Improving Service Quality and Productivity Chapter 14

Improving Service Quality The GAP Model is: A Conceptual Tool to Identify and Correct Service Quality Problems

The Gaps Model of Service Quality The gaps model is a useful framework for understanding service quality in an organization. It demonstrate that the most critical service quality gap to close is the customer gap, the difference between customer expectations and perceptions. The model shows four gaps that occur in companies, which we call provider gaps, are responsible for the customer gap. It identifies the factors responsible for each of the four provider gaps.

The Gaps Model – Figure 14.3

Key Factors Leading to the Customer Gap Customer Expectations Customer Perceptions Gap

Key Factors Leading to Gap 1 Inadequate marketing research orientation Lack of upward communication Insufficient relationship focus Inadequate service recovery

Key Factors Leading to Gap 2 Poor service design Absence of customer-driven standards Inappropriate physical evidence and servicescape

Key Factors Leading to Gap 3 Deficiencies in human resource policies Customers who do not fulfill roles Problems with service intermediaries Failure to match supply and demand

Key Factors Leading to Gap 4 Lack of integrated services marketing communications Over promising Ineffective management of customer expectations Inadequate horizontal communications

The Gaps Model – Figure 14.3

The Customer Gap – Gap 5 & 6

Handling Consumer Gaps

Learning from Customer Feedback

Customer Feedback Collection Tools Total market surveys Annual surveys Transactional surveys Service feedback cards Mystery shopping Unsolicited customer feedback Focus group discussions Service reviews

Evaluating Feedback Methods

Video – Mystery Shopper

Analysis, Reporting and Dissemination of Customer Feedback Choosing the relevant feedback tools and collecting customer feedback is meaningless if the information is not passed back to the relevant parties to take action Reporting system needs to deliver feedback to frontline staff, process owners, branch/department managers and top management Three types of performance reports: Monthly Service Performance Update Quarterly Service Performance Review Annual Service Performance Report

Customer-driven ways to Improve Service Productivity Change timing of customer demand By shifting demand away from peaks, managers can make better use of firm’s productive assets and provide better service Encourage use of lower cost channels Get customers to self-serve Encourage customers to obtain information and buy from firm’s corporate Websites Ask customers to use third parties Delegate delivery of supplementary service elements to intermediary organizations

Productivity Improvements and Quality Front-stage productivity enhancements are especially visible in high contact services Some improvements only require passive acceptance, while others require customers to change behavior Must consider impacts on customers and address customer resistance to changes Backstage changes may impact customers Keep track of proposed backstage changes, and prepare customers for them