Customer Role in Service Delivery.

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Provider Gap 3

CUSTOMER

Service Delivery
COMPANY

GAP 3

Customer-Driven
Service Designs and
Standards
Key Factors Leading to Provider
Gap 3
Gap 3: Role of Customers in
Operational Design & Delivery
• Customers Not Performing Their Role in the Process
– Lack of Understanding
– Lack of Ability
– Lack of Willingness
– Ambiguity & Uncertainty About What They Want
• No Reward for Good Performance
• Interaction with Other Customers
• Incompatible market segments
• Impact: Customers Introduce Variability to an Operation
• Solution: Limit & Control Customer Involvement Through
Process Design & Technology
13
Customers’ Roles
in Service Delivery
• The Importance of Customers in Service
Delivery
• Customers’ Roles
• Self-Service Technologies—The Ultimate in
Customer Participation
• Strategies for Enhancing Customer
Participation
Critical Role of the Customer
The idea of the service factory
Simultaneous Production & Consumption

People in the Service Mix – 7P’s


Employees
Customers
Others
Marketing Exchange --- Creating
Value
• By participating in the
service delivery
process, customers
create value for
themselves
The Drama Metaphor
• actors
• audience
• script
• setting
• props
Levels of Customer Participation
Across Different Services
Importance of Other
Customers in Service Delivery

• Other customers can detract from


satisfaction
• disruptive behaviors
• excessive crowding
• incompatible needs
• Other customers can enhance satisfaction
• mere presence
• socialization/friendships
• roles: assistants, teachers, supporters
Customer Roles in Service
Delivery
Productive Resources

Contributors to
Quality and
Satisfaction

Competitors
Customers as Productive
Resources
• “partial employees”
– contributing effort, time, or other resources to
the production process
• customer inputs can affect organization’s
productivity
• key issue:
– should customers’ roles be expanded? reduced?
Customers as Contributors to
Service Quality and Satisfaction
• Customers can contribute to
– their own satisfaction with the service
• by performing their role effectively
• by working with the service provider
– the quality of the service they receive
• by asking questions
• by taking responsibility for their own satisfaction
• by complaining when there is a service failure
Customers as Competitors
• customers may “compete” with the service provider
• “internal exchange” vs. “external exchange”
• internal/external decision often based on:
– Expertise capacity
– Resources capacity
– Time capacity
– economic rewards
– psychic rewards
– trust
– control
The Era of Self-serve
Technology
Types of Services –
Technology vs. People based
Natural Evolution to tech-based

Concern with losing the people connection


Technology Spotlight:
Services Production Continuum

Customer Production Joint Production Firm Production

1 2 3 4 5 6
Gas Station Illustration
1. Customer pumps gas and pays at the pump with automation
2. Customer pumps gas and goes inside to pay attendant
3. Customer pumps gas and attendant takes payment at the pump
4. Attendant pumps gas and customer pays at the pump with automation
5. Attendant pumps gas and customer goes inside to pay attendant
6. Attendant pumps gas and attendant takes payment at the pump
Strategies for Enhancing
Customer Participation
Effective
Recruit, Educate,
Define Customer Customer and Reward
Jobs
Participation Customers

Manage the
Customer
Mix
Strategies for Enhancing Customer
Participation
Strategies for Enhancing
Customer Participation
• Define customers’ jobs
– helping himself
– helping others
– promoting the company

• Individual differences:
– not everyone wants to participate
Strategies for Recruiting,
Educating, and Rewarding Customers
1. Recruit the right customers
2. Educate and train customers to perform
effectively
On site --- place and function orientation
3. Reward customers for their contribution
4. Avoid negative outcomes of inappropriate
customer participation
Manage the Customer Mix

•Access the compatibility of


segments
•Isolate incompatible segments
•Enhance segment compatibility
Characteristics of Service that Increase the Importance of
Compatible Segments

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