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Applying Expanded Ps in Services

Marketing
D r. R . Ve n k a t e s h
Professor - Higher Academic Grade
VIT Business School Chennai

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Provider GapMaster
3 title style

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Master title style Gap 3
to Provider

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Employee Master
Role title style
in Service Delivery

• Service Culture

“A culture where an appreciation for good service exists, and where giving
good service to internal as well as ultimate, external customers, is
considered a natural way of life and one of the most important norms by
everyone in the organization.”
- Christian Grönroos (1990)

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style
Service Employees

• They are the service.

• They are the organization in the customer’s eyes.

• They are the brand.

• They are marketers.

• Their importance is evident in:

• the services marketing mix (people)
• the service-profit chain
• the services triangle
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• Every encounter counts

• Employees are the service

• Every employee can make a difference

• Through their actions, all employees shape the brand

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The to edit Master titleTriangle
Marketing style

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Aligning Master title style
the Triangle

• Organizations that seek to provide consistently high levels of service

excellence will continuously work to align the three sides of the triangle.

• Aligning the sides of the triangle is an ongoing process.

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Services MasterTriangle
Marketing title style
Applications Exercise
• Focus on a service organization. In the context you are focusing on, who
occupies each of the three points of the triangle?

• How is each type of marketing being carried out currently?

• Are the three sides of the triangle well aligned?

• Are there specific challenges or barriers in any of the three areas?

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• Understanding customer needs

• Managing expectations
• Traditional marketing communications
• Sales and promotion
• Advertising
• Internet and web site communication

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Keeping Master title style
Promises

• Service delivery
• Reliability, responsiveness, empathy, assurance, tangibles, recovery, flexibility
• Face-to-face, telephone & online interactions
• The Customer Experience
• Customer interactions with sub-contractors or business partners
• The “moment of truth”

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Enabling Master title style
Promises

• Hiring the right people

• Training and developing people to deliver service
• Employee empowerment
• Support systems
• Appropriate technology and equipment
• Rewards and incentives

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Ways to edit Master title style
Use the
Services Marketing Triangle
 Overall Strategic Assessment
 How is the service
organization doing on all
three sides of the triangle?
 Where are the weaknesses?
 What are the strengths?
 Specific Service Implementation
 What is being promoted and by
whom?
 How will it be delivered and by
whom?
 Are the supporting systems in place
to deliver the promised service?
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The to edit Profit
MasterChain
title style

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• Who are they?

• “boundary spanners”
• What are these jobs like?
• emotional labor
• many sources of potential conflict
• person/role
• organization/client
• interclient
• quality/productivity tradeoffs

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Boundary Master Interact
Spanners title style
with Both Internal and External
Constituents

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Boundary-Spanning title styleJuggle Many Issues

• Person versus role

• Organization versus client

• Client versus client

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Human edit Master title style
Strategies for Delivering Service Quality
through People

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Empowerment
• Benefits:
• quicker responses to customer
needs during service delivery
• quicker responses to dissatisfied
customers during service recovery
• employees feel better about their
jobs and themselves
• employees tend to interact with
warmth/enthusiasm
• empowered employees are a great
source of ideas
• great word-of-mouth advertising
from customers
• Drawbacks:
• potentially greater dollar
investment in selection and
training
• higher labor costs
• potentially slower or inconsistent
service delivery
• may violate customers’
perceptions of fair play
• employees may “give away the
store” or make bad decisions
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Customer-Focused title style Chart

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Inverted Master
Services title styleTriangle
Marketing

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Service edit Master title style

• The service process. refers to how a service is provided or delivered to a

customer. Processes involve the procedures, tasks, schedules, mechanisms, activities and
routines by which a service is delivered to the customer.
• We can define the service process as the way in which a company works so that a customer
receives service. To standardize this in line with the company’s identity and aims, managers
will work on:
• Determining procedures which contribute to the process
• Allocating tasks and responsibilities
• Formulating effective schedules and routines
• Defining service mechanisms and process flows
• The shape that the service process will assume will depend on two primary factors:
• The type of service process
• The degree of customer contact
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Types Master
Service title style
Process

•  Line operations
• Line operations progress in a linear fashion. Thus, the client passes through a sequential
experience beginning at point A, when they first enter the store or contact the business.
Now, service delivery passes through a number of processes before finalizing the
transaction.
• Although this is perhaps the simplest of the service processes to understand, it has several
drawbacks. If one element in the linear operation is flawed or bottlenecked, the client will
judge the service as a whole based on this weak area.
• It’s also not a service process that allows for much flexibility. That does make controlling
it easier, but it would only suit a standard offering that implements repetitive processes
with little or no variation. This type of service process is the easiest to automate because it
is so standardized. Every customer has a similar customer experience, and the service
process does not vary.
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Types Master
Service title style
Process

• Job Shop Operations

• This type of service model provides customer satisfaction by tailoring the service to
the client’s needs. For example, a professional organization such as a law firm or a
bespoke service such as that which a carpenter may provide is only open to a limited
level of standardization.
• Each client’s needs will vary to some degree, and the service process must,
therefore, vary accordingly.
• Being able to offer flexibility makes this model attractive, but it can complicate
scheduling and workflows

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Types Master
Service title style
Process

• Intermittent Operations
• Some service projects are unique and seldom repeated. For example, construction
projects or branding initiatives would fall under this category. In most instances, the
projects themselves are of a relatively large scale. They will involve bringing
together several elements so that they can work harmoniously.
• Planning will be key, and managers would evaluate each project independently in
order to determine what process flows would contribute to the final result: providing
the desired service to its clients. Critical path analysis is often used in this context.

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Contact

• The human element of contact with the client influences the complexity and
variability of the service process. When there is little customer contact, it is easier to
adopt a linear approach. However, high contact service processes will require greater
flexibility, and managers and operational staff can expect a degree of disruption.
• In high contact service processes, clients will:
• Expect some input into the business processes that affect the service
• Expect similar service levels regardless of current demand
• Judge the quality of the business based on their experience of the people with whom they
interacted
• High contact systems are the most demanding for businesses to manage effectively because:
• Scheduling becomes more complicated
• The processes can be difficult to standardize or automate
• They may need to coordinate low and high contact service systems simultaneously
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Developing Master title style
Maintaining the Service Process

• Developing a service process may sound easy. After all, you merely need to map the
process that employees will follow when serving their clients. A low contact, linear
service would be the easiest to map. For example, when entering a self-service
restaurant, clients would collect a tray at the door, collect a plate and eating utensils,
select the foods they want, and proceed to the checkout.
• Or, it can also be extremely complex, with multiple, completely different, interactions
with the client throughout the lifetime of the relationship.
• Mapping every step of interaction with the customer using a workflow diagram can be
extremely helpful in designing the right service process.

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Service edit Master title style

• Designing services within learning spaces requires a specific mindset and tools. It
means considering users and their needs first, planning holistically, thinking through
experiences in time, and working in an iterative way between steps and tools.
• Service design is the activity of planning and organizing a business’s resources (people,
props, and processes) in order to
• directly improve the employee’s experience
• indirectly, the customer’s experience.

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Customer Master
Role title style
in Service Delivery

• Because customers are participants in service production and delivery, they

can contribute to the widening of gap 3, the service performance gap. That
is, customer themselves can influence whether the service meets customer
defined specification.
• Sometimes customer contributes to gap 3 because they lack understanding
of their roles and exactly what they can or should do in a given situation.
Since these customers are present during the service production, customers
can contribute to or detract from the successful delivery of the service and
to their own satisfaction.

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Customer Master titleacross
Participation style Different Services

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Customer Master title
Experience style
Management in Services

• Customer experience is defined as your customers’ perceptions – both

conscious and subconscious – of their relationship with your brand resulting
from all their interactions with your brand during the customer life cycle.
• As for customer experience management, Gartner sums it up pretty well in its
definition: “the practice of designing and reacting to customer interactions to
meet or exceed customer expectations and, thus, increase customer
satisfaction, loyalty and advocacy.”
• Customer experience management (CEM or CXM) is the collection of
processes a company uses to track, oversee and organize every interaction
between a customer and the organization throughout the customer lifecycle.

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Importance Master title style
Customer Experience Management

• Good customer experience management can:

• Strengthen brand preference through differentiated experiences.
• Boost revenue with incremental sales from existing customers and new sales from
word of mouth.
• Improve customer loyalty (and create advocates) through valued and memorable
customer interactions.
• Lower costs by reducing customer churn.

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successful Customer Experience
Management:
• Create and maintain complete customer profiles.
• Personalize all customer interactions.
• Get the right information to the right place at the right time – every time.

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Thank You

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