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Part 6

MANAGING SERVICE PROMISES

MANAGING SERVICE PROMISES

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Provider Gap 4

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Key Factors Leading to Provider Gap 4

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Integrated Services Marketing Communications

The Need for Coordination in Marketing Communication

Key Service Communication Challenges

Five Categories of Strategies to Match Service Promises with Delivery

ChapterChapter

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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Objectives for Chapter 16:Integrated Services Marketing Communications

Discuss the key service communication challenges.

Introduce the concept of integrated service marketing communications.

Discuss ways to integrate marketing communications in service organizations.

Present specific strategies for addressing service intangibility, managing promises, managing customer expectations, educating customers, and managing internal communications.

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Communications and the Services Marketing Triangle

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Integrated Services Communications

Integrated Services Communications a strategy that carefully integrates all external and internal

communication channels to present a consistent message to customers

This means coordination across: sales and service people print Internet other forms of tangible communication including the servicescape

How is this done in services? advertising sales presentations service encounters with employees servicescape and other tangibles Internet and web presence

public relations pricing service guarantees customer education

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Five Major Approaches to Overcome Service Communication Channels

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(1) Approaches for Addressing Service Intangibility Use narrative to

demonstrate the service experience

Present vivid information Use interactive imagery Focus on the tangibles Use brand icons to make

the service tangible Use association, physical

representation, documentation, and visualization

Feature service employees in communication

Use buzz or viral marketing Leverage social media Aim messages to

influencers Create advertising that

generates talk because it is humorous, compelling, or unique

Feature satisfied customers in the communication

Generate word-of-mouth through employee relationships

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Services Advertising Strategies Matched with Properties of Intangibility

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(2) Approaches for Managing Service Promises

Create a strong service brand

Coordinate external communication

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Service Branding Model

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(3) Approaches for Managing Customer Expectations

Make realistic promises

Offer service guarantees

Offer choices

Create tiered-value service offerings

Communicate the criteria and levels of service effectiveness

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(4) Approaches for Managing Customer Education

Prepare customers for the service process

Confirm performance to standards and expectations

Clarify expectations after the sale

Teach customers to avoid peak demand periods and to seek slow demand periods

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(5) Approaches for Managing Internal Marketing Communication

Create effective vertical communications Sell the brand inside the company Create effective upward communication Create effective horizontal communications Align back-office and support personnel with

external customers through interaction or measurement

Create cross-functional teams of sales, service, and operations people when developing new services or engaging in service improvements

Maintain a customer focus throughout all functions

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Interactive Imagery: Travelers

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Service Brand Icon: The GEICO Lizard

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Focusing on Tangibles Associated with the Service: The Sierra Club

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Best Practices for Closing the Communication Gap (Gap 4)

Employing integrated services marketing communication strategies around everything and everyone that sends a message or signal.

Manage customer expectations effectively throughout the experience.

Develop mechanisms for internal communication to avoid over-promising and ensure successful delivery.

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Source: http://www.newdhl.com/advertising.asp?cid=dhlbt1hmpg1

DHL’s Integrated Marketing Campaign

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DHL’s Outdoor Advertising

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DHL’s Print Advertising

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DHL’s Print Advertising Links to Employees

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Service Brand Icons

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“Relax, It’s FedEx” Campaign

Campaign objective: demonstrate that FedEx’s portfolio of services will help

businesses meet their needs more effectively

Aimed at all businesses: from small businesses to corporate customers

Integrated marketing communications campaign involves TV, print, and radio ads the message: the reliability that customers have come to

expect is now more certain than ever, so they can “relax”

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FedEx Print AdvertisementsAd copy:

Keeping costs down is the most important thing.Right after the 107 other things. Give your customers what they want, when they want it with FedEx Ground and the vast FedEx® transportation portfolio. It's a variety of services that is sure to meet your variety of transportation needs. Like giving you product visibility throughout the delivery process via FedEx InSight® so you can increase customer expectations and customer service all while keeping costs down. To find out everything we can do for you call 1.800.Go.FedEx (1.800.463.3339).

distribution.fedex.com/01

Relax, it's FedEx.

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FedEx Print AdvertisementsAd copy:

Make your customers happy, even when they're not. Turn dissatisfied customers into customers who come back. FedEx Ground and the FedEx® transportation portfolio can give you a returns process that's easy for your customers and cost effective for you. Giving the customer what they want, when they want is a must. No matter how many tries it takes. To find out what we can do for you call 1.800.Go.FedEx (1.800.463.3339).

retail.fedex.com/03

Relax, it's FedEx.

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FedEx Website

www.fedex.com easy to use ties in with whole value proposition of campaign

Print ads drive customers to websites with information on how FedEx provides solutions for specific industries: retail, wholesale, apparel

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Sports Sponsorship

Does not tie in directly with the “Relax, It’s FedEx” campaign, but increases brand awareness

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FedEx: Metrics for IMC Campaign

FedEx must be able to evaluate the effectiveness of integrated marketing communication campaign customer surveys and focus groups about brand

awareness number of telephone inquiries number of website hits and click-throughs number of shipments by customer segment growth in sales since campaign inception

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FedEx: IMC Campaign Effectiveness

Consistency of messageUse narratives to demonstrate service

experiencePresents vivid informationPromises what is possibleEncourages word-of-mouth communication Indirectly features service customers

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FedEx: Internal Communications

Service employees must be well versed in what ads are promising

Knowledge of services offered across the organization call centers web design e-mail response mechanisms InSight (new service offered)

Cross-functional communication operations public relations/marketing