Service marketing to e-service marketing .pptx

The challenges from service to e services industry facing and also opportunities

1. Service Quality to E-Service Quality: A journey which has transformed the business world. Understand, investigate and analyze the managerial challenges. By:- MOHD ANAS AZAD

2. Introduction The transformation from traditional service quality to e-service quality marks a significant evolution in business practices across industries. While service quality has long been a cornerstone of business success, e-service quality brings new dynamics due to the digital environment. In this report, we investigate the differences between service quality and e-service quality, explore how e-service has transformed the business world, and analyze the managerial challenges that come with this transition.

3. Evolution of the Service Industry: A Historical Perspective This presentation explores the evolution of the service industry from ancient times to the present day, highlighting key milestones and advancements.

4. 1- Pre-Industrial Era (Before 18th Century) In ancient and medieval times, economies were primarily agrarian Services existed in the form of personal or artisanal trades like blacksmithing, healing (traditional medicine), and education. these were informal and local. The emphasis was mainly on self-sufficiency, and there was little formalized service industry.

5. The industrial revolution marked a shift from agrarian to industrial economies. Manufacturing became the focus, with services like transportation, trade, and finance supporting the industry. The rise of cities increased the need for services like education, healthcare, and banking. 2- Industrial Revolution (18th – 19th Century)

6. 3- Post-Industrial Revolution (Mid 20th Century) People began spending more on education, healthcare, tourism, and entertainment. After World War II, developed economies transitioned to service-based economies. Advances in technology and global trade led to the expansion of sectors like telecommunications and financial services.

7. Services like banking, shopping, and entertainment moved online. 4- Information and Technology Age (Late 20th Century – Early 21st Century) The rise of information technology, the internet, and globalization revolutionized the service industry. Outsourcing of services, particularly IT and customer support, became common.

8. 5- E-Service Era (21st Century – Present) E-commerce, digital banking, healthcare apps, online education, and streaming services dominate the industry. The service industry has shifted further into the digital realm. Services are now personalized, available on-demand, and driven by data.

9. Service Quality: The Traditional Perspective Reliability : The ability to perform the promised service dependably and accurately. Responsiveness : Willingness to help customers and provide prompt service. Assurance :The knowledge and courtesy of employees, and their ability to convey trust and confidence. Tangibility : The physical facilities, equipment, and appearance of personnel. Service quality refers to the degree to which a service meets customer expectations. Traditionally, it has been measured using various dimensions such as reliability, assurance, responsiveness, empathy, and tangibility. Empathy : Providing caring, individualized attention to customers.

10. System Availability :The ability of the website or application to be consistently available without downtime or errors. E-Service Quality: The Digital Era Efficiency :The speed and ease with which customers can access the online service. Fulfillment :The accuracy of service delivery and how well it matches customer expectations. E-service quality emerged as businesses transitioned online due to advancements in technology. E-service quality refers to the customer’s experience when interacting with a business’s online services. The traditional dimensions of service quality were adapted for the digital context, and new factors such as ease of navigation, system availability, privacy, and trust were introduced.

11. Responsiveness (Digital Context) : The speed at which customer inquiries are handled via chat, email, or other online channels. E-Service Quality: The Digital Era Privacy :Protecting customer information from unauthorized access. Compensation : The ability of the business to rectify problems, such as incorrect orders or technical issues, in a digital environment. 04 05 06

12. Aspect Traditional Service Quality Differences between Service Quality and E-Service Quality: E-Service Quality Interaction Tangibility Responsiveness Customization Availability Face-to-face, phone, physical presence Physical surroundings and people involved Human-driven, in real-time High through personal interaction Restricted to operating hours Remote, digital interaction via websites/apps Interface design, user experience Tech-assisted, with automated or human support Algorithms-driven personalization 24/7 availability through digital platforms

13. Global Reach : Businesses are no longer limited by geographical boundaries. E-service platforms allow companies to serve customers worldwide, enabling a much larger market. 24/7 Accessibility :E-services provide customers with round-the-clock access to services, enhancing convenience. This has become a critical factor in customer retention. The Transformation of the Business World Through E-Service Quality Data-Driven Personalization : With the help of data analytics and AI, businesses can provide highly personalized experiences tailored to individual customer preferences, leading to improved customer loyalty. The rise of e-service has transformed various aspects of the business world:

14. Cost Efficiency : E-services have significantly reduced operational costs for businesses. They require fewer physical resources, lower personnel costs, and allow for automation of various processes. Faster Response Time : Digital platforms enable instantaneous feedback and resolution of customer issues. Automated tools like chatbots, FAQs, and AI-driven customer service systems streamline this process. The Transformation of the Business World Through E-Service Quality E-Commerce Boom : E-service quality has driven the exponential growth of e-commerce platforms, offering a wide array of goods and services to consumers globally.

15. Managerial Challenges in Handling E-Service Quality Transitioning to and maintaining high e-service quality involves a range of managerial challenges due to the complexity of digital environments. Below are some of the key challenges managers face: 1. Ensuring System Availability and Reliability Challenge :In e-services, system downtime or slow response times can result in significant customer dissatisfaction and lost revenue. Ensuring constant availability across time zones is crucial, especially for global businesses. Managerial Focus :Investment in reliable IT infrastructure, cloud services, and redundancy systems. Managers must implement proactive monitoring systems and have disaster recovery plans in place to minimize any potential downtime. 2. Data Security and Privacy Challenge : E-service platforms handle large volumes of sensitive customer data, from financial details to personal information. Breaches in security can lead to loss of trust, financial penalties, and legal repercussions. Managerial Focus : Managers need to ensure the implementation of strong encryption methods, regular security audits, and adherence to global data protection regulations like the GDPR. They also need to build transparent privacy policies and communicate security measures effectively to customers.

16. Managerial Challenges in Handling E-Service Quality 3. Personalizing Digital Interactions Challenge :Replicating the personalized experience of traditional face-to-face services in a digital environment is difficult. Customers still expect personalized support despite interacting with a digital interface. Managerial Focus :Using AI and machine learning tools to create personalized customer experiences through algorithms that track user preferences, behavior, and past purchases. Managers also need to ensure human support is available when personalization through automation fails. 4. Handling Customer Expectations in Real-Time Challenge :Customers expect near-instant responses in e-services, particularly when dealing with issues or concerns. Long wait times or poor response mechanisms can lead to frustration and churn. Managerial Focus :Streamlining customer service processes through AI-powered chatbots, live chat, and 24/7 customer service teams. Training teams to respond efficiently and enabling omnichannel support systems can help in providing prompt responses.

17. Managerial Challenges in Handling E-Service Quality 5. Adapting to Rapid Technological Changes Challenge : The digital landscape is constantly evolving, with new technologies, platforms, and customer expectations emerging rapidly. Falling behind in adopting new technologies can lead to a loss of competitive edge. Managerial Focus :Staying informed about emerging technologies (AI, blockchain, IoT) and their potential impact on service quality. Managers should ensure continuous learning and upskilling for their teams, investing in new tools that enhance e-service capabilities. 6. Maintaining User-Friendly Interfaces and Design Challenge :A complex or confusing user interface (UI) can result in poor user experiences, leading to customer frustration and abandonment. Customers expect smooth, intuitive navigation on digital platforms. Managerial Focus : Regular user experience (UX) testing and gathering customer feedback to identify pain points in navigation or design. Managers need to work with UX/UI experts to ensure seamless usability, especially as services expand or new features are added.

18. Managerial Challenges in Handling E-Service Quality 7. Integrating Multichannel and Omnichannel Experiences Challenge :Customers interact with businesses across multiple digital channels (website, mobile apps, social media) and expect a consistent experience. Disjointed services across channels can negatively impact the perception of e-service quality. Managerial Focus : Developing omnichannel strategies that integrate various customer touchpoints into a unified experience. Managers must ensure data synchronization across channels so that customers can switch between them without loss of continuity. 8. Managing Online Reputation and Customer Feedback Challenge :E-service businesses are highly vulnerable to public reviews, ratings, and social media feedback. Negative feedback can spread quickly, damaging the company’s reputation. Managerial Focus :Implementing real-time reputation management systems to monitor and respond to customer feedback. Managers need to develop strategies for handling negative reviews promptly and converting dissatisfied customers into loyal advocates.

19. Managerial Challenges in Handling E-Service Quality 9. Training and Developing Digital Skills for Employees Challenge : Employees in e-service roles require specialized skills to manage digital systems, customer support tools, and emerging technologies like AI and data analytics. Lack of expertise can lead to service breakdowns. Managerial Focus :Continuous investment in employee training and development, ensuring they are up to date with the latest tools, technologies, and customer service best practices. Building cross-functional teams that can handle technical and customer service demands is also crucial. 10. Balancing Automation with Human Touch Challenge :While automation (such as chatbots or AI-driven support) can improve efficiency, too much reliance on automation may alienate customers who need human support. Achieving the right balance is crucial. Managerial Focus :Managers should strategically implement automation for routine tasks but ensure that human agents are available for complex or sensitive customer queries. They should train teams to transition smoothly between automated and human-led interactions.

20. Managerial Challenges in Handling E-Service Quality 11. Delivering Consistent Quality Across Global Markets Challenge :Businesses that operate globally need to cater to diverse customer needs and expectations. Service quality levels that work in one region may not be suitable for another. Managerial Focus : Localizing services while maintaining global standards is key. Managers must tailor e-service offerings to local cultural preferences, languages, and regulations, while ensuring consistency in service quality across markets. 12. Managing Expectations for Digital Delivery and Fulfillment Challenge :Customers expect swift delivery and fulfillment of services in the digital space. Delays or inaccuracies in delivery can lead to dissatisfaction and damaged credibility. Managerial Focus :Ensuring that digital service fulfillment, whether it involves shipping products or delivering online services, is timely and meets customer expectations. Managers need to streamline logistics, track orders effectively, and offer compensation or resolution when fulfillment fails.

21. The journey from traditional service quality to e-service quality has transformed the way businesses operate and engage with customers. While e-service has brought numerous benefits like global reach, cost efficiency, and personalized experiences, it also comes with its own set of managerial challenges. Managers must focus on enhancing system reliability, ensuring data security, maintaining personalized customer experiences, and adapting to the ever-changing digital landscape. Those who successfully navigate these challenges will be able to sustain a competitive edge in the rapidly evolving digital marketplace. Conclusion

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