IMPROVING SERVICE QUALITY AND PRODUCTIVITY Chapter 14 Improving

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IMPROVING SERVICE QUALITY AND PRODUCTIVITY Chapter 14

IMPROVING SERVICE QUALITY AND PRODUCTIVITY Chapter 14

Improving Service Quality • The GAP Model is: A Conceptual Tool to Identify and

Improving Service Quality • The GAP Model is: A Conceptual Tool to Identify and Correct Service Quality Problems

The Gaps Model of Service Quality • The gaps model is a useful framework

The Gaps Model of Service Quality • The gaps model is a useful framework for understanding service quality in an organization. • It demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions. • The model shows four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap. • It identifies the factors responsible for each of the four provider gaps.

The Gaps Model – Figure 14. 3

The Gaps Model – Figure 14. 3

Key Factors Leading to the Customer Gap Customer Expectations Customer Perceptions

Key Factors Leading to the Customer Gap Customer Expectations Customer Perceptions

Key Factors Leading to Gap 1 • Inadequate marketing research orientation • Lack of

Key Factors Leading to Gap 1 • Inadequate marketing research orientation • Lack of upward communication • Insufficient relationship focus • Inadequate service recovery

Key Factors Leading to Gap 2 • Poor service design • Absence of customer-driven

Key Factors Leading to Gap 2 • Poor service design • Absence of customer-driven standards • Inappropriate physical evidence and servicescape

Key Factors Leading to Gap 3 § Deficiencies in human resource policies § Customers

Key Factors Leading to Gap 3 § Deficiencies in human resource policies § Customers who do not fulfill roles § Problems with service intermediaries § Failure to match supply and demand

Key Factors Leading to Gap 4 § Lack of integrated services marketing communications §

Key Factors Leading to Gap 4 § Lack of integrated services marketing communications § Over promising § Ineffective management of customer expectations § Inadequate horizontal communications

The Gaps Model – Figure 14. 3

The Gaps Model – Figure 14. 3

The Customer Gap – Gap 5 & 6

The Customer Gap – Gap 5 & 6

Handling Consumer Gaps

Handling Consumer Gaps

LEARNING FROM CUSTOMER FEEDBACK

LEARNING FROM CUSTOMER FEEDBACK

Customer Feedback Collection Tools • Total market surveys • Annual surveys • Transactional surveys

Customer Feedback Collection Tools • Total market surveys • Annual surveys • Transactional surveys • Service feedback cards • Mystery shopping • Unsolicited customer feedback • Focus group discussions • Service reviews

Evaluating Feedback Methods

Evaluating Feedback Methods

VIDEO – MYSTERY SHOPPER

VIDEO – MYSTERY SHOPPER

Analysis, Reporting and Dissemination of Customer Feedback • Choosing the relevant feedback tools and

Analysis, Reporting and Dissemination of Customer Feedback • Choosing the relevant feedback tools and collecting customer feedback is meaningless if the information is not passed back to the relevant parties to take action • Reporting system needs to deliver feedback to frontline staff, process owners, branch/department managers and top management • Three types of performance reports: • Monthly Service Performance Update • Quarterly Service Performance Review • Annual Service Performance Report

Customer-driven ways to Improve Service Productivity • Change timing of customer demand • By

Customer-driven ways to Improve Service Productivity • Change timing of customer demand • By shifting demand away from peaks, managers can make better use of firm’s productive assets and provide better service • Encourage use of lower cost channels • Get customers to self-serve • Encourage customers to obtain information and buy from firm’s corporate Websites • Ask customers to use third parties • Delegate delivery of supplementary service elements to intermediary organizations

Productivity Improvements and Quality • Front-stage productivity enhancements are especially visible in high contact

Productivity Improvements and Quality • Front-stage productivity enhancements are especially visible in high contact services • Some improvements only require passive acceptance, while others require customers to change behavior • Must consider impacts on customers and address customer resistance to changes • Backstage changes may impact customers • Keep track of proposed backstage changes, and prepare customers for them