6. module 7 session 7 - service process

8/2/2019 6. Module 7 Session 7 - Service Process

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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 1

Chapter 8

Designing and ManagingService Processes


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Ultimately, only one thing really matters in serviceencounters

the customers perceptions of what occurred.


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Service Processes

Processes describe the method and sequence in which serviceoperating systems work and create the service experience.

A distinctive character of many services is the way in which thecustomer is involved in their creation and delivery.

In high contact services, customers themselves become an integral partof the operation.

Badly designed services are likely to annoy customers and makes itdifficult for frontline staff to do their jobs well, resulting in low productivityand increase the risk of service failure.


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Developing a Blueprint

Services are delivered in real time with customers present in the servicefactory and pose distinct challenges.

A key tool in service design is blueprinting, a more sophisticated versionof flowcharting.

To design services, as opposed to designing products, a tool is aService Blueprint.

In contrast to the physical architecture of a building, ship, or piece of

equipment, service processes have a largely intangible structure, thatmakes them all the more difficult to visualize.

These blueprints show what the product should look like and detail thespecifications to which it should conform.


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Developing a Blueprint Some Basic Advice

Identify all key activities in creating anddelivering the service

Distinguish between front stage(whatcustomers experience) and back stage

Between the two lies the Line of visibility

Chart activities in sequence

Show how interactions between customersand employees are supported by backstageactivities and systems

Establish service standards for each step

Identify potential fail points

Focus initially on big picture (later, can drilldown for more detail in specific areas)


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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 personnel9. Support processes involving IT

Where appropriate, show fail points and risk of excessive waits


7/21Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 7

Simplified Example: Blueprinting a Hotel Visit(extract only)

PhysicalEvidence

CustomerActions

Employee

ActionsFace-to-faceF

ron

t

Stage

PhoneContact

Backstage

Makereservation

Rep.

records,

confirms

Arrive,valet park

Check-inat reception

Doorman

greets, valet

takes car

Enter

data

Valet

Parks Car

Make up

Room

Register

guest data

Receptionist

verifies, gives

key to room

Go to

room

Hotel exterior, lobby,employees, key

Elevator, corridor,room, bellhop

Line ofInteraction

Line ofVisibility



Act I: Introductory Scene

Act I begins with making a reservation - an interaction conducted by (1)

telephone with an unseen employee, often hours or even days in advance ofvisiting the restaurant.

On a customers arrival at the restaurant, (2) a valet parks their car, & they(3) leave their coats in the coatroom, & (4) they enjoy a drink in the bar area

while waiting for their table.

The act concludes with their (5) being escorted to a table & seated.

These 5 steps constitute the customers initial experience of the restaurantperformance, with each involving an interaction with an employee- by phoneor face-to-face. By the time the customers reach their table in the dinningroom, they have been exposed to several supplementary services & havealso encountered a sizeable cost of characters, including 5 or more contactpersonnel, as well as many other customers.



Cont

Standards can be set for each service activity but should be based on agood understanding of guests expectations.

Below the line of visibility, the blueprint identifies key actions that shouldtake place to ensure that each frontstage step is performed in a mannerthat meets or exceeds those expectations. These actions include recordingreservation, preparing & delivering food, maintaining facilities & equipment,training & assignment of staff for each task, & using information technologyto access, input store & transfer relevant data.



Act II: Delivery of the core product

The customers are finally about to experience the core service they came for-

Reviewing the menu & placing the order are two separate activities.

Assuming that all goes well, the guest will have an excellent meal, nicelyserved in a pleasant atmosphere.

But if the restaurant fails to satisfy customer expectations during Act II , it isgoing to be a serious trouble. There are numerous potential fail points:

Is the menu information complete? Is everything listed on the menu available in the evening? Will explanations & advice be given in a friendly manner for guests who have

questions about specific menu items or are unsure about which wine to order?



Cont

After the guest decides on their meals, they place their order with theserver, who must then pass on the details to personnel in the kitchen, bar &billing desk. Mistakes in transmitting information are a frequent cause ofquality failures in many organizations. Bad handwriting or unclear verbal

requests can lead to delivery of the wrong items altogether or of the rightitems incorrectly prepared.

In subsequent scenes of Act II, customers may evaluate not only thequality of food & drink but also how promptly it is served & the style ofservice.



Act III- Conclusion

The meal may be over, but much is still taking place both front-end &

backend.

Most customers expectations would probably include the following:

An accurate bill is presented promptly as soon as the customer requests

it.

Payment is handled politely (with all major credit cards accepted); theguests are thanked for their patronage & invited to come again.

Customers visiting the restrooms find them clean.

The customers car is brought to the door promptly, in the same conditionas when it was left; the attendant thanks them again & bids them a goodevening.



Improving Reliability of Processesby Failure Proofing

Careful analysis of the reasons for failure in service processes oftenreveals opportunities for failure proofing certain activities in order toreduce or even eliminate the risk of errors.

1.Fail-Safe methods for service personnel:The goal of fail-safe procedures is to prevent errors, such as performing

tasks incorrectly, in the wrong order, or too slowly, or doing work thatwasnt requested in the first place. Solutions may vary from industry toindustry.

Treatment errors occur during the contact between the server & thecustomer, such as lack of courteous, professional behavior. Such errors

may include failure to acknowledge, listen, or react appropriately to thecustomer. Koren Theme Park.

Tangible errorsrelate to failures in the physical elements of the service,& preventive measures include standards of cleaning facilities & uniforms& appropriate control & adjustment of noise, odors, light & temperature.



Cont

2. Fail- Safe methods for the customer:

Customer error in the preparation stage before the serviceencounter:

Marketing communications can help shape prior expectations & inform

the customers on how to access the service correctly. E.g. marketers at theservice division of one computer manufacturer provide customers with asimple flowchart that clarifies the correct way to place a service call.

Customer errors during a service encounter:

It can slow down service processes, waste employees time & eveninconvenience other customers.



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To control Customer error :

Chains to configure waiting lines.

Locks that must be turned on inside the aircraft lavatory doors in order toswitch on the lights and simultaneously activate the occupied sign on the

outside.

Child care centers use toy outlines on walls & floors to show where toysshould be placed after use.

In growing number of hotels, the key cards that open the doors to guestrooms must be placed in a wall socket inside the room in order to switch onthe lights.



Service process redesign

Service process redesign revitalizes processes that have becomeoutdated.

Managers in charge of service process redesign projects often do notwant to spend more money on better quality. Rather, they aim to achievea quantum leap in both productivity & service quality at the same time.

Redesign efforts typically focus on achieving the following keyperformance measures:

1.Reduced number of service failures

2.Reduced cycle time from customer initiation of a service process to itscompletion.

3.Enhance productivity

4.Increased customer satisfaction



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



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Service process redesign efforts can be categorized into a number of typesincluding:

Eliminating non-value adding steps:E.g. a customer wanting to rent a

car is not interested in filling out forms . Service redesign streamlines thesetasks by trying to eliminate non-value-adding steps. The outcomes aretypically increased productivity & customer satisfaction.

Shifting to self-service: Significant productivity & sometimes evenservice quality gains can be achieved by increasing self-service when

redesigning services.

Banks now provide automated phone menu and encourage net banking



Cont

Delivering direct service: This type of redesign involves bringing theservice to the customer instead of bringing the customer to the service firm.

Physiotherapy at home Pizza delivery

Bundling services: It involves bundling or grouping multiple servicesinto one offer, focusing on well-defined customer group. Bundling can helpincrease productivity.

Better consumer insight Leads to cross selling & up selling

Redesigning the physical aspects of service processes: Physicalservice redesign focuses on the tangible elements of a service process&includes changes to the service facilities & equipment to improve the serviceexperience.



The Problem of Customer MisbehaviorIdentifying 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?

Try to avoid attracting potential jaycustomers

Institute preventive measures Control abusive behavior quickly Take legal action against abusers BUTfirm must act in ways that dont alienate other

customers


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Six Types of Jaycustomer

Thief seeks to avoid paying for service

Rule breaker ignores rules of social behavior and/or procedures forsafe, efficient use of service

Belligerentangrily abuses service personnel (and sometimes other

customers) physically and/or emotionally Family Feuders fight with other customers in their party

Vandaldeliberately damages physical facilities, furnishings, andequipment

Deadbeat fails to pay bills on time

Can you think of others?

How should firms deal with each of these problems?

6. module 7 session 7 - service process

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