Customer role in service delivery

PPT

1. CUSTOMERS’ ROLE IN SERVICE DELIVERY RADHIKA GUPTA 32-MBA -14 HANUL VIDIT

2. CUSTOMERS’ ROLE IN SERVICE DELIVERY Service is all about experience. In “ The future of competition ” Venkat Ramaswamy says active customer interaction creates a far higher value than a static product offer. Its not just about putting customer at the centre, but experience. Its about creating value together.

3. CUSTOMERS’ ROLE IN SERVICE DELIVERY 3. S ervice delivery is all about customer driven approach, unlike the 4P’s approach which is product driven focusing on 4A’s : A wareness, A vailability , A ccessibility, A ffordability Customers play a very vital role in successful delivery of service as customers are often present in the place where service is produced (Delivered) Customers alone can influence whether the delivered service is as per customer defined specifications. Other customers who are present in the Service scape can also influence the Service positively or negatively.

4. THE IMPORTANCE OF CUSTOMERS IN SERVICE DELIVERY Low: Consumer Presence Required during Service Delivery Products are standardized Service is provided regardless of any individual purchase Payment may be the Only required customer Input. End Consumer Examples Airline travel Motel stay Fast-food restaurant Business–to Business Customer Examples Uniform cleaning service Pest control Interior greenery maintenance service Moderate: Consumer Input Required for Service Creation Client inputs customize a standard service Provision of service requires customer Purchase Customer inputs ( information materials) Are necessary for an adequate outcome, but the service firm provides the service Haircut Annual Physical exam Full-service restaurant Agency created advertising Campaigning Payroll service Freight transportation High: Customer Co creates the Service Product Active client participation guides the customized service. Service cannot be created apart from the customer’s purchase and active participation. Customer inputs are mandatory And cocreate the outcome. Marriage Counseling Personal training Weight reduction program Major illness or surgery Management consulting Executive Management seminar Installation of computer network. Level of Customer Participation:

5. LEVEL OF CUSTOMER PARTICIPATION The level of participation of customers varies from Service to Service. In “High level of participation.” Eg . B to B projects like providing software solutions & consultancies. In “Moderate level of participation” customers inputs are necessary to facilitate effective delivery of service.

6. LEVEL OF CUSTOMER PARTICIPATION In entertainment service very “low level of participation” is required. Service provider provides the Service & only the customer’s presence is required to avail the service In many Service deliveries other customers also affect the service delivery in a positive or negative way. This can influence the customer’s perceptions of Service quality and affect customer satisfaction.

7. HOW CUSTOMERS WIDEN GAP 3 Lack of understanding of their roles Not being willing or able to perform their roles No rewards for “good performance” Interfering with other customers Incompatible market segments

8. STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION Define customers’ job Helping oneself: through active participation, customers may become productive resources. Helping others: mentoring programs in university. Promoting the company: recommendation Individual differences: not every one want to participate

9. STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION Recruit, educate and reward customers Recruit the right customers who are comfortable with roles and communicate responsibilities. Educate and train customers through socializing org. values, abilities and skills, customer orientation (universities), customer education (hospitals) and customer information (McDonald's) Reward customers for their contributions Avoid negative outcomes of inappropriate customer participation

10. STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION Manage the customer mix Compatibility management: a process of first attracting homogeneous consumers to the service environment, then actively managing both the physical environment and customer to customer encounters in such a way as to enhance satisfying encounters and minimizing dissatisfying customers. Strategies: Homogeneous customers Locational proximity Codes of conduct ( dresses and smoking attitudes)