Copy of Service Guarantee

8/9/2019 Copy of Service Guarantee

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Compiled by P S Kar

Moments of Truth

uEach customer contact is called a moment

of truth.

uYou have the ability to either satisfy ordissatisfy them when you contact them.

u

A service recovery is satisfying apreviously dissatisfied customer and

making them a loyal customer.


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Dimensions of Service Quality

uReliability: Perform promised service

dependably and accurately. Example:

receive mail at same time each day.

uResponsiveness: Willingness to helpcustomers promptly. Example: avoid

keeping customers waiting for no apparent

reason.


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Dimensions of Service Quality

uAssurance: Ability to convey trust and

confidence. Example: being polite and

showing respect for customer.

uEmpathy: Ability to be approachable.Example: being a good listener.

uTangibles: Physical facilities and

facilitating goods. Example: cleanliness.


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Perceived Service Quality

Word ofmouth

Personalneeds

Pastexperience

Expectedservice

Perceivedservice

Service QualityDimensions

ReliabilityResponsiveness

AssuranceEmpathyTangibles

Service Quality Assessment1. Expectations exceeded

ESPS (Unacceptable quality)


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Gaps in Service Quality

Word -of-mouthcommunications

Personal needs Past experience

Expected service

External communicationsto consumers

Perceived service

Service delivery (includingpre- and post-contacts)

Translation of perceptions intoservice quality specifications

Management perceptions ofconsumer expectations

GAP 5

GAP 3

GAP 2

GAP 1 GAP 4

Customer

Provider


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Classification of Service Failures

with Poka-Yoke Opportunities

Server Errors

Task:

Doing work incorrectly

Treatment:Failure to listen to customer

Tangible:

Failure to wear clean uniform

Customer Errors

Preparation:

Failure to bring necessary

materials

Encounter:

Failure to follow system flow

Resolution:

Failure to signal service

failure


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House of Quality

Importance

elative1 2 3 4 5Customer Expectations

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Comparison with Volvo Dealer

Weighted score

Improvement difficulty rank

O O

O Weak

Medium

* Strong

9

9

9

TrainingAttitude Capacity Informatiion Equipment8

7

7

6 6

5 5

5

5

4

4

3 3

3

3

2

2 2

2

+

_

+

Customer Perceptions

o

+

+

+

o

o

o

o

+

o

o

o

o

o

o Village Volvo

+ Volvo Dealer

Service Elements

Relationships

127 82 63 102 65

1

* *


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Service Process Control

Resources

Identify reasonfornonconformance

Establishmeasure ofperformance

Monitorconformance torequirements

Takecorrective

action

Serviceconcept

Customerinput

Customeroutput

Service

process


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Unconditional Service Guarantee:

Customer View

uUnconditional (L.L. Bean)

uEasy to understand and communicate

(Bennigans)

uMeaningful (Dominos Pizza)

uEasy to invoke (Cititravel)

uEasy to collect (Manpower)


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Unconditional Service Guarantee:

Management View

uFocuses on customers (British Airways)

uSets clear standards (FedEx)

uGuarantees feedback (Manpower)

uPromotes an understanding of the service

delivery system (Bug Killer)

uBuilds customer loyalty by making

expectations explicit


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Customer Feedback and Word-

of-Mouth

u The average business only hears from 4% of their customers who aredissatisfied with their products or services. Of the 96% who do not botherto complain, 25% of them have serious problems.

u The 4% complainers are more likely to stay with the supplier than are the96% non-complainers.

u About 60% of the complainers would stay as customers if their problemwas resolved and 95% would stay if the problem was resolved quickly.

u A dissatisfied customer will tell between 10 and 20 other people abouttheir problem.

u A customer who has had a problem resolved by a company will tell about5 people about their situation.


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Number of People Told Based

on Level of Dissatisfaction

Average number of people told

0

5

10

15

20

25

30

Slight

diss

A nnoyed Very

annoyed

Ext

annoyed

Abs

furious


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Action Taken Based on Level of

Dissatisfaction

0

20

40

60

80

100

Slightly

diss

Annoyed Very

annoyed

Ext

annoyed

Abs

furlous

Tell fr iends

Complain

Make a fuses

Not use again

Dissuade others

Complain against

Percent of customers that take action


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Approaches to Service Recovery

u Case-by-case addresses each customers

complaint individually but could lead to

perception of unfairness.

u Systematic response uses a protocol to handle

complaints but needs prior identification ofcritical failure points and continuous updating.

u Early intervention attempts to fix problem before

the customer is affected.

u Substitute service allows rival firm to provideservice but could lead to loss of customer.


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Making Customers into Champions

easy

Walking wounded Champions

Could complain but dont; Active in providing

not happy but repurchase British Airways with

information on quality

of its services; loyal

Remain Loyal

Defect

Missing in action Detractors

Defected; Defected;

non-complaining vocally critical

not easydont complain complain

Propensity to contact British Airways

How

easycustomersfeel

itisto

contactBritishAirways

Copy of Service Guarantee

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