Service Encounter Customer Relationship in Hospital Service Management

Service Encounter & Customer Relationship in Hospital Service Management By: Pramod Niroula/NASC

Presentation Outline The Customer Vs The Consumer and their expectations Customer Service The Relationship Management Gap: The Diagnosis of Disease Service Encounter Service Quality Service Recovery

Frequently Asked Questions About Customer Expectations Should How Do Is a company aim to ‘delight’ the customer? does a company exceed customer service expectations? customer service expectations continually escalate? it a better strategy to under-promise and over-deliver? How does a service company stay ahead of competition in meeting customer expectations?

Factors Influencing Customer Satisfaction Product/service Specific quality product or service features Consumer emotions Attributions for service success or failure Perceptions of equity or fairness Other consumers, family members, and coworkers Price Personal the factors customer’s mood or emotional state situational factors

Outcomes of Customer Satisfaction Increased Positive customer retention word-of-mouth communications Customer Loyalty Increased Revenues Enhanced Brand Image

Customer Relationship Management Pre-Registration to Post Discharge! Reactive to Proactive! Customer Database and Use ! Acknowledge and Understand People and Culture! If Someone else can do it, than I can do it and you can do it…. . The ATTITUDE with GRATITUDE

Stages in Costumer Decision Making and Evaluation of Services

Possible Levels of Customer Expectations

Disconfirmation of expectations (Oliver 1980)

The Gaps model (Zeithaml, Parasuraman & Berry 1990)

Zones of Tolerance for Different Service Dimensions Desired Service Level of Expectation Zone of Tolerance Adequate Service Desired Service Zone of Tolerance Adequate Service Reliability Tangibles Source: L. L. Berry, A. Parasuraman, and V. A. Zeithaml, “Ten Lessons for Improving Service Quality, ” Marketing Science Institute, Report No. 93 -104 (May 1993).

Factors That Influence Desired Service Lasting Service Intensifiers Desired Service Personal Needs Zone of Tolerance Adequate Service

Factors That Influence Adequate Service Temporary Service Intensifiers Desired Service Perceived Service Alternatives Self-Perceived Service Role Situational Factors Zone of Tolerance Adequate Service Predicted Service

Customer Perceptions of Quality and Customer Satisfaction

The Service Encounter Occurs any time the customer interacts with the service provider or the service firm Can potentially be critical in determining customer satisfaction and loyalty Types of encounters: remote encounters, phone encounters, face-to-face encounters It is an opportunity to: build trust reinforce build quality brand identity increase loyalty

Moments of Truth Each customer contact is called a moment of truth. The service provider has the ability to either satisfy or dissatisfy them at this moment.

A Service Encounter Cascade for a Hospital Visit Registration OPD/Consultation Admit/Follow up Diagnosis/Treatment/Medication Discharge/Fol

The Service Encounter Triad Service Organization Efficiency versus autonomy Efficiency versus satisfaction Contact Personnel Customer Perceived control

Role of Technology in the Service Encounter Technology Customer Technology Server A. Technology-Free Service Encounter Customer Technology Server B. Technology-Assisted Service Encounter Technology Customer C. Technology-Facilitated Service Encounter Technology Server D. Technology-Mediated Service Encounter Customer Server E. Technology-Generated Service Encounter

The Links in the Service-Profit Chain Operating Strategy and Service Delivery System Employee Retention Internal Service Quality Employee Satisfaction • workplace design • job design • employee selection and development • employee rewards and recognition • tools for serving customers Employee Productivity External Service Value Customer Satisfaction Revenue Growth Customer Loyalty Profitabilit y • Service concept: results for customers • retention • repeat business • referral • service designed and delivered to meet targeted customers' needs

Service Profit Chain • Internal quality drives employee satisfaction • Employee satisfaction drives retention and productivity • Employee retention and productivity drives service value. • Service value drives customer satisfaction. • Customer satisfaction drives customer loyalty. • Customer loyalty drives profitability and growth.

Defining Quality Although we cannot define quality we know what quality is” Pirsig (1987) Therefore, quality is subjective to a large extent because every user has different thoughts and ideas about what quality is. Thus : “Quality is fitness for use”

The Five Dimensions of Service Quality (RATER) Reliability Assurance Tangibles Empathy Responsiveness Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to inspire trust and confidence. Physical facilities, equipment, and appearance of personnel. Caring, individualized attention the firm provides its customers. Willingness to help customers and provide prompt service.

SERVICE RECOVERY Best companies have service failures In spite of best efforts, Failures? ? Why? ? ? -Involvement of people -What do you do? -If You have to recover? 24

Service Recovery means that a service breakdown has occurred and the problem has been corrected to the customers satisfaction Goal: Help retain customer’s as loyal

Service Recovery Customers do not expect you to be perfect. They do expect you to fix things when they go wrong. Donald Porter Senior VP, British Airways

Creating A Service Recovery Environment Be A Role Model Ask Staff For Suggestions Solicit Customer Feedback Reward Good Customer Service Behavior Encourage Staff To Use Their Initiative Do Not Talk Negatively About Customers

SERVICE RECOVERY: IBM A complaint is a gift. Why Complaints mean Where we are going wrong Where we need to improve No complaints means something is wrong Receive more than 50000 complaints annually How to deal with this? 28

SERVICE RECOVERY Service Recovery Refers to the actions by an organization in response to a service failure Why failure · Unavailable when promised · Delivered too late or slowly · Rude employees · Cause huge problems to organizations · Bad word of mouth 29

SERVICE RECOVERY Types of Complainers! 1. Passives 2. Voicers 3. Irates 4. Activists 30

SERVICE RECOVERY 1. Passives - Keep quiet - Do not complain - Do not spread negative word of mouth - Feel if they complaint nothing will happen. 2. Voicers - Vociferous - Actively complain - Less likely to spread negative word of mouth - Give company a second chance - By complaining companies improve 31

SERVICE RECOVERY 3. Irates - More vociferous - High negative word of mouth - Speak to friends and relatives - Do not give provider a second chance - Switch to competition. 4. Activists -Complain everywhere - Friends - Relatives - Third parties 32 Consumers can become “Terrorists’’

When customers complain: What do they expect? A Fairness Outcome Fairness Procedural Fairness Interaction fairness Compensation Easy and Convenient Be Fair and Honest Apology Reliable Politeness Replacement Relationship oriented Responsive A Fair treatment

SERVICE RECOVERY STRATEGIES 1. Do it right the first time 2. Welcome and encourage complaints 3. Act quickly 4. Treat customers fairly 5. Learn from recovery experience 6. Learn from lost customers 7. Return to “Doing it Right” 34

SERVICE RECOVERY Empower employees Ritz-Carlton Hotel - Employees authorized to spend 2000$ on behalf of the customer - Solve complaint - Amount rarely used - Employees have a feeling that it can be used when required 35

Recovery DO Acknowledge problem Explain causes Apologize Compensate/upgrade Lay out options Take responsibility DON’T Ignore customer Blame customer Leave customer to fend for him/herself Downgrade Act as if nothing is wrong “Pass the buck”

Adaptability DO Recognize the seriousness of the need Acknowledge DON’T Ignore Promise, but fail to follow through Anticipate Show Attempt Embarrass Adjust the system Explain Take to accommodate rules/policies responsibility unwillingness to try the customer Laugh at the customer Avoid responsibility “Pass the buck”

Spontaneity DO Take Be DON’T time Exhibit attentive Ignore Anticipate needs Listen Provide Show Yell/laugh/swear Steal information empathy impatience from customers Discriminate

Coping DO Listen Try to accommodate Explain Let go of the customer DON’T Take customer’s dissatisfaction personally Let customer’s dissatisfaction affect others

FINANCIAL STATEMENTS Balance Sheet Income Statement: - Trading and Profit & Loss Account in the case of profit making entity and Income & Expenditure Account in the case of non profit making entity. Statement of changes in equity Cash Flow Statement Accounting policies and explanatory notes.