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Service Encounter

The document discusses key concepts related to service encounters and customer service. It defines important terms like "moments of truth" and explores the "service encounter triad" between the service organization, contact personnel, and customer. It also examines the role of culture and technology in customer service. The concept of a "service profit chain" is introduced to explain how internal service quality can improve employee satisfaction, retention, productivity and ultimately customer loyalty and profitability.

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Akshey Gaur
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© Attribution Non-Commercial (BY-NC)
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258 views

Service Encounter

The document discusses key concepts related to service encounters and customer service. It defines important terms like "moments of truth" and explores the "service encounter triad" between the service organization, contact personnel, and customer. It also examines the role of culture and technology in customer service. The concept of a "service profit chain" is introduced to explain how internal service quality can improve employee satisfaction, retention, productivity and ultimately customer loyalty and profitability.

Uploaded by

Akshey Gaur
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The Service Encounter

Dr. Fatima Beena

Learning Objectives
Exploring the service encounter triad to describe a service firms delivery process. Describe features of an organizations service culture. Understanding the role of information technology in employee empowerment. The role of customer as co producer. Understanding the concept of a service profit chain and its effects on revenue growth and profitability.

Moments of Truth
Each customer contact is called a moment of truth. You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

Cycle of Service
Begin Service Encounter
End Service Encounter

= MOT

The Service Encounter Triad


Service Organization
Efficiency versus autonomy Efficiency versus satisfaction

Contact Personnel

Perceived control

Customer

Definitions of Culture
Schwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organizations members. Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others. Hoy and Miskel (1991) - Culture is shared orientations that hold the unit together and give a distinctive identity.

The Service Organization


Culture ServiceMaster (Service to the Master) Choice of language Empowerment Invest in people Use IT to enable personnel Recruitment and training critical Pay for performance

Contact Personnel
Selection 1. Abstract Questioning 2. Situational Vignette (a picture, an illustration or
depiction in words)

3. Role Playing Training Unrealistic customer expectations Unexpected service failure

Difficult Interactions with Customers


Unrealistic customer expectations 1. Unreasonable demands 2. Demands against policies 3. Unacceptable treatment of employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customers Unexpected service failure 1. Unavailable service 2. Slow performance 3. Unacceptable service

Use scripts to train for proper response

The Customer
Expectations and Attitudes Economizing customer Ethical customer Personalizing customer Convenience customer Customer as Co-Producer

Definition
Economizing Customer and Ethical Customer Economizing Customer is a customer who wants to maximize the value obtained for his / her expenditures. On the other hand, an Ethical Customer is a customer who feels a moral obligation to patronize socially responsible firms.

The Value of Customer Convenience


Customer convenience means doing business the way customers want to do business with you. customers dont care even if your product is made from a space age material from the center of the earth, was manufactured in Jupiter, made its quality inspection in Mars, packaged in Pluto and then delivered via space shuttle, if they dont want your product. Simple.

Service Encounter Success Factors


Customer Service Provider Human Machine
Employee selection Interpersonal skills Support technology Engender trust Easy to access Fast response Verification Remote monitoring User friendly Verification Security Easy to access Compatibility Tracking Verification Security

Human

Machine

Employee Perceptions of Customer Service at a Service Point


Outstanding

6 5

Custom er
Terrible

4 3 2 1 1
Terrible

6
Outstanding

Employee

Satisfaction Mirror
More Repeat Purchases Stronger Tendency to Complain about Service Errors Higher Customer Satisfaction Lower Costs More Familiarity with Customer Needs and Ways of Meeting Them Greater Opportunity for Recovery from Errors Higher Employee Satisfaction Higher Productivity

Better Results

Improved Quality of Service

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.

The Links in the Service-Profit Chain


Operating Strategy and Service Delivery System

Employee Retention Internal Service Quality Employee Satisfaction Employee Productivity External Service Value Customer Satisfaction Customer Loyalty

Revenue Growth

Profitability retention repeat business referral

workplace design job design employee selection and development employee rewards and recognition tools for serving customers

Service concept: results for customers

service designed and delivered to meet targeted customers' needs

The Cycle of Capability


Careful employee and customer selection High-quality training Well-designed support systems Greater latitude to meet customers needs Clear limits on expectations of employees Appropriate rewards and recognition Satisfied employees Employee referrals of job candidates

Topics for Assignment/Discussion


What are the organizational and marketing implications of considering a customer as a partial employee? Comment on the different dynamics of one-on-one service and group service in regard to perceived control of the service encounter. How does use of a service script relate to service quality? If the roles played by customers are determined by cultural norms, how can services be exported?

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