1

2 Who is a customer..? CUSTOMER IS THE KING 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

3 Aspects of Service Quality Service: it is what provided by organization to its Customers. Quality : it means “ what customer wants ” (a) within a given time (b) at a price (c) what he/she is willing to pay

4 Why Quality ? The drivers of quality are: To Survive Customer is demanding Competition Profitability Strive for excellence

5 Five principles of Quality Focus on Customer Do it Right Communicate & EducateMeasure & Record Do it together

6 What is Service Quality? Customer satisfaction with service quality can be measured by comparing the perceptions of service received, with service expected. Service Expected – Service Received = Customer Satisfaction When, S.R > S.E = Service is of excellent quality S.R = S.E = Service is satisfactory S.R = S.E = Service is satisfactory S.R < S.E = Service is unsatisfactory S.R < S.E = Service is unsatisfactory

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

8 Common attitudinal blocks to Quality 1. We tried it before, I know it won ’ t work 2. It won ’ t work, the way you think 3. It may work in Japan, but not in this country 4. It is a good idea, but we don ’ t have the budget for it 5. Everybody knows it, what is new in it? 6. If you introduce this idea, it will create some other problems 7. Why do you want to change it ? Now we are ok 8. Let us discuss it some other day 9. These ideas are more complicated than what you understand.

9 Dimensions of Service Quality Word of MouthPersonal Needs Past Needs Expected Service Perceived Service Reliability Assurance Empathy Responsiveness Tangible Quality Dimension Perceived Service Quality E.S >P.S ( Surprise ) E.S = P.S ( Satisfactory ) E.S<P.S (Poor Quality)

10 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.

11 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

12 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

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

14 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

15 How do customers asses your 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 CommunicationKeeping customers informed in a language they know Understanding the customer – knowing his needs

16 Service Quality Model Word of MouthPersonal Needs Past Experience Expected Service Perceived Service Delivering the Service Service Quality Specification Management Perception of Customer Expectation External Communication to Customers Gap 3 Gap 4 Gap 1 Gap 5 Gap 2

17 GAP – 1 Causes Gap between Customer Expectations and Management Perception of Customer Expectation Inadequate market research Lack of interaction between management and customers Inadequate upward communication Too many levels

18 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

19 Inadequate Upward Communication Personal Customer Contact v/s Top Management Inadequate upward communication Upward communication blocked

20 Too many levels Acts as an impediment to upward communication At various levels information gets distorted

21 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

22 GAP – 2 Causes Gap between Management Perception of Customer Expectation and Service Quality Specification Inadequate management commitment to service quality Perception of infeasibility Absence of goal setting

23 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 ”

24 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

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

26 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

27 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

28 GAP – 3 Causes Gap between Service Quality Specification and Service Delivery Role ambiguity Role conflict Job fit Inappropriate supervisory control system Lack of perceived control Lack of team work

29 Role Ambiguity Lack of information from the top Lack of training to perform the job Uncertainty about superiors expectations Method of evaluation by superiors

30 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

31 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

32 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?

33 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?

34 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?

35 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

36 GAP – 4 Causes Gap between Service Delivery and External Communication to Customer Inadequate horizontal communication Differences in policies and procedures across branches or departments Over promising

37 Inadequate Horizontal Communication Coordination between Marketing & HR Corporate Advertising & Operations Advertisement & Public Relations In general this refers to the internal communication between departments

38 Over Promising Time Dimensions Quantity Dimensions When promise do not match delivery, the service quality suffers

39 Remedies to close Gap 4 Opening channels of communication between advertising and operations Opening channels of communication between sales and operations Opening channels of communication between HR, Marketing and Operations Providing consistent service across branches or outlets Developing appropriate and effective communications about service quality

40 Communications on Service Quality Emphasize primary quality determinants Managing customers expectations Customer role in service delivery

41 The Service Struggle Unwillingness to Serve Willingness to Serve Inability to Serve Ability to Serve

42 Getting Started Get ready to work hard Base decisions on Data Use a portfolio of research methods Do on going research Do employee research Share findings with employees Organize for change Create service improvement rules Create an integrative mechanism Develop a statement of direction Involve many and emphasis teamwork Think evolution rather than revolution

43 Getting Started contd … Leverage the freedom factor Symbolize service quality Promote the right people to management positions Identifying leaders The footprints-in-the-sand test The stand-for-something test

44 Challenges Ahead Designing quality into service Service blue-printing Hard but worthwhile work Making technology as a servant Combining high tech with high touch Use technology to support the service strategy Focus technology on the customer Attacking the labor shortfall Mismatch Need for innovative approaches Raising our service aspirations

45 Thank You