customer service excellence - lecture 7
TRANSCRIPT
Lecture sevenManaging Expectations
Customer Service Excellence
An organisation to implementStrategy
Style
Systems Structure
Staff
Skills
Sourc
e:
McK
inse
y 7
S f
ram
ew
ork
Sharedpurpose
Acquisition
RetentionRetention
Acquisition
Strategy Evaluation and Choice
Retention
Strategic FocusBudgets and
ResourcesCustomer Branded
Experience
Customerbranded
experience
Salespromotionsand sales packages
Acquisition
Customerbranded
experience
Salespromotionsand sales packages
Retention
Acquisition
Focussing on the customer??Customer need/ProductCost/PriceConvenience/PlaceCommunication/Promotion
Service qualityCompetitive advantage can be obtained by
delivering consistently higher quality service than competitors
Customer service expectations must be exceeded
Internal marketing essentialNeeds top management commitmentStandards must be setPerformance must be monitored
‘ServQual’ – Assessing Service Quality Developed by Zeithaml, Parasuraman & Berry It’s been about for a while (book 1990) Examines importance & performance and identifies
gaps 5 Dimensions of Service Quality
Tangibles Reliability Responsiveness Assurance Empathy
Xerox 3R+V (Reliability, Responsiveness, Relationship + Value)
The 5 ServQual Factors Tangibles
Reliability
Responsiveness
Assurance
Empathy
Appearance of physical facilities, equipment, personnel
Ability to perform the promised service dependably & accurately
Willingness to help customers & provide prompt service
Knowledge & courtesy of employees & conveying of trust
Caring, individualized attention the firm provides for customers
Source: Zeithaml, Parasuraman & BerrySource: Zeithaml, Parasuraman & Berry
5 SERVQUAL elements in action Tangibles: Physical evidence of the
service –
Reliability: Consistency and dependability in performing the service
Responsiveness: Willingness or readiness of employees to provide the service
Assurance: Knowledge/competence of employees and ability to convey trust and confidence
-Empathy: Caring and individual attention provided by employees
Appearance of physical facilities Appearance of personnel Tools or equipment used to provide the
service
Accuracy of billing or record keeping Performing services when promised
Returning customer phone calls Providing prompt service
Knowledge and skills of employees Company name and reputation Personal characteristics of employees
Listening to customer needs Caring about the customer’s interests Providing personalised attention
•Adapted from Parasuramann, Berry & Zeithaml (1985)
DIMENSION EVALUATION CRITERIA
Measuring Service QualitySERVQUAL
Five service quality dimensions
• Tangibles• Reliability• Responsiveness• Assurance• Empathy
Customer expectationsof excellentfirms in thespecificservice sector
Customerperceptionsof the organisationbeing evaluated
Measurement
Determinants of perceived service quality
Dimensions of quality
Access
Credibility Knowledge Reliability Security
Competence Communication
Courtesy
Responsiveness Tangibles
Word of Past Buyers’ Advertising mouth experience needs
Expectedservice
Perceivedservice
Perceived servicequality
Experiencing The Brand
BrandEssence
BrandPromise
BrandedCustomer
Experience
Translatesinto
Translatesinto
What youcommunicate
The value youcommit todeliver tocustomers
Delivery of your brand promise through every interaction your customers have with your organisation
Branding the Experience
Brandedcustomer
experience
Brandvalues
Brandimage
Translatesinto
Translatesinto
Creating a unique experiencethrough everyinteraction yourcustomers have with your organisation
The value your customerscome to expect and rely on
What you become known for in the marketplace
Brands in 2009Best Global Brands 2009: Trust | The
Businessweek Video Library
Customer Loyalty
Branded customer experience drives loyalty
RandomExperience
Predictableexperience
Brandedexperience
Customer loyalty
• Consistent• Intentional
• Consistent• Intentional• Differentiated• Valuable
Developing brandsBranding allows marketers to create added
values that distinguish one brand from another (e.g.)
‘Crisps are crisps’ so how have Walkers added value to distinguish themselves ?
Brand building involves a deep understanding of both the functional and emotional values that customers use to choose between brands.
Walkers
Why do Customers Buy?
It’s important to remember that customers do not buy features, products and/or services but solutions to their problems.
They have needs, and require products or services which satisfy those needs.
They are searching for benefits - and generally have a combination of benefits in mind.
We succeed by offering the marketing mix which best meets the customer’s needs
Interbrand | Back to brand basics: Focus on the customer | brands
Customers have
WantsNeeds Demands
£Basic requirementsto satisfy
A want supportedby willingness &ability to pay
SAEsteemSocialSafetyPhysiological
A desire to satisfyan underlying need
Customers’ needs, wants and demands
A Customer Relationship CredoIf you’re good to your customers, they'll keep
coming back, because they like you.
If they like you, they’ll spend more money
If they spend more money, you’ll want to treat them better
If you treat them better, they’ll keep coming back
Customers for Life : Carl Sewell, 1990.(The world’s most successful Cadillac dealer)
Positive Negative
Creating Customer Value
Product benefits
Service benefits
Relational benefits
Image benefits
Monetary costs
Time costs
Energy costs
Psychological costs
CustomerValue
Perceivedbenefits
Perceivedsacrifice
Minus
Mr Kotler
SERVQUAL model…Expectations
Perceptions
Service Delivery
Service Standards
Management Perceptions
External CommunicationsGap 1
Gap 5
Gap 2
Gap 3
Gap 4
Organisation
Customer
www.interbrand.com
Current thinking on branding issues…..
Inspirational Dean Cruickshank 2012