Service Process

Service Process

Overview

The service process encompasses the way services are delivered to customers. It is crucial for ensuring that service systems operate efficiently, effectively, and competitively. The marketing implications of operational performance are significant because they influence customer perceptions and satisfaction.

Marketing and Operations Collaboration

• Importance: In service organizations, marketing and operations must work closely together. While marketing focuses on customer needs and expectations, operations handle the actual service delivery process. Effective service delivery is essential for fulfilling customer expectations and providing a competitive edge.
• Customer Expectations: Customers have varying levels of expectations based on their past experiences, information, and current circumstances. They may adjust their expectations downward if they perceive that the service environment is less favorable (e.g., crowded conditions). Understanding the minimum acceptable level of service is important because falling below this threshold can lead to dissatisfaction and negative word-of-mouth.

Operations Management

• Definition: Operations management involves the planning, organizing, and controlling of resources to produce goods and services. The goal is to add value and utility to inputs through a transformation process, which involves converting raw materials and resources into finished products or services.
• Focus: Operations management in services is not limited to manufacturing but includes the delivery of intangible products. Effective operations management aims to improve efficiency, quality, and customer satisfaction.

Classification of Service Operating Systems

• By Type of Process
  • Line Operations: These involve a sequential arrangement of activities to produce a service. Each step is predetermined, and the service is delivered in a standardized manner.
    • Example: Self-service restaurants where customers follow a set procedure to get their food. This method is efficient but may lack personalization.
  • Job Shop Operations: This approach allows for customization and flexibility. Services are tailored to individual customer needs using different combinations and sequences of activities.
    • Example: A law firm or a tailor’s shop. These settings can handle diverse requests but may face challenges with scheduling and capacity planning.
  • Intermittent Operations: These are typically one-time or infrequent projects that require significant planning and coordination.
    • Example: The construction of a new building or the development of a large-scale marketing campaign. Managing these projects involves complex scheduling and control techniques, such as Critical Path Analysis (CPA).
• By Degree of Contact
  • High Contact Systems: Services with significant customer interaction. Managing these systems is challenging due to the variability introduced by customers.
    • Challenges:
      • Control: Difficult to manage the service process due to direct customer involvement.
      • Demand Fluctuation: Customers can affect service timing and demand patterns.
      • Worker Influence: Service employees can greatly impact customer perceptions.
      • Production Scheduling: More complex due to the variability in customer interactions.
      • Rationalization: Harder to implement automation or efficiency improvements.
    • Example: Healthcare services or high-end restaurants where customers interact frequently with service staff.
  • Low Contact Systems: Services with minimal customer interaction. These are easier to manage and can often be standardized.
    • Example: Online banking or automated phone services where customer contact is limited.

Customer Expectations Orientation

• Outcome Orientation: Focuses on what the customer expects to receive from the service, such as the quality or result of the service.
  • Example: The expected quality of a haircut or the accuracy of a financial report.
• Process Orientation: Focuses on how the service is delivered. Customers may have specific expectations about the process or experience.
  • Example: The smoothness of the service delivery in a restaurant or the efficiency of an online checkout process.
• Relationship Orientation: Involves expectations about interactions with service personnel and the overall relationship between the customer and the service provider.
  • Example: The level of friendliness and professionalism of staff at a hotel or the manner in which a customer service representative handles inquiries.

Kano’s Model of Customer Expectations

• Must-be Requirements: Basic expectations that must be met to avoid dissatisfaction. These requirements are taken for granted when fulfilled but cause dissatisfaction if not met.
  • Example: Availability of soap in a restroom. Its absence will cause frustration, but its presence is expected and unnoticed.
• One-dimensional Requirements: Performance-based expectations where satisfaction is directly proportional to the degree of fulfillment. Higher fulfillment leads to greater satisfaction, while lower fulfillment leads to dissatisfaction.
  • Example: Speed of service in a restaurant. Faster service leads to higher satisfaction, while slower service leads to dissatisfaction.
• Attractive Requirements: Additional features or aspects that delight customers but are not essential. These can differentiate the service from competitors.
  • Example: Receiving a complimentary drink or a special greeting. While these features delight customers, their absence does not necessarily cause dissatisfaction.

Service Script Preparation

• Purpose: A service script details how service personnel should deliver the service at each interaction point. It ensures consistency and clarity in service delivery.
  • Example: Instructions for a restaurant doorman on how to greet and assist customers, or guidelines for waitstaff on taking orders and handling complaints.
• Components:
  • Greeting: How staff should welcome and interact with customers.
  • Service Delivery: Steps for delivering the service, including handling special requests and complaints.
  • Recovery: Procedures for addressing service failures or customer dissatisfaction.
• Development: Created with input from service personnel, managers, and customers. It should be tested and refined to ensure it effectively meets customer expectations and is practical for staff to follow.

Conclusion

The service process involves careful management of how services are delivered, taking into account various factors such as customer expectations, the type and degree of contact, and operational efficiency. Understanding and applying these concepts can enhance service quality and customer satisfaction, providing a competitive advantage in the service industry.