack of market segmentation
– Focus on transaction rather than
relationships
– Focus on new customers rather than
relationship customers
Source: Zeithaml (1996)
9
Gap 2: Customer & Company
standards of service
Expected service
Customer
Perceived service
Company
Service delivery
Customer-driven
service designs and standards
Company perceptions of
Customer expectations
Source: Zeithaml (1996)
10
External
communications
to customers
Gap 2: Customer & Company
standards of service
• Absence of customer-driven standards
– Lack of customer driven service standards
– Absence of process management to focus
on customer requirements
– Absence of formal process for setting
service quality goals
Source: Zeithaml (1996)
11
Gap 2: Customer & Company
standards of service
• Inadequate leadership
– Perception of infeasibility
– Inadequate management commitment
Source: Zeithaml (1996)
12
Gap 2: Customer & Company
standards of service
• Poor service design
– Unsystematic new service development
process
– Vague undefined service designs
– Failure to connect service design to service
positioning
Source: Zeithaml (1996)
13
Gap 3: Customer standards &
delivered service
Expected service
Customer
Perceived service
Company
Service delivery
Customer-driven
service designs and standards
Company perceptions of
Customer expectations
14
Source: Zeithaml (1996)
External
communications
to customers
Gap 3: Customer standards &
delivered service
• Deficiencies in human resource policies
– Ineffective recruitment
– Role ambiguity and role conflict
– Poor employee / technology job fit
– Inappropriate evaluation and compensation
systems
– Lack of empowerment, perceived control &
teamwork
Source: Zeithaml (1996)
15
Gap 3: Customer standards &
delivered service
• Failure to match supply and demand
– Failure to smooth peaks and valleys of
demand
– Inappropriate customer mix
– Over-reliance on price to smooth demand
Source: Zeithaml (1996)
16
Gap 3: Customer standards &
delivered service
• Customers not fulfilling roles
– Customers lacking knowledge of their roles
and responsibilities
– Customers negatively impacting each other
Source: Zeithaml (1996)
17
Gap 4: Delivered and
‘advertised’ service
Expected service
Customer
Perceived service
Company
Service delivery
Customer-driven
service designs and standards
Company perceptions of
Customer expectations
18
Source: Zeithaml (1996)
External
communications
to customers
Gap 4: Delivered and
‘advertised’ service
• Ineffective management of customer
expectations
– Failure to manage customer expectations
through all forms of communications
– Failure to educate customers adequately
Source: Zeithaml (1996)
19
Gap 4: Delivered and
‘advertised’ service
• Overpromising
– Overpromising in advertising
– Overpromising in personal selling
– Overpromising through physical evidence
cues
Source: Zeithaml (1996)
20
Gap 4: Delivered and
‘advertised’ service
• Inadequate horizontal communications
– Insufficient communications between sales
& operations
– Insufficient communications between
advertising & operations
– Differences in policies and procedures
across branches or units
Source: Zeithaml (1996)
21
Gap 5: Expected and perceived
service
Expected service
Customer
Perceived service
Company
Service delivery
Customer-driven
service designs and standards
Company perceptions of
Customer expectations
22
Source: Zeithaml (1996)
External
communications
to customers
Gap 5: Expected and perceived
service
• The ‘gap’ between the service which the
customer expected and that perceived
by the customer to have been delivered
Source: Zeithaml (1996)
23
Gap 5: Expected and perceived
service
• This ‘gap’ is directly attributable to, and
results from any and all of the other four
‘gaps’
• Addressing each of the other ‘gaps’
(which the enterprise can control) will
narrow the all-important “service gap”
which is not itself directly within
enterprise control
Source: Zeithaml (1996)
24
Service quality in telecoms
• In telecommunications, there are four principal
areas where customer satisfaction can be
gained or lost
Technical
Performance
• Network response time
• Signal to noise ratio
• Call completion rate
• Fault clearance time
Customer Interface
• Busy signal
• Wrong numbers
• Timed out before call completed
Service to the
Customer
• Call answered promptly
• problems dealt with on first contact
Service Comparison
• Range of products
• ‘Spread’ of network
FAULTS are a large factor in customer satisfaction!
25
Who are your customers?
• What is the product/service of a
network?
• The Users of your network are your
customers
• Sometimes the Users are internal
members of your organisation …
ie: STAFF & EMPLOYEES
26