1. Service Profit Chain Ch. 9 Designing Service Delivery Systems
Drivers of a Service Delivery System
Service Concept
Target Market
Operating Strategy
Elements of a Service Delivery System
Location
Layout
Décor/Ambience
Employee Amenities
Customer Management
Information Support Systems
Non-information Support Systems
Devices and Policies

2. Service Profit Chain Ch. 9 Designing Service Delivery Systems
III. System Design Issues
1. Right Amount of Employee Latitude
- Disney theme parks vs. Club Med
2. Controlling Customer Behavior Through
a) Customer Empowerment: ex) self service
b) Information Support Systems
3. Providing Process “Visibility”
4. Preventing Service Errors ex) Taco Bell
IV. Types of Multisite Service Networks
1. Logistics and Communications Network
2. Transactional Network
3. Knowledge-sharing Network
* Disney theme park for no latitude and Club Med for lots of latitude

3. Service Profit Chain Ch. 9 Designing Service Delivery Systems
V. Key Considerations in Service Network Design
1. Degree of Support for Operating Strategy
ex) Southwest Airlines
2. Need for Interconnectedness
3. Need for Standardization vs. Latitude
VI. Delivering Services Globally
1. The Target Market and the Need for Customization
2. Mode of Expansion: Direct (Corporate) or Indirect (Franchising)

4. Service Profit Chain Ch. 10 Attaining Total Customer Satisfaction
Experience of HBS Students’ Letter Writing Campaign*
Doing It Right the First and Second Time
UPS
FedEx
III. Getting Customers to Complain: The BA Experience
1. Only 8% of Unhappy Customers Contact Customer Relations People.
2. Every 1% of additional complaint could win back 200,000 to 400,000 pounds sterling in revenue
* Over half of the letter writers feel worse after the service recovery attempts.

5. Service Profit Chain Ch. 10 Attaining Total Customer Satisfaction
IV. Management Initiatives To Manage Customer Dissatisfaction
1. Service Contracting
a) Customer Service Contracting
b) Internal Service Contracting*
2. Service Guarantees
a) Guarantees to Customers
b) Guarantees to Colleagues
3. Precondition: Enough Service Capability
4. Good Service Recovery Pays Off! (19%, 54%, 82% rebuy)
* Often internal service is poorer than external service
* 19% for whose complaints were not resolved; 54% for whose complaint were resolved; 82% for complaints were resolved quickly.