*SU 7: Managing Customers Roles In Service Delivery Flashcards
Define customer
A customer is defined as an individual or a business that purchases a company’s goods or services in a variety of contexts
One of the distinguishing features of a service is that ____
It is produced and consumed simultaneously making it inseparable
Customer participation is also referred to as
Co-production or co-creation
What are the advantages for customer participation
> service customization - customers can customize the service to fit their specific needs such as using a service at a time that is suitable for them
> saves time - customers can produce the required service faster, customer using an ATM to withdraw cash or do transfers will be able to do it faster than if they had to stand at a q in a bank
> greater control - the customer will enjoy greater perceived control over the service delivery process such as self-help kiosks when purchasing tickets at the cinema
> discounts - customers can receive increased benefits such as discounts
> less expensive - purchasing airline tickets online versus over the counter
> increase customer satisfaction - the customer is involved in the service process and can tailor the outcome to his or her own requirements enjoying high quality customer interaction
What are the disadvantages of customer participation
> slow service delivery - customers who do not have education/knowledge about the service process and who cannot effectively participate in the service system may slow the process down. For example, a customer who does not know that they had to present an identification document, so they spend time searching for it and slowing the process down
> less in person services - the perception that might be created that the organization wants to distance itself from customers. An organization does not want to deliver personalised services and is replacing employees with machines to deliver a service
What are the advantages of customer participation for service organizations
> saves costs - a company that uses a self-help kiosk machine saves because they do not have to hire more employees
> increase productivity - customers using the self-help kiosk save time for employees to allocate to other service functions
> enhanced communication - it enhances two-way communication between service organizations and customers
> better quality - it can help the service organization to improve perceived service quality as the customer is exactly involved in the service delivery process
What are the disadvantages of customer participation for service organizations
> unable to assist customers successfully- when customers fail to fulfill their required tasks, employees may find it difficult to offer the desired results
> demotivated staff - the staff of the service organization might find it stressful to deal with unhappy/frustrated customers especially in cases with high customer participation.
> increased uncertainty - customer participation can cause uncertainties to the service organization which can in turn affect the duration of the service process
> decrease in quality - the service organization may lose control of the quality of the service for example, a photography company that allows customers to edit their own pictures have no control of the quality of outcome
> wastage is increased - as customers participate and sometimes help themselves in the service organization the wastage will be increased for example, pouring more soda then they can consume at Burger King, the rest is wasted.
What are the steps to enhance customer participation in an organization
Step 1 - define the customers job
- helping oneself
- helping others, customers with experience can help new customers
- promoting the organization, word of mouth
- individual differences, some customers enjoy participating in a service process while others may simply want to receive the service and not participate
Step 2 - recruit the right customers
- an integrated marketing communication mix must be developed and planned in order to attract the type of customer who will make a contribution to the service delivery process
- an indication should be given to customers of what role they will be expected to play and they should be allowed to decide if they want to be a part of the process
Step 3 - educate customers
- to help customers become more involved they must be properly trained and educated
Step 4 - retain customers by rewarding them
- promoting them, golde & platinum memberships
- sending gifts or notes of appreciation
What are disruptive customer service behaviors that impact the service experience of other customers
> inattentive parents with naughty children
> oral abusers and hysterical shouters - people who swear at other customers, service employees or other members of their group (often family)
> outlandish requesters - these customers believe that the customer is always right and takes advantage of this, they make over the top requests and slow the process
> people with poor hygiene
> service rule breakers - this type of customer does not adhere to the expected rules or social norms of the service provider, such as cutting a line or not wearing a face mask during covid
> ignorant customers - takes up a lot of time with regards to common sense service procedures and does not consider others, they do this by asking staff to explain unnecessary information
What are disruptive customer service behaviors that have financial consequences for service providers
> the vandal - they senselessly damage property of the service organization, including graffiti, burning property with cigarettes and breaking things. This could be done by upset customers who weren’t satisfied with the outcome
> the thief - no intention of paying or sets out to pay less than the full price at any cost this includes shoplifting, sneaking into movie theaters, or simply not paying for a meal at a restaurant
> the cheat - customers who wish to exploit the service organization by any means for example, getting the service for free by lying about a bad experience or wearing a dress for an event and returning it the day afterward
Customers may require seven different skills in the service delivery process. Mention them
> being inert or idle - these customers need no special skills and are passive in the service delivery process for example undergoing a medical operation
> being an instructor - the customer must have excellent communication and decision-making skills to educate and transfer knowledge for example, building plans of a house
> being an ingredient - the customer must have skills that relate to (clear and full representation of information) relevant to the service such as applying for a bank account or travel visa
> being a co-producer - the customer must possess the required skills to complete the task during service delivery. For example being able to communicate in a mutual language while learning another language
> being an auditor - are capable of judging the service quality and are trained to observe, know the subject matter well, think analytically, and communicate effectively
> being a marketer - the customer must possess the skills to select a target group to which to communicate his or her opinions, choose where and when to give advice regarding the service and be convincing in transferring the message. Customers using the self-help kiosk can show other customers how to use the kiosk
> being a decision maker and hunter - this skill refers to a customer who has both the cognitive skills and the ability to make a judgment regarding his or her needs and situation
Factors that the service organization needs to take into consideration when determining the level of customer participation for a service are
- the levels of input from the customer in the form of effort or information
- the extent to which the customer will co-create the service
What are the three choices regarding customer participation that management needs to make
- maintain customer participation
- increase customer participation
- reduce customer participation
Explain the two distinct customer behavior roles
> in-role behaviors - these are customers that must engage to use a service or a product
> extra-role behaviors - customers are not necessary during the customer journey, but they do offer value to the service organization
What are Groth’s three types of customer citizenship behaviors
- Providing feedback to the organization - an example is communicating useful information to employees about a service experience, such as the quality of a massage at a spa
- Helping other customers - an example is showing someone how to operate a self-service kiosk
- Making recommendations - an example is making a referral by telling a friend about the good service received at a local law firm
