Service:
A process that creates benefits by facilitating a desired change
in customers themselves, physical possessions, or intangible assets. The turn
of the century has seen profound changes in the global economy. Services have
played a crucial part in these changes, because services are becoming the way.
Organizations meet with their markets. Already organizations have discovered
that their survival no longer exclusively depends on the products they offer,
but also on the additional offerings they make to their customers that
differentiate them from their competitors.
Innovative organizations, offering new services as well as unique
customer services, are now succeeding in markets where established
organizations have failed . Services marketing is not a self-enclosed task but
is integral to service organizations as a whole and the object of the activity
is people, who are reactive, not passive as compared with a product . Services
marketing concepts, frameworks and strategies were developed as the result of
interlinked the forces of many industries, organizations, and individuals who
have realized the increasingly important role services are playing in the
current world economy. Initially the development of services marketing focused
on service industries. However, manufacturing and technology industries
recognized services as a prerequisite to compliment their products, in order to
compete successfully in the market place.
Therefore it can be argued that, in most industries, providing a
service is no longer an option but a necessity. Providing a service is a people
business. The interaction between customers and service employees is vital for
the actual success of service delivery. Rendering excellent quality service
depends very much on the way service employees behave. In this regard, service
competencies and service inclination contribute towards the success of services
. Customers are becoming more educated and demand not only quality products but
also high levels of services to accompany them. Service organizations therefore
need to adapt to customers’ views on services in order to assess whether the
services they provide are perceived by customers as better than those provided
by other service providers.
Facts about service:
There are some facts regarding service which can not be ignored by
service providers.
These are as follows:
Facts about customer
experiences and referrals (
• A good customer experience is told to 8 other people
• A bad customer experience is told to 22 other people
• It takes 10 good experiences to make up for one bad one
• 70% buying experiences are based on how the customer feels they
are being treated
Facts about customer
retention and churn facts (
• An average company loses between 10 and 30% of its customers
each year
• A 5% reduction in the customer defection rate can increase
profits by 25% to 80%
• Satisfying and retaining current customers is 3 to 10 times
cheaper than acquiring new customers
• A North American study by McKinsey estimates that successful
efforts to cross-sell during inbound service calls could boost a retail bank's sale
of new products by 10%, based on a study of North American banks.
Facts about customer
service and contact centers/call centers (
• Executives know that upgrades in contact center technologies
will not help unless companies also change the way their people work
• A good customer service strategy should balance costs, quality,
and revenues. Companies that restructure call centers in this way can often cut
their costs by up to 25% and boost the revenue they generate by as much as 35%,
thereby transforming them into strategic assets providing a competitive
advantage
New service design:
New Service Design is the activity of planning and organizing
people, infrastructure, communication and material components of a service, in
order to improve its quality, the interaction between service providers and customers
and the customer's experience.
Service design cycle:
“Cuisine on the wheels”
Service blue print:
This service will be Quitting new and unique in their own in the
India. Through this service service- provider will arrange the Dinning at place
of customer choice. The customer will book the dinning with some down payment
with favorite cuisine and hot- spot where he wants to celebrate. The special
deigned buses which will carry necessary food item will arrange the dinner on
the spot with customer choice music and lighting (candle light).
In this type of service gap should be minimized because this type
of service defiantly is costly and only for a few people so we can say that
this type of service will target niche market. This premium class service will
be provided with premium class product to premium class customer. Because of the
nature of the service any service gap can lead to customer dissatisfaction.
Problems :
1. Security and safety:
Security and safety of customer are one of the concerns .Because customers
can choose the dinning spot far away from the city so service provider should
ensure the safety and security of the customer .
2. Misplacement of order:
Misplacement of order is also a big concern because customer will
avail this type of service mostly on some special occasion, but if he finds the
food which he ordered is not present can lead to high dissatisfaction. So from
that service provider should be in contact with the VAN so that any demand of
the customer can be full-filled.
3. Cancellation of order:
In any case if customer wants to cancel the order then provider
can have a huge loss because of wastage food , transportation cost etc. .For
that provider should charge some down payment so that the customer would be
more responsible.
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