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Essentials of Services Marketing,2nd EditionInstructor Supplement
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* Designing and Managing Service Processes
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Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* Chapter 8 Outline8.1Flowcharting Service Delivery8.2 Use Blueprinting to Document and Manage Service Processes8.3Service Process Redesign8.4The Customer as Co-Creators8.5Self-Service Technologies
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* 8.1Flowcharting Service Delivery8.1
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.1 Flowcharting Service DeliveryInsights from FlowchartingTechnique for displaying the nature and sequence of the different steps in delivery service to customers
Offers way to understand total customer service experience
Shows how nature of customer involvement with service organizations varies by type of service:People processingPossession processingMental Stimulus processingInformation processing
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.1 Flowcharting Service DeliverySimple Flowchart for Delivery of a People-Processing Service (Fig. 8.1a)
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.1 Flowcharting Service DeliverySimple Flowchart for Delivery of a Possession-Processing Service (Fig. 8.1b)
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.1 Flowcharting Service DeliverySimple Flowchart for Delivery of a Mental Stimulus Processing Service (Fig. 8.1c)
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.1 Flowcharting Service DeliverySimple Flowchart for Delivery of a Information-Processing Service (Fig. 8.1d)
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* 8.2Use Blueprinting to Document and Manage Service Processes
8.2
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.2 Use Blueprinting to Document and Manage Service ProcessesBlueprinting Developing a BlueprintIdentify key activities in creating and delivering serviceDefine big picture before drilling down to obtain a higher level of detail
Advantages of BlueprintingDistinguish between frontstage and backstageClarify interactions between customers and staff, and support by backstage activities and systems Identify potential fail points; take preventive measures; prepare contingencyPinpoint stages in the process where customer commonly have to wait
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.2 Use Blueprinting to Document and Manage Service Processes Key Components of a Service BlueprintDefine standards for front-stage activitiesSpecify physical evidence Identify main customer actionsLine of interaction (customers and front-stage personnel) Frontstage actions by customer-contact personnelLine of visibility (between front stage and backstage) Backstage actions by customer contact personnelSupport processes involving other service personnelSupport processes involving IT
- Identify fail points and risks of excessive waits- Set service standards and do failure-proofing
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.2 Use Blueprinting to Document and Manage Service Processes Blueprinting the Restaurant Experience: Act 1 (Fig. 8.5)
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.2 Use Blueprinting to Document and Manage Service Processes Blueprinting The Restaurant Experience: A Three-Act Performance Act 1: Introductory Scenes
Act 2: Delivery of Core ProductCocktails, seating, order food and wine, wine servicePotential fail points: Menu information complete? Menu intelligible? Everything on the menu actually available?Mistakes in transmitting information a common cause of quality failure e.g. bad handwriting; poor verbal communicationCustomers may not only evaluate quality of food and drink, but how promptly it is served, serving staff attitudes, or style of service
Act 3: The Drama ConcludesRemaining actions should move quickly and smoothly, with no surprises at the endCustomer expectations: accurate, intelligible and prompt bill, payment handled politely, guests are thanked for their patronage
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.2 Use Blueprinting to Document and Manage Service Processes Improving Reliability of Processes by Failure Proofing
Identify fail pointsAnalysis of reasons for failure often reveals opportunities for failure proofing to reduce/eliminate future risk of errorsNeed fail-safe methods for both employees and customersHave poka-yokes to ensure service staff do things correctly, as requested, or at the right speedCustomer poka-yokes focus on preparing the customer for:The encounterUnderstanding and anticipating their rolesSelecting the correct service or transaction
See Service Insights 8.1 Framework to prevent customer failures
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.2 Use Blueprinting to Document and Manage Service Processes Improving Reliability of Processes by Failure Proofing
Identify fail pointsAnalysis of reasons for failure often reveals opportunities for failure proofing to reduce/eliminate future risk of errorsNeed fail-safe methods for both employees and customersHave poka-yokes to ensure service staff do things correctly, as requested, or at the right speedCustomer poka-yokes focus on preparing the customer for:The encounterUnderstanding and anticipating their rolesSelecting the correct service or transaction
See Service Insights 8.1 Framework to prevent customer failures
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* 8.3Service Process Redesign
8.3
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.3 Service Process RedesignWhy Redesign? (1)
Institutions are like steel beamsthey tend to rust. What was once smooth and shiny and nice tends to become rusty.Mitchell T. Rabkin MD, formerly president of Bostons Beth Israel Hospital
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.3 Service Process RedesignWhy Redesign? (2)
Revitalizes process that has become outdated
Changes in external environment make existing practices obsolete and require redesign of underlying processesCreation of brand-new processes to stay relevant
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.3 Service Process RedesignWhy Redesign? (3)
Rusting occurs internallyNatural deterioration of internal processes; creeping bureaucracy; evolution of spurious, unofficial standards Symptoms: Extensive information exchange Data that is not usefulHigh ratio of checking or control activities to value-adding activitiesIncreased exception processingCustomer complaints about inconvenient and unnecessary procedures
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.3 Service Process RedesignProcess Redesign: Approaches and Potential Benefits
Examining service blueprint with key stakeholders
Eliminating non-value-adding stepsSimplify front-end and back-end processes with goal of focusing on benefit-producing part of service encounter Get rid of non-value adding steps Improve productivity and customer satisfaction
Shifting to self-serviceIncrease in productivity and service quality Lower costsEnhance technology reputationDifferentiates company
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* 8.4The Customer as Co-Creators
8.4
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.4 The Customer as Co-Creators Levels of Customer Participation (1)Customer ParticipationActions and resources supplied by customers during service production and/or deliveryIncludes mental, physical, and even emotional inputs
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.4 The Customer as Co-Creators Levels of Customer Participation (2)3 levels Low Employees and systems do all the workOften involves standardized service
Medium Customer helps firm create and deliver serviceProvide needed information and instructionsMake some personal effort; share physical possessions
High Customer works actively with provider to co-produce the serviceService cannot be created without customers active participation Customer can jeopardize quality of service outcome (e.g. weight loss, marriage counseling)
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.4 The Customer as Co-Creators Customers as Service Co-CreatorsCustomers can influence productivity and quality of service processes and outputs
Customers not only bring expectations and needs, they also need to have relevant service production competencies
Customers also need to be recruited as they are partial employees. Firms need to get those with the skills to do the tasks
For the relationship to last, both parties need to cooperate with each other
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Pearson Education South Asia Pte Ltd 2013. All rights reserved* 8.5Self-Service Technologies
8.5
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.5 Self-Service TechnologiesSelf-Service Technologies (SSTs)
Ultimate form of customer involvement Customers undertake specific activities using facilities or systems provided by service supplierCustomers time and effort replace those of employeese.g. Internet-based services, ATMs, self-service gasoline pumps
Information-based services can easily be offered using SSTsUsed in both supplementary services and delivery of core producte.g. eBay no human auctioneer needed between sellers and buyers
Many companies seek to encourage customers to serve themselves using Internet-based self-serviceChallenge: getting customers to try this technology
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.5 Self-Service TechnologiesWhat Aspects Of SSTs Please Or Annoy Customers? (1)People love SSTs whenSST machines are conveniently located and accessible 24/7often as close as nearest computer!Obtaining detailed information and completing transactions can be done faster than through face-to-face or telephone contact People in awe of what technology can do for them when it works wellPeople hate SSTs whenSSTs fail system is down, PIN numbers not accepted, etcPoorly designed technologies that make service processes difficult to understand and usethey mess up - forgetting passwords; failing to provide information as requested; simply hitting wrong buttons
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.5 Self-Service TechnologiesWhat Aspects Of SSTs Please Or Annoy Customers? (2)Key weakness of SSTs: Too few incorporate service recovery systemsCustomers still forced to make telephone calls or personal visits
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*8.5 Self-Service TechnologiesPutting SSTs to Test by Asking a Few Simple QuestionsDoes the SST work reliably? Firms must ensure that SSTs are dependable and user-friendly Is the SST better than interpersonal alternatives? Customers will stick to conventional methods if SST doesnt create benefits for themIf it fails, what systems are in place to recover?Always provide systems, structures, and technologies that will enable prompt service recovery when things go wrong
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*Summary for Chapter 8 Designing and Managing Service Processes (1)Flowcharting helps clarify delivery elements. It also shows how nature of customer involvement with service organizations varies by type of service
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*Summary for Chapter 8 Designing and Managing Service Processes (2)Service blueprinting can be used to design a service and create a satisfying experience for customers. Key components of the blueprint includeDefinition of standards for each front-stage activityPhysical and other evidence for front-stage activitiesPrincipal customer actionsLine of interactionFront-stage actions by customer-contact personnelLine of visibilityBackstage actions by customer-contact personnelSupport processes involving other service personnelSupport processes involving information technology
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*Summary for Chapter 8 Designing and Managing Service Processes (3)Blueprinting a restaurant (or other service) can be a three-act performancePrologue and introductory scenesDelivery of the core productConclusion of the dramaFailure proofing can be designed into service processes to improve reliabilityService process redesign can be categorized into five kindsExamining the service blueprint with key stakeholdersEliminating non-value-adding stepsShifting to self-service
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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Pearson Education South Asia Pte Ltd 2013. All rights reserved*Summary for Chapter 8 Designing and Managing Service Processes (4)When the customer is a co-producer, issues to consider areLevels of customer participationCustomers as service co-creators
When deciding to use Self-service Technologies (SSTs), firms should considerPsychological factors related to the use of SSTsAspects of SSTs that please or annoy customers
Pearson Education South Asia Pte Ltd 2013. All rights reserved
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