1. Customer service and the gaps model

2. Defining customer service
Customer service is the provision of service to customers before, during and after a purchase. According to Turban et al. (2002),[1 "Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation

3. The importance of customer service may vary by product or service, industry and customer. The perception of success of such interactions will be dependent on employees "who can adjust themselves to the personality of the guest."

4. customer service plays an important role in an organization's ability to generate income and revenue
From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization.

5. Forms of customer service
Customer support
Customer support is a range of customer services to assist customers in making cost effective and correct use of a product. It includes assistance in planning, installation, training, trouble shooting, maintenance, upgrading, and disposal of a product.
Regarding technology products such as mobile phones, televisions, computers, software products or other electronic or mechanical goods, it is termed technical support.

6. Automated customer service
Customer service may be provided by a person (e.g., sales and service representative), or by automated means. Examples of automated means are Internet sites. An advantage with automated means is an increased ability to provide service 24- hours a day, which can, at least, be a complement to customer service by persons.

7. However, in the Internet era, a challenge has been to maintain and/or enhance the personal experience while making use of the efficiencies of online commerce. "Online customers are literally invisible to you (and you to them), so it's easy to shortchange them emotionally. But this lack of visual and physical presence makes it even more crucial to create a sense of personal, human-to- human connection in the online arena."[

8. Instant feedback
Recently, many organizations have implemented feedback loops that allow them to capture feedback at the point of experience. For example, National Express, one of the UK's leading travel companies, has invited passengers to send text messages whilst riding the bus. This has been shown to be useful, as it allows companies to improve their customer service before the customer defects, thus making it far more likely that the customer will return next time..

9. Technology has made it increasingly easier for companies to obtain feedback from their customers. Community blogs and forums give customers the ability to give detailed explanations of both negative as well as positive experiences with a company/organization

10. A challenge in working with customer service, is to ensure that you have focused your attention on the right key areas, measured by the right Key Performance Indicator (KPI). There is no challenge to come up with a lot of meaningful KPIs, but the challenge is to select a few which reflects your overall strategy.

11. In addition to reflecting your strategy it should also enable staff to limit their focus to the areas that really matter. The focus must be of those KPIs, which will deliver the most value to the overall objective, e.g. cost saving, service improving etc. It must also be done in such a way that staff sincerely believe that they can make a difference when they put their effort.

12. One of the most important aspects of a customer service KPI is that of what is often referred to as the "Feel Good Factor." Basically the goal is to not only help the customer have a good experience, but to offer them an experience that exceeds their expectations. Several key points are listed as follows:

13. 1. Know your product
Know what products/service you are offering back to front. In other words, be an information expert. It is okay to say "I don't know," but it should always be followed up by "but let me find out" or possibly "but my friend knows!" Whatever the situation may be, make sure that you don't leave your customer with an unanswered question

14. 2. Body Language/Communication
Most of the communication that we relay to others is done through body language. If we have a negative body language when we interact with others, it shows that we don't care. Two of the most important aspects of positive body language are smiling and eye contact

15. Make sure to look your customers in the eye
Make sure to look your customers in the eye. It shows that we are listening to them and hearing what they are saying. And of course smiling is more inviting than a blank look or frown.

16. 3. Anticipate Guest Needs
Nothing surprises your customer more than an employee going the extra mile to help them. Always look for ways to go above and beyond the expectations of your customer. In doing so, it helps them to know that you care and it will leave them with a "Feel Good Factor" that we are searching for.

17. 4.Standardization
There are few standards on this topic. ISO and The International Customer Service Institute (TICSI) have published the following ones:
ISO 9004:2000, on performance improvement
ISO 10001:2007, on customer service conduct
ISO 10002:2004, on quality management in handling customer complaints
ISO 10003:2007, on dispute resolution

18. The International Customer Service Standard (TICSS)
There is also an Information Technology service management standard: ISO/IEC :2005. Its first part concerns specifications and its second part the code of practice.

19. Ten commandments of customer service By Susan A. Friedmann
1.Know who is boss.
You are in business to service customer needs, and you can only do that if you know what it is your customers want. When you truly listen to your customers, they let you know what they want and how you can provide good service. Never forget that the customer pays our salary and makes your job possible.

20. 2. Be a good listener
Take the time to identify customer needs by asking questions and concentrating on what the customer is really saying. Listen to their words, tone of voice, body language, and most importantly, how they feel. Beware of making assumptions - thinking you intuitively know what the customer wants.

21. Do you know what three things are most important to your customer
Do you know what three things are most important to your customer? Effective listening and undivided attention are particularly important on the show floor where there is a great danger of preoccupation - looking around to see to whom else we could be selling to.

22. 3. Identify and anticipate needs.
Customers don't buy products or services. They buy good feelings and solutions to problems. Most customer needs are emotional rather than logical. The more you know your customers, the better you become at anticipating their needs. Communicate regularly so that you are aware of problems or upcoming needs.

23. 4. Make customers feel important and appreciated
Treat them as individuals. Always use their name and find ways to compliment them, but be sincere. People value sincerity. It creates good feeling and trust. Think about ways to generate good feelings about doing business with you.

24. Customers are very sensitive and know whether or not you really care about them. Thank them every time you get a chance. On the show floor be sure that your body language conveys sincerity. Your words and actions should be congruent.

25. 5. Help customers understand your systems.
Your organization may have the world's best systems for getting things done, but if customers don't understand them, they can get confused, impatient and angry. Take time to explain how your systems work and how they simplify transactions. Be careful that your systems don't reduce the human element of your organization

26. 6. Appreciate the power of "Yes".
Always look for ways to help your customers. When they have a request (as long as it is reasonable) tell them that you can do it. Figure out how afterwards. Look for ways to make doing business with you easy. Always do what you say you are going to do.

27. 7 Know how to apologize.
When something goes wrong, apologize. It's easy and customers like it. The customer may not always be right, but the customer must always win. Deal with problems immediately and let customers know what you have done. Make it simple for customers to complain. Value their complaints. As much as we dislike it, it gives us an opportunity to improve. Even if customers are having a bad day, go out of your way to make them feel comfortable.

28. 8. Give more than expected.
Since the future of all companies lies in keeping customers happy, think of ways to elevate yourself above the competition. Consider the following:
What can you give customers that they cannot get elsewhere?
What can you do to follow-up and thank people even when they don't buy?
What can you give customers that is totally unexpected?

29. 9. Get regular feedback.
Encourage and welcome suggestions about how you could improve. There are several ways in which you can find out what customers think and feel about your services.
Listen carefully to what they say.
Check back regularly to see how things are going.
Provide a method that invites constructive criticism, comments and suggestions.

30. 10. Treat employees well.
Employees are your internal customers and need a regular dose of appreciation. Thank them and find ways to let them know how important they are. Treat your employees with respect and chances are they will have a higher regard for customers. Appreciation stems from the top. Treating customers and employees well is equally important.

31. Strategic advantage through customer service
Customer service is not always crucial to the success of an organization. Its importance is determined primarily by supply & demand. If there are few suppliers and many consumers, suppliers can dictate the terms of the relationship, and customers may have no choice but to accept them

32. Where competition flourishes, customer service is essential to an organization's long- term viability. It must be central to its strategy. A company can outperform rivals only if it can establish a difference that it can preserve. Customer service is such a difference.

33. Few companies are able to excel at customer service, because it is very difficult to control. Left to itself, the level of service may vary greatly between two servers in the same restaurant. One salesperson may offer great service to one customer, then aggravate the very next person in line.

34. That is both the challenge and the opportunity
That is both the challenge and the opportunity. The consistent delivery of superior service requires the careful design and execution of a whole system of activities that includes people, capital, technology, and processes. The few companies that can manage this system do stand out, and are sought out. This is the foundation of what Michael Porter calls their sustainable competitive advantage.

35. But although it does require an almost heroic effort to build and maintain such a system, it's not so hard to get it started. Service today is in such a sorry state that it doesn't take much to surprise most customers, and to make them want to come back for more. The trick is to get started before your competitors do, then to stay a few steps ahead.

36. By doing so, you'll be doing your whole industry (or community, or strip mall) a favor. Unlike price competition, which tends to sink all players, competition on the basis of service is one of those tides that lifts all boats.

37. Customer service plays an important role in retaining clients and preserving the flow of repeat revenue. You also can take steps to use your customer service policies as a strategic advantage over the competition. Focusing on the customer is a good way to ensure repeat business and help increase referrals to new clients.

38. Empowering Agents
Implementing customer service policies that place the emphasis on the customer rather than the company create a positive experience for the client. Empower your customer service agents to make decisions that speed the process and improve efficiency. For example, allowing customer service associates to refund client purchases up to $500 can accelerate service and improve customer satisfaction.

39. Solving the Problem
Customer service is about solving the client's problem in a manner that benefits the company and the customer. For example, if a client returns a product because it does not perform as the client had hoped, the customer needs a problem solved. Train your customer service representatives to ask the proper questions to resolve the issue. In some cases a refund may be appropriate, while in other cases the customer might prefer a replacement.

40. Helpful Representatives
Clients who have a positive experience with a company's customer service department tend to come back to that company. You can use customer service to your advantage by developing confident and positive service representatives. Train your representatives to be knowledgeable about every aspect of your company offerings so the representatives can be helpful and confident. A staff of helpful and efficient customer service representatives will help your company stand out from the competition.

41. Follow Up
When you have your customer service representatives follow up on customer issues, you are creating a strategic advantage. You are emphasizing to the customer how important service is to your company, and you are making him feel appreciated by checking up on his satisfaction. You also can use the follow-up as a way to present the customer with product and pricing information that can lead to another sale.

42. The gaps model of service quality.
Kotler (2003) asserts that total customer value is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market value. According to Zeithaml (2004), satisfaction is the consumer’s fulfillment response.

43. It is judgment that a product or service itself provides a pleasurable level of consumption– related fulfillment. Kotler (2003) defined satisfaction as a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectation.

44. Customer satisfaction = Your performance
Customer expectations
Zeithaml and Bitner (2002) defined Expectations as a level of service which the customer hopes to receive.

45. Parasuraman et al. (1985) came up with the gaps model and this refers to formal means to identify and correct gaps between desired levels and actual levels of performance. The model is used by organizations to analyze certain processes of any division of their company. The model was derived from the magnitude and direction of five “gaps'' as in the diagram below

47. Gap –Customer/marketing research /Knowledge gap
Not knowing what customers expect
refers to the difference between consumer expectations and management perceptions of consumer expectations. This gap is pertinent to a critical assertion. '' Management perceptions about what customers expect from service quality should ideally be congruent with the expectations expressed by customers.

48. Most senior management executives have the authority and responsibility for setting service priorities and for designing and developing service quality standards, so, if they do not fully understand what customers expect, they might trigger a chain of bad decisions, resulting in poor perceived service quality.
An important cause in many firms for not meeting customers’  expectations is that the firm lacks accurate understanding of exactly what those expectations are. The reasons could be that:

49. The organisation might not be interacting directly with customers.
The organisation might be unwilling to ask about expectations, or
They might be unwilling to address them

50. Gap 2- Service standards gap
Not selecting the right service designs and standards.
the difference between management perceptions of consumer expectations and service quality specifications. In other words it is the difference between manager’s expectations of service quality and service quality specifications.

51. Factors leading to gap service standards gap
Poor service design
Lack of market segmentation
Focus on transaction rather than on relationship
Focus on new customers rather than relationship with customers
Absence of customer driven standards
Lack of customer driven standards
Absence of management process to focus customer requirements
Absence of formal process for setting service quality goals

52. Inappropriate servicecape
Failure to develop tangibles in line with customer expectations
Servicecape design that does not meet customers’ and employees’ needs.
Inadequate maintenance and updating of the servicecape.

53. Decreasing quality or standard gap.
1) Goal setting-An organisation should more emphasize on setting the goal to deliver high standard quality rather than cost reduction or making profit. To set the high goal will not only help to improve company performance but also it will increase the overall control of company on quality standards.
2) Task standardization- A company should improve their work method and it should standardise the specific rules and task and then they should work according to it. Every company should clarify the job or working task to its employees and according to the performance of employees , they should be given regular feedback.

54. Gap 3-the service performance/Delivery gap
Means not delivering to service designs and standards.
measures the difference between service quality specifications and the service actually delivered. Poor delivery of service is a result of this gap.
Once service designs are in place it would seem that the firm is well on its way to delivering high quality service.
This assumption is true but it is not enough to deliver excellent service.

55. The firm must have systems, processes, and people in place to ensure that service delivery actually matches (or is even better) than the designs and standards in place.
Employees must be measured and compensated on the basis of performances along those standards.
If an organisation does not facilitate, encourage, and require achievement of set standards , standards alone won’t produce good results.
When the level of service delivery falls short of the standards, it falls short of what customers expect as well.
This gap can be narrowed by ensuring that all resources needed to achieve set standards are in place.

56. Factors leading to delivery gap
Deficiencies in human resources policies
Ineffective recruitment
Role ambiguity and role conflict
Poor employee-technology-job fit
Inappropriate evaluation and compensation systems.
Lack of empowerment, perceived control, and teamwork
Customers who don’t fulfill roles
Customers who lack knowledge of their roles and responsibilities
Customers who negatively impact each other

57. Problems with service intermediaries
Channel conflict over objectives and performances
Difficulty controlling quality and consistency
Tension between empowerment and control
Failure to match supply and demand
Failures to smooth peaks and valleys of demand
Inappropriate customer mix (Marketing mix)
Over reliance on price to smooth demand

58. Gap 4 -the Communications gap
Not matching performance to promises.
the difference between service delivery and what is communicated about the service to consumers.
Promises made by a service firm through its media i.e advertising, sales force, and other communications may potentially raise customer expectations , the standards against which customers assess service quality.
The discrepancy between actual and promised service therefore has an adverse effect on the customer gap.

59. Broken promises can occur for many reasons:
Overpromising in advertising or personal selling.
Inadequate coordination between operations and marketing
Differences in policies and procedures across service outlets.
Though less obvious, salespersons may fail to educate customers to use services appropriately
They also neglect to manage customer expectations of what will be delivered in service transactions and relationships.

60. Gap 5- Service quality gap
is the difference between customer expectations of service quality and customer perceptions of the organization's performance. Customer perceptions of service, quality Measurement of the gap (Gap 5) between consumers' expectations and their perceptions of service quality delivery has become the principal focus of research recently. This analysis may provide management with important insights about how well actual service performance compared with the expectations of the consumers.

61. The GAPS model places the key concepts, strategies and decisions in services marketing in a manner that begins with the customer and builds the organization's tasks around what is needed to close the gap between customer expectations and perceptions.

62. Tutorial questions
1. Define customer service and discuss its strategic advantages to a retailer. (20)
2 Discuss the usefulness of the gaps model in improving service quality.
3. Using a diagram , explain the gaps model.
4. Identify and explain the 10 commandments of customer service.
5. Identify and explain strategies to close service quality gaps by Parasuraman et al (1985)