The size of the service sector, global competition, rising labor and technology costs and demanding customers all force companies to create excellent customer experiences.
The challenge firms face today is knowing their customer’s definition of service quality and how to deliver that at a reasonable cost to create superior customer value.
Customers use service encounters to assess the quality of a firm’s offering. So, how can we “wow” customers?
It’s all about the service experience
Seventy percent of customer defections are due to service problems. Improving service quality is like taking vitamins, eating healthy and exercising regularly. Although the results may not be immediate, long-term benefits are significant. Service quality is not a “quick fix,” but rather a way of life for companies who are serious about improvement. Here are 10 recommendations that can lead to superior customer value:
1. Co-create services with customers. Learn what customers value by incorporating the “voice-of-the-customer” into the service development process.
2. Focus your improvement programs outward, on market “break-points.” By defining and mapping episodes (service cycle), you can see the service experience as the customer sees it. Realize that customers view service as a totality, not an isolated set of activities.
3. Create a tangible representation of service quality. Hertz Gold Plus Rewards communicates a premium, value-added bundle of services to business travelers seeking a hassle-free car rental experience.
4. Use teamwork to promote service excellence — service workers who support one another and achieve together can avoid service burnout.
5. Create a “service-bias” based on key SQ determinants such as professionalism, attitudes/behaviors, accessibility and flexibility, reliability/trustworthiness and service recovery.
6. Develop metrics that are specific in nature, such as a 95 percent on-time delivery, customer wait time or order processing time.
7. Employee selection, job design and training are crucial to building customer satisfaction and SQ. The ability to respond quickly, competently and pleasantly to customers needs to be a priority.
8. Reward quality efforts in marketing. Seek opportunities to reinforce quality behaviors when they occur. Reward employees on the basis of commitment and effort, not just sales outcomes.
9. Think of service as a process, not a series of functions. Service quality occurs when the entire service experience is managed and the organization is aligned to respond accordingly.
10. Integrate customer information across sales channels. The information made available to online and offline service representatives should be consistent.
Checklist — improving service quality
1. Does your company really listen to its customers? Give a specific example of how good listening improved the service experience.
2. Reliability means performing the promised services dependably and accurately. On a 10-point scale, where 1 is unreliable and 10 is perfectly reliable, rate your company and explain why.
3. How well does your company perform the “service basics?”
4. How effectively does your company manage service design — systems, people and the physical environment? Provide an example of how lack of planning in one of these areas resulted in a “fail point” during a customer encounter.
5. Service recovery refers to how effectively companies respond to service failures. Cite an example when a service failure occurred and how it was handled.
6. Teamwork is an important dynamic in sustaining service workers’ motivation. How can you improve teamwork in your organization?
7. Internal service is crucial to service improvement, as customer satisfaction often mirrors employee satisfaction. To what extent does your company assess internal service quality?
Art Weinstein, Ph.D., is Chair and Professor of Marketing at Nova Southeastern University and author of “Superior Customer Value: Strategies for Winning and Retaining Customers.” He may be reached at art@nova.edu or (954) 262-5097. For more information, visit www.artweinstein.com. Link with Art Weinstein on LinkedIn http://linkd.in/1hQcrHJ.
*Reprinted from Smart Business, September 3, 2013; Image source: Revelconsulting.com
#1 by Komala Ramkissoon on 11/4/15 - 8:40 AM
#2 by Stephanie Soto on 11/4/15 - 9:20 AM
Another factor to consider that can negatively impact patient experience is lack of proper staffing. Management meets on a weekly basis to make sure that all departments have the proper staffing to ensure that it can run effectively. This also contributes to teamwork so that employee burn out can be reduced. An unhappy employee can mean a bad treatment to a patient.
All in all our organization enphasis on the importance of delivering world class care. All caregivers are held to those standards and receive training on certain scenarios. Listening to our patients suggestions are used for training puproses. There is no better way than to know where we stand than with their negative comments or praises.
#3 by Roiti Suarez on 11/4/15 - 9:30 AM
The advancement of technology and social media means that consumers now have a platform to instantly express their satisfaction, or lack of, with a company's service. In the past we used to hear about how word of mouth could spread about a company. Today the same thing happens, but it happens exponentially. Consumers have basically become an informal member of many company's marketing department. I'm sure this thought can at the same time be exciting and frightening to many companies.
#4 by Timothy Zeitoun on 11/4/15 - 9:51 AM
#5 by Sundas Chaudhry on 11/4/15 - 6:16 PM
#6 by Estilus Lahens on 11/5/15 - 3:43 PM
11/5/2015
#7 by Jennifer Corujo on 11/5/15 - 9:42 PM
#8 by Kellie Chopyak on 11/6/15 - 8:52 AM
#9 by Bernardo Seixas Simoes on 11/6/15 - 6:52 PM
Your 1st recommendation is also very pertinent, since there is no reason customer services policies should not be established in collaboration with the people who choose to spend money on your products or services. Learning about what matters to your customers and incorporating those demands into your customer service is not only smart, but essential. The relationship between a business and its customers should not reflect on outdated practices if the world has changed through mobile technology, social media platforms, and a cultural shift as Gen Y-ers reach adulthood.
#10 by Anastasia Shakhova on 11/6/15 - 9:05 PM
Answering your question about how to improve teamwork in any organization, I would say that a company should implement diversity in its workplace. Taking the example mentioned earlier about hotels, small and large brand of hotels have some interaction with international customers. To improve customer satisfaction, one of the ways should be providing a diversity training to its employees. Another way could be, actually employing personnel from different countries.
#11 by Art Weinstein on 11/7/15 - 11:35 AM
#12 by Karina Valles on 11/7/15 - 12:34 PM
Company cannot stay alive on business if its customers are not happy about the service customer provided even if the product is the best in the world. I found the ten recommendations excellent as guide for starting companies as well as for well ground business that needs to revamp a marketing plan to increase sales and standout among its competitors.
I work in the Distribution Automation products and solutions division where we offer power protection and control products for a specific market, however customer service is an important factor that is evaluated using the Net Promoter and Customer Satisfaction score to find out how well we are doing with our customers, products and on time delivery. We also applied many of the recommendations Dr. Weinstein mentioned in this article focusing in our employees to provide the best service, we respond to our customer in a timely manner and reinforce our excellent relationships with our approved representatives and distributors who are our promoters to new customers.
This article is worth to have it at the office to remind us how well are doing with customers and what needs to be done to make it better.
#13 by Oneida Buenavista on 11/7/15 - 2:46 PM
#14 by Rasheedat Abimbola Oduola on 11/8/15 - 12:46 AM
#15 by Jorge Rochela on 11/8/15 - 8:16 AM
#16 by Lin Liu on 11/8/15 - 2:21 PM
#17 by Lisa Pierre on 11/8/15 - 4:55 PM
The steps mentioned in the blog are helpful especially when a company has to analyze an ongoing problem and how to avoid making the same mistakes in the future. As an employee of one the largest organizations I am expected to deliver superior customer service on a daily basis.
#18 by Jacqueline on 11/8/15 - 6:06 PM
#19 by Andres Cortes on 11/8/15 - 7:10 PM
Service is key and despite the fact that P.F. Changs’ food is usually great, I was not the only one frustrated as another family group shared with me that the hostess are usually horrible and they now make reservations, but if it wasn’t for the food they wouldn’t come in. As stated in the 7th recommendation to creating a better customer experience, “employee selection, job design and training are crucial to building customer satisfaction and SQ.” In my above example, P.F. Changs’ failed to execute, the 7th and 9th point. They must review their front hostess procedures to ensure efficiency. Once the hostess realized I wasn’t in the system or they incorrectly called me, they should have quickly responded and addressed the situation. In addition, to understanding that “Service quality occurs when the entire experience is managed.”
#20 by Anthony Paniagua on 11/8/15 - 7:23 PM
#21 by Carol Ross-David on 11/8/15 - 8:38 PM
#22 by Ricardo Ramos on 11/8/15 - 9:16 PM
#23 by Andryu Llovera on 11/8/15 - 10:10 PM
#24 by Oliver Keeton on 11/8/15 - 10:40 PM
#25 by Ambar De Los Santos on 11/8/15 - 10:47 PM
#26 by Ingrid David on 11/8/15 - 10:56 PM
In my opinion, teamwork is necessary to accomplish goals and assess how a particular department within the company work together. Teamwork brings forth internal service within an organization and is critical for a team dynamic. How customers are treated reflect on how satisfied employees are within the organization.
Social media is the easiest access medium for customers. For example, TripAdvisor is one of the biggest opinion based website where many customers post comments about various companies. Social media comments from customers impact companies daily. Strong customer service within an organization is important in the survival of a company.
#27 by Fatima Ahmed on 11/8/15 - 11:48 PM
#28 by Diana Tellez on 11/9/15 - 12:22 AM
#29 by Ruben Ramos on 11/9/15 - 10:48 AM
#30 by Jarrett Dillon on 11/9/15 - 11:20 AM
#31 by Marie Cine on 11/9/15 - 11:31 AM
This is something individuals should practice as well especially in the field of business. As an individual, we sell ourselves through networking events, place of education, and in our place of employment. Therefore, our attitudes, the quality of work provide, the manner in which we communicate with co-workers will determine if you are the type of person they are willing to work with.
Organizations need to make the effort in improving customer service. As mentioned in the article, customers view quality and service as one. Organizations must understand that consumer’s access to product and companies’ ability to provide the service promised is at hand.
#32 by lersak phothong on 11/9/15 - 12:00 PM
#33 by Jairo Davila on 11/9/15 - 12:10 PM
#34 by Leslie Fiallos Midence on 11/9/15 - 12:28 PM
Knowing the customer's needs and wants is very important. Companies must always think about who their target market is and then treat them accordingly. It is also important for customer's to trust those companies they are doing business with, no one wants to put their money into something that does not sound promising.
Also, companies should know that they are to take constructive criticism in and always keep improving in order to stay relevant.
#35 by Christell Barrau on 11/9/15 - 1:52 PM
#36 by Nerline Morrison on 11/9/15 - 2:22 PM
At my workplace, surveys are one of a few tools used as a measurement to evaluate on ways to improve service quality.
#37 by Julia Costin on 11/9/15 - 2:54 PM
In today’s competitive marketplace, B2B decision makers are not looking for someone to WOW them with a PowerPoint sales presentation, or sleek commercials, that could be intimidated at times, they actually want to see results. How can this product or service could benefit my company, my employees, the stakeholders, and our customers?
#38 by Hassan Rakine on 11/9/15 - 3:04 PM
#39 by Felipe S Arriola on 11/9/15 - 3:22 PM
#40 by Rachel Buckner on 11/9/15 - 7:40 PM
#41 by Lesly A Moran on 11/9/15 - 10:14 PM
#42 by Khaled Attia on 11/9/15 - 10:41 PM
The steps mentioned in this article can help any company to analyze and solve any customers problem and how to avoid them in the future.
#43 by isaac azulay on 11/12/15 - 12:36 PM
#44 by Stela Katelieva on 11/25/15 - 8:23 PM
#45 by Ashley on 9/2/16 - 7:58 AM
It seems that every business wants to have the best technology or the best merchandise, but what we forget at times that the customers are what make up the business. Without them there would be no business. This article helps to point out key factors of customer service and what can be done in order to improve service. One that stood at to me the most was number 1, " Co-create services with customers. Learn what customers value by incorporating the “voice-of-the-customer” into the service development process." Listening and actually having customers give feedback whether it may be on a specific employee, or on general service is something each company should value. Customer are the ones receiving the service, they are seeing it first hand, they re the ones experiencing the ride, listing to the "voice of the customer" can help to improve what may be lacking in servicing the customer. By incorporating customer feedback into new policies or changes, any business can not only benefit from it in the moment, but it may even benefit the future for that business.
#46 by Ellen on 9/2/16 - 10:05 AM
#47 by Laurie Albury on 9/2/16 - 12:17 PM
Starbucks needs to brand itself and position itself as offering something different than its competitors. They have been able to use their experience to entice customers to visit their locations and this has created customer loyalty. Offering a place that customers feel comfortable spending time reading a paper, conducting a meeting, or just relaxing after a workout creates an environment that fosters building a customer base of repeated customers. According to Gupta (2012), experience occurs "when a company intentionally uses services as the stage, and goods as props, to engage individual customers in a way that creates a memorable event".
Starbucks can credit some of their success to this type of strategy because when a company targets markets and tailors them to match the demands of the customers it builds intimacy with the customers and in turn builds brand loyalty.
Gupta, S. (2012). Interdependence between experience marketing and business strategy. Journal of Indian Business Research, 4(3), 170-193.
#48 by Omar Wee-Ellis on 11/1/16 - 8:52 PM
People like to be treated well but if they are not they are inclined to take their business elsewhere. Because of this, it is very important for corporations to have a great customer service team. Most shoppers who had bad experiences will leave without notifying these companies and find another company to support. Only a few of them will report this dilemma to management. Disgruntled customers are usually the result of unsatisfied customers due to poor customer service and or product inefficiencies. It is imperative that companies provide exemplary customer service to their customers because poor customer service is a detriment to their business. Lastly, excellent customer service is a core value for organizations hence this should be evidenced throughout the entire business and not only the customer service department.