Service

Delivery
Process
Service Delivery System

• A Service Delivery System (SDS) refers to the framework through which

services are planned, managed, and provided to consumers.
• It encompasses the processes, resources, infrastructure, and personnel involved
in delivering services efficiently and effectively.
• A well-structured service delivery system ensures customer satisfaction,
operational efficiency, and sustainability of services.
Components of a Service Delivery System
Service Design and Planning
• Identifies customer needs and expectations.
• Develops service blueprints outlining key processes and touchpoints.
• Defines service standards, objectives, and performance indicators.
Infrastructure and Resources
• Physical facilities such as offices, call centers, and digital platforms.
• Technological tools, including software, databases, and automation.
• Human resources, comprising skilled professionals and support staff.
Service Processes and Workflow
• Standardized procedures for service request handling and issue resolution.
• Quality control mechanisms to maintain service consistency.
• Integration of digital and physical service channels.
To Be Contd…

Customer Interaction and Engagement

1. Communication channels such as phone, email, live chat, and social media.
2. Personalized services to enhance customer experience.
3. Feedback mechanism for continuous improvement.

Monitoring and Evaluation

4. Performance assessment through KPIs (Key Performance Indicators).
5. Customer satisfaction surveys and reviews.
6. Continuous process improvements based on data analysis.
Types of Service Delivery Systems

1. Centralized Service Delivery

1. Services are managed and provided from a single point or organization.
2. Examples: Government welfare programs

2. Decentralized Service Delivery

1. Services are distributed across multiple locations or entities.
2. Examples: Regional healthcare cetres.

3. Self-Service Systems
1. Customers perform service-related activities on their own using technology.
2. Examples: Online banking
Perception on Service

• Customer’s Perspective-Services are experiences

• Organization Perspective -Services are processes that needs to be managed to

create the desired customers experience.
Differences Between Service as Experience or Process

Aspect Service Experience Service Process

The overall perception and The structured series of
feelings of a customer activities and steps
Definition
when interacting with a involved in delivering the
service. service.
Emotional and Operational and
Focus psychological impact on procedural aspects of
the customer. service delivery.
Customer-centric (how the
Provider-centric (how the
Perspective service feels to the
service is executed).
customer).
Satisfaction, expectations, Workflow, tasks, steps,
Elements emotions, and perception and sequences in service
of value. delivery.
Customer satisfaction Efficiency metrics, service
Measurement surveys, feedback, and time, compliance with
ratings. standards.
A hotel guest's delight in The check-in procedure,
Example receiving a personalized room cleaning schedule,
Service Flowcharting

Delivery Service Blueprinting

Process Identify Failure Points

Failure Proofing

Setting Service Targets

Service Process Redesign

Managing Customers Effectively

Flowcharting
• Flowcharting in services marketing refers to the visual representation of the step-by-step
process involved in delivering a service. It helps businesses analyze, improve, and optimize
service interactions by mapping out customer touchpoints, service provider actions, and
behind-the-scenes processes.
• Purpose of Flowcharting in Services Marketing

✅ Visualizes the Customer Journey – Shows how customers interact with the service.
✅ Identifies Bottlenecks & Gaps – Helps in pinpointing delays, inefficiencies, or pain points.
✅ Improves Customer Experience – Ensures smooth and seamless service delivery.
✅ Enhances Efficiency & Standardization – Helps businesses streamline service processes.
To Be Contd…
• Customer Enters Restaurant Kitchen Prepares the Food (Back-stage)
│ │
▼ ▼
Greet Welcomes & Seats Customer Waiter Serves Food to Customer
│ │
▼ ▼
Customer Reviews Menu & Places Order Customer Eats & Requests Bill
│ │
▼ ▼
Waiter Sends Order to Kitchen (Front-stage) Customer Pays & Leaves
│
▼
Service Blueprinting

• A service blueprint is a diagram that visualizes the relationships between

different service components — people, props (physical or digital evidence), and
processes — that are directly tied to touchpoints in a specific customer journey.
• Service blueprints give an organization a comprehensive understanding of its
service and the underlying resources and processes — seen and unseen to the
user — that make it possible.
Benefits-

• Discover weaknesses-Blueprints are treasure maps that help businesses discover weaknesses. Poor user experiences are often
due to an internal organizational shortcoming — a weak link in the ecosystem. While we can quickly understand what may be wrong
in a user interface (bad design or a broken button), determining the root cause of a systemic issue (such as corrupted data or long
wait times) is much more difficult.
• Identify opportunities for optimization-blueprints help identify opportunities for optimization. The visualization of relationships
in blueprints uncovers potential improvements and ways to eliminate redundancy. For example, information gathered early on in the
customer’s journey could possibly be repurposed later on backstage. This approach has three positive effects: (1) customers are
delighted when they are recognized the second time — the service feels personal and they save time and effort; (2) employee time
and effort are not wasted regathering information; (3) no risk of inconsistent data when the same question isn’t asked twice.
• Bridges crossdepartment efforts-Blueprinting is most useful when coordinating complex services because it bridges
crossdepartment efforts. Often, a department’s success is measured by the touchpoint it owns. However, users encounter many
touchpoints throughout one journey and don’t know (or care) which department owns which touchpoint. While a department could
meet its goal, the big-picture, organization-level objectives may not be reached. Blueprinting forces businesses to capture what
occurs internally throughout the totality of the customer journey — giving them insight to overlaps and dependencies that
departments alone could not see.
Key Elements of
a Service
Blueprint-
To Be Contd…
• Customer Actions-Steps, choices, activities, and interactions that customers perform while interacting with a
service to reach a particular goal. Customer actions are derived from research or a customer-journey map.

• Frontstage Actions-Actions that occur directly in view of the customer. These actions can be human-to-human
or human-to-computer actions. Human-to-human actions are the steps and activities that the contact employee
(the person who interacts with the customer) performs. Human-to-computer actions are carried out when the
customer interacts with self-service technology (for example, a mobile app or an ATM).

• Backstage Action-Steps and activities that occur behind the scenes to support onstage happenings. These
actions could be performed by a backstage employee (e.g., a cook in the kitchen) or by a frontstage employee
who does something not visible to the customer (e.g., a waiter entering an order into the kitchen display system).

• Supporting Processes-Internal steps, and interactions that support the employees in delivering the service.
To Be Contd…

• Lines-In a service blueprint, key elements are organized into clusters with lines that
separate them. There are three primary lines:

1. The line of interaction depicts the direct interactions between the customer and
the organization.
2. The line of visibility separates all service activities that are visible to the customer
from those that are not visible. Everything frontstage (visible) appears above this
line, while everything backstage (not visible) appears below this line.
3. The line of internal interaction separates contact employees from those who do
not directly support interactions with customers/users.
 Identify Failure Points

• The next step is to identify failure points in the process. A failure point is a place
where issues can occur. Failure can be caused by human error, equipment failure, etc.
• Identifying failure points is key to improving the service process. It also helps in
creating contingency plans for when things go wrong.
• Examples of failure can be a lack of:

 Staff to handle customer demands

 The right tools to finish the job

 A clear understanding of the process

Failure Proofing

• After identifying the process failure points, the next step is to failure-proof them. Failure-
proofing involves making changes to the process to prevent failures from happening.
• There are different ways to failure-proof a service process.

• Some standard methods include:

• Adding additional staff to handle customer demands

• Providing more training to employees

• Installing better equipment or tools

• Creating more precise instructions for the process

Setting Service Targets

• The next step is to set service targets. Service targets are goals that businesses
want to achieve. They can be customer satisfaction, quality, speed of service,
etc.
• Setting service targets is important because it helps track progress, ensure goals
are met, and identify areas for modification.
Service Process Redesign

• Once service targets have been set, the next step is redesigning the process to meet those
targets. Processes are redesigned to improve quality, speed of service, customer
satisfaction, etc.
• This step can change:

• The way tasks are performed

• The order of tasks

• The tools and equipment used

• The training provided to employees

• The customer interface

Managing Customers Effectively

• When it comes to providing service, managing customers is the key. Customers can be valuable assets or liabilities.
Knowing how to manage them effectively is important so they become assets.
• There are many ways to manage customers effectively.
• Below are steps to follow.
• Recruitment and Selection: Recruit people with the right skills and attitude for the job.
• Job Analysis: Understand the job and customers’ requirements.
• On-boarding: Train customers on how to use the service.
• Coaching and Feedback: Provide coaching and feedback to help customers improve their performance and give them
opportunities to develop their skills further.
• Motivate the Best Performer: Recognize and reward good performance. Help them see how their efforts contribute to
the company’s success.
• Appraisal: Review customer performance regularly. Take action to improve their performance if necessary.
Services Buying Decision Process
The buying decision process refers to the steps a consumer takes before purchasing a service. It helps businesses understand
customer behavior and improve marketing strategies.
1) Problem Recognition or Need Recognition-The consumer recognizes a need or problem that requires a solution. This can be
triggered by internal (hunger, boredom, personal desire) or external factors (advertisements, peer influence).
2) Information Search-The consumer gathers information about possible solutions. Sources include: Personal experience
(previous purchases) Online research (Google, reviews, blogs) Friends & family recommendations Advertisements & social
media Brand websites & customer testimonials
3) Evaluation of Alternatives-The consumer compares different brands, models, or service providers. The consumer compares
different brands, models, or service providers. The consumer compares different brands, models, or service providers. Key
factors:Price Quality & features Brand reputation Customer reviews Availability of discounts or promotions
4) Purchase Decision-The consumer makes a final decision of purchasing. Factors that influence this decision: Availability of
offers (discounts, EMI options) Brand trust Customer service experience Urgency (limited stock, limited-time offer)
5) Post-Purchase Evaluation-The consumer evaluates their experience with the product or service. Positive experience →
Repeat purchases, brand loyalty, recommendations. Negative experience → Complaints, refunds, bad reviews, switching brands
Different Perspectives in Service
Buying Behavior

2. Service 3.
1. Consumer
Provider Psychological
Perspective
Perspective Perspective

6. Digital &
5. Cultural & Technological
4. Economic
Social Perspective
Perspective
Perspective
1. Consumer Perspective
• This perspective focuses on how individual customers make decisions based on personal
needs, emotions, and experiences.
• Factors Influencing Consumer Service Buying Behavior:

• ✅ Personal Needs & Preferences: Customers seek services that match their lifestyle
(e.g., fitness centers, spa treatments).
✅ Perceived Risk & Trust: Since services are intangible, consumers rely heavily on
reviews and recommendations.
✅ Price Sensitivity: Consumers may compare service providers based on cost, especially
for discretionary services (e.g., travel, entertainment).
✅ Convenience & Accessibility: Online booking, home delivery, and 24/7 availability
influence choices.
2. Service Provider Perspective

• From the provider’s side, the focus is on how to attract and retain customers by offering high-
quality, differentiated services.
• Key Business Strategies:

• ✅ Branding & Reputation Management: Businesses build trust through testimonials, ratings,
and consistent service quality.
✅ Customer Relationship Management (CRM): Service providers personalize offers based on
customer history and preferences.
✅ Service Customization & Value Addition: Adding features like loyalty programs, free
consultations, or flexible payment options.
✅ Technology Integration: AI chatbots, online scheduling, and mobile apps improve user
experience.
3. Psychological Perspective

• This perspective explores the emotions, perceptions, and decision-making

processes of consumers when purchasing services.
• Psychological Factors in Service Buying:

• ✅ Perceived Risk: Unlike products, services cannot be returned if unsatisfactory, so

consumers are more cautious.
✅ Social Influence: Friends, family, and social media reviews strongly impact decisions.
✅ Emotional Connection: Services like counseling, coaching, or luxury hospitality rely on
emotional appeal.
✅ Brand Loyalty & Habitual Buying: Customers often stick to a familiar service provider
if past experiences were positive.
4. Economic Perspective

• This perspective looks at how financial factors impact service buying behavior.

• Economic Influences on Service Consumption:

• ✅ Income Levels: High-income consumers may opt for premium services, while budget-
conscious buyers seek affordable alternatives.
✅ Pricing Strategies: Businesses may use discount offers, bundled services, or tiered
pricing to attract different customer segments.
✅ Perceived Value vs. Cost: Consumers weigh the benefit of the service against the
price paid.
✅ Economic Conditions: During a recession, consumers cut back on non-essential
services (e.g., luxury travel, fine dining).
5. Cultural & Social Perspective

• This perspective examines how society, culture, and traditions influence service
consumption.
• Cultural & Social Factors in Service Buying:

• ✅ Cultural Norms & Traditions: In some cultures, services like astrology, religious ceremonies,
or arranged marriage matchmaking are common.
✅ Social Class & Status: High-status individuals often prefer premium services like personal
concierge or private banking.
✅ Peer & Community Influence: Word-of-mouth and social recommendations impact buying
behavior.
✅ Globalization & Changing Trends: Exposure to international brands influences preferences
for services like food delivery, online education, and entertainment.
6. Digital & Technological Perspective

• The rise of digital transformation has changed how consumers buy services.

• Technology-Driven Buying Behaviors:

• ✅ Online Research & Reviews: Consumers trust platforms like Yelp, TripAdvisor, and Google
Reviews before selecting a service.
✅ Subscription-Based Models: Services like Netflix, Spotify, and cloud storage rely on
monthly or annual subscriptions.
✅ On-Demand Services: Ride-sharing, food delivery, and home services offer instant access.
✅ AI & Chatbots: Businesses use AI-driven chatbots to assist customers in selecting the right
service.
• .
Risk in buying behaviour

• 1. Functional Risk (Performance Risk)

• 🔹 Definition: The risk that the service may not meet expectations or fail to deliver promised
benefits.
🔹 Consumer Concern: "Will this service actually work for me?"
• ✅ Example:

• A student enrolling in an online course fears that the content may not be useful or engaging.

• A customer books a spa treatment but worries it won’t be relaxing or effective.

• 🔹 Risk Reduction Strategy:

• Businesses can offer free trials, service guarantees, or testimonials to assure quality.
2. Financial Risk

• 🔹 Definition: The risk of losing money if the service is too expensive or does not provide value.
🔹 Consumer Concern: "Is this service worth my money?"
• ✅ Example:

• A small business owner hesitates to hire a marketing agency fearing they won’t get a good
return on investment.
• A person is unsure whether to pay for a premium gym membership if they might not use it
regularly.
• 🔹 Risk Reduction Strategy:

• Offering money-back guarantees, flexible payment options, or promotional discounts.

3. Psychological Risk

• 🔹 Definition: The risk of emotional distress or regret after purchasing the service.
🔹 Consumer Concern: "Will I feel good about this decision?"
• ✅ Example:

• A person signs up for a personal coaching session but fears feeling uncomfortable or
unmotivated.
• A customer books a high-end salon service but later worries that it wasn’t necessary.

• 🔹 Risk Reduction Strategy:

• Providing customer testimonials, trial sessions, and clear service descriptions to

set realistic expectations.
4. Social Risk

• 🔹 Definition: The risk that a service choice may affect a person's reputation or social status.
🔹 Consumer Concern: "What will others think about my decision?"
• ✅ Example:

• A professional considers enrolling in an online degree program but worries about its
credibility.
• A person books a budget airline but feels concerned about how others might perceive it.

• 🔹 Risk Reduction Strategy:

• Businesses should build strong branding, certifications, and social proof to assure
credibility.
5. Time Risk

• 🔹 Definition: The risk that the service may waste time due to inefficiency or delays.
🔹 Consumer Concern: "Will this service be worth my time?"
• ✅ Example:

• A traveler books a tour package but worries the itinerary might be poorly planned.

• A customer hires a repair service but fears it will take longer than expected.

• 🔹 Risk Reduction Strategy:

• Ensuring clear service timelines, on-time delivery guarantees, and

streamlined booking processes.
6. Physical Risk (Health & Safety Risk)

• 🔹 Definition: The risk that the service could cause harm, injury, or discomfort.
🔹 Consumer Concern: "Is this service safe for me?"
• ✅ Example:

• A person thinking about getting laser hair removal fears side effects.

• A traveler hesitates to book an adventure sports package due to safety concerns.

• 🔹 Risk Reduction Strategy:

• Ensuring safety certifications, trained professionals, and liability insurance.