PROVIDER GAP 4

PROVIDER GAP 4

Difference between service delivery and the service providers external communications Promises made (through media advertising, salesforce, and other communications) may potentially raise customer expectations that serve as the standard against which customers assess service quality. The discrepancy between actual and promised service therefore broadens the customer gap.

Customer

Company

Service Delivery Gap 4

External Communications To Customers

PROVIDER GAP 4

A fit between communications about service and actual service delivery is necessary.

Accurate and appropriate communications advertising, personal selling, publicity that do not overpromise and misinterpret are essential in delivering services.
Another issue related to managing promises is the pricing of services. Company must manage the messages conveyed by pricing so that customer expectations are in line with what they perceive they receive.

INTEGRATED MARKETING COMMUNICATION

Today, customers receive information from a richer variety of sources print media, electronic media, online resources, host of sales promotional tools etc. Services consumers receive even more communications from sources such as servicescapes, customer service departments, and everyday service encounter interactions with employees. These vehicles add to the variety and volume of information about a particular brand or company, and also to complexity of that information.

INTEGRATED MARKETING COMMUNICATION

If the messages conflict, confused company images and promises, can result leading to difference between what customers expect based on the messages and what they receive in service delivery.
Thus, integrating the information through different channels is crucial for unified messages and promises about its offerings.

COMMUNICATIONS AND THE SERVICES TRIANGLE

COMPANY

Internal Marketing Vertical Communications Horizontal Communications

External Marketing Communication Advertising Sales Promotion Public Relations Direct Marketing

EMPLOYEES
Interactive Marketing Personal Selling Customer Service Center Service Encounters Servicescapes

CUSTOMERS

INTEGRATED MARKETING COMMUNICATION

The customer of services is the target of two types of marketing communication

External marketing communication : company to customer Interactive marketing communication: involves messages that employee give to customers

Customer service interactions, service encounters and servicescapes are unique to services.

INTEGRATED MARKETING COMMUNICATION

A service company must be sure that these interactive messages are consistent both among themselves and with those sent through external communications To do so, the third side of the triangle, internal marketing communications, must be managed so that communications from the company to employees are accurate, complete and consistent with what the customer is hearing or seeing.

SOME EXAMPLES:

A Bank Advertisement changed frequently and quickly to meet competitive offerings But banks employee training in the new offerings did not keep pace with the changes in advertising. Employees are not informed. McDonalds launched new sandwich, but when you visited for that, it is not available.

These examples hints at one main reasons that integrated marketing communication hasnt been the norm in many companies. Various parts of the company are responsible for different aspects of communication. Today, more companies are adopting the concept of integrated marketing communications (IMC).

KEY REASONS FOR SERVICE

COMMUNICATION PROBLEMS

Inadequate management of service promises

Lacks information and integration needed to fulfill promises Demand and supply variations Traditional functional structures Overpromises may increase initial business but after disappointment, discourages repeat business.

Elevated customer expectations

Insufficient customer education

A research says: One third of customer complaints are related to problems caused by customers themselves Educate customers about their roles Coordination and integration across departments

Inadequate internal communications

STRATEGIES TO MATCH SERVICE PROMISES

WITH DELIVERY GOAL: DELIVERY GREATER THAN OR EQUAL TO PROMISES Strategies:

Managing service promises Manage customer expectations Improve customer education Manage internal marketing communication

PRICING OF SERVICES

Key differences between customer evaluation of pricing for services and goods:

Customers often have inaccurate or limited reference prices of services Price is a key signal to quality in services Monetary price is not the only relevant price to service customers

These three differences can have profound impact on the strategies companies use to set and administer prices for services.

THE BIG PICTURE CLOSING ALL THE GAPS

Customer

Expected Service Customer Gap Perceived Service

Company Gap 1

Service Delivery Gap 3

Customer driven Service designs and standards

Gap 4

External Communication to customers

Gap 2
Company Perception of Consumer expectation

THE GAPS MODEL OF SERVICE QUALITY

The firms will like to close this gap between what is expected and what is received

to satisfy their customers and to build long term relationships with them.

The provider gaps are the underlying causes behind the customer gap:

Gap 1: Not knowing what customers expect Gap 2: Not selecting the right service designs and standards Gap 3: Not delivering to service standards Gap 4: Not matching performance to promises.

THE GAPS MODEL OF SERVICE QUALITY

The full conceptual model conveys a clear message to managers wishing to improve quality of service.
The key to closing the customer gap is to close provider gaps 1 to 4 and keep them closed. The gaps model positions the key concepts, strategies and decisions in services marketing in a manner that begins with the customer and builds the organizations tasks around what is needed to close the gap between customer expectations and perceptions.