Customer Service Through Quality Management PDF

UNIT 2 Customer Service Through Quality Management Prof. Danceldale Calago  INTRODUCTION Customer service quality is a major difference between excellent, poor, and indifferent businesses. Customers who receive good customer service return; customers who re...

UNIT 2 Customer Service Through Quality Management Prof. Danceldale Calago  INTRODUCTION Customer service quality is a major difference between excellent, poor, and indifferent businesses. Customers who receive good customer service return; customers who receive poor service leave, bringing their friends, family, and coworkers with them. Service quality is critical for building brand value and expanding the customer base in the hospitality and tourism sectors. Every reputable business should aim to portray itself in the best possible light and enhance the quality of its services and surpass client expectations. With so many hotels providing similar services, it's become critical to adhere to service quality management concepts to keep existing clients and attract new ones. 1. Services are Partially or Entirely Intangible a. First, if the service involves a physical item, the entire customer experience is the sum of the service/product combination, the setting in which it is provided, and the delivery of the service product. It is dif fic ult to objectively or adequately evaluate the product's quality or worth, inventory it, or repair it since some or all of the service product is intangible (although we will talk later about correcting service failures). Because the consumer determines if the quality is acceptable or whether the value is there, the only method to evaluate quality or value is via subjective evaluation procedures, the most basic of which is to question the customer. b. Another consequence of this intangibility trait is that each customer experience is unique. The less tangible the service, the more probable each customer would have a distinct perception of the event. The idea is straightforward, since each customer is unique, each customer experience will be as well. Another consequence of intangibility is that hospitality businesses are unable to keep trac k of c ustomer experienc es. For hotel businesses, the absence of inventory has serious consequences. Capacity is an essential aspect of service organization design. Capacity must be carefully controlled at the management level to satisfy demand since capacity is f inite, and customer experiences take place over time. If demand exceeds capacity, someone may have to wait or will be denied service. When capacity exceeds demand, the people and physical resources of the hospitality company are idle. c. Finally, because services are intangible and thus dif fic ult to comprehend before being delivered and experienced fully, businesses that want guests to try their services rather than c o mpe tito rs must make the intangible tangible , thro ugh photographs in advertisements, an Internet view of a restaurant interior, amenities on the night table, advertising, elegant paneling on the hotel lobby wall, and celebrity endorsements. Employees benef it from such initiatives to provide concrete proof of service excellence. After all, for both companies and visitors, service is intangible. Tangibles assist members of an organization to form a mental picture of what the service should look like and how high it should be in terms of quality. 2. Services Are Consumed at the Moment or during the Period of Production or Delivery a. Organizational systems must be carefully designed to ensure that the service is consistently delivered so that each guest has a high-quality experience that is nearly identical to that of every other guest (except for differences provided by servers in response to each guest's expression of unique needs. Working backward from the customer, the hospitality company must consider the whole service delivery process. Working backward to fulf ill customer wants and expectations is a signif ic ant distinction between all hospitality companies and the conventional bureaucratic functional organization, which is typically built for the comfort and ef fic iency of its members. Instead of focusing on management control methods to guarantee consistency and predictability among employees, hospitality businesses emphasize employee empowerment. They understand that managers cannot observe every contact between guests and employees. b. The customer experience cannot be delayed until the boss double-checks it for faults. The frontline service provider concerned about the service, the company, and the customer must be trusted to offer the best possible customer experience. Instead of using the conventional approach of evaluating performance, managers in the hospitality industry must use new abilities to assist employees in understanding how and why continuous execution of a high-quality guest experience is essential to client happiness and organizational success. The guest-focused company must trace information and authority from the bottom up rather than from the top down. 3. Services Interaction Between the Service Provider and the Customer a. This contact may be as quick as a customer's experience with an actual order-taker, for example, in a restaurant or a front desk officer who will personally serve the customer. Face-to-face, over the phone, or via mail, e-mail, or fax are all options for these encounters.  GUESTOLOGY Traditional management thinking is turned on its head with Guestology. It requires the company to look systematically at the guest experience from the customer's or visitor's point of view, rather than concentrating on organizational architecture, management hierarchy, and production processes to optimize organizational ef ficiency. Customers' actions and desires are f irst modeled, analyzed, and forecasted systematically. The remainder of the administrative problems can only be addressed after that. The aim is to build and maintain an organization that can meet customers' requirements while still making a prof it. Bruce Laval of The Walt Disney Company coined the word "guestology." It implies that all company employees must consider consumers as guests and run the company from a guest's perspective ("GROV").  QUALITY SERVICE CYCLE When providing best-in-class services according to Disney Institute's management directives, Disney's Quality service model uses a quality-service compass known as Guestology, which aligns crucial components of a perfect service delivery system to provide the best quality service. 1. Service Standards Setting standards for all aspects of service delivery is what this term means. They're also utilized to gauge the level of service quality. The criteria must be reached by benchmarking. They drive their delivery methods after knowing the customer's requirements, desires, and expectations. 2. Cast Here, the cast is def ined as the company's employees. We must infuse the philosophy of quality service right from HR planning to recruitment, selection, training, and development. We must make them understand the art and science of keeping customers through a series of induction and seminar programs. 3. Setting The atmosphere, facilities, and equipment used by the business to offer its customers the highest quality service are settings. That way, customers will have a consistent experience across all these senses when they interact with the company. 4. Process This refers to the method used to provide services. All visitors are treated like VIPs, which is an essential strategy used at this establishment. Procedures must be implemented to ensure individuals needing special attention, such as children or people with disabilities, receive a good service experience. Designs must always be error-free and up-to-date to anticipate and resolve client issues before they arise. 5. Integration To effectively construct a quality service delivery system, the last step is integration. Integration involves integrating the actors, settings, and processes into a single operating system. A service moment of truth is represented on the Integration Matrix by every combination of a service standard and delivery system. Providing a wonderful service moment requires complete consideration and development for everyone. 6. Service Theme When communicated with all employees, a service theme is a simple phrase that acts as motivation for fulf illing customers' requirements. There is a pressing need for this theme to help all employees grasp the company's service delivery philosophy.  CUSTOMER EXPECTATIONS Customer expectations include what the hotel or res tau ran t can do an d s h ou ld do, h ow th e employees providing service will behave, what the physical setting will look like, what their role or responsibilities will be, how they will dress and act, as well as the cost and value of a successfully delivered service. 1. First-time customers construct this set of expectations on advertising, recognizable brand names, promotional gadgets, prior encounters with other hospitality organizations, their imaginations, and tales and experiences of individuals they know who have previously been guests. When it comes to setting customer expectations, the marketing department typically bears primary responsibility. Following a customer experience, customer expectations for future interactions with that c o mpany are primarily info rmed by their prev io us interactions with the business. Most companies attempt to provide their customers with as much information as possible upfront to help set their expectations when it comes to hospitality. 2. If a hospitality organization fails to disclose such information, customers will gather or infer it from other sources, such as its overall reputation or personal experiences with the organization or comparable organizations. Customers have high expectations for the whole experience, so when the food is subpar, the restrooms are f ilthy, or anything else is different from what they anticipated, they will notice quickly.  MEETING CUSTOMER EXPECTATIONS The operations department has the primary duty of living up to the expectations set by the marketing department and repeat customers' previous visits. Guests will be dissatisf ie d if what they get does not m eet their expectations, regardless of what they were told or learned. They won't ref lect on a well-executed customer e x p e ri e nc e af te rward ; i nste ad , they' l l re c al l the unpleasant circumstances surrounding the subpar service. 1. The ho spi t al i t y c o mpany must me e t o r surpass t he expectations of its customers to maintain its reputation and client base. If it can't or won't, it must alter its marketing approach to match current guest expectations or modify its service offering and/or service delivery system to do so. Your restaurant's or hotel's image will be tarnished if many customers tell their friends about the bad experience they had there. Customers may no longer vent their feelings to their friends and neighbors over the fence in the backyard or on the phone. Customers who have the requisite technical skills are already setting up websites to criticize companies they believe have mistreated them. Customers will share their experiences with thousands of strangers across the globe as Internet connection becomes more widely available. 2. One of the biggest challenges for hospitality businesses is estimating customer expectations and delivering on those promises. The best companies put in additional effort to make sure that every customer, whether a f irst-time customer or a return customer, has an experience that not only meets but also exceeds their expectations. This is a challenging task when considering the high expectations that passengers bring with them when they board, say, a luxurious cruise ship. Thanks to travel agency brochures, new customers have seen cruise ships i n mo v i e s and o n t e l e v i si o n fo r ye ars. C usto me rs are undoubtedly aware of how famous the cruise line is and have high expectations since they have been on other cruises before. The cruise company aims to impress new and returning clients alike and will go to grow lengths to do so. 3. If a company cannot deliver on its promises, it shouldn't make them in the f irst place. The hospitality business must evaluate the expectations of guests, as well as its capabilities. It must determine which expectations of guests it can realistically fulf il l and then work tirelessly to do so.  MEASURING CUSTOMER EXPECTATIONS To ensure that each customer has a successful and pleasant experience, a guestologist works to learn about the customers' expectations before they reach the service environment. Customers go to a service provider with preconceived notions about what they w ant for the ir family and the mse lve s. First-time custome rs may have a preconceived idea of what to anticipate. Most people expect beautiful beds, excellent mattresses, and clean surroundings when they stay at a big hotel for the f ir st time. Repeat customers may have more clear expectations as a result of their previous interactions with the establishment. As a result, if the aim is to offer a memorable experience, the company must know why and what its customers anticipate when they arrive in the hospitality organization. A common misconception is that owning and operating a restaurant is straightforward: Provide outstanding cuisine, and the rest will take care of itself. Restaurants that make a profit understand that customers come to them (or get upset and leave) for reasons other than the quality of the cuisine. Managing the whole dining experience is a far more dif ficult task than just following a recipe to the letter. Guestology systematically identif ies these factors, models them for study, and evaluates their impact on the guest experience. It also involves testing various strategies to improve the quality of the guest experience. Finally, it provides the combination of factors or elements that attract guests and encourage them to return time and time again. 1. Serving Internal Customers a. Additionally, the hospitality company serves many internal customers, people, and units that are interdependent and mutually "served." These many internal customers may benef it from the same ideas for delivering excellent service to external customers. Just as a company strives to meet and surpass the expectations of its exterior customers, a computer help desk serving its internal customers must understand and satisfy these customers' expectations as well. b. b. Employees have high expectations, and the company must live up to or even go above and beyond those expectations. Innovative hospitality companies understand that their employees d eserve the same respec t and attention that their customers do. 2. Increasing Competition a. Every day, new hospitality businesses pop up. Customer loyalty and money are f iercely competitive, and this will only intensify in the future. Numerous companies in the hotel industry are simple to start because of their minimal f inancial needs. Early success is primarily dependent on the founder's skill and desire. A lot of money is required to create a hospitality business like a hotel or a conference center. A modest amount of start-up capital is needed for thousands of establishments, including restaurants, travel agencies, sports bars, and convention services firms. That is why guestology concepts must be mastered and put into effect if they want to thrive in today's competitive market. It won't be long until someone else provides the service their customers have come to expect.  COMPONENTS OF CUSTOMER EXPERIENCE Customer experience is all about how the customer feels about their interactions with a service provider throughout a series of events. If you say to a friend that you had a "great dinner theater the other night," you are referring to the entire event and considering it as such. The theatrical experience was your customer experience. It took many people working on many activities and initiatives to give you such a great evening. Most hospitality companies split the entire experience they provide into arbitrary parts. Regardless of how we break down the experience, we must keep it in mind while discussing and describing the overall customer experience. Customer experience = service product + service setting + service delivery system  Service Product The service product, also known as the service package or service/product combination, is the primary reason a customer visits a hospitality or tourism business. The actual product may be physical, such as a hotel room, or intangible, like a concert. Most service goods include both physical and intangible components, and they may vary from mostly product with little service to primary service with little or no product.  Service Setting The location or environment in which the encounter takes place is the second component of the customer experience. The wor d "servicescape" has been used to def ine the physical elements of the environment that contribute to the guest's overall "feel" of the encounter. The attention to detail in the physical environment, for example, contributes signif ic antly to the value of the Walt Disney World Resort experience. The use of genuine gold leaf on the bui l d i ngs, t he d e gre e o f c l e anl i ne ss, and t he t ho ught ful arrangement of waiting lines for the different attractions convey to visitors that Disney wants them to have an exceptional experience. The servicescape is crucial for themed "eatertainment" restaurants like Hard Rock Cafe, Planet Hollywood, and Rainforest Cafe. They differentiate themselves from other restaurants primarily via the food-service setting's unique concept.  Service-Delivery System The service delivery system, which includes human components (such as the restaurant server who places the meal on the table or the sound engineer at a rock concert) and physical production processes (such as the restaurant's kitchen facilities or the rock concer t's sophisticated amplif ic ation system), as well as organizational and information systems and techniques that help deliver the service to the customer, is the third part of the guest experience. Unlike the assembly line system in a factory, which is usually closed to the public, many elements of service delivery systems are accessible to the public, who may use the services directly. Furthermore, the output items of an assembly line system can be handled, physically possessed, and seen, while the services provided by a service delivery system may be experienced. While all elements of the service delivery system are essential, the employees who deal with customers are by far the most critical component and the most difficult to manage. The attitude, friendliness, genuine care, and helpfulness of the waitstaff, cabin crew, desk agents, and valet parkers signif ic antly inf luence the value and quality of the customer's experience. That one individual, that one server, is the representative of the server's department, the whole company, and maybe, in effect, the entire hospitality industry to the customer at the time or for several moments when the service is given and experienced. The quality and value of the customer experience are primarily determined by what occurs during encounters or interactions between the guest and the employee, and the less tangible the service product, the more significant the server becomes in determining the quality and value of the guest experience. It is no surprise that the best hotels, restaurants, and other hospitality businesses invest countless hours in recruiting, training, and supporting their frontline staff. If these employees do not do it properly, the customer and everyone else who hears about the event may be lost. THANK YOU!