Service Marketing

• Session - 4
o Managing the Internal Customers
o Managing the External Customers

• Book- C Bhattacharjee
 Roles of Employees and their influence on customers

Frequency of CONTRACTORS MODIFIERS

Periodic Customer
Prof. V.C. Judd theory

Contact

Infrequent or no INFLUENCERS ISOLATEDS

customer contact

Involved with Conventional Non directly involved

marketing mix with marketing mix
V. C. Judd, “Differentiation with the 5th P” Theory

• Contractors: high customer interaction (MOT). Front

liners

• Modifiers: Less interaction with customers and risk of faux

pas. Like receptionist, Switchboard and call centre
personnel's

• Influencers: People on high positions. Very less interaction

or no interaction with customers. Strategy deciders.

• Isolateds: No Interaction atoll. Data processors. Important

work.
Different types of Conflicts arising out of
Boundary spanning roles
• As service providers play many roles and are engaged in
many services, they expected to do many things and that is
also by remaining within the frames of processes many
conflicts take place. Conflicts rises because of different
departments too.

 Role Conflict: Bothe customer and Provider has their

own goals to achieve. When customer and Provider
perceive their roles differently this kinds of conflicts
arises.
Eg. Customer perceive Hotel staff to do anything for
customer. While Hotel staff may have their own
different roles to play. Like Restaurant staff will not
clean up the room for customer
 Organization/ Client conflicts: When Customers
desires exceeds boundaries of service guideline or
strategy these kinds of conflict arises.
Eg. Customer expect Insurance agent to help him with
his mutual fund or banking work too, which will
violate the boundaries of agent’s work.

 Inter- Client conflicts: Different customers have

different needs. When provider or strategy makers try to
please one type of customer, other might get dissatisfied.
Eg. In cafeteria business class people and aged people
want a silent meeting place while young generation
want a happening place with music and loud chats.
Reducing conflicts and the modus operandi
 Company should try to reduce the conflicts in order to
achieve their goals. This can be achieved through training,
motivation to staff. Role clarity, clarity about strategies and
goals.

 Role of Human resource Development: Now a days more

and more companies has started understanding the role of a
good HRD. They can help providers in many ways
 Training: -Training will help in improving the skill
level
- Understanding the role and goals
- Creating levels of responsibility
- Avoiding the burnout of the provider
- Internal learnigs etc..
  Motivation and rewards –Fronliners always feel that
they don’t get the deserved rewards and returns.
Motivation and rewards push them to give their best and
do better. They feel like they are the part of companies
growth and behave like businessman. Ownership of the
work.

 Creating the right Firm: - Right kind of working

environment and culture has to be set.
- Right kinds of people should be kept at right
places.
- Processes should be set to minimize the
discrepancies
- Responsibilities and goals should be clear and
 Empowerment and Enfranchisement: Empowerment
means the provider is authorized to take day to day
decisions. He owns the business and takes decisions on
his own by remaining in the limits of the organizational
strategy. He doesn’t require to go to his superior for each
and every decision.

 The Service Profit Chain

 Internal quality of work life
 Employee satisfaction
 Employee loyalty
 Employee Productivity
 Service Value
 Customer satisfaction
 Customer loyalty and
 Profit and growth of the service firm
A Model for Outsourcing Barn and Krepp, 1999

High
Maintain
Absolute Insource
Control

Strategic
Importance

Partly
Outsource
Outsource

High
Interdependence
 Quality of services depend on following characteristics.

 Skills of providers. Eg. Swimming coach need to know

swimming
 Knowledge of work. Eg. Lawyer has to have knowledge of laws.
 Attitude , Moods, personality and feeling of Involvement
Employees are allowed following levels of involvements
o Suggestion involvement- allowed to give suggestions
o Job Involvement- Allowed different jobs, job rotations,
and career growth
o High Involvement- even the lowest cadre employee is
given opportunity to make positive change in the
organisation. They are given training and support.
 Presence of mind and speed of response. – Fast and precise
response to customer queries and services can make difference.
o Training- this can help in improving providers efficiency
o Recruitment- recruit suitable people for the job.
B. Managing the External customers

• For effective and good service delivery to customer would

require management of following points:
a) Managing consumer participation in the service delivery
process
b) Managing consumer waiting periods
c) Dealing with difficult customers

a) Managing consumer participation in delivery process:

By inviting customer participation in service process company
solving few problems and also creating few new.
Benefits are like: 1) Lesser service personnel
2) Widen network with less expense
3) Managing Customers from different backgrounds.
 3) Managing Customers from different
backgrounds.
4) Because of involvement customer
becomes more responsible and have empathy.
5) Speedy services and more trust
Eg. Mc donald, Dominos, ATMs, Mall shoping etc..

Problems are: 1) Customer may be reluctant to participate

2) Technical knowledge of the customer
can be problem. Eg. ATM use by older or
illiterate people
3) Affects service quality because of
inconsistency of customer behavior and
participation. This affects company image.
• How to make sure that customers participate in the service
process?
1) Clear-Cut definition of customer jobs:
Service provider make clear process for customer to
follow. It can be voluntary or compulsion. For eg. If
physician gives exercises to customer to repeat daily
or Buffet meal. Both have advantages and
disadvantages. Eg. Students in placement committee
or goods lifting in malls.

2) Managing the variety of customer(Compatibility)

profiles: One of the biggest challenge is to manage
customers from different backgrounds. Villagers are
different from metro people. Dhaba or Restaurant.
Decide which type of customers you want and then
make systems accordingly so that only they take
services.
3) Customer acquisition, education, and training and
appreciation: Customer is involved with the
understanding and consent that his involvement is
required and accordingly customer is educated or
trained to do that. Eg. Swimming instructor, Plane air
stewards give information about what to do in
emergency. Handbooks or booklets can be given.
b) Managing consumer waiting periods:
Customers don’t like to wait. They perceive waiting period
as synonym of poor service. It is difficult to manage this
waiting period. In order to manage this period following
points can be useful:
1) Keep the customer occupied. Eg. Music on hold
calls, TV, magazine
2) Inform customer that process has started and
how much time it can take approximately
3) Keep contact with customer and make him feel
comfortable during waiting period as anxiety makes waiting
feel longer.
4) Share maximum information with customer so
that he can realize that process is going and will finish soon.
 5) Don’t let him have the filling of
discrimination amongst customers. It will make him
angry.
6) Try to make customer talk to each other so
that waiting time can be passed easily.
c) Dealing with difficult customers
Service quality will depend majorly on the customer too.
The characteristics of the customers depends on:
1) Education and background: Based on the education,
background and culture customer can understand the
process, system and services. He will evaluate service
on the bases of his background only. Eg. Customer from
metro can easily use ATM or internet but not the
villager.
2) The Mood, attitude and personality of the customer
can affect services: Customers mood and attitude
affects service quality. It can be managed in following
way: - Training and education of the customer can
help in reducing the problem related to above.
- Choosing the appropriate segment of the
customer will ensure there is less conflict
amongst customer classes.
 Levels of Retention strategies

Integrated
Stable
Info System
Pricing
Join Bundling and
Environment cross
IV. Structural I. Financial
Shared Volume and
Bonds Bonds
Processes And frequency
Equipment Excellent rewards
service
quality and
Anticipation value Continuous
III.
innovation II. Social relationships
Customization
Bonds
Bonds Personal
Customer
relationships
intimacy
Social bonds
Mass among
customization customers