Part 5 Ch12 Customers' role in service delivery Flashcards
The role of customers: Co-creating value
The goal is not to create value for customers but to mobilize customers to create their own
value from the company´s various offerings
However, Customer sometimes are unwilling or just unable to cocreate,
because:
- Lack of understanding of their roles.
- Not being willing or able to perform their roles.
- No rewards for “good performance”.
- Interfering with other customers.
Levels of Customer Participation Across Different Services
Low: consumer presence required during service delivery
Moderate: consumer inputs required for service creation
High: customer co-create the service
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Presence of other (fellow)
Customers in Service Delivery
- Other customers can detract from satisfaction:
- Disruptive behaviors.
- Overly demanding behaviors.
- Excessive crowding.
- Incompatible needs.
- Other customers can enhance satisfaction:
- Mere presence.
- Socialization/friendships.
- Roles: Assistants, teachers, supporters, mentors.
Customer Roles in Service Delivery
- Productive resources
- Contributors to service quality and satisfaction
- Competitiors
Customers as productive resources
- When self-checking in or when dropping-off baggage customers can be thought of as “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 or 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.
Customers as Contributors to
Service Quality and Satisfaction
- Customers can contribute to:
- 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 in two ways:
1. “Internal exchange” = they produce a service for themselves (e.g., home maintenance, computer repair)
2. “external exchange”= have someone else provide it (e.g., friends or “other customers)
Self-Service Technologies (SSTs)
(the ultimate in customer participation)
Services produced entirely by the
customer without any direct involvement or interactions with the
firm´s employees
e.g. ATM, Airline check-in
3 Strategies for enhancing customer participation
- Define customer’s roles
- Recruit eductae and reward customers
- Manage the customer mix
Define Customer’s Roles
the different responsibilities and activities that customers undertake in relation to a particular service.
Key Considerations:
- Start by examining the type of service being delivered
- Customer roles may vary based on organizational decisions, such as investments and the service delivery process.
Categories of Customer’s Job:
- Helping oneself (IKEA):
Customers take an active role in the service process, often involved in self-service or customization.
Example: IKEA customers assemble furniture themselves. - Helping others (study buddy):
Customers engage in activities that assist others.
Example: A study buddy helps homework - Promoting the company (word-of-mouth and YouTubers):
Customers contribute to the promotion of the company through positive word-of-mouth or creating content on platforms
Example: Customers sharing positive experiences online
- Recruit educate and reward customers
Customers should be facilitated in taking their roles seriously
2.1Recruiting Customers
Objective: Recruit the right customers to enhance their engagement and contribution to the service.
Segmentation:
Identify and target specific customer segments that align with the service objectives
2.2Educating and Training Customers
Objective: Equip customers with the knowledge and skills needed to effectively perform their roles in the service.
Approach:
Provide educational resources and training materials.
Example: YouTube tutorials serving as tutors for customers, guiding them on using products or services effectively.
2.3 Rewarding Customer Contribution
Objective: Recognize and reward customers for their positive contributions to the service.
Methods:
Acknowledge and incentivize customer efforts.
Example: Offering discounts, loyalty programs, or exclusive benefits to customers who contribute by saving costs, time, or energy.
2.4 Managing Negative Outcomes
Objective: Mitigate the negative impact of inappropriate customer participation in the service.
Strategies:
Monitor and address inappropriate customer behaviors.
Example: Consider the role of front-line employees in handling customer issues effectively and, if necessary, making decisions like terminating a customer relationship.
- Managing Customer Mix
Challenge: Customers simultaneously experience the service, requiring effective management of different customer-to-customer interactions.
Strategies 3.1 Positioning and Segmenting:
- Utilize positioning and segmentation strategies to manage compatibility among diverse customer groups.
- Example: Designating specific seating areas in a restaurant for different customer preferences.
3.2 Front-line Employee Training
Train front-line employees to handle conflicts and enhance opportunities arising from diverse customer interactions.
- Equip employees with conflict resolution skills.
- Example: Provide training on effective communication to address conflicts during a football match or on an airplane.
3.3 Rules and Codes of Conduct
Implement rules and codes of conduct to guide customer behavior and interactions.
- Establish clear guidelines for customer behavior.
- Example: Enforce policies on noise levels or conduct in public transportation to ensure a harmonious experience for all passengers.
