Chapter 11-1

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 Chapter 11-2

Part 5

DELIVERING AND
PERFORMING
SERVICE

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 Chapter 11-3

Provider Gap 3

CUSTOMER

COMPANY Service delivery

Gap 3: The
Service
Customer-driven Performance Gap
service designs and
standards

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 Chapter 11-4

Key Factors Leading to Provider Gap 3

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 Chapter
Chapter 11-5

Employees’ Roles in Service 11

Delivery
 Service Culture
 The Critical Importance of Service
Employees
 Boundary-Spanning Roles
 Strategies for Delivering Service Quality
Through People
 Customer-Oriented Service Delivery

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 Chapter 11-6

Objectives for Chapter 11:

Employees’ Roles in Service Delivery
 Demonstrate the importance of creating a service culture
in which providing excellent service to both internal and
external customers is a way of life.

 Illustrate the pivotal role of service employees in creating

customer satisfaction and service quality.

 Identify the challenges inherent in boundary-spanning

roles.

 Provide examples of strategies for creating customer-

oriented service delivery through hiring the right people,
developing employees to deliver service quality,
providing needed support systems, and retaining the
best service employees.
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 Chapter 11-7

Service Culture

“A culture where an appreciation for good

service exists, and where giving good
service to internal as well as ultimate,
external customers, is considered a natural
way of life and one of the most important
norms by everyone in the organization.”
- Christian Grönroos

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 Chapter 11-8

The Critical Importance of Service

Employees
 They are the service.

 They are the organization in the customer’s eyes.

 They are the brand.

 They are marketers.

 Their importance is evident in:

 the services marketing mix (people)
 the services triangle
 the service-profit chain
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 Chapter 11-9

The Service Marketing Triangle

(Figure 11.1)

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 Chapter 11-10

Aligning the Triangle

 Organizations that seek to provide

consistently high levels of service excellence
will continuously work to align the three
sides of the triangle.

 Aligning the sides of the triangle is an

ongoing process.

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 Chapter 11-11

Making Promises

 Understanding customer needs

 Managing expectations
 Traditional marketing communications
 Sales and promotion
 Advertising
 Internet and web site communication

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 Chapter 11-12

Keeping Promises

 Service delivery
 Reliability, responsiveness, empathy, assurance,
tangibles, recovery, flexibility
 Face-to-face, telephone & online
interactions
 The Customer Experience
 Customer interactions with sub-contractors
or business partners
 The “moment of truth”
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 Chapter 11-13

Enabling Promises

 Hiring the right people

 Training and developing people to deliver
service
 Employee empowerment
 Support systems
 Appropriate technology and equipment
 Rewards and incentives

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 Chapter 11-14

The Service Profit Chain (Figure 11.2)

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 Chapter 11-15

The Effect of Employee Behaviors on

Service Quality Dimensions
 Reliability: delivering the service as promised is often
totally within the control of front line employees.
 Responsiveness: front line employees may exhibit a
range of responses in terms of promptness and
willingness to help.
 Assurance: highly dependent on employees’ ability to
communicate their credibility and inspire trust.
 Empathy: implies that employees will pay attention,
listen, and adapt to customers’ needs.

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 Chapter 11-16

The Critical Role of Boundary Spanners

(Figure 11.3)

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 Chapter 11-17

Boundary Spanners

 Provide a critical link between the external

customer environment and the internal operations
of the organization
 May be order-takers, front desk clerks, truck
drivers, teachers, and doctors!
 Serve a critical function in understanding, filtering,
interpreting information and resources to and from
the organization and its external constituencies
 High stress!!!

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 Chapter 11-18

Boundary-spanning Roles

 What are these jobs like?

 Emotional labor
 The labor that goes beyond the physical or mental
skills needed to deliver quality service.
 Often requires suppression of true feelings
 Many sources of potential conflict
 person/role
 organization/client
 interclient
 Quality/productivity tradeoffs

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 Chapter 11-19

Strategies for Delivering Service Quality

through People (Figure 11.4)

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 Chapter 11-20

Strategies for Delivering Service

Quality through People
 Hire the right people
 Compete for the best people
 Hire for service competencies and service inclination
 Be the preferred employer
 Develop people to deliver service quality
 Train for technical and interactive skills
 Empower employees
 Promote teamwork

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 Chapter 11-21

Benefits and Costs of Empowerment

(Exhibit 11.2)
 Benefits:  Costs:
 Quicker responses to  Potentially greater dollar
customer needs during investment in selection and
service delivery training
 Quicker responses to  Higher labor costs
dissatisfied customers during  Potentially slower or
service recovery inconsistent service delivery
 Employees feel better about  May violate customers’
their jobs and themselves perceptions of fair play
 Employees tend to interact  Employees may “give away
with warmth/enthusiasm the store” or make bad
 Empowered employees are a decisions
great source of ideas
 Great word-of-mouth
advertising from customers
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 Chapter 11-22

Strategies for Delivering Service

Quality through People (continued)
 Provide needed support systems
 Measure internal service quality
 Provide supportive technology and equipment
 Develop service-oriented internal processes
 Retain the best people
 Include employees in the company’s vision
 Treat employees as customers
 Measure and reward strong service performers

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 Chapter 11-23

Customer-Focused Organizational
Chart

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 Chapter 11-24

Inverted Service Marketing Triangle

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