The Psychology of Customer Flow

Objectives

Learning Outcomes: Upon successful completion of this unit, learners will be able to:

 discuss the methods used to handle customer flow

 discuss how technology can assist in managing customer flow

What is Customer Flow

According to Hansab.com “customer flow

management is a methodology invented by
Qmatic that allows organization to
systematically manage the customer journey
from the very first to the last customer touch
point”.

(July 2, 2020)
 Customer Flow

Collins Dictionary defined customer flow as movement around in the store.
 Deciphering information based on Customer Flow

Collins dictionary .com suggested that studying customer flow will help the service provider
decipher useful information such as;

 the number of customers in the system

 flow patterns (arrivals, service rates, peak times…)
 Amount of time it takes to serve a customer
 Average customer wait times
 Bottlenecks
 Areas not visited
 Other customer behaviour
 Phases of Customer Flow

 Initial Encounter

 Middle Encounter

 Final Encounter

 Follow-up encounter
 Handling Customer Flow
The following are guidelines to use when handling customer flow:

 Develop and maintain a strong service culture

 Scheduling more employees during peak periods
 Cross training employees
 Manage customers’ perception of wait times
 Use technology to manage customer efficiency
 Handling Customer Flow (cont’d)

Establish a Queuing system

 Separate lines for business class/ frequent customers
 Express lines/ Separate lines for separate processes

Utilizing adequate signage

 To direct customers to appropriate areas
 To show estimates of average wait times

Priority interrupt
 Allowing a customer with an urgent need to interrupt the regular flow of service, to
receive service before the other customers waiting in line
 Service Culture
 Customers behaviours and expectations are also determined by sociocultural factors.
 Different cultures have different expectations of the waiting experiences.
 The values, beliefs and norms that are shared by a group of people in the service industry.
 The service environment should be service- oriented in order to offer exceptional service.
 The service culture should encourage excellent customer service to meet and exceed the needs of the
customers both internally and externally.
Waiting in Lines
Waiting in Lines
 According to Lovelock & Patterson “waiting is a
universal phenomenon” (2015, pg. 205).

 Studies revealed that people often think they waited

longer for a service than they really have.

 Australians wait in lines at least 8hrs in per week,

and have developed habits of watching other,
listening to music or talking on the phone as
diversions.
Waiting in Lines
Since increasing space and employing more staff may not be the optimal
solution Lovelock & Patterson (2015) proposed the following be done
when assist with customers wait time :

 Rethinking the design of the queuing system

 Installing a reservation system

 Tailoring the queuing system to different market segments

 Managing customers’ behaviour and their perceptions of the wait

 Redesigning the processes to shorten the time of each transaction.

 Principles for waiting in lines

Don Norman (2018) outline the following principles for waiting in lines:
 Emotions dominate
 Eliminate confusion: Provide a conceptual model, feedback and explanation
 The wait must be appropriate
 Set expectations then meet or exceed them
 Keep people occupied: Filled time passes more quickly than unfilled time.
 Be fair
 End strong, start strong
 Memory of an event is more important than the experience.
 Categories of waiting in Lines:

1. Match capacity to demand

2. Make the wait invisible

3. Respond to how customers

perceive the wait

4. Make the wait equitable

 Match Capacity to Demand
Lovelock & Patterson (2015) stated that information to develop effective strategies to manage
capacity and demand are the following below:

 Customers attitudes towards queuing under varying conditions

 Customers opinion on whether the quality of service delivered varies with different levels of capacity utilization

 Forecast of the level of demand for each major segments under specific conditions under specified conditions.

 Historical data on the level of composition and demand overtime, including responses to changes in prices and
other marketing variables.
Make the Wait invisible
 It is important to note that invisible wait is more frustrating than a
visible one.

 Customers support via telephone- particularly through call

centers- continues to grow, even as social media outlets gain
popularity as a way for customers to interact with companies.

 When incoming calls outnumber the representatives available to

answer those calls, an invisible line begins to form. And while
many of Norman’s rules still hold true, the invisible nature of the
waiting line can make callers’ expectations more difficult to
manage.

Scott Anderson (2012)

 Respond to how customers perceive the wait

 Unoccupied time feels longer than occupied  Pre- and-post waits fee longer than in process
time
waits.
 Solo waits feel longer than group waits.  Unfair waits are longer than equitable waits
 Physically uncomfortable waits feels longer  Unfamiliar waits seems longer than familiar ones
than comfortable wait
 Unexpected waits are longer than expected waits
 Uncertain waits are longer than known finite
waits
 1.Unoccupied time feels longer than occupied
time
David Maister and other researchers have indicated that:
When your are sitting around with nothing to do, time seems to crawl. The challenge for service organizations
is to give customers something to do or distract them while waiting. The following below are some examples to
occupy customers wait time:

 Showing previews at the movie theatre while guests wait for the movie to start
 At a crowded restaurant, send those waiting for a table to the bar and/or hand out menus
 For those on hold at a call center to order tickets to a football game, play highlights of memorable past
games.
 Provide travel magazines as reading material for customers while they wait to have a consultation with a
travel agent
2. Solo wait seems longer than group wait

 Maister (1985) suggests that waiting with one or more people you know is reassuring. Conversations with
friends can help to pass the time, but not everyone is comfortable talking to strangers.
3. Physically uncomfortable waits feel longer than
comfortable waits
 “ My feet are killing me !” is one of the most
frequently heard comments when people are forced to
stand in a line for a long time.

 Waiting feels more burdensome if the temperature is

too hot or cold if it’s draughty or windy or if there is no
protection from rain, snow or harsh sun.

Lovelock & Patterson (2015)

4. Pre- and post-process waits feel longer than in
process wait
 Customers want to start the service process a soon as they enter
the place of business.
 Initiate any moment of service related activity.
 Use time fillers to give the impression that the service has
already begun.
 For example waiting to buy a ticket to enter a theme park is
different from waiting to ride on a roller coaster once you’re in
the park.
 Sometimes it is also possible to involve the customer in some
part of the service process while waiting.

Lovelock & Patterson (2015)

5. Uncertain waits are longer than known finite waits

 Although any wait may be frustrating, we usually can adjust

mentally to wait to a known length. It’s the unknown that
keep us on edge.

 Imagine waiting for a delayed flight and not being told how
long the delay is going to be. You don’t know whether you
have the time to get up and walk about in the terminal or
whether to stay at the gate in case the flight is called any
minute.

Lovelock & Patterson (2015)

6. Unfamiliar waits seems longer than familiar ones

 Frequent users of a service know what to expect and are less likely to
worry while waiting.

 However, new or occasional users, by contrast often are nervous,

wondering not only about the probable length of the wait but also about
what happens next.

 Companies should give its customers an estimated waiting time to relax

them and minimize their anxiety.

 Be Honest and realistic with customers about the anticipated waiting time.
Lovelock & Patterson (2015)
7. Unfair waits are longer than Equitable waits

 Perceptions about what is fair and unfair sometimes vary

from one culture or country to another.
 Ensure that rules match with the customer’s sense of equity.
 Select the next customers to be served using fair rules
 First- In, First- Out (FIFO) System
 Last- In, First- Out (LIFO) System

 In Australia, the USA or Britain for example people expect

everybody to wait their turn in lines and are likely to get
irritable if they see other jumping ahead or given priority for
apparently no good reason.
Lovelock & Patterson (2015)
Unfair waits are longer than equitable waits
CONT’D
For example:

 Use a queuing system to ensure a FIFO customer flow

 Take reservations at a restaurant

 Use spa appointments

 Have an employee dedicated to take telephone orders only

 Implement a numbering system at an insurance company

8. Unexplained waits are longer than explained
waits
 Waiting in ignorance gives customers a feeling of
powerlessness, causing them to become irritated, and making
the waiting period seem even longer.

 Explain as early as possible to the customers the reason for the

extended waiting time.

 Provide customers with regular status updates.

 When an aircraft is delayed, the gate agent or pilot should

clearly explain the delay and periodically update the situation.
9.Anxiety makes wait seems longer

 Maister (1985) states that a large part of the concern that we feel to
‘get started’ is due as noted above, to anxiety.
 Customers may get anxious when:
• They feel they have been forgotten or overlooked
• They feel that “the other line moves faster”
• They feel they are doing the wrong thing (in the wrong line)

 Nearly everyone has had the experience of choosing a line at the

supermarket or airport, and stood there worrying that he had, indeed,
chosen the wrong line. As one stands there trying to decide whether to
move, the anxiety level increases and the wait becomes intolerable
The more Value the service is the longer the
customer will wait
 A customer waiting to pay for a large number of items/
or waiting to pay for a single high- value item, is much
more likely to tolerate a waiting line, than someone who
is waiting with something of little value.

 The business must therefore:

• Differentiate customers
• Separate transactions according to’ simple, medium
difficulty and complex
• Improve speed at points in the service process
where no value is being added.
Virtual Waiting
 Virtual Waiting

According to Holub “ virtual waiting is

basically the ability to hold a caller’s place in
line (virtually, of courses) so they don’t have to
sit hold and wait.

This allows callers to go out about their day

and gives services agents the time to work
through customer interactions without
interruption”.
Benefits of Virtual Waiting

Holub 2020 propose the following of virtual

waiting:

 Virtual queuing reduces the number of abandoned calls.

 Increases customer satisfaction
 Reduces customers satisfaction
 Increases efficiency and first call resolutions
 Combat spikes in call volume
 Technology and customer flow:

 Efficiency

 Speed

 Convenience

 Diversification of service
Using Technology to Create Service Efficiency

 Electronic access to buildings

 Online access to information and services
 Communication via technology (email, text, live chat/ messaging)
 Accepting payments electronically (debit/ credit cards)
 Automatic doors, elevators and escalators
 Improved security (cameras, encryption)
 Using Technology to Create Service Speed

 The most important role of technology in

customer service is that it helps to increase
the speed of customer interactions.

 Customers no longer need to wait on hold

on the phone to speak with a representative.
Instead, live chat on company websites
enables organizations to help customers as
soon as they show interest.

Ahmed (2019)
 Using Technology to Create Service Convenience

 Convenience is of the utmost importance. It’s critical

that businesses consider every aspect of the customer
journey and ensure that the ride is smooth and
intuitive.

 Offering fast and convenient ways to purchase, such as

through cashless payments and one-touch payments,
removes obstacles for many customers and encourages
them to make the buying decision.

Ahmed (2019)
Using Technology to Create Diversification in
Service

 The importance of technology in customer service

is also related to choice. Customers want the option
to choose how they interact with businesses. As a
result, technology enables companies to give their
customers different options for engagement.

Ahmed (2019)
 References
 Ahmed, A. (2019). Technology in customer service. Retrieved on July 15, 2020 from
https://bizfluent.com/about-5341221-technology-improve-customer-service.html

 Anderson, S. (2012). Managing your visible and invisible lines of your customer. Retrieved on July 15,
2020, from
https://www.business2community.com/marketing/managing-your-visible-and-invisible-lines-of-customers-03
56991

 Lovelock, C. & Patterson, P. (2015). Services marketing 6th (e. d.) Pearson Australia, 707 Collins
Street, Melbourne Vic, 3008

 Laws of service. Retrieved June 14, 2020 from

https://davidmaister.com/articles/the-psychology-of-waiting-lines/
 References Cont’d

 Holub, Dale (2020). What is Virtual Queuing? Retrieved on July 14, 2020 from
https://vhtcx.com/blog/what-is-virtual queuing/#:~:text=Virtual%20queuing%20is%20basically%20the,thro
ugh%20customer%20interactions%20without%20interruption.

 Technology in Customer service Retrieved on July 15, 2020 from

https://bizfluent.com/about-5341221-technology-improve-customer-service.html

 Waiting in lines. Retrieved July 10, 2020 from

https://www.researchgate.net/publication/200085847The_Psychologyof_waiting lines