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Services
TD
ID
have both tangible and intangible components A management tool Can identify and serve customers better
services deliver the bundle of benefits through the experience that is created for the consumer servuction model provides a framework for understanding the consumers experience
The
Customer B
Invisible
in management perspective
Growth
in service sector employment Service sector contributions to the world economy Deregulation
Borrowed from Thomsen Learning COPYRIGHT 2006
impact: The service sector accounts for about 75% of the United States gross domestic product (GDP) The majority of industries in the U.S. economy do not produce, they perform
U.S. airlines declined from 36 to 12 the number of trucking companies that failed during the 1980s was more than the previous 45 years combined commercial banks declined by 14%
Borrowed from Thomsen Learning COPYRIGHT 2006
location
believes most employees are indifferent, unskilled, and incapable of completing complex tasks. performance expectations are low wages are kept low few opportunities for advancement
Borrowed from Thomsen Learning COPYRIGHT 2006
Guarantees a cycle-of-failure High employee turnover rate Encourages front-line personnel to be indifferent to problems
some companies let employees go before mandatory raises focuses only on product knowledge little, if any, company benefits
Borrowed from Thomsen Learning COPYRIGHT 2006
superficial training
Customer dissatisfaction
2/3 of customers defect, not due to the product, but due to the unhelpfulness of the provider flat and declining sales revenues employees customers shareholders country
Borrowed from Thomsen Learning COPYRIGHT 2006
of the firm is to serve the customer Service delivery is the focus of the system and the overall differential advantage in terms of competitive advantage The services triangle provides a framework for the services model
Borrowed from Thomsen Learning COPYRIGHT 2006
The people
employees from giving good service 5. Physical and administrative systems should flow logically from the service strategy 6. Good service starts at the top
invests in people as much as machines technology is used to assist people (not to monitor their every activity) data is made available to the front-line
Recognizes that employee turnover and customer satisfaction are closely related
tie pay to performance focus on selection and training of personnel better trained, provide better service, require less supervision
Borrowed from Thomsen Learning COPYRIGHT 2006
for customers and employees companies that pay more are finding that as a percentage of sales, labor costs are actually lower than industry averages