4 Strategy For Formulating A Plan
- 1. “ Managers do not control the quality of the product when the product is a service . . . . The quality of the service is in a precarious state – it is in the hands of the service workers who ‘produce’ and deliver it.” -Karl Albrecht
- 2. The strategy for developing a customer service framework Customer Care Week Four
- 3. Objectives Describe a service culture
- 4. Learning Criteria Explain the central role of the customer in a business and services environment
- 5. Five key components of a strategy
- 6. Strategy: A plan for positive action.
- 7. Planning: Finding a recognizable direction to focus on. More specifically, planning is the establishment of specific customer service goals.
- 8. Importance of Infrastructure Customer service depends on the existence of an appropriate infrastructure.
- 9. Infrastructure: Made up of the networks of people, physical facilities, and information that support the production of customer service.
- 10. Culture: Composed of the values, beliefs, and norms shared by a group of people.
- 11. Examples of Culture in Hospitality Typical workday hours Industry ‘lingo’ Peer accountability Teamwork High levels activity ‘pinch points’ Low wages Transitory staff
- 12. Service Culture ‘ a culture where an appreciation for good service exists, and where giving good service to internal and external customers is considered a natural way of life and one of the most important norms for everyone’ (Gronroos C)
- 13. Three Ways to Create a Customer Friendly Culture Practice the Golden Rule. View internal customers as number one. Work hard, play hard.
- 14. Management Focus Developing a service culture Front Line Contact Decision making decentralised Empowerment Flexibility Performance & Feedback
- 15. High-touch customers: Requires a high level of customer interaction.
- 16. Examples of High Touch Bank lobbies Specialty stores Hotel lobbies Purchase of real estate Lawyers and accountants Prestige restaurants
- 17. Low-touch customers: Expect a low level of customer service.
- 18. Examples of Low Touch Self check-in Automatic teller machines Express rental car checkout Hotel bill viewing on television and express checkout Pay-at-the-pump petrol Fast-food drive-up windows Serve yourself buffet Online bill paying Online account management
- 19. Consumption behavior: Refers to the customer’s usage and payment patterns.
- 20. When identifying consumption behaviour, ask the following:
- 21. When identifying consumption behaviour, ask the following: What are customers buying? Why did they buy it? Why did they buy more today that they did in our last interaction? Why did they call with a question? What was their question? How much did they buy? Have they bought from us before? How did they pay? When will they be installing/assembling the product? What else have they bought recently?
- 22. Guidelines for Creating a Strategy Segment your customers. Identify the largest and most profitable customer groups. Determine your customers’ expectation. Develop a plan to achieve their expectations efficiently. Implement the plan. Set an evaluation timeline. Evaluate and continue to improve the strategy.
- 23. Market Segmentation: Dividing customers into groups with similar characteristics.
- 24. Sample Customer Service Segments Types of service needed or desired Similarities among your current customers Peak hours of your business and the specific customers doing business at those times. The among of service desired Creation of your own segments that are appropriate to your product or service
- 25. Customer Attributes: Characteristics that allow customers to be categorized according to demographic, psychographic, or firmographic information.
- 26. In class Subway customers Who are they?
- 27. Demographic information: Characteristics such as:
- 28. Demographic information: age income marital status education stage in the family life cycle home ownership sex ZIP code occupation household size mobility patterns ethnic background religion Characteristics such as:
- 30. Psychographic information: lifestyles modes of living needs motives attitudes reference groups culture social class family influences hobbies political affiliation etc.
- 31. Firmographic information: Characteristics about a company such as: how many employees they have the kind of business they are in whether they are retail, wholesale, or a service provider their hours of operation
- 32. Factors Influencing Consumer Behaviour © 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
- 33. Psychological Factors Motivation Maslow’s Theory of Motivation Sought to explain why people are driven by particular needs at particular times Herzberg’s Theory A two-two factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction)
- 35. What might be the potential management problems associated with allowing service employees to exercise judgement in meeting customer needs? Does Empowerment lead to Organisational commitment? ……… .For everyone?
- 36. Seminar (from last week) Evaluate brochures in terms of tangibilising Price of 5 star hotel this weekend one night inc breakfast
- 37. Next Week Branding – each group identify their favourite brand and why?