A STUDY OFA STUDY OFTHE THE

CUSTOMER CUSTOMER SATISFACTION SATISFACTION

ON ON SERVICES OFFERED SERVICES OFFERED

BY FMCG RETAIL STORES BY FMCG RETAIL STORES

ByTwinkle K AntonyUllas UdayakumarViniprasadVinayraj BVipindas KCVishnu Jayan

A Brief Through . . . A Brief Through . . .

Introduction and Background

Service Marketing Mix

Service Gaps

Positioning & Differentiation

Service Quality Model – RATER

Role of Customers & Employees

Customers Satisfaction Survey – NPS

Growth Plan & Challenges

Introduction & BackgroundIntroduction & Background

A Service Provider (Retailer) services the needs of large number of individuals

Inception long back from un-organized retail stores in Village Fairs, Melas etc.

Major Share in GDP – expected 20%+

Expected Value – 2 Lakh Crores rupees according to Ministry of Commerce & Industry

Expected Employment – 10 – 15 jobs in 5 yrs

Major Players – Tata, Future, Reliance,

Public Sector Outlets etc. etc.

Service Marketing Mix Service Marketing Mix ––The 7 PsThe 7 Ps

Product – Here the Services being offered

Prices

Promotion

Place

Process

Physical Evidence

People

The 3 Ps of

Service Marketing

The 3 Ps of Service Marketing The 3 Ps of Service Marketing

Process

◦ Systems used for Service Delivering

◦ Faster Customer Response

◦ Should match with the Service Provided

◦ Should match with the Local Culture

◦ ‘Self – Service’ in Retail Sores

◦ Should be adaptable

◦ Customer Attraction Schemes

◦ Use of Technology for ease of shopping

◦ Customer Redressal Mechanisms

Physical Evidence

◦ Where is the Service being delivered?

◦ Allows Customer’s Judgment on Organization

◦ The ‘Ambience’ should be there

◦ Customer Perceptions created

◦ Shop Layout, Lighting, Packaging, Displaying,

In-Shop POPs, Staff Uniform, The Bill etc. etc.

People

◦ Right type of Staff

◦ Right number of Staff

◦ Interpersonal Training must be given

◦ Proper Aptitude & Service Knowledge

necessary for staff

◦ Staff can ‘ Make or Break’

◦ Customer also need to know his responsibility

◦ Need of proper ‘Feedback’ from Customer

ServicescapesServicescapes

Impact of Physical Environment in which the Services are being offered.

One-Stop-Shop for all purchases – Groceries, Fresh Fruits and Vegetables

Shop Layout – Lighting, Displays, In Shops etc.

Arrangement of items in display racks, cooled racks, freezers

Categorized arrangement of items

‘Self – Service’ system – customer can choose his product in any quantity

Freedom to spend time in the store

Trained employees

Uniformed Employees

Monitoring of Service Encounter

Offers – during off seasons also

Membership Cards for Customers

Packings etc. etc.

Good memory of the Service Encounter

to the Customer

Service GapsService Gaps

Customer Gap

Expected Service

Perceived Service

Provider Gaps

◦ Knowledge Gaps

not knowing what the Customer Expects

◦ Service Design & Standard Gap

not having the right service designs & standards

◦ Service Delivery Gap

not delivering to standards

◦ Communication Gap

not matching performances to promises

Provider Gap LocatedProvider Gap Located

Communication Gap

◦ Promises and Performances not matched

◦ Customers given over-expectations in factors

like Price

◦ Conditional advertisements

Market PositioningMarket Positioning

Advertising on TV, on billboards, in magazines and in other media outlets

Stores have special offers, promotions and point of sale posters to attract those inside the stores to buy

Promotional Mix

◦ Advertisements – TV, Print, Radio, hoardings

◦ Events/programs – Big Bazaar in GKSF

◦ Seasonal Sales Promotions – Special Packages during Onam, Diwali etc.

Service DifferentiationService Differentiation

Very difficult to differentiate due to

intangibility factor

Servicescapes

Introducing exclusive ‘House Brands’ at

low prices like ‘DJ & C’ and ‘Koryo’ of Big

Bazaar

Sweepstakes, Scratch-N-Wins, Discounts,

Offers, Bundles etc. etc.

Service Quality Model Service Quality Model -- RATERRATER

Reliability

Assurance

Tangibility

Empathy

Responsiveness

Reliability

◦ Majority of the players are Reliable

◦ Major factor in Service Differentiation

◦ Efforts for delivering best service encounter

experience

Assurance

◦ Ensure best prices

◦ Ensure best quality

◦ Ensures best ‘purchase experiences’

◦ Ensures best store interactions

◦ Ensures best ambience

Tangibility

◦ Packings bearings Brand Logo

◦ Souvenirs

◦ Gift Vouchers through third parties

◦ Free Samples, Gifts etc.

◦ Bill Slips

◦ Pamphlets, Brochures etc.

◦ Happy Calls, SMSs etc.

Empathy

◦ Price tags

◦ Ensuring In-Shop Customer Assistance

◦ Well trained employees

◦ Fast customer redressal mechanisms

◦ Performance as Promised

◦ Customer Privacy

◦ Value Customer Relations

Responsiveness

◦ Willful Helping and Courtesy

◦ Personal Attention to Customers

◦ ‘No Grumbling’ Policy of More Retail

◦ Employee Discipline

◦ On-time Customer Redressal

Role of Customers to improve Role of Customers to improve

the Quality of Service Deliverythe Quality of Service Delivery

Responsibility of Customers to give

proper feedback

Customer must demand for what is being

promised

Customer must understand the

differentiations and should respond

Role of Employees to improve Role of Employees to improve

the Quality of Service Deliverythe Quality of Service Delivery

Employee is the ‘Maker or Breaker’

Interpersonal Skills much important

Personalized Business

Service Encounters must be made

memorable

Must aim Customer Loyalty

Customer Satisfaction SurveyCustomer Satisfaction Survey

Went with ‘Net Promoter Score’

Approach

Growth Plans & ChallengesGrowth Plans & Challenges

Trends

Growing Trends – in Inflection Point

Expected Value – 2 Lakh Crores rupees

Aims for 30%+ of GDP

10 – 15 Lakhs employments in 5 years

Challenges

Increase in organized retail players

Liberalization in FDI terms

Change in Customer Outlook

Growth of ‘Etailing’

ConclusionConclusion

Concluding with a Success Mantra

“ The highest compliment that our

customer can give is the referral of

their friends and family”