SM: Session 9 Service Process

Service process in the 5th P of service marketing mix. It is peculiar to services as in services, production and consumption happens simultaneously. Service processes are set of operations and systems that guides the flow of service production from the service provider and the consumption by the customer. 

Classification of Service Operating System

The service operating systems is the set of operations, procedures and schedules that are required for service delivery. The classification can be done on following two parameters:

Classification on the Type of Process

Three types of process of relevance to service organizations are

1. Line Operations 

In such services an arranged sequence of activities undertaken. Service is performed by following the sequence. For example, in a self-service canteen, the queue is formed according to the order of items.

2. Job shop Operations

These services produces a variety of services using different combinations to meet the customer needs. For example in a Doctors clinic.

3. Intermittent Operations

This type of process refer to service projects which are one off or only infrequently used. The scale of management is usually a complex task. For example – making an ad campaign

Classification on the Degree of Contact

The amount of customer contact has an effect on the decisions that managers have to make regarding the process. As:

•  High contact systems are more difficult to control since the customer can make an input in the process or even disrupt the process.
• Customer can affect the timing of demand in the high contact system.
• Workers have a greater influence on the customers in high contact systems

Marketing Myopia in Processes

Processes are very important to services. Many service providers position themselves on their processes. They find newer ways to increase customer convenience. For example, if your bank starts sending the quarterly statement by mail, as a substitute for the pass book. Is it a good thing? May not be for many. There may be several disadvantages for the customer..

Automated withdrawals using ATM also pose problems…for example the problem of short-changed?

In an insurance co., customer acquisition can be one process, claims settlement a second major one from the company’s point of view. Buying an insurance policy and making a claim can be the same from a customer’s point of view.

From either viewpoint, the company can look for the most efficient and customer-friendly process that serves the needs of both parties.

An Example from Indian Railways

Indian Railways has constantly updated its reservation processes to make them more customer-friendly and convenient. But its routine local telephonic enquiry at railway stations does not work half as efficiently in most locations. There is a serious need to re-look at it and re-engineer it for the benefit of millions who use the service every day.

SERVICE BLUEPRINTING

The process of service delivery can be mapped with a flowchart or a service “blueprint”. It is a graphic representation that accurately portrays the service system so that it can be easily understood. It visually displays the service by depicting the various processes involved in the service delivery, points of customer contact, the roles of customer and employees etc.

It is a tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.

Process Blueprinting

A diagrammatic representation makes it easy to tell at a glance if any processes are redundant, overlapping, or “just right”.

Particularly if the typical time needed for each task on the process map is identified, we can estimate the time spent by a customer in a particular stage of service delivery system, and improvements can be made through Process Re-engineering (also called BPR)

Service Blueprinting Tasks

1. Define standards for front-stage activities

2. Specify physical evidence

3. Identify principal customer actions

4. Line of interaction (customers and front-stage personnel)

5. Front-stage actions by customer-contact personnel

6. Line of visibility (between front stage and backstage)

7. Backstage actions by customer contact personnel

8. Support processes involving other service personnel

9. Support processes involving IT

While performing these tasks the service provider needs to identify fail points and risks of excessive waits and set service standards and do failure-proofing.

Service Blueprint Components

The components of service processes are:

Customer Contact Actions 

The point of contact and moment of truths. These are the situations where the customer comes interacts with the service factory. The interaction between the customer and the service provider may happen physically or over the phone or online. But first process i.e. managing the line of interaction takes place.

Onstage Contact Employee Action

The customers interacts with the front line people in an organization. For them these are the face of service firm. These frontline employees along with the physical evidences are the Line of visibility for customers. Onstage employees takes the order from the customers and process it to backend office.

Backstage Contact Employee Actions

These are the people those who manages most of the processes. Though the frontline employees are the face of most of the work, backend employees are instrumental in bringing quality service. They must cooperate and support frontliner for better service delivery. In between frontline and backend operation lies line of internal interaction.

Application of Service Blueprints

• New Service Development
• Concept development
• Market testing
• Supporting a “Zero Defects” Culture
• Managing reliability
• Identifying empowerment issues
• Service Recovery Strategies
• Identifying service problems
• Conducting root cause analysis
• Modifying processes

Scope of Blueprints

For service marketers, blueprinting is used to create realistic customer expectations. It is an important tool for –service system design. Service blueprinting can also be used for promotions.

Blueprints outline series of processes, hence for operations it helps in rendering the service as promised. It also help managing fail points. It works as tool for training systems and service quality control.

For Human Resources Management it's most important contribution is that it helps empowering the human element by providing job descriptions, selection criteria and outlines appraisal systems.

It also helps in outlining the technology needs by providing necessary tools, system specifications and personal preference databases.

Managing the Waiting Process

Reasons for waits involved in the service process

 1 .Limited space for customers (ex. In a Restaurant)

2. Limited facilities for processing things (ex: Laundromat has 8 machines)

3. Limited equipment to process information

4. Limited labor. Number of service providers is less than the demand

Possible Improvements in the Waiting Process

1. Seating versus Standing

2. Start another line on a particularly hot or crowded day

3. Giving people something to do like reading and watching TV.

4. Providing Information on possible time in line. For example, Disneyland lines)

5. Some work can be done before reaching a server, like nurse preparing a patient for operation.

6. Other techniques include price variations for use of lean time capacity (night travel, phone calls, and internet use), reservation or appointments system (doctors, air travel)

Levels of Customer Participation

Customer Participation at some level is inevitable in all service situation. Services are actions performances typically produced and consumed simultaneously. They also use resources supplied by customers during service production or delivery which includes mental, physical, and even emotional inputs. Three Levels of Customer Participation are: 

Low—Employees and systems do all the work

Often involves standardized service. Services is provided regardless of individual purchase. For example - a flight from Mumbai to Delhi. Here, payment may be the only customer input.

Medium—Customer inputs required to assist provider

In these services customers provide information and instructions. Customer’s inputs are very important for the adequate outcome. Hence they are suppose make some personal effort. For example, haircut and restaurants.

High—Customer works actively with provider to co-produce the service

In some cases, service cannot be created without customer’s active participation. Customer can jeopardize quality of service outcome, for example, weight loss, and marriage counselling.

Self-Service Technologies

Innovations in the field of technology has come up this ultimate form of customer involvement called as self-service technology or SST. In SSTs customers undertake specific activities using facilities or systems provided by service supplier. Thus, customer’s time and effort replace those of employees. Some examples are Internet-based services, ATMs, self-service gasoline pumps, etc. Information-based services lend themselves particularly well to SSTs. These technologies are used in both supplementary services and delivery of core product, like eBay—no human auctioneer needed between sellers and buyers

Many companies and government organizations seek to divert customers from employee contact to Internet-based self-service. The idea is to seek economic trade-off between declining cost of these self-service systems and rising cost of labour. But the challenge remains as to getting customers to try this technology.

Psychological Factors in Customer Co-Production

• Economic rationale of self-service
• Productivity gains and cost savings result when customers take over work previously performed by employees
• Lower prices, reflecting lower costs, induce customer to use SSTs
• Research shows that customers tend to take credit for successful outcomes, but not blame for unsuccessful ones
• Critical to understand how consumers decide between using an SST option and relying on a human provider

Evaluation of SSTs

SSTs present both advantages and disadvantages. The benefits are time and cost savings, flexibility, convenience of location, greater control over service delivery, and a higher perceived level of customization. But the disadvantages like, anxiety and stress experienced by customers who are uncomfortable with using them cannot be ignored.

People love SSTs when…

• SST machines are conveniently located and accessible 24/7—often as close as nearest computer!
• Obtaining detailed information and completing transactions can be done faster than through face-to-face or telephone contact
• People in awe of what technology can do for them when it works well 

People hate SSTs when…

• SSTs fail—system is down, PIN numbers not accepted, etc
• They mess up—forgetting passwords, failing to provide information as requested, simply hitting wrong buttons
• Key weakness of SSTs: Too few incorporate service recovery systems
• Customers still forced to make telephone calls or personal visits
• Blame service provider for not providing more user-friendly system

Addressing the Challenge of Jay customers

Jay customer is a customer who behaves in a thoughtless or abusive fashion, causing problems for the firm, its employees, and other customers. More potential is there for mischief in service businesses, especially when many customers are present. There are divergent views on jay customers, like, “The customer is king and can do no wrong.” Marketplace is overpopulated with nasty people who cannot be trusted to behave in ways that self-respecting services firms should expect and require. But inevitability, there’s truth in both perspectives. No organization wants an ongoing relationship with an abusive customer.

Six Types of Jay customers

Type	Description	Example	Dealing with them
The Thief	No intention of paying—sets out to steal or pay less	Bypassing electricity meters, circumventing TV cables, riding free on public transportation	·      Clever schemes to avoid payment. ·      take preventive actions against thieves, but not alienate honest customers by degrading their service experience ·      Make allowances for honest but absent-minded customers
The Rule breaker	Many services need to establish rules to guide customers safely through the service encounter. Government agencies may impose regulations that service suppliers must enforce. Some rules protect other customers from dangerous behaviour	Airline passengers are instructed not to carry explosives, sharp objects etc.	Ensure company rules are necessary, not bureaucratic
The Belligerent	Expresses resentment, abuses service employees verbally or even physically Confrontations between customers and service employees can easily escalate	A violent passenger in an aircraft	·      Firms should ensure employees have skills to deal with difficult situations ·  In a public environment, priority is to remove person from other customers ·      May be better to make a public stand on behalf of employees than conceal for fear of bad publicity
Family Feuders:	People who get into arguments with other customers—often members of their own family	Food fight in a restaurant	Employee intervention may calm the situation.
The Vandal:	Service vandalism includes pouring soft drinks into bank cash machines; slashing bus seats, breaking hotel furniture	Bored and drunk young people are a common source of vandalism or Unhappy customers who feel mistreated by service providers take revenge	Prevention is the best cure
The Deadbeat	Customers may have good reasons for not paying	A loan defaulter	If the client's problems are only temporary ones, consider long-term value of maintaining the relationship

Consequences of Dysfunctional Customer Behaviour
Consequences for staff working front stage	Consequences for customers can be negative	Consequences for organization
Abused employees may find their emotions negatively affected and/or suffer long-term psychological damage. Overall productivity and quality may suffer	Exposure to unpleasant incidents can spoil consumption experience; some customers may even terminate their use of the service. There are chances of bad behaviour being contagious and customers may rally to support of abused employee	Unmotivated employees may work less effectively. Abused employees may take medical leave. Direct financial costs of restoring damaged property, legal fees, paying fraudulent claims may be there.