SMGT 75 SERVICE MARKETING

The Service Delivery Process

Princess Hershey R. Sikat

BSBM3 – SMP1
 THE SERVICE DELIVERY PROCESS

Service Delivery

Service delivery is a business framework that supplies services from a provider to a

client. It includes the constant interaction between the two parties during the duration

of the time in which the provider supplies the service and the customer purchases it.

The service could be anything from a task to technology or information. Consumer’s

evaluation of the service experience is often based as much on the process as the final

outcome.

Components

1. Service Culture – Service culture relates to the leadership principles,

vision, mission, work habits and values of a service provider company. It is

about what is going on within the company. The company's culture is how

its visions, values, and mission are communicated to its employees and

customers. Employees will feel empowered to put the customer first in a

positive customer service culture. A positive service culture is defined as

any organization that prioritizes the needs of its customers in its business

operations.

Ex. South West Airlines is the world's largest low-cost airline, operating

in an industry with razor-thin margins and where bankruptcy is not

 uncommon. As a customer, you can truly appreciate the company's

customer-centric approach: despite major industry changes, they continue

to allow two free checked bags per passenger, do not charge for last-minute

flight changes, and equip their flights with free wifi and movie streaming.

They also consistently receive the fewest complaints out of all US airlines.

2. Employee Engagement – Employee engagement is concerned with those

who work within an organization to provide services. Providing an

environment in which employees can work effectively and grow their skills

is extremely crucial to productivity, retention, and, ultimately, the bottom

line.

Ex. Recognizing hard work and achievement in the workplace. Giving

regular feedback. Workplace parties (Halloween parties, organizing a

potluck, thanksgiving dinners, etc.). Team-building activities.

3. Service Quality – Service quality encompasses all service delivery

strategies, performance management systems, and processes. Service

quality measures how well a service is delivered. A company with high

service quality provides services that meet or exceed the expectations of

its customers.

5 DIMENSIONS OF SERVICE QUALITY

4. Customer Service – Customer service focuses on providing the client with

both the resources and knowledge they desire about their service delivery

product. Many factors contribute to providing excellent customer service,

but customer service training is at the center of the challenge. Without

proper customer service representative training and enablement, reps lack

the knowledge and skills necessary to provide service that distinguishes

them from competitors.

Process

BEFORE: BRAND MANAGEMENT

1. Communicate Value – When a company shows its customers the positive

or helpful aspects of its products, this is known as value communication.

Businesses create value propositions through advertisements and

marketing plans to help persuade potential leads to become customers.

Communicating value entails guiding your audience through the stages of

exposure, awareness and attention, comprehension, evaluation and

 yielding, retention, and, finally, action. You must provide something of

interest to the clients. You must define what your product or service does,

beginning with benefits and progressing to features.

Top 10 Most Recognizable Brands according to Bloomberg: Apple,

Google, Amazon, Microsoft, Coca-Cola, Samsung, Toyota, Mercedes-

Benz, McDonald’s, Disney.

2. Present Evidence – Physical evidence must be provided to give people

something tangible to reinforce the benefits of your value proposition.

Physical evidence is a collection of tangible cues that indicate the quality of

a service. Although physical evidence is related to operations or production,

it is of interest to marketing because of its ability to influence customers.

Ex. Essential Evidence - Customers form their core opinion or image

based on the core evidence, which is why essential evidence is so

important. If a car rental company's vehicles are not properly

maintained, it will be perceived negatively.

Peripheral Evidence – This refers to the Servicescape of a business

(ambiance, spatial arrangement and social setting).

3. Manage Expectations – By managing expectations of the people, you do

not undersell the value of the offer, but neither do you promise more than

you can deliver. It is crucial to be transparent and honest.

DURING: BEHAVIOR MANAGEMENT

4. Initiate Service – Service Initiation is the moment when a person chooses

your service, agrees to enter into a mutual activity with you according to

your offer and becomes a customer.

Ex. Signing SLA or Service Level Agreement contract.

5. Deliver Value – This is where the service provider interacts with the

customer to deliver the value that was initially promised.

6. Conclude Interaction – Interaction conclusion signals to the value of the

offer has been delivered and both parties have met their objectives. The
 service provider was able to perform the service and the customer gets to

experience the availed service.

AFTER: RELATIONSHIP MANAGEMENT

7. Service Souvenirs – Service Souvenir is the physical evidence retained

by the customer that pertains to the initial service experience. Service

souvenirs are a delight. Service souvenirs create a story that the recipient

is eager to tell and they adorn the pleasant memory with a trail that leads

back to the first encounter.

Ex. Personalized gift boxes, stickers, Thank You card, Accessories, etc.

8. Follow-up Interactions – Customer service should never end with the

transaction. Its focus should not be limited to

converting leads only. After all, its true worth is

found in providing exceptional experiences

and ensuring value at every stage of the

customer journey. Follow-up interaction is any

subsequent actions to develop customer

intimacy and redisplay the value of the service.

 9. Feedback Monitoring – Feedback guides improvements of the customer

experience and can empower positive change in any business — even (and

especially) when it's negative. To identify new opportunities or experience

breakdowns, it is important to monitor the perception people have of the

service. Feedback analysis aids in making better business decisions.

Another critical aspect of customer feedback is that it is one of the most

reliable sources of tangible data, which can then be used to make business

decisions. Customer insights will help better understand the clients and

their needs.

The delivery process takes into account customer experience, service culture,

employee engagement, and service quality. They are the major components or

elements of the delivery system. The Service Delivery Process consists of nine steps

divided into three phases: Before (Brand Management), During (Behavior

Management), and After (Relationship Management).

References:

[1] career-advice/career-development/service-delivery by Indeed

[2] What Are the Four Key Elements of a Service Delivery System? (vp-delivery.com)

by Russell

[3] Customer Service Culture Examples: Why Excellence Matters (ehl.edu) by

Jochen de Peuter-Rutten

[4] how-to-provide-excellent-customer-service/ by Ahemed Shamim Ansary

[5] service-delivery-process/ by Creogidas

[6] Value Creation: How to Communicate Value | Thunderbird (asu.edu)

[7] https://www.economicsdiscussion.net/marketing-2/service-marketing/7-ps-of-
service-marketing/32395 by Vishakha B.

[8] importance-of-customer
feedback/#:~:text=Analyzing%20feedback%20helps%20in%20taking,and%20their%
20needs%20more%20profoundly by Snigdha Patel