Managing Customer Satisfaction Week 6 Service Providers

Chapter Objectives To understand the pressures on service providers To understand the pressures on service providers To describe ways managers manage and motivate their staff To describe ways managers manage and motivate their staff To describe how customers can be managed to fulfill their roles and display the ‘ right ’ behavior To describe how customers can be managed to fulfill their roles and display the ‘ right ’ behavior

Pressures on service providers

Roles of front line service employees Order taker — interface between customer and organization Order taker — interface between customer and organization Advice giver — customers looking for inside information about what ’ s good or not worth purchasing Advice giver — customers looking for inside information about what ’ s good or not worth purchasing Image maker — the brand is delivered by the service employees Image maker — the brand is delivered by the service employees Service delivery — may be the final point of contact with the customer Service delivery — may be the final point of contact with the customer

Roles of front line service employees Complaint handler Complaint handler Therapist — some customers seek human contact to offload problems Therapist — some customers seek human contact to offload problems Trainer — deal with competent and incompetent customers Trainer — deal with competent and incompetent customers Coach — customers may need confidence building Coach — customers may need confidence building

Issues Motivation — initial enthusiasm to powerlessness over time Motivation — initial enthusiasm to powerlessness over time Role clarity & fit Role clarity & fit Aligning with the customerAligning with the customer Personality matchPersonality match Relationships — who is the relationship between, the customer and employee or customer and organization Relationships — who is the relationship between, the customer and employee or customer and organization

Issues Risk & anxiety Risk & anxiety Stress — requirements of the situation exceed the individual ’ s perceived ability to meet them Stress — requirements of the situation exceed the individual ’ s perceived ability to meet them

Effects of organizational and customer pressure

Managing & motivating service providers “ Leadership is the privilege to have the responsibility to direct the actions of others in carrying out the purposes of the organization … with accountability for both successful and failed endeavors. ” (Roberts 1989) “ Leadership is the privilege to have the responsibility to direct the actions of others in carrying out the purposes of the organization … with accountability for both successful and failed endeavors. ” (Roberts 1989)

Leadership styles Transformational leaders — project a vision of the future, influence others to contribute to this future Transformational leaders — project a vision of the future, influence others to contribute to this future Most important in times of changeMost important in times of change Transactional leaders — deal with the day-to-day operations Transactional leaders — deal with the day-to-day operations Both styles required Both styles required

Protecting providers from pressure

Teams Teams and teamwork can provide support and build ownership of service processes Teams and teamwork can provide support and build ownership of service processes Self-directed team success largely determined by team design and process Self-directed team success largely determined by team design and process

Clarifying service provider roles Role conflict — demands of the job are in conflict Role conflict — demands of the job are in conflict Reduce the amount of time spent with customers (management)Reduce the amount of time spent with customers (management) Time needed to help resolve problem (customer)Time needed to help resolve problem (customer) Role ambiguity — uncertainty of role due to unclear strategy (poor leadership) Role ambiguity — uncertainty of role due to unclear strategy (poor leadership)

Scripts Scripts enable consistency and provide useful prompts for employees Assists in discovering customer need Assists in discovering customer need Control the customer Control the customer Establish routines (airline check-in) Establish routines (airline check-in) Control workers Control workers Legitimize organizational actions (high or low energy restaurant staff) Legitimize organizational actions (high or low energy restaurant staff)

Script issues Inflexible Inflexible Customers perceive service providers as robots Customers perceive service providers as robots May lead to defensive behavior if service provider is not aware that something different is required May lead to defensive behavior if service provider is not aware that something different is required

Employee discretion Defining the degree and type of discretion required is essential Defining the degree and type of discretion required is essential Routine discretion — how to perform routine tasks Routine discretion — how to perform routine tasks Creative discretion — what and how the task is done Creative discretion — what and how the task is done Deviant discretion — not approved by the organization – disruptive Deviant discretion — not approved by the organization – disruptive

Employee discretion Organizational style — fluid situations require more discretion Organizational style — fluid situations require more discretion AdaptiveAdaptive Compliant (high volume, low variety)Compliant (high volume, low variety) Perceived individual employee discretion — how much discretion the employees feel they have Perceived individual employee discretion — how much discretion the employees feel they have

Employee discretion

Changing employee discretion Compliant to adaptive: the anxious zone Compliant to adaptive: the anxious zone Adaptive to compliant: the frustrated zone Adaptive to compliant: the frustrated zone

Effective communications FAME Model FAME Model Focus — clear focus, few priorities, repeated & reinforced Focus — clear focus, few priorities, repeated & reinforced Articulate — use plain language Articulate — use plain language Model — lead by example Model — lead by example Engage — connect the organization ’ s agenda with the individual ’ s agenda Engage — connect the organization ’ s agenda with the individual ’ s agenda

Managing customers What is the involvement of customers in the service delivery system? What is the involvement of customers in the service delivery system? Service provider Service provider SupermarketSupermarket Behavior in a restaurantBehavior in a restaurant Service specifier — provide their requirements Service specifier — provide their requirements

Quality inspector — many organizations rely on customers to provide feedback and bring errors to the organization ’ s attention Quality inspector — many organizations rely on customers to provide feedback and bring errors to the organization ’ s attention Trainer/role model Trainer/role model Waiting in a queueWaiting in a queue Express dissatisfaction with others who are not orderlyExpress dissatisfaction with others who are not orderly Managing customers

Benefits of customer involvement Inclusion results in loyalty Inclusion results in loyalty Resource productivity — the more the customer does, the fewer resources required to run the operation (IKEA) Resource productivity — the more the customer does, the fewer resources required to run the operation (IKEA) Customer control = more personal control (Internet based services) Customer control = more personal control (Internet based services)

Compliant to adaptive: the anxious zone