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Module 7
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CUSTOMER
COMPANYExternal
Communicationsto Customers
GAP 4
GAP 4 COMMUNICATION
ServiceDelivery
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Key reasons for Gap 4
Inadequate management
Of service promises
Vows made by salespeople, advertising, and service
personnel
Demand & supply variations also contribute to problems in
fulfilling service problems
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Inadequate management
Of customer expectations
Appropriate & accurate communication about services is the
responsibility of both Marketing & Operations
Marketing must accurately reflect what happens in actual service
encounters. Operations must deliver what is promised in
communications
Key reasons for Gap 4 Cont..
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Inadequate customer education
If customers are unclear about how the service will be provided, what their role
in delivery involves, and how to evaluate services they have never used before,
they will be disappointed and often hold the service company, not themselves,responsible.
For services high in credence properties, many customers do not know the
criteria by which they should judge the service
For high-involvement services, customers are also unlikely to comprehend and
anticipate the service process
Key reasons for Gap 4 Cont..
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Inadequate internal marketing communications
Frequent and effective communication across functions is critical. If
internal communication is poor, perceived service quality is at risk.
Internal communication between sales force and service providers,
communication between HR and Marketing to ensure excellent
customer service
Consistency in policies and procedures across departments and branches
should be ensured
Key reasons for Gap 4 Cont..
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Approaches for Integrating Services MarketingCommunication
Goal:Delivery
greater thanor equal to
promises
ImproveCustomerEducation
ManageService
Promises
ManageCustomer
Expectations
ManageInternal
MarketingCommunication
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Goal:Delivery
greater thanor equal to
promises
OfferService
Guarantees
CreateEffectiveServices
Communications
MANAGING SERVICE PROMISES
MakeRealisticPromises
CoordinateExternal
Communication
Approaches forManaging Service Promises
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Communicate Criteria forService Effectiveness
Create Tiered-ValueOfferings
Approaches forManaging Customer Expectations
NegotiateUnrealistic
Expectations
Goal:Delivery
greater thanor equal to
promises
Offer Choices
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Offer Choices
One way to reset expectations is togive customers options for aspects ofservice that are meaningful such as
time and cost
Less time + high cost
More time + Less/normal Cost
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Create tiered-value service offering
Credit card companies
Basic green card
Gold card with additional benefits
Platinum card with more services
Advantages of tiered services:
Customer has to choose the level of service
The company can identify which customers arewilling to pay higher prices for higher level ofservices
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Communicate the criteria and levelsof service effectiveness
At times companies can establish thecriteria by which customers assessservice
Companies can teach customerabout different levels at which serviceis available and the criteria that theyshould use to judge the service
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Negotiate unrealistic expectations
Sometimes customer requests service at unrealisticprices many times at very low prices
This can be used as a starting point for discussion
Service providers present their offerings in terms ofvalue and not price alone
They also negotiate more realistic expectations
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Goal:Delivery
greater thanor equal to
promises
PrepareCustomers
for theServiceProcess
ClarifyExpectationsafter the Sale
Approaches forImproving Customer Education
TeachCustomersto Avoid
PeakDemand
Periods andSeek Slow
Periods
ConfirmPerformanceto Standards
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Prepare customers for the serviceprocess
Any time a customer is inexperienced or aservice process is new or unique, educationabout what to expect is essential.
Companies should prepare customers for theservice process to avoid any difficult situation.
At the time of college admission.
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Confirm Performance to Standards and
Expectations
Customers are not always aware of everything donebehind the scenes to serve them well
Most services have invisible support processes, whichcustomers cant see
Hairstyling firms have guarantees that ensure customersatisfaction with haircuts, permanents, and colortreatments. However, only few of them actively
communicate these guarantees in advertising becausethey assume customers know about them.
Doctors not giving complete analysis of the test report topatients
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Clarify expectations after the sale
Sales people are compensated & motivated toraise customer expectations at least to thepoint of making sale- rather than to
communicate realistically what the company canprovide.
In these situations, service providers can avoidfuture disappointment by clarifying what waspromised as soon as hand-off is made.
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Teach customer to avoid peak demand
periods and seek slow demand periods
In a bank setting, there are three strategies fordealing with customer waits:
- Giving customer prior notice of busy times.- Having employees apologize for the delays.
- Assigning all visible employees to servingcustomers.
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Goal:Delivery
greater thanor equal to
promises
Approaches for ManagingInternal Marketing Communications
Create EffectiveVertical
Communications
Align BackOffice Personnel
w/ External Customers
Create EffectiveHorizontal
Communications
CreateCross-Functional
Teams
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Create effective vertical communication
Important is downward communication
Keeping employees informed of everything
that is being conveyed to customer through
external marketing
Upward communication is also necessary in
closing the gap between service promise and
service delivery
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Create effective horizontal
communication
Communication across functional boundaries inan organization facilitates coordinated effortsfor service delivery
Coordination between marketing and operationscan result in communication that accuratelyreflects service delivery, thus reducing the gap
between customer expectations and actualservice delivery
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Align back office & support personnel
with External Customers through
interaction or measurement
When actual interaction is difficult or impossible,
some companies videotape customers in theirservice facilities during the purchase andconsumption process to vividly portray needs andrequirements of customers and to show personnelthe support that frontline people need to deliver to
those expectations
Measurement systems for employees, how well theyare serving the customers
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Create cross functional teams
A cross-functional team hasrepresentatives from all the areas, meetwith client, and collectively discuss the
account and approaches to address theclient needs
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Exceeding customer expectations
Merely meeting customer expectations is not enough; a
company must exceedthem to retain customers
Exceed customer expectations to delight, excite,
surprise, and otherwise amaze
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CAVEATS
Understand types of expectations
Know which customers expectations to
exceed
Know the future impact of exceeding
expectations today
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Strategies of exceedingexpectations
Demonstrate understanding of customer
expectations
Leverage the delivery dimensions
Underpromise and overdeliver
Position unusual service as unique, not the standard