Unit 10

Service Execution Quality Metrics

AFTER STUDYING THIS UNIT, YOU SHOULD BE ABLE TO:
1. List out the various service metrics 2. Explain the benefits of a high service quality to a customer as well as an organisation 3. List out the various service operational challenges. 4. Explain the benefits of various service support systems. 5. Categorise the different service standards in different retail formats.
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LEARNING OBJECTIVES

Introduction
 What is service quality?
Is defined as the level of service that is achieved as a result of various interrelated factors such as the conduct or behavior of the service personnel, the factors of satisfaction and dissatisfaction to customer, etc functioning together for the achievement of common objective

 This is done to ensure overall satisfaction of customers

Execution Quality Metrics includes: 1. 2. 3. 4. 5. Reliability Responsiveness Assurance Empathy Tangibles

Reliability
 Reliability is defined as the ability of the service employees to perform the service as per the promise in the most dependable manner and most accurately.  Mistakes are unpardonable in the retail sector and so doing the service right the first time is extremely critical for the success of the retail organization.  Reliability is a critical service metric that: •Tells the organization about the effectiveness of the service employees, and •Keeps the organization up-to-date about the deviation between the expected service and the actual service levels.

Responsiveness
 Is the willingness to help the customers by the service providers by anticipating a problem and providing prompt service.  Responsiveness is a metric that measures the extent to which a service employee is willing to help the customers.  This is an extremely important factor that influences customer satisfaction

Assurance
 Is the employee's knowledge, courtesy, behavior/ conduct and the ability of the service employees and the retail organisation as a whole to inspire trust and confidence among consumers.  Assurance shown by service employees develops a degree of trust among customers

Empathy
 Is the ability of the retail organisation to provide individualised attention to the customers in a consistent manner.  Empathy is defined as getting into the customer's shoes and to understand the problem from the customer's point of view.  This particular metric is the most important factor that enhances customer satisfaction to a great extent.

Tangibles
 Tangibles are the physical appearance of the service in terms of the appearance of the physical facilities, the employee's uniform, the equipments and the promotional materials that are used to communicate the service to the customers.  These physical images make a customer to develop particular perception about the service execution

Benefits of High Execution Standards to Customers
 Customer is assured of good quality service whenever he enters the store.  Maintaining high execution standards makes customers develop a level of trust and faith towards the retail outlet.  Empathizing makes the customer receive special treatment from the employees of the retail outlet.

Benefits of High Execution Standards to the Retail Service Organisation
 Customer satisfaction leads to repeated purchases thus increased revenue and profits.  High execution standards leads to customer retention. This benefits the organisation as it help save a lot of costs.  Satisfied customers spread a lot of positive news about the company.  Satisfied customers make the employees happy as well.

Service Operational Challenges

Overview
 Service operations is a service performance or a service job and task that involves one or more elements that perform in unison and interdependently towards the achievement of a common service goal.  It is a step by step execution of service that involves various elements.

Service Operational Challenges
 Finance  Communication capability  Location  Customers  Available manpower  Competitors

Service Support System
 POS System  Inventory Management System  Management Information System  Decision Support System

Service Standards Organisation specific rules and regulations that specify the qualifications and acceptable levels of performance for the service employees

Factors influencing Service Standards
 Objective of the organization  Competency  Customer expectations  Resources  Competitive advantage.

Questions?

*END*

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