Service Service Encounter Encounter

managementmanagementEvery service encounter Every service encounter

is an opportunity to build is an opportunity to build satisfaction and qualitysatisfaction and quality

Service encounter or the Service encounter or the “Moments of Truth”“Moments of Truth”

• It is where promises are kept or broken where the proverbial rubber meets the road.

• It is from these service encounters that customers build their perceptions.

• These encounters thus present an opportunity to prove its potential as a quality service provider and to increase customer loyalty.

Service encounter cascade Service encounter cascade for a Hotel Visitfor a Hotel Visit

• Check in• Bell person takes to room• Restaurant meal• Wake up call• checkout

Importance of encountersImportance of encounters• If a customer is interacting with a firm for the first

time, the initial encounter will create a first impression of the organization.

• Even when the customer has had multiple interaction with a firm, each individual encounter is important in creating the composite image of the firm in the customers memory.

• Many positive experience add up to a composite image of high quality.

• Certain encounters are key to customer satisfaction.

Types of service encounterTypes of service encounter• Remote encounter-It occurs without

direct human contact.• Phone encounter.• Face to face encounter.

RecoveryRecovery• Employee response to service

delivery System Failures.• Adaptability-Employee Response to

customer Needs and request.• Spontaneity-Unprompted and

Unsolicited Employee Actions• Coping-Employee Response to

problem customers.

General Service Behaviour-General Service Behaviour-Dos and DontsDos and Donts

Theme Do Donts

Recovery Acknowledge problem, explain causes, aplogize,compensate/upgrade,layout options, take responsibility

Ignore customers,blame customers,leave customers to “fend for him/herself,downgradeact as if nothing is wrong, pass the buck

General Service Behaviour-General Service Behaviour-Dos and DontsDos and Donts

Theme Do Don'ts

Adaptability

Recognize the seriousness of need, Acknowledge, anticipate, attempt to accommodate, adjust the system, explain rules and policies take responsibility

Ignore promise, but fail to follow through show unwillingness to try, embarrass the customer, laugh at the customer, avoid responsibility,

General Service Behavior-General Service Behavior-Dos and Don'tsDos and Don'ts

Theme Do Don't

Spontaneity Take time, be attentive, anticipate needs, ,listen, ,provide information, show sympathy

Exhibit impatience, Ignore,Yell/laugh/swear,discriminate

General Service Behavior-General Service Behavior-Do’s and Don'tsDo’s and Don'ts

Theme Do Don’t

Coping Listen, try to accommodate, explain,

Take customer’s dissatisfaction personally, let customer dissatisfaction affect others.

Technology based service Technology based service encountersencounters

• Customers interacting with internet-based services, automated phone services, Kiosk services, and services delivered via CD or Video technology or self serviced technology (SST)

For satisfying SSTsFor satisfying SSTs• Solved an intensified need.• Better than an alternative-easy to

use save time available when and where the customer needed it, saved money

• Did its job-technology failure

For dissatisfying SSTsFor dissatisfying SSTs• Technology failure• Process failure• Poor design• Customer-driven failure

The evidence of serviceThe evidence of servicePeople Process Physical Evidence

1. Contact employees2. Customer him/herself3. Other customer

1. Operational flow of activities

2. Steps in process

3. Flexibility versus standard

4. Technology versus human

1. Tangible communication.

2. Servicescapes3. Technology4. website

Strategies for influencing Strategies for influencing customer perceptionscustomer perceptions

• Measure and mange customer satisfaction and service quality

• Aim for customer quality and satisfaction in Every Service Encounter

1. Plan for effective recovery2. Facilitate Adaptability and flexibility3. Encourage Spontaneity4. Help Employee cope with problem customersManage the dimensions of quality at the encounter

level-reliability, responsiveness, assurance, ,empathy, and tangibles

Role of service recovery and Role of service recovery and feedbackfeedback

• CRM is about getting closer to customers in order to understand and meet their needs more effectively it rarely addresses existing customers needs.

• Customer care adds significant value representing the voice of the customers.

• Position customer care as profit center-Identifying the ROI of service recovery and customers feedback

Top management must be Top management must be committedcommitted

• Keep the CEO fully briefed with topical,concise and actionableVoice of the customer feedback.

• Customer care starts at the frontline-they should be empowered to resolve most common issues and know the responses to common situations.

Make it easy and pleasant Make it easy and pleasant for customers to contactfor customers to contact

• Customer should know how to contact.• They should be able to choose whatever contact

medium best suits them.• Contacting should be easy• Contact should be received by knowledgeable,

polite and empowered individuals who are obviously interested in understanding and meeting customer need.

• Issues raised should not keep recurring.• Information requested should be readily

available, easily understood and free of jargon.

Effective resolution processEffective resolution process• Any investment in customer care will be

wasted unless both customer care department the frontline achieve high level of contact satisfaction.

• Research studies over recent years have reported that satisfaction levels with service recovery remains disappointingly low.

• Contacts need to be monitored and performance evaluated.

• Contacts need to be adequately recorded and reported.

• Voice of customer feedback relies on an effective process for logging, analyzing and reporting on customers contact.

RecommendationRecommendation• Timely reports• Actionable findings• Tailored to needs• Provide an economic imperative to act• Concentrate on what is important• Effective presentation• Participative reporting• Dedicated knowledge manager

• Develop a relationship and communication channel with internal clients for voice of the customer feedback.

• Use the customer care channel for soliciting positive feedback.

• Early research suggested it cost ten times more to acquire a new customer but, today it ranges from 2 to 20 times depending on the industry. it therefore make sound economic sense to raise the profile of customer care.