Customers Role in Service Delivery Creating Value n

Customer’s Role in Service Delivery

Creating Value n By participating in the service delivery process, customers create value for themselves

How Customers Widen the Service Performance Gap n n Lack of understanding of their roles Not being willing or able to perform their roles n No rewards for “good performance” n Interfering with other customers n Incompatible market segments 12 -3

Importance of Other Customers in Service Delivery n Other customers can detract from satisfaction disruptive behaviors n excessive crowding n incompatible needs n n Other customers can enhance satisfaction mere presence n socialization/friendships n roles: assistants, teachers, supporters n

Customer Roles in Service Delivery Productive Resources Contributors to Quality and Satisfaction Competitors

Customers as Productive Resources n “partial employees” • contributing effort, time, or other resources to the production process n n customer inputs can affect organization’s productivity key issue: • should customers’ roles be expanded? reduced?

Customers as Contributors to Service Quality and Satisfaction n Customers can contribute to • their own satisfaction with the service n by performing their role effectively n by working with the service provider • the quality of the service they receive n by asking questions n by taking responsibility for their own satisfaction n by complaining when there is a service failure

Customers as Competitors n customers may “compete” with the service provider n “internal exchange” vs. “external exchange” n internal/external decision often based on: • expertise • resources • time • economic rewards • psychic rewards • trust • control

Customer Participation across Different Services 12 -9

Technology Spotlight: Services Production Continuum Customer Production 1 2 Joint Production 3 4 Firm Production 5 6 Gas Station Illustration 1. Customer pumps gas and pays at the pump with automation 2. Customer pumps gas and goes inside to pay attendant 3. Customer pumps gas and attendant takes payment at the pump 4. Attendant pumps gas and customer pays at the pump with automation 5. Attendant pumps gas and customer goes inside to pay attendant 6. Attendant pumps gas and attendant takes payment at the pump

A Proliferation of Self-Service Technologies ATMs � Pay at the pump � Airline check-in � Hotel check-in, out � Automated car rental � Blood pressure machines � Tax prep software � Self-checkout � Online banking � Online vehicle registration � Online auctions � Home and car buying online � Package tracking � Internet shopping � IVR phone systems � Distance education � 12 -11

Strategies for Enhancing Customer Participation 12 -12

Strategies for Enhancing Customer Participation n Define customers’ roles • Helping oneself • Helping others • Promoting the company n Recruit, educate, and reward customers • Recruit the right customers • Educate and train customers to perform effectively • Reward customers for their contributions • Avoid negative outcomes of inappropriate customer participation n Manage the customer mix 12 -13

Characteristics of Service that Increase the Importance of Compatible Segments 12 -14