Transcript The Satisfaction

Chapter 8
Designing and Managing
Service Processes
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 1
Developing a Blueprint – Some Basic Advice
 Identify key activities in creating and
delivering the service
 Distinguish between front stage (what
customers experience) and back stage
 Chart activities in sequence
 Show how interactions between customers
and employees are supported by backstage
activities and systems
 Establish service standards for each step
 Identify potential fail points
 Focus initially on “big picture” (later, can drill
down for more detail in specific areas)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 2
Service Blueprinting: Key Components
1. Define standards for frontstage activities
2. Specify physical evidence
3. Identify principal customer actions
4. ------------line of interaction (customers and front stage personnel)-------5. Front stage actions by customer-contact personnel
6. ------------line of visibility (between front stage and backstage)-------------7. Backstage actions by customer contact personnel
8. Support processes involving other service personnel
9. Support processes involving IT
Where appropriate, show fail points and risk of excessive waits
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 3
Simplified Example: Blueprinting a Hotel Visit
(extract only)
Hotel exterior, lobby,
employees, key
Stage
Physical
Evidence
Front
Line of
Interaction
Make
Customer reservation
Actions
Employee
Actions
Face-to-face
Phone
Contact
Backstage
Line of
Visibility
Arrive,
valet park
Check-in
at reception
Doorman
greets, valet
takes car
Receptionist
verifies, gives
key to room
Elevator, corridor,
room, bellhop
Go to
room
Rep.
records,
confirms
Make up
Room
Valet
Parks Car
Enter
data
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Register
guest data
Services Marketing 5/E
8- 4
Improving Reliability of Processes
by Failure Proofing
 Analysis of reasons for failure often reveals opportunities
for failure proofing to reduce/eliminate risk of errors
 Errors include:
 treatment errors—human failures during contact with customers
 tangible errors—failures in physical elements of service
 Fail-safe procedures include measures to prevent omission
of tasks or performance of tasks
 incorrectly
 in wrong order
 too slowly
 not needed or specified
 Need fail-safe methods for both employees and customers
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 5
Process Redesign: Principal Approaches
(Table 8-1)
 Eliminating non-value-adding steps
 Shifting to self-service
 Delivering direct service
 Bundling services
 Redesigning physical aspects of service processes
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 6
Customers as Co-Producers:
Levels of Participation in Service Production
 Low – Employees and systems do all the work
 Medium – Customer inputs required to assist provider
 Provide needed information, instructions
 Make personal effort
 May share physical possessions
 High – Customer works actively with provider to
co-produce the service
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 7
Self Service Technologies (SSTs)
 Self-service is ultimate form of customer involvement in
service production
 Customers undertake specific activities using facilities or systems
provided by service supplier
 Customer’s time and effort replace those of employees
 Concept is not new—self-serve supermarkets date from
1930s, ATMs and self-serve gas pumps from 1970s
 Today, customers face wide array of SSTs to deliver
information-based services, both core and supplementary
 Many companies seek to divert customers from employee
contact to Internet-based self-service
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 8
Service Firms as Teachers:
Well-trained Customers Perform Better
 Firms must teach customers roles
as co-producers of service
 Customers need to know how to
achieve best results
 Education can be provided through:







Brochures
Advertising
Posted instructions
Machine-based instructions
Websites, including FAQs
Service providers
Fellow customers
 Employees must be well-trained to
help advise, assist customers
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8- 9
Managing Customers as Partial Employees
to Increase Productivity and Quality
1. Analyze customers’ present roles in the business and
compare to management’s ideal
2. Determine if customers know how to perform and have
necessary skills
3. Motivate customers by ensuring that will be rewarded for
performing well
4. Regularly appraise customers’ performance; if
unsatisfactory, consider changing roles or termination
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8 - 10
The Problem of Customer Misbehavior –
Identifying and Managing “Jaycustomers”
What is a jaycustomer?
A customer who behaves in a thoughtless or abusive
fashion, causing problems for the firm itself, employees,
other customers
Why do jaycustomers matter?



Can disrupt processes
Affect service quality
May spoil experience of other customers
What should a firm do about them?




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Try to avoid attracting potential jaycustomers
Institute preventive measures
Control abusive behavior quickly
Take legal action against abusers
BUT firm must act in ways that don’t alienate other
customers
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8 - 11
Six Types of “Jaycustomer”
 Thief – seeks to avoid paying for service
 Rule breaker – ignores rules of social behavior and/or procedures for
safe, efficient use of service
 Belligerent – angrily abuses service personnel (and sometimes other
customers) physically and/or emotionally
 Family Feuders – fight with other customers in their party
 Vandal – deliberately damages physical facilities, furnishings, and
equipment
 Deadbeat – fails to pay bills on time
Can you think of others?
How should firms deal with each of these problems?
Slide ©2004 by Christopher Lovelock and Jochen Wirtz
Services Marketing 5/E
8 - 12