Reaching New Heights... Quality Service Foundation Chapter III Integrating Marketing in the Leisure Industry

Quality Service Involves every aspect of an agency Is about doing the right things, the right way, the first time Is the foundation of effective marketing Is the way agencies differentiate themselves

Quality Service is… Exceeding the expectations of those served in a leisure service agency. You tell 10 people about a negative experience and they will tell...

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Service Expectations Experience with the facility itself Experience with other like-facilities Advertisements developed by the agency Other people’s perceptions Seasonality issues Personal needs

It’s not what you say, but what is heard. It’s not what you show, but what is seen. It’s not what you mean, but what is understood. Perception is reality.

Key Concepts in Quality Service Word-of-Mouth Quality Culture Moment of Truth

Word-of-Mouth Marketing Quality experiences will result: repeat visitors loyal customers a public that shares positive word of mouth communications to others

Quality Culture Commitment to quality Involvement of all staff in the process Willingness to learn information that may not be what the agency “wants to hear” from employees or customers Willingness to examine the organization from the top down Willingness to make changes and make it a better place to be, visit and work

Moment of Truth Living a lasting impression with people you serve. Moments of Truth: passing an employee in the hall and using his/her name returning a telephone call or within 24 hours conducting a performance evaluation in person

Quality Service Systems providing quality service to both internal (employees) and external (customers) guests

Physical & Tangible Aspects (Products, equipment, policies, procedures, environment, and human resources) INTERACTION (Input) Leadership INTERACTION (Feedback) Level of Satisfaction (Employee, guest, and other stakeholders) INTERACTION (Reinforce/recover) INTERACTION (Delivery) Quality Service System Quality of the Experience Quality Service System Model

Quality System Model Design (focus groups, surveys) Production (100% guarantee, training, service program) Empowerment Perception (training, rewards) Outcomes

Defining Empowerment Empowerment is the degree of freedom available to employees to make their own decisions and enable an organization to be as responsive as possible to guest needs. (Younis, 1997)

EmpowermentEmpowerment Empower employees by: 1.Giving them information. 2.Providing employees with the tools to do the job. 3.Establish boundaries for levels of empowerment, let them know what they can do! 4.Training employees on making decisions and gaining comfort in doing what is best for guests. 5.Coaching and supporting employee decisions.

Service Recovery Impact 45-96% Do NOT complain (small purchases)45-96% Do NOT complain (small purchases) 45-63% Who have NOT complained will NOT return45-63% Who have NOT complained will NOT return 70-92% Return if resolved70-92% Return if resolved

Sources of Guest Dissatisfaction 1.Employees 2.The physical environment 3.Other guests 4.The agency’s products/services, policies, procedures, operations and marketing

Types of Dissatisfied Customers Passive Problem Solving Aggressive

LEAD and ACT Service Recovery System 1.Listen! 2.Empathy (sorry, glad, sure) 3.Ask Questions 4.Discuss (they, can, alternatives) 5.Action 6.Communicate (internally and externally) 7.Theory of WOW!

How to Practice the Theory of WOW Research Service Recovery System Culture

Relationship Management Relationship management is developing techniques to engage consumers (e.g. visitors, employees, board members) for the long-term to produce desired outcomes.

Gaining “Customer” Loyalty 1.Identify the behavior desired from various “customers” (e.g. more volunteerism, less vandalism) 2.Understand what influences loyalty (e.g. accountability, credibility and trust) 3.Stay in touch with agency stakeholders. 4.Develop policies that are guided by numbers 2 and 3. 5.Document and communicate the need for policy; don’t just say “trust me.” 6.Don’t exaggerate. 7.Clearly identify how you are investing agency resources. 8.Keep employees or leaders aware of their role in building loyalty. 9.Act on what is important to your “customers.” 10. Annually review agency practices including these loyalty concerns.

Customer Loyalty Assigned Reading

Relationships are Built on Trust!

S TRATEGIES F OR B UILDING T RUST Communicate effectively & convincingly Display caring Be fair Admit errors/lack of knowledge Trust customers Keep your word Provide peace of mind

I MPORTANCE O F L OYALTY Cost 5 times more to acquire new customers 50% of consumers will complain to frontline 75% complain in B2B Small-ticket = 96% do not complain Large-ticket = 50% complain to frontline Large-ticket = 5-10% escalate to mgt 50% simply go away Tell up to 16 friends Businesses lose per year Source: TARP

P ROVIDER C HARACTERISTICS A FFECTING L OYALTY (1) Responsiveness Adaptability Communication skills Decisiveness Enthusiasm Ethical behavior

C HARACTERISTICS A FFECTING L OYALTY (2) Initiative Knowledge Perceptiveness Planning ability Problem-solving ability Professionalism

M AKING T HE C USTOMER #1 Positive initial contact Establish rapport Identify/satisfy needs Exceed expectations Follow up Encourage return

E NHANCING S ATISFACTION (1) Pay attention One customer at a time Know your customers Give special treatment Service at least adequately

E NHANCING S ATISFACTION (2) Do the unexpected Handle complaints effectively Sell benefits not features Know your competition

Gaining Employee Loyalty Dissatisfied employee Satisfied employee Loyal employee Gaining Non-user/Stakeholder Loyalty

Customer Relationship Management Gather information on customers Develop an appropriate plan for targeting customers Communicate this information to employees Reach the desired consumers (e.g. a discount coupon for a program that the agency knows would interest the consumer)