+ Services Quality Excellence 25 th National Quality Summit - - PowerPoint PPT Presentation

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25th National Quality Summit

rameshtk@acemicromatic.com

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Services Quality Excellence

+The Changing Environment

 Globalization  Liberalization  Socio Economic Shifts  Awareness & Attitudes

+Defining Quality

 “although we cannot define quality, we know what quality is”

(Pirsig, 1987)

 Service quality is a measure of how well the service level

delivered matches customer expectations. Delivering quality service means conforming to customer expectations

• n a consistent basis

(Lewis and Booms1983)

 ‘service quality results from a comparison of what customers

feel a service provider should offer (i.e. their expectations) with the provider’s actual performance’ (Parasuraman, 1996)

 ‘

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+Why is Quality Important?

Superior product/service quality relative to

competitors is the single most important factor affecting profitability (PIMS study)

Premium prices Customer preference Customer retention Market expansion/market share Other benefits:

 productivity, distribution/access

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+Changing management focus

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1990’s

1980’s

2000’s Productivity Quality 2010+ Creating better value for customers and the organisation Customer Experience

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The Four Components Of Service

Physical Product

Service Product Service Delivery Service Environment

(Source : Adapted from Roland T.Rust and Richard.L.Oliver (1993), Service quality: Insights and managerial implications from the frontier, in Service Quality)

Physical product : Automobile Service Product : Loans ; Warranty ; Registration of vehicle Service Environment : Showroom ; workshop ; parking …. Service Delivery : Repair time ; delivery time ; sales response

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Characteristics Of The Service Product

Extent to which equipment or facility based attributes form part of the service product

High Low

• Five-star hotel
• Hospital
• Passenger

airline

• Car rental
• Retail banking -

ATM / Internet

• Retail banking

( with human tellers )

• Freight transportation
• Movie theater
• College education
• Corporate banking
• Management consulting
• Tax preparation
• Telephone

Extent to which people based attributes form part of the service product

High Low

(Source : Adapted from Roland T.Rust and Richard.L.Oliver (1993), Service quality: Insights and managerial implications from the frontier, in Service Quality)

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Customer Service has two dimensions :

PROCEDURAL DIMENSIONS of service consists of the systems and procedures of the company to deliver products / services. This addresses the WHAT of the service delivered. PERSONAL DIMENSIONS of service consists of how the people in the company interact with customers. This aspect covers their attitudes, behaviour, communication and interpersonal relations. This addresses the HOW of the service delivered.

Dimensions Of Customer Service

Procedural Dimension Personal Dimension QUALITY SERVICE

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 What leads to customer satisfaction or dissatisfaction ?  Gap between - What the customer expects and what the customer thinks

he gets

 The size of the Service Quality Gap will decide the extent of customer

satisfaction or dissatisfaction Customer Expectation Perceived Delivered Service Service Quality Gap

THE SERVICE QUALITY GAP

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By understanding customer expectations By managing Customer perceptions HOW ? By meeting customer expectations

Our Role: To Bridge The Service Quality Gap

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• Customer expectations are met by understanding customer

needs.

• Customers Perceptions are managed through effective

communications

How Are Customers Expectations Influenced ?

Customer needs Word of mouth Past experience Options available

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How do our customers perceive and evaluate the quality

• f service?

What do we perceive to be the key attributes

• f service quality ?

Are there discrepancies between the service perceptions of customers and our company ? How do we bridge the gap between the customer’s perceptions and ours ?

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ISSUES WE NEED TO UNDERSTAND

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Gaps Model of Service Quality

(Parasuraman, Zeithaml & Berry, 1985)

Word of Mouth Communications Personal Needs Expected Service Perceived Service Service Delivery Customer Driven Service Design Company Perceptions of Consumer Expectations Past Experience External Communications to Customers

Customer Company

Gap 1 Gap 2 Gap 3 Gap 4 Customer Gap

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Gap 1 – Not knowing what customers expect

 Inadequate market research  Poor market segmentation  Lack of upward communication (contact employees to

managers)

 Insufficient customer relationship focus  Inadequate service recovery

Service Quality Gaps

Customer Expectations Company Perception

• f Customer

Expectations

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Gap 2 – incorrect service design & standards

 Inability to translate customer expectations into clear quality

specifications

 Lack of management commitment to service quality  Customer expectations thought to be unreasonable or unfeasible  Absence of a formal quality programme (guidelines, standards)  Poor service design

Service Quality Gaps

Company Perception

• f Customer

Expectations Customer-Driven Service Design & Standards

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Gap 3 – Not delivering to service standards

 Employees unwilling or unable to perform the service at the desired level  Poor internal organisation

 ineffective recruitment, inadequate teamwork, employees not motivated, role conflict,

role ambiguity, poor supervision

 Poor employee-technology job fit (appropriate tools to perform roles)  Failure to match supply and demand  Customers unaware of roles and responsibilities  Problems with service intermediaries

Service Quality Gaps

Customer-Driven Service Design & Standards Service Delivery

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Gap 4 – Promises do not match performance

 Over-promising in advertising, personal selling or physical

evidence cues

 Management wants to show services offered in best possible light  Poorly-integrated marketing communications  Insufficient communication between marketing/sales & operations  Ineffective management of customer expectations

Service Quality Gaps

Service Delivery External Communications to Customers

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