The Service EncounterLearning ObjectivesMoments of TruthCycle of ServiceThe Service Encounter TriadDefinitions of CultureThe Service OrganizationContact PersonnelDifficult Interactions with CustomersThe CustomerService Encounter Success FactorsEmployee Perceptions of Customer Service at a Branch BankPowerPoint PresentationSlide 14Slide 15The Cycle of CapabilityTopics for DiscussionThe Service EncounterLearning Objectives•Exploring the service encounter triad to describe a service firm’s delivery process.•Describe features of an organization’s service culture.•Understanding the role of information technology in employee empowerment.•The role of customer as co-producer.•Understanding the concept of a service profit chain and it’s effects on revenue growth and profitability.Moments of Truth•Each customer contact is called a moment of truth.•You have the ability to either satisfy or dissatisfy them when you contact them.•A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.Cycle of ServiceBegin Service EncounterEnd Service Encounter= MOTThe Service Encounter Triad ServiceOrganizationEfficiencyversussatisfactionEfficiencyversus autonomyCustomerContactPersonnelPerceived controlDefinitions of Culture•Schwartz and Davis (1981) - Culture is a pattern of beliefs and expectations shared by the organization’s members.•Mintzberg (1989) - Culture is the traditions and beliefs of an organization that distinguish it from others.•Hoy and Miskel (1991) - Culture is shared orientations that hold the unit together and give a distinctive identity.The Service Organization•CultureServiceMaster (Service to the Master)Disney (Choice of language)•EmpowermentInvest in peopleUse IT to enable personnelRecruitment and training criticalPay for performanceContact Personnel•Selection1. Abstract Questioning2. Situational Vignette3. Role Playing•TrainingUnrealistic customer expectationsUnexpected service failureDifficult Interactions with CustomersUnrealistic customer expectations Unexpected service failure 1. Unreasonable demands 1. Unavailable service 2. Demands against policies 2. Slow performance 3. Unacceptable treatment of 3. Unacceptable service employees 4. Drunkenness 5. Breaking of societal norms 6. Special-needs customersUse scripts to train for proper responseThe Customer•Expectations and AttitudesEconomizing customerEthical customerPersonalizing customerConvenience customer•Customer as Co-ProducerService Encounter Success Factors Customer Service Provider Human MachineHumanEmployee selectionInterpersonal skillsSupport technologyEngender trustUser friendlyVerificationSecurityEasy to accessMachineEasy to accessFast responseVerificationRemote monitoringCompatibilityTrackingVerificationSecurityEmployee Perceptions of Customer Service at a Branch Bank 1234561 2 3 4 5 6EmployeeCustomerTerribleTerribleOutstandingOutstandingSatisfaction MirrorHigher Customer SatisfactionMore Familiarity with Customer Needs and Ways of Meeting ThemGreater Opportunity for Recoveryfrom ErrorsHigher Employee SatisfactionHigher ProductivityImproved Quality of ServiceMoreRepeatPurchasesStronger Tendency to Complain about Service ErrorsLower CostsBetter ResultsService Profit Chain•Internal quality drives employee satisfaction•Employee satisfaction drives retention and productivity•Employee retention and productivity drives service value.•Service value drives customer satisfaction.•Customer satisfaction drives customer loyalty.•Customer loyalty drives profitability and growth.InternalServiceQualityEmployeeSatisfactionEmployeeRetentionEmployee ProductivityExternalServiceValueCustomer SatisfactionCustomerLoyaltyRevenueGrowthProfitability• workplace design• job design• employee selection and development• employee rewards and recognition• tools for serving customers•Service concept:results for customers•service designed and delivered to meet targeted customers' needs•retention•repeat business•referralOperating Strategy andService Delivery SystemThe Links in the Service-Profit ChainThe Cycle of Capability•Careful employee and customer selection•High-quality training•Well-designed support systems•Greater latitude to meet customer’s needs•Clear limits on expectations of employees•Appropriate rewards and recognition•Satisfied employees•Employee referrals of job candidatesTopics for Discussion•What are the organizational and marketing implications of considering a customer as a “partial employee”?•Comment on the different dynamics of one-on-one service and group service in regard to perceived control of the service encounter.•How does use of a “service script” relate to service quality?•If the roles played by customers are determined by cultural norms, how can services be