service quality1

8/8/2019 Service Quality1

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Who is a customer..? A customer is the most important person in our office. Acustomer is not dependent on us. We are dependent onhim. A customer is not an interruption of our work, he isthe purpose of it. We are not doing a favor by servinghim. He is doing us a favor by giving an opportunity to doso. A customer is not some one to argue. No one haswon an argument with a customer.

A customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves.

CUSTOMER IS ALWAYS RIGHTCUSTOMER IS ALWAYS RIGHT



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Aspects of Service QualityService: it is what is provided by service

provider organizationE.g. Bank, Insurance , Hospital, Service organizations

Quality : it means ³ what customer wants ´

(a) within a given time(b) at a price(c) what he/she is willing to pay



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Why Quality ?The drivers of quality are:

To SurviveCustomer is demandingCompetitionProfitability

Strive for excellence



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F ive principles of QualityFocus on Customer

Do it Right

Communicate & EducateMeasure & Record

Do it together



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What is Service Quality?This takes place when there is an encounterbetween customer and service provider.Customer satisfaction with service quality canbe measured by comparing the perceptions of service received, with service expected.

S ervice ExpectedS ervice Expected ± ± S ervice Received =S ervice Received = Customer S atisfactionCustomer S atisfaction

When, S. R > S. E = S ervice is of excellent qualityWhen, S. R > S. E = S ervice is of excellent qualityS. R = S. E = S ervice is satisfactoryS. R = S. E = S ervice is satisfactoryS. R < S. E = S ervice is unsatisfactoryS. R < S. E = S ervice is unsatisfactory



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Quality is an attitude«

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Attitude is what differentiates betweenexcellence and mediocrity. Positiveattitude leads to high quality and vice-versa.



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Common attitudinal blocks to Quality1. We tried it before, I know it won ¶t work

2. It won ¶t work, the way you think3

. It may work in Japan, but not in this country4 . It is a good idea, but we don ¶t have the budget for it 5 . Everybody knows it, what is new in it?6 . If you introduce this idea, it will create some other problems

7 . Why do you want to change it ? Now we are ok8 . Let us discuss it some other day

9. These ideas are more complicated than what you understand.



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Dimensions of Service Quality

Word of Mouth Personal Needs Past Needs

Expected S ervice

Perceived S ervice

Reliability

Assurance

Empathy

Responsiveness

Tangible

Quality DimensionPerceived S ervice

Quality

E .S >P.S (S urprise )

E .S = P.S (S atisfactory )

E .S <P.S (Poor Quality)



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ReliabilityThis refers to the ability to perform thepromised service independently and accurately.Reliability means, every time the service has tobe accomplished on time and in the samemanner without errors.

E.g. Application of film



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Responsiveness

This refers to the willingness to help customers to provide

prompt service,without keeping the customer waiting forno apparent reasons. This creates negative perceptionsof quality.

In the event of service failure, the ability to recoverquickly with professionalism, can create a very positiveperception of quality

E.g Roller Discs from NEC



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AssuranceThis refers to the courtesy of employees andtheir ability to convey trust and confidence. i.e.competence to perform the service, politenessand respect for the customer, effectivecommunication with the customer , and generalattitude

E.g Efficiency v/s Effectiveness



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Empathy

This refers to caring and individualizingattention to the customer.Empathy includes approachability, sense of security and efforts to understand customer

needs.



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TangiblesThis refers to

Physical facilitiesEquipment Communication material;Condition of physical surroundings

The above are the evidence of care andattention given to the workplace by serviceproviders



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Service Quality v/s Product Quality

Service quality is more difficult for customersto evaluate than product qualityCustomer does not evaluate service qualitysolely by outcome of service

Customer judge only quality, all other judgment is essentially irrelevant



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How customers get influenced of ³ What to Expect ´ «

WordWord ofof MouthMouth ± choosing a service is greatlyinfluenced by word of communication. If service

provider can recognize this and acts, then half thebattle is wonPe rsonalPe rsonal N ee dsNee ds ± Personal needs varies fromcustomer to customer

P astP ast Exp e ri e nc eExp e ri e nc e ± Bad past experience will havebearing on customer expectation



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How do customers asses yourService Quality?

Tangibles Appearance of physical facilities, Equipment,Communication material

Reliability Dependability & Accuracy

Responsiveness Willingness o help customers and provide service

Competence Possessing the required knowledge and skills to performthe service

Courtesy Politeness, Respect,F

riendlinessCredibility Trustworthiness, believability, honesty of service provider

Access The case of contact and approachability

Communication Keeping customers informed in a language they knowUnderstanding the customer ± knowing his needs



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Service Quality ModelWord of Mouth Personal Needs Past Experience

Expected S ervice

Perceived S ervice

Delivering the S ervice

S ervice Quality S pecification

Management Perception of Customer Expectation

External

Communication

to CustomersGap 3

Gap 4

Gap 1

Gap 5

Gap 2



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GAP ± 1 CausesGap b e tw ee n Custom e r Exp e ctations andGap b e tw ee n Custom e r Exp e ctations and

Manag e m e nt Pe rc e ption of Custom e rManag e m e nt Pe rc e ption of Custom e rExp e ctationExp e ctation

Inadequate market researchLack of interaction between management and customersInadequate upward communicationToo many levels



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Market ResearchNo MR is doneMR is done but not made use of Concentrating on Day to Day OperationsIn MR

Data regarding customer expectations not collectedData regarding customer perceptions not collectedComplaint made by customer neglectedEven if findings are available-not made use of because of the following reasons

Too busyResearch are very complexResearch is too technicalLack of confidence in research



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Inadequate Upward Communication

Personal Customer Contact v/s Top

Management Inadequate upward communicationUpward communication blocked



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Too many levels Acts as an impediment to upward

communication At various levels information getsdistorted



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Remedies to close GAP ± 1

Collect data regarding expectations and

perception of the customers.Improve upward communication ± have aperiodical meeting between management andcustomer contact staff; informal or formalDirect interaction by the top management withcustomer wherever possibleReduce levels ± helps in faster decision making



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GAP ± 2 CausesGap b e tw ee n Manag e m e nt Pe rc e ption ofGap b e tw ee n Manag e m e nt Pe rc e ption of

Custom e r Exp e ctation and S e rvic e Custom e r Exp e ctation and S e rvic e Quality Sp e cificationQuality Sp e cification

Inadequate management commitment to service quality

Perception of infeasibility Absence of goal setting



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Lack of Commitment Operation orientation

Lack of support from middlemanagement due to lack of motivationand incentiveMiddle management attitude ´ what is init for me ´



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Perception of InfeasibilityIt involves financeOur personnel may not be capable of delivering customer expectations - shortageof skills required (9 blocks)Lack of technology available



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Absence of Goal SettingGoals are not set Set goals are not clearSMART Goal setting



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Remedies to close GAP ± 2Mind set:

Remove the mind block ± open mindedness; µCanDo¶ attitudeWillingness to ± investing money to buytechnology;spend time with employees to satisfycustomer requirementsMiddle Management to be involved all the more in

Quality programmesTrain the employees³ Lack of time concept ´ should be converted to³ enough time ´ by following the principles of timemanagement



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Contd «

Absence of goal settingMost goals on quality should be based on :

Customer requirement Specific

Acceptable to employeesRealisticDesigned to meet customer specificationsShould not become a pious intentionHave a proper feedback system



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GAP ± 3 CausesGap b e tw ee n S e rvic e Quality Sp e cificationGap b e tw ee n S e rvic e Quality Sp e cification

and S e rvic e De liv e ryand S e rvic e De liv e ryRole ambiguityRole conflict Job fit Inappropriate supervisory control systemLack of perceived controlLack of team work



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Role AmbiguityLack of information from the topLack of training to perform the jobUncertainty about superiors expectationsMethod of evaluation by superiors



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Role Conflict Conflict between role expectations and perceptionsPersonal attention requirement from customer vis-a-vis time limit from employee sideManagement constraints and customer expectations

Varied customer demands



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Job F it Making job psychograph v/s individual psychographHiring of people qualified for the jobDo management spend enough time and resourceson hiring the best people who are in direct contact with customer?Skills required for the job v/s existing employee skills



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Inappropriate Supervisory Control System

Do the employees know ³ what aspect of their job will

be stressed more in performance evaluation?´

Are employees evaluated on ³ how will they interact with customers? ´

Do employees who make special efforts to serve thecustomer receive increased financial reward of recognition?Do employees get a word of appreciation for theircontribution?



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Lack of Perceived Control Are employees given the freedom to make theindividual decision to satisfy the customer needs?

Are employees required to get approval from anotherdepartment before delivering the service to thecustomer?

Are they encouraged to learn new ways of servicing

the customer better?



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Lack of Team Work

Do managers and employees contribute a team effort in servicing the customer?Do employees of other departments provide goodservice to customer contact employees?

Are there any competition amongst employees toimpress some one at the cost of team work?Do they help each other than pulling each other toreach a goal?



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Remedies to close GAP ± 3 Improve communicationTrain the employee in time management Train the employee in prioritizing the taskTop management must spend enough time in hiringand selection of employeesHire and use appropriate technologyPushing down decision to lower levels

Avoid too many people in decision makingEncourage team work ± concept of internal customerJob rotation and job training



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GAP ± 4 CausesGap b e tw ee n S e rvic e De liv e ry and Ext e rnalGap b e tw ee n S e rvic e De liv e ry and Ext e rnal

Communication to Custom e rCommunication to Custom e r

Inadequate horizontal communicationDifferences in policies and procedures across branches ordepartmentsOver promising



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Inadequate Horizontal Communication

Coordination between Marketing & HRCorporate Advertising & Operations

Advertisement & Public Relations

In general this refers to the internal communicationbetween departments



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Over PromisingTime DimensionsQuantity Dimensions

When promise do not match delivery, the servicequality suffers



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Remedies to close Gap 4

Opening channels of communication betweenadvertising and operations

Opening channels of communication between salesand operationsOpening channels of communication between HR,Marketing and OperationsProviding consistent service across branches oroutletsDeveloping appropriate and effectivecommunications about service quality



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Communications on Service QualityEmphasize primary quality determinantsManaging customers expectationsCustomer role in service delivery



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The Service Struggle

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3 2

Unwillingnessto Serve

Willingnessto Serve

Inabilityto Serve

Abilityto Serve



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Getting StartedGet ready to work hardBase decisions on Data

Use a portfolio of research methodsDo on going researchDo employee researchShare findings with employees

Organize for changeCreate service improvement rulesCreate an integrative mechanismDevelop a statement of directionInvolve many and emphasis teamworkThink evolution rather than revolution



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Getting Startedcontd «

Leverage the freedom factorSymbolize service qualityPromote the right people to management positions

Identifying leadersThe footprints-in-the-sand test The stand-for-something test



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Challenges AheadDesigning quality into service

Service blue-printingHard but worthwhile work

Making technology as a servant Combining high tech with high touchUse technology to support the service strategyFocus technology on the customer

Attacking the labor shortfallMismatchNeed for innovative approaches

Raising our service aspirations



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Thank You

service quality1

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