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Who is a customer..?A customer is the most important person in our office. A customer is not dependent on us. We are dependent on him. A customer is not an interruption of our work, he is the purpose of it. We are not doing a favor by serving him. He is doing us a favor by giving an opportunity to do so. A customer is not some one to argue. No one has won an argument with a customer.A customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves.

CUSTOMER IS ALWAYS RIGHT CUSTOMER IS ALWAYS RIGHT

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Aspects of Service QualityService: it is what is provided by

service provider organizationE.g. Bank, Insurance , Hospital, Service organizations

Quality : it means “what customer wants”(a) within a given time(b) at a price(c) what he/she is willing to pay

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Why Quality ? The drivers of quality are:

To Survive Customer is demanding Competition Profitability Strive for excellence

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Five principles of Quality

Focus on Customer

Do it Right

Communicate & EducateMeasure & Record

Do it together

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What is Service Quality?This takes place when there is an encounter between customer and service provider. Customer satisfaction with service quality can be measured by comparing the perceptions of service received, with service expected.

Service Expected – Service Received = Service Expected – Service Received = Customer SatisfactionCustomer Satisfaction

When, S.R > S.E = Service is of excellent qualityWhen, S.R > S.E = Service is of excellent quality S.R = S.E = Service is satisfactoryS.R = S.E = Service is satisfactory S.R < S.E = Service is unsatisfactoryS.R < S.E = Service is unsatisfactory

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Quality is an attitude…..

Attitude is what differentiates between excellence and mediocrity. Positive attitude leads to high quality and vice-versa.

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Common attitudinal blocks to Quality

1. We tried it before, I know it won’t work2. It won’t work, the way you think3. It may work in Japan, but not in this country4. It is a good idea, but we don’t have the budget

for it5. Everybody knows it, what is new in it?6. If you introduce this idea, it will create some

other problems7. Why do you want to change it ? Now we are ok8. Let us discuss it some other day9. These ideas are more complicated than what

you understand.

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Dimensions of Service Quality

Word of Mouth Personal Needs Past Needs

Expected Service

Perceived Service

Reliability

Assurance

Empathy

Responsiveness

Tangible

Quality DimensionPerceived Service

Quality

E.S >P.S (Surprise)

E.S = P.S (Satisfactory)

E.S<P.S (Poor Quality)

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Reliability

This refers to the ability to perform the promised service independently and accurately. Reliability means, every time the service has to be accomplished on time and in the same manner without errors.

E.g. Application of film

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Responsiveness

This refers to the willingness to help customers to provide prompt service,without keeping the customer waiting for no apparent reasons. This creates negative perceptions of quality.

In the event of service failure, the ability to recover quickly with professionalism, can create a very positive perception of quality

E.g Roller Discs from NEC

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Assurance

This refers to the courtesy of employees and their ability to convey trust and confidence. i.e. competence to perform the service, politeness and respect for the customer, effective communication with the customer , and general attitude

E.g Efficiency v/s Effectiveness

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Empathy

This refers to caring and individualizing attention to the customer. Empathy includes approachability, sense of security and efforts to understand customer needs.

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Tangibles

This refers to Physical facilities Equipment Communication material; Condition of physical surroundings

The above are the evidence of care and attention given to the workplace by service providers

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Service Quality v/s Product Quality

Service quality is more difficult for customers to evaluate than product quality

Customer does not evaluate service quality solely by outcome of service

Customer judge only quality, all other judgment is essentially irrelevant

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How customers get influenced of “What to Expect”…

Word of MouthWord of Mouth – choosing a service is greatly influenced by word of communication. If service provider can recognize this and acts, then half the battle is won

Personal NeedsPersonal Needs – Personal needs varies from customer to customer

Past ExperiencePast Experience – Bad past experience will have bearing on customer expectation

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How do customers asses your Service Quality?

Tangibles Appearance of physical facilities, Equipment, Communication material

Reliability Dependability & Accuracy

Responsiveness

Willingness o help customers and provide service

Competence Possessing the required knowledge and skills to perform the service

Courtesy Politeness, Respect, Friendliness

Credibility Trustworthiness, believability, honesty of service provider

Access The case of contact and approachability

Communication Keeping customers informed in a language they know

Understanding the customer – knowing his needs

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Service Quality Model

Word of Mouth Personal Needs Past Experience

Expected Service

Perceived Service

Delivering the Service

Service Quality Specification

Management Perception of Customer Expectation

External

Communication

to CustomersGap 3

Gap 4

Gap 1

Gap 5

Gap 2

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GAP – 1 CausesGap between Customer Expectations Gap between Customer Expectations

and Management Perception of and Management Perception of Customer ExpectationCustomer Expectation

Inadequate market research Lack of interaction between

management and customers Inadequate upward communication Too many levels

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Market Research No MR is done MR is done but not made use of Concentrating on Day to Day Operations In MR

Data regarding customer expectations not collected

Data regarding customer perceptions not collected

Complaint made by customer neglected Even if findings are available-not made use of

because of the following reasons Too busy Research are very complex Research is too technical Lack of confidence in research

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Inadequate Upward Communication Personal Customer Contact v/s Top

Management Inadequate upward communication Upward communication blocked

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Too many levels Acts as an impediment to upward

communication At various levels information gets

distorted

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Remedies to close GAP – 1

Collect data regarding expectations and perception of the customers.

Improve upward communication – have a periodical meeting between management and customer contact staff; informal or formal

Direct interaction by the top management with customer wherever possible

Reduce levels – helps in faster decision making

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GAP – 2 Causes

Gap between Management Gap between Management Perception of Customer Expectation Perception of Customer Expectation

and Service Quality Specificationand Service Quality Specification Inadequate management

commitment to service quality Perception of infeasibility Absence of goal setting

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Lack of Commitment Operation orientation Lack of support from middle

management due to lack of motivation and incentive

Middle management attitude”what is in it for me”

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Perception of Infeasibility It involves finance Our personnel may not be capable

of delivering customer expectations - shortage of skills required (9 blocks)

Lack of technology available

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Absence of Goal Setting Goals are not set Set goals are not clear SMART Goal setting

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Remedies to close GAP – 2 Mind set:

Remove the mind block – open mindedness; ‘Can Do’ attitude

Willingness to – investing money to buy technology;spend time with employees to satisfy customer requirements

Middle Management to be involved all the more in Quality programmes

Train the employees “Lack of time concept” should be converted

to “enough time” by following the principles of time management

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Contd… Absence of goal setting

Most goals on quality should be based on :

Customer requirement Specific Acceptable to employees Realistic Designed to meet customer specifications Should not become a pious intention Have a proper feedback system

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GAP – 3 Causes

Gap between Service Quality Gap between Service Quality Specification and Service Specification and Service

DeliveryDelivery Role ambiguity Role conflict Job fit Inappropriate supervisory control system Lack of perceived control Lack of team work

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Role Ambiguity Lack of information from the top Lack of training to perform the job Uncertainty about superiors

expectations Method of evaluation by superiors

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Role Conflict Conflict between role expectations

and perceptions Personal attention requirement

from customer vis-a-vis time limit from employee side

Management constraints and customer expectations

Varied customer demands

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Job Fit Making job psychograph v/s individual

psychograph Hiring of people qualified for the job Do management spend enough time

and resources on hiring the best people who are in direct contact with customer?

Skills required for the job v/s existing employee skills

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Inappropriate Supervisory Control System

Do the employees know “what aspect of their job will be stressed more in performance evaluation?”

Are employees evaluated on “how will they interact with customers?”

Do employees who make special efforts to serve the customer receive increased financial reward of recognition?

Do employees get a word of appreciation for their contribution?

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Lack of Perceived Control Are employees given the freedom to

make the individual decision to satisfy the customer needs?

Are employees required to get approval from another department before delivering the service to the customer?

Are they encouraged to learn new ways of servicing the customer better?

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Lack of Team Work

Do managers and employees contribute a team effort in servicing the customer?

Do employees of other departments provide good service to customer contact employees?

Are there any competition amongst employees to impress some one at the cost of team work?

Do they help each other than pulling each other to reach a goal?

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Remedies to close GAP – 3 Improve communication Train the employee in time management Train the employee in prioritizing the task Top management must spend enough time

in hiring and selection of employees Hire and use appropriate technology Pushing down decision to lower levels Avoid too many people in decision making Encourage team work – concept of internal

customer Job rotation and job training

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GAP – 4 Causes

Gap between Service Delivery and Gap between Service Delivery and External Communication to External Communication to

CustomerCustomer Inadequate horizontal communication Differences in policies and procedures

across branches or departments Over promising

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Inadequate Horizontal Communication Coordination between Marketing & HR Corporate Advertising & Operations Advertisement & Public Relations

In general this refers to the internal communication between departments

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Over Promising Time Dimensions Quantity Dimensions When promise do not match

delivery, the service quality suffers

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