Managing Customer Managing Customer SatisfactionSatisfaction

Week 6Week 6

Service ProvidersService Providers

Chapter ObjectivesChapter Objectives

To understand the pressures on To understand the pressures on service providersservice providers

To describe ways managers manage To describe ways managers manage and motivate their staffand motivate their staff

To describe how customers can be To describe how customers can be managed to fulfill their roles and managed to fulfill their roles and display the ‘right’ behaviordisplay the ‘right’ behavior

Pressures on service providersPressures on service providers

Roles of front line service Roles of front line service employeesemployees

Order taker—interface between Order taker—interface between customer and organizationcustomer and organization

Advice giver—customers looking for Advice giver—customers looking for inside information about what’s good inside information about what’s good or not worth purchasingor not worth purchasing

Image maker—the brand is delivered Image maker—the brand is delivered by the service employeesby the service employees

Service delivery—may be the final Service delivery—may be the final point of contact with the customerpoint of contact with the customer

Roles of front line service employeeRoles of front line service employeess

Complaint handlerComplaint handler Therapist—some customers seek Therapist—some customers seek

human contact to offload problemshuman contact to offload problems Trainer—deal with competent and Trainer—deal with competent and

incompetent customersincompetent customers Coach—customers may need Coach—customers may need

confidence buildingconfidence building

IssuesIssues

Motivation—initial enthusiasm to Motivation—initial enthusiasm to powerlessness over timepowerlessness over time

Role clarity & fitRole clarity & fit• Aligning with the customerAligning with the customer• Personality match Personality match

Relationships—who is the Relationships—who is the relationship between, the customer relationship between, the customer and employee or customer and and employee or customer and organizationorganization

IssuesIssues

Risk & anxietyRisk & anxiety Stress—requirements of the situation Stress—requirements of the situation

exceed the individual’s perceived exceed the individual’s perceived ability to meet them ability to meet them

Effects of organizational and Effects of organizational and customer pressurecustomer pressure

Managing & motivating service Managing & motivating service providersproviders

“ “Leadership is the privilege to have Leadership is the privilege to have the responsibility to direct the the responsibility to direct the actions of others in carrying out the actions of others in carrying out the purposes of the organization…with purposes of the organization…with accountability for both successful accountability for both successful and failed endeavors.” (Roberts and failed endeavors.” (Roberts 1989) 1989)

Leadership stylesLeadership styles

Transformational leaders—project a Transformational leaders—project a vision of the future, influence others vision of the future, influence others to contribute to this futureto contribute to this future• Most important in times of changeMost important in times of change

Transactional leaders—deal with the Transactional leaders—deal with the day-to-day operations day-to-day operations

Both styles requiredBoth styles required

Protecting providers from pressureProtecting providers from pressure

TeamsTeams

Teams and teamwork can provide Teams and teamwork can provide support and build ownership of support and build ownership of service processesservice processes

Self-directed team success largely Self-directed team success largely determined by team design and determined by team design and processprocess

Clarifying service provider rolesClarifying service provider roles

Role conflict—demands of the job are Role conflict—demands of the job are in conflictin conflict• Reduce the amount of time spent with Reduce the amount of time spent with

customers (management)customers (management)• Time needed to help resolve problem Time needed to help resolve problem

(customer)(customer) Role ambiguity—uncertainty of role Role ambiguity—uncertainty of role

due to unclear strategy (poor due to unclear strategy (poor leadership) leadership)

ScriptsScripts

Scripts enable consistency and provide Scripts enable consistency and provide useful prompts for employeesuseful prompts for employees

Assists in discovering customer needAssists in discovering customer need Control the customerControl the customer Establish routines (airline check-in)Establish routines (airline check-in) Control workersControl workers Legitimize organizational actions Legitimize organizational actions

(high or low energy restaurant staff)(high or low energy restaurant staff)

Script issuesScript issues

InflexibleInflexible Customers perceive service providers Customers perceive service providers

as robotsas robots May lead to defensive behavior if May lead to defensive behavior if

service provider is not aware that service provider is not aware that something different is requiredsomething different is required

Employee discretionEmployee discretion

Defining the degree and type of Defining the degree and type of discretion required is essentialdiscretion required is essential

Routine discretion—how to perform Routine discretion—how to perform routine tasksroutine tasks

Creative discretion—what and how Creative discretion—what and how the task is donethe task is done

Deviant discretion—not approved by Deviant discretion—not approved by the organization – disruptivethe organization – disruptive

Employee discretionEmployee discretion

Organizational style—fluid situations Organizational style—fluid situations require more discretionrequire more discretion• AdaptiveAdaptive• Compliant (high volume, low variety)Compliant (high volume, low variety)

Perceived individual employee Perceived individual employee discretion—how much discretion the discretion—how much discretion the employees feel they haveemployees feel they have

Employee discretionEmployee discretion

Changing employee discretionChanging employee discretion

Compliant to adaptive: the anxious Compliant to adaptive: the anxious zonezone

Adaptive to compliant: the frustrated Adaptive to compliant: the frustrated zonezone

Effective communicationsEffective communications

FAME ModelFAME Model Focus—clear focus, few priorities, Focus—clear focus, few priorities,

repeated & reinforcedrepeated & reinforced Articulate—use plain languageArticulate—use plain language Model—lead by exampleModel—lead by example Engage—connect the organization’s Engage—connect the organization’s

agenda with the individual’s agendaagenda with the individual’s agenda

Managing customersManaging customers

What is the involvement of What is the involvement of customers in the service delivery customers in the service delivery system?system?

Service providerService provider• SupermarketSupermarket• Behavior in a restaurantBehavior in a restaurant

Service specifier—provide their Service specifier—provide their requirementsrequirements

Quality inspector—many Quality inspector—many organizations rely on customers to organizations rely on customers to provide feedback and bring errors to provide feedback and bring errors to the organization’s attentionthe organization’s attention

Trainer/role modelTrainer/role model• Waiting in a queueWaiting in a queue• Express dissatisfaction with others who Express dissatisfaction with others who

are not orderlyare not orderly

Managing customersManaging customers

Benefits of customer involvementBenefits of customer involvement

Inclusion results in loyaltyInclusion results in loyalty Resource productivity—the more the Resource productivity—the more the

customer does, the fewer resources customer does, the fewer resources required to run the operation (IKEA)required to run the operation (IKEA)

Customer control = more personal Customer control = more personal control (Internet based services)control (Internet based services)

Compliant to adaptive:Compliant to adaptive:the anxious zonethe anxious zone