Services Marketing : Services Marketing
The service sector : The service sector The services sector has been growing at a rate of 8% per annum in recent years
More than half of our GDP is accounted for from the services sector
This sector dominates with the best jobs, best talent and best incomes
“There are no such thing as service industries.There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” : “There are no such thing as service industries.There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” -Theodore Levitt-
What is services? : What is services? It is the part of the product or the full product for which the customer is willing to see value and pay for it.
What is a service? : What is a service? It is intangible.
It does not result in ownership.
It may or may not be attached with a physical product
Difference between physical goods and services : Difference between physical goods and services
Most products have a service component : Most products have a service component They could be
Equipment based
People based – varying skill levels
Services could meet : Services could meet Personal needs – haircuts, tution, massage parlours
Business needs – courier services, office cleaning services, delivering fresh flowers
Characteristics of services : Characteristics of services Intangibility
Inseparability
Perishability
Variability
The three additional ‘P’s of Service Marketing : The three additional ‘P’s of Service Marketing People
Physical evidence
Process
Qualities of services : Qualities of services Search qualities
Experience qualities
Credence qualities
Differentiation in services : Differentiation in services Offering
Faster and better delivery
Image
Managing Service quality : Managing Service quality Gap between management perceptions and consumer expectations
Gap between management perceptions and service quality specifications
Gap between service quality specifications and service delivery
Gap between service delivery and external communication
Gap between expected service and perceived service
Determinants of service quality : Determinants of service quality Reliability – delivering on promises
Responsiveness – willing to help
Assurance – inspiring trust and confidence
Empathy – individualising customers
Tangibles- physical representation
Moments of truth : Moments of truth It is the customer – service encounter
Every positive or negative experience of the consumer would have fall-out on the overall service experience
In services, the last experience remains uppermost in your mind. Therefore, it is not enough to be good, you have to be consistently good : In services, the last experience remains uppermost in your mind. Therefore, it is not enough to be good, you have to be consistently good
Services Monitoring : Services Monitoring Continuous auditing of competitor service levels versus own company
Importance - performance analysis
Importance – Performance Analysis : Importance – Performance Analysis I
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Service quality is directly proportional to employee satisfaction : Service quality is directly proportional to employee satisfaction
When customers visit a service establishment : When customers visit a service establishment Their satisfaction will be influenced by
Encounters with service personnel
Appearance and features of service facilities – exterior and interior
Interactions with self service equipment
Characteristics and behaviour of other customers
Customer Service Expectations : Customer Service Expectations Desired Service – the ‘wished for’ service
Adequate Service – the service that would be acceptable
Zone of Tolerance : Zone of Tolerance Difference between the desired service and the adequate service
Service Encounter Themes : Service Encounter Themes Recovery
Adaptability
Spontaneity
Coping
Recovery : Recovery Don’t
Ignore customer
Blame customer
Leave customer to fend for himself
Downgrade
Act as if nothing is wrong
‘pass the buck’ Do
Acknowledge problem
Explain causes
Apologise
Compensate/upgrade
Lay out options
Take responsibility
Adaptability : Adaptability Don’t
Promise and fail to keep them
Show unwillingness to try
Embarrass the customer
Laugh at the customer
Avoid responsibility Do
Recognise the seriousness
Acknowledge
Anticipate
Accommodate
Adjust
Explain rules/policies
Spontaneity : Spontaneity Don’t
Exhibit impatience
Yell/laugh/swear
Steal from customers
Discriminate
Ignore Do
Take time
Be attentive
Anticipate needs
Listen
Provide information
Show empathy
Coping : Coping Don’t
Take customer’s dissatisfaction personally
Let customer’s dissatisfaction affect others Do
Listen
Try to accommodate
Explain
Let go of the customer
Types of complainers : Types of complainers Passives
Voicers
Irates
Activists
Customer complaints : Customer complaints It pays to resolve customer complaints
On an average only 5 % dissatisfied customers complain. Others simply go over to the competitor
A satisfied consumer speaks to an average of 3 people on his her experience
A dissatisfied consumer gripes to on an average 11 persons about his/her unpleasant experience
Companies that pay importance to resolving customer complaints : Companies that pay importance to resolving customer complaints Pay attention to quality and training of manpower recruited
Have clear benchmarks on service quality and communicate to employees
Take remedial steps to improve customer satisfaction and prevent repeats of customer dissatisfaction
Have a data base on customer complaints that is periodically analysed and policies adjusted
Satisfied employees will produce satisfied customers : Satisfied employees will produce satisfied customers Morale
Motivation
Mood
Managing Service Productivity : Managing Service Productivity Giving quality service is an expensive business
Not every consumer is willing to pay extra for service quality
Service providers would have to find their optimum service quality/cost ratios
Can technology substitute part of the labour content?
Can customers substitute part of the labour content?
Making services obsolete by product innovations