Services Marketing

Caterpillar in Latin America

Group 07
 Question 01

● What else do you need to learn in the Listening Gap (Gap 1) about
customer needs and expectations?
● LACD had general information from the customer value surveys, but
this information did not tell them what service features customers
expected in the CSAs. What were they and how could they find out?
● In particular, how could they find out what they needed to know to
established standards in the Design and Standards Gap (Gap 2)?

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Factor instigate Service Gap 1

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Service Blueprint

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Performance Matrix

Reliability Responsiveness
1. Precise identification and delegation of 1. Customers knowledge of service numbers
customer issues 2. Using automated tele responses to attend
2. Providing timely maintenance services calls which increases responsiveness
such as oil change, visual machine 3. Authorized call centers and high level of
inspection, etc responsiveness in call handling
3. Executive’s understanding of the 4. Reminding customer about expiring CSAs
customer issue should be proper before-hand
4. Allocating serviceman correctly 5. Standardizing acquisition of technician
depending upon the type of service and achieving fastness in 15 senses of
required service offered
5. Serviceman skill to properly diagnose 6. Feedback gathering from customers after
and solve the issue providing service

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Performance Matrix

Empathy Assurance
1. Personalised attention to each 1. Gaining customer’s trust through
customers professional behavior of employees
2. Serviceman behaviour should be caring 2. Excellent communication skills to describe
and professional towards customer issues to customer’s understanding
3. Offering customized service to each 3. Top quality skill of serviceman in fixing the
customer issue

Tangibiles
1. High Quality tools and service equipments used by serviceman
2. Latest technology employed in diagnosing the issue in front of customers
3. Latest Software used to increase response rates to customer calls

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Customer Expectation from CSAs
Aspects to focus on
CSA’s developed should be more
and should focus on time,
convenience, reliability,
relationship, etc.
Training
Focus should be on setting
proper training standards to
train serviceman on all round
aspects
Standardization
To decrease the variability of
CSAs across customers a
standard should be proposed
and maintained
Delivery
Proper delivery services should
be made by dealers to minimize
variability in CSAs
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Customization
CSAs should be customized
as per the customer issue
as services are provided
across geographical
boundaries
Frequency
Frequency of survey should
be on quarterly basis
 Question 02

Should they offer different CSAs to the different segments of general

construction? What would they imply for research, standards, and
implementation?
CAT has a very high degree of customization currently and the products are highly technical
in nature which makes them quite complex. This limits the CSA to service the increasing
number of customers. They can start off by giving small contracts in simpler and smaller
batches which will attract small-scale customers. The different types of CSA’s CAT can offer
are given below.

DO-IT-MYSELF DO-IT-WITH-ME DO-IT-FOR-ME

- Catering to small-size
customers.
- Giving options for alterations
in standard CSAs.
- Supporting the customers with
attractive financing options.
- Providing no customization.
- Catering to medium-size
- Catering to large-size
customers.
customers.
- Giving standard CSAs while
- Contracts are made on
giving customers the option
yearly basis.
of taking add-on services.
- Providing high levels of
- Providing very little
customization.
customization.

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The implications are -

Loyalty Marketing
Flexibility
Due to service segmentation,
This would increase customer Add-ons provide the customers
marketing of the products and
loyalty on CSA which expand the with various options and thus
services to target customers will be
customer base and in turn better flexibility in choosing the
easier than before and thus it will
higher revenue and profits along services/products.
result in achieving better
with more goodwill.
operational efficiency.
Simplicity
Efficiency The new CSA’s are less complex due to the less
Due to segmentation, technical service content they have and thus easier for customers
efficiency will increase resulting in consistent to understand. This results in better
service delivery which mean higher customer understanding of the products and services by
satisfaction and higher customer retention. the customers and hence are more likely to buy
the products.

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 Question 03

● What standards and measures should be set in the Design and

Standards Gap (Gap 2) to deliver to customer expectations?
● How formal should they be?
● How should LACD create and design the new CSAs?
● How should they get everyone in the dealerships to learn about
them and get on board to deliver them?

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IMPLEMENTATION OF CUSTOMER DEFINED SERVICE STANDARDS

Find various sequence of service Create measurements & target

encounter with service blueprint levels of delivering various
services with overall delivery
Transform expectation of index of CSA
customers into behaviours

Tracking measures with each set

Select important behaviour of
standards
standards

Fix Hard & Soft standards for Providing feedback on service

every services in CSAs performance to all employees

Place a feedback mechanism for Updating benchmarks and

revising Package standards of CSA measurements of CSAs

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 SERVICE STANDARDS (HARD & SOFT)

SOFT STANDARDS HARD STANDARDS

● Promote development of ● Timely delivery of service
interpersonal & communication and equipments
skills
● Resolution of issue at first go
● Higher Response time to service
customer ● Inspecting and monitoring the
machines at regular intervals
● Help customer to understand
issues clearly

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 CSAs AWARENESS

● Relevant and regular training and development to be provided to each

and every stakeholder
● Putting to use latest technology for providing standardized services
● Encouraging all stake holders to provide feedbacks and also to lodge
complaints if necessary
● Following regular maintenance and updating latest development to
required personnel
● Focus on developing efficient internal communication channels

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 Question 04

How should the dealerships overcome all the Performance

Gap (Gap 3) issues that they faced in order to insure consistent
delivery?

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Customer driven sales design and
standards

Key Factors
for service
Gap 3

Service delivery

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 Overcoming service gap 3

Poor HR Policy Design

● Better training should be provided to
employees in areas of communication
and soft skills
● Highly skilled technicians &
mechanics should be hired by
providing good wages and other
benefits
● Meetings should be conducted weekly
with business heads to review the
activities and tasks
● Suitable training should be given to
technicians frequently for providing
better customer service
Customer’s Role Unfulfilled
● Spreading awareness to
customers about the importance
of timely service and CSR’s can
remind customers about their
role in gentle manner
● Informing customer on the prime
importance of providing relevant
information on the issue

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 Overcoming service gap 3 (cont..)

Falling to match supply with demand

● Temps should be hired during peak demand season
to adjust the capacity
● Necessary and adequate tools & spares should be Issues in Intermediaries
filled up in the inventory in peak demand period ● To provide right solution to
● Loyal customers should be contacted before the customers on time customer care
peak season and try to provide the service by centres should be setup at
explaining them about the demand during peak dealership locations
season, price changes, alternative service ● Develop automated answering
offerings. (Demand shifting) systems to manage generic
● Long time customers should be informed queries lodged by customers and
beforehand about peak season so that they would also to create schedule of the
be aware of it and will shift their service demand service
to off-peak season
● Adopting shift systems to smoothen out the
demand capacity by working outside business
hours

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 Question 05

What internal and external materials were necessary to

communicate their CSAs to salespeople and customers?
What else would be needed?

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Service Delivery

Key Factors
for service
Gap 4

External communication
to customers

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Communication Materials- Internal & External

Materials necessary for communication Proposed materials for communication

● Descriptions & notices of services ● Service manuals providing info on

service, repair & maintenance
delivered by Caterpillar
● Websites & intranets providing service
● Slogans & descriptions for the CSA’s
info and self-service instructions
to show differentiation
● Modules of training & conducting
● Uniform selling process & message for sessions
different CSA’s to show competitive ● Circulars on services provided
positioning ● Monthly meetings scheduled with clients
● Inspection and reports of
recommendation
● Ads & Brochures to communicate
CSA’s

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 “
Thank You!

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