Customers roles in service delivery

LECTURE NOTES

CUSTOMERS IN SERVICE DELIVERY

Customer Receiving The Service Fellow Customers

Table 13.1 Levels of Customer Participation across Different Services

CUSTOMERS ROLES
Productive Resources

Contributors to Service Quality and Satisfaction

Competitors
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Customers As Productive Resources

Customer inputs can affect the organizations

productivity through both the quality of what they contribute and the resulting quality and quantity of output generated.

Customers As Contributors To Service Quality and Satisfaction

Effective customer participation can increase the

likelihood that needs are met and that the benefits the customer seeks are actually attained.

Customers As Competitors
Internal Exchange vs. External Exchange Expertise Capacity Resource Capacity Time Capacity Economic Rewards Psychic Rewards Trust Control
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ULTIMATE IN CUSTOMER PARTICIPATION

Services produced entirely by the customer without any

direct involvement or interaction with the firms employees.

ATMs Pay at the pump

Internet banking
Internet shopping Distance education
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Figure 13.2 Services Production Continuum

Gas Station Illustration 1. Customer pumps gas and pays at the pump with automation 2. Customer pumps gas and goes inside to pay attendant 3. Customer pumps gas and attendant takes payment at the pump 4. Attendant pumps gas and customer pays at the pump with automation 5. Attendant pumps gas and customer goes inside to pay attendant 6. Attendant pumps gas and attendant takes payment at the pump
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Key Questions While Moving Into SST

What is our strategy? What do we hope to achieve through the

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SST(cost saving, revenue growth, competitive advantage)? What are the benefits to customers of producing the service on their own through the SST? Do they know and understand these benefits? How can customers be motivated to try the SST? Do they understand their role? Do they have the capability to perform this role? How technology ready are our customers? Are some segments of customers more ready to use the technology than others? How can customers be involved in the design of the service technology system and processes so that they will be more likely to adopt and use the SST? What forms of customer education will be needed to encourage adoption? Will other incentives be needed? How will inevitable SST failures be handled to regain customer confidence?

STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION

Figure 13.3 Strategies for Enhancing Customer

Participation

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Define Customers Jobs

Helping Oneself Helping Others Promoting The Company Individual Differences: Not Everyone Wants To

Participate

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Recruit, Educate, and Reward Customers

Recruit the Right Customers Educate and Train Customers to Perform Effectively Reward Customers for Their Contributions Avoid Negative Outcomes of Inappropriate Customer

Participation

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Manage The Customer Mix

Table 13.2 Characteristics of Service that Increase the Importance of Compatible

Segments

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Conclusion
Through understanding the importance of customers in

service delivery and identifying the roles played by the customer in a particular context, managers can develop strategies to enhance customer participation. By implementing these strategies, organization should see a reduction in gap 3 due to effective, efficient customer contributions to service delivery.

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