CH#5. Service Encounter-Technology in Service.pdf

Service Encounter – Technology in Service OSCM 303 Learning Objectives Describe the five roles of technology in the service encounter. Use the service encounter triad to describe a service firm’s delivery process. Describe how the elements of the ser...

Service Encounter – Technology in Service OSCM 303 Learning Objectives Describe the five roles of technology in the service encounter. Use the service encounter triad to describe a service firm’s delivery process. Describe how the elements of the service profit chain lead to revenue growth and profitability Introduction Most services are characterized by an encounter between a service provider and a customer This interaction, which defines the quality of the service in the mind of the customer, is called a “moment of truth.” Advances in Information Technology led to different ways of interacting with and serving customers  Introduction Jan Carlzon’s philosophy: the organization exists to serve the frontline workers who have direct customer contact. A revolutionary thinking stood the old organization chart on its head, placing the customer-encounter personnel (formerly at the bottom) now at the top of the chart. Investment in contact personnel creates a service profit chain that links perceived service value to customer loyalty to eventual profitability. Technology in the Service Encounter Role of Technology in the Service Encounter  Technology in the Service Encounter Modes Face-to-Face Contacts A. Technology-free service encounter  High touch service: Customer is in physical proximity to and interact with a human service provider  Examples: Personal care services. B. Technology-assisted service encounter  Only the service provider has access to the technology to facilitate the delivery of face-to-face service  Examples: Health Care services. Dentist: full mouth x-ray.  Technology in the Service Encounter Modes Face-to-Face Contacts C. Technology-facilitated service encounter  Both customer and service provider have access to the same technology (co-location required)  Examples: Professional Athlete: coach & athlete. Financial planner. Software training/courses (Blackboard). D. Technology-mediated service encounter  Both customer and service provider have access to the same technology (without co-location). Communication usually is enabled by voice telephone call to access services.  Examples: Express package service: package tracking system. Insurance companies.  Technology in the Service Encounter Modes Screen-to-Face Contacts E. Technology-generated service encounter  The human service provider is replaced entirely  Customer self-service  ATM, check-out counter  Interactive Voice Response (IVR) technology in call centers. Emergence of Self-service Service has migrated from human interaction to substitution of machines for service employees or to anywhere–anytime electronic service Service Industry Human Contact Machine Assisted Electronic Service Self-Service Technology Service allows for: Banking Teller ATM Online banking ▪ Cost saving ▪ Place & Time Grocery Checkout clerk Self-checkout station Online order/ pickup Convenience ▪ Accuracy Airlines Ticket agent Check-in kiosk Print boarding pass ▪ Speed ▪ Understanding the Restaurants Wait person Vending machine Online order/ market needs (Tracking delivery Habits) Movie theater Ticket sale Kiosk ticketing Pay-for-view BUT ALSO: Book store Information Stock-availability Online shopping clerk terminal (search) ▪ Low-skill based jobs Education Teacher Computer tutorial Distance learning tend to disappear ▪ Service Jobs limited to high-skilled people Electronic and Traditional Services Features Electronic Traditional Encounter Screen-to-face Face-to-face Availability Anytime Working hours Access From anywhere Travel to location Market Area Worldwide Local Ambiance Electronic Physical interface environment Payment Credit card Cash or check Differentiation Convenience Personalization Privacy Anonymity Social interaction Technology Convergence Enabling E-Business  Internet  Global telephone system  Communications standard TCP/IP (Transfer Control Protocol/Internet Protocol)  Addressing system of URLs  Personal computers and cable TV  Customer databases  Sound and graphics  User-friendly free browser Purpose of Web-site  A retail channel (Amazon.com)  Technical support (Dell Computer)  Order processing (Delta Airline)  Convey information (Kelly Blue Book)  Organization membership (POMS.org)  Games (Treeloot.com) The Service Encounter Triad  Every moment of truth involves an interaction between a customer and a service provider within an environment staged by the service organization.  The service encounter triad captures the relationships between the three parties in the service encounter and suggests possible sources of conflict.  Service encounter triad a triangle depicting (show) the balance of goals among the service organization, the contact personnel, and the customer. The Service Encounter Triad Budget Limits Rules Rules Budget Limits Reduce stress and Perceived Control Self- standardization Satisfaction The Service Encounter Triad Contact Personnel Attributes 1. Flexibility 2. Tolerance for ambiguity 3. Ability to monitor and change behavior on the basis of situational cues 4. Empathy for customers The Service Encounter Triad Customer Expectations: 1. economizing customer 2. ethical customer 3. personalizing customer 4. convenience customer Customer Attitude: 1. Time involved 2. Control Situation 3. Efficiency 4. Human contact 5. Risks involved 6. Effort involved 7. Dependency need Service Profit Chain