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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