BBA-5th Semester Services Marketing Course Code: MKT 323 Maria N. Shahid Department of International Business and Marketing, NUST Business School (NBS), National University of Sciences & Technology (NUST) Islamabad, Pakistan. ▪ Book: Services Marketing Ninth Edition World Scientific, 2022 ▪ Authors: Jochen Wirtz Christopher Lovelock ▪ Publisher: World Scientific Course: Services Marketing (BBA, 5th Semester) 2 Chapter 8: Designing Service Process ❑ What is a Service Process? ❑ Designing & Documenting Services ❑ Developing a Service Blue Print ⁕ Fail-Proofing to Design Fail Points Out of Service Processes ⁕ Service Standards & Targets ⁕ Consumer Perceptions and Emotions in Service Process Design Course: Services Marketing (BBA, 5th Semester) 3 What is a Service Process? ▪ From the customer’s perspective, services are experiences. ▪ From the organization’s perspective, services are the processes that are designed and managed to create the desired experience for customers. ▪ Processes are the underlying architecture of services. Course: Services Marketing (BBA, 5th Semester) 4 (Cont’d) Processes, ▪ describe the method and sequence in which service operating systems work and ▪ specify how they link together to create the value proposition promised to the customers. Course: Services Marketing (BBA, 5th Semester) 5 (Cont’d) ▪ Badly designed processes are likely to annoy customers because they often result in slow, frustrating, and poor quality service delivery. ▪ Poor processes make it difficult for frontline employees to do their jobs well, thus resulting in low productivity, and increase the risk of service failures. Course: Services Marketing (BBA, 5th Semester) 6 Designing & Documenting Services ▪ Flowcharting and Blueprinting are two key tools used for documenting and redesigning existing service processes and for designing new ones. Course: Services Marketing (BBA, 5th Semester) 7 (Cont’d) Flowcharting is a technique for displaying the nature and sequence of the different steps in delivering a service to the customer. ➢It is a simple way to visualize the total customer journey and service experience. ➢By flowcharting the sequence of encounters (also called customer journey) customers have with a service organization, we can gain valuable insights into the nature of an existing service. ➢This is especially so if they are used together with personas, that is, customer profiles that represent particular user segments. Course: Services Marketing (BBA, 5th Semester) 8 Course: Services Marketing (BBA, 5th Semester) 9 (Cont’d) ▪ Blueprinting is a more complex form of flowcharting, specifying in detail how service processes are constructed, including what is visible to the customer and all that goes on in the back office. ➢Blueprints facilitate the detailed design and redesign of customer service processes. Course: Services Marketing (BBA, 5th Semester) 10 Developing a Service Blueprint A blueprint typically has the following design elements: ▪ The front-stage activities that map the overall customer experience, desired inputs and outputs, and sequence in which the delivery of that output should take place. ▪ The physical evidence of the front-stage activities the customer can see and use to assess service quality. Course: Services Marketing (BBA, 5th Semester) 11 (Cont’d) ▪ The line of visibility clearly separates what customers experience and can see (the frontstage processes), and what customers can’t see (the back-stage processes) ▪ The back-stage activities that must be performed to support a particular front-stage step. ▪ The support processes and supplies where support processes are typically provided by the information system, and supplies are needed for both front- and back-stage steps. Course: Services Marketing (BBA, 5th Semester) 12 (Cont’d) ▪ Fail points are where there is a risk of things going wrong and affecting service quality. ▪ Fail points should be designed out of a process (e.g., via the use of ⃰ poka-yokes), and, ▪ Firms should have backup plans for failures that are not preventable. Course: Services Marketing (BBA, 5th Semester) 13 (Cont’d) ▪ Common customer waits in the process and points of potential excessive waits. These should then either be designed out of the process, or if that is not possible, firms can implement strategies to make waits less unpleasant. ▪ Service standards and targets should be established for each activity, reflecting customer expectations. This includes specific times to be set for the completion of each task and the acceptable wait between each customer activity. ▪ (Figure 8.6) Course: Services Marketing (BBA, 5th Semester) 14 (Cont’d) ⃰ Fail-Proofing to Design Fail Points Out of Service Processes ▪ A good blueprint identifies fail points where things can go wrong. ▪ Fail-safe methods, also called poka-yokes, can then be designed to prevent and/ or recover such failures for both employees and customers. ▪ The term poka-yoke is derived from the Japanese words poka (inadvertent errors) and yokeru (to prevent) and is now widely applied to fail-safe service processes. Course: Services Marketing (BBA, 5th Semester) 15 (Cont’d) ▪ It is a TQM method. ▪ This method ensures that service employees do things correctly, as asked, in the right order, and at the right speed. ▪ A three-step approach can be used to develop poka-yokes: 1. Collect information on the most common fail points. 2. Identify the root causes of those failures. 3. Create strategies to prevent the failures Course: Services Marketing (BBA, 5th Semester) 16 (Cont’d) Service Standards & Targets: ▪ Service blueprints help to set service standards that should be high enough to satisfy customers. ▪ As standards need to be measurable, important but subjective or intangible service attributes need to be operationalized. Course: Services Marketing (BBA, 5th Semester) 17 (Cont’d) ▪ This can often be achieved through service process indicators that capture the essence or at least approximate these attributes. ▪ Once standards are decided, performance targets can be set. Course: Services Marketing (BBA, 5th Semester) 18 (Cont’d) Consumer Perceptions and Emotions in Service Process Design: Service processes need to be designed with emotional intelligence. Key principles about sequencing service include: 1. Start strong. The opening scenes of a service drama are particularly important, because customers’ first impressions can affect their evaluations of quality during later stages of service delivery. Course: Services Marketing (BBA, 5th Semester) 19 (Cont’d) 2. Build an improving trend. All things being equal, it is better to start a little lower and build a little higher than to start a little higher and fall off a little at the end. 3. Create a peak. Customers tend to remember the peak! 4. Get bad experiences over with earlier on so that negative aspects of the experience are less likely to dominate the memory of the entire service encounter. Course: Services Marketing (BBA, 5th Semester) 20 (Cont’d) 5. Segment pleasure but combine pain. Service processes should extend the feeling of pleasurable experiences by dividing them up throughout the experience and combining unpleasant experiences into a single event as far as possible. 6. Finish strong. Ending on a high note is an important aspect of every service encounter even if it is just a cheerful and affirmative “Have a nice day.” Course: Services Marketing (BBA, 5th Semester) 21 (Cont’d) 7. A tool that helps to manage customer emotions is emotionprints, which documents likely customer emotions at each stage of the service process. The objective is to manage the customer experience well. Course: Services Marketing (BBA, 5th Semester) 22