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Service Profit Chain Ch. 9 Designing Service Delivery Systems

Service Profit Chain Ch. 9 Designing Service Delivery Systems. Drivers of a Service Delivery System Service Concept Target Market Operating Strategy Elements of a Service Delivery System Location Layout Décor/Ambience Employee Amenities Customer Management Information Support Systems

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Service Profit Chain Ch. 9 Designing Service Delivery Systems

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  1. Service Profit Chain Ch. 9Designing Service Delivery Systems • Drivers of a Service Delivery System • Service Concept • Target Market • Operating Strategy • Elements of a Service Delivery System • Location • Layout • Décor/Ambience • Employee Amenities • Customer Management • Information Support Systems • Non-information Support Systems • Devices and Policies

  2. Service Profit Chain Ch. 9Designing Service Delivery Systems III.System Design Issues 1. Right Amount of Employee Latitude - Disney theme parks vs. Club Med 2. Controlling Customer Behavior Through a) Customer Empowerment: ex) self service b) Information Support Systems 3. Providing Process “Visibility” 4. Preventing Service Errors ex) Taco Bell IV. Types of Multisite Service Networks 1. Logistics and Communications Network 2. Transactional Network 3. Knowledge-sharing Network

  3. Service Profit Chain Ch. 9Designing Service Delivery Systems V. Key Considerations in Service Network Design 1. Degree of Support for Operating Strategy ex) Southwest Airlines 2. Need for Interconnectedness 3. Need for Standardization vs. Latitude VI. Delivering Services Globally 1. The Target Market and the Need for Customization 2. Mode of Expansion: Direct (Corporate) or Indirect (Franchising)

  4. Service Profit Chain Ch. 10Attaining Total Customer Satisfaction • Experience of HBS Students’ Letter Writing Campaign* • Doing It Right the First and Second Time • UPS • FedEx • III. Getting Customers to Complain: The BA Experience • 1. Only 8% of Unhappy Customers Contact Customer Relations People. • 2. Every 1% of additional complaint could win back 200,000 to 400,000 pounds sterling in revenue

  5. Service Profit Chain Ch. 10Attaining Total Customer Satisfaction IV. Management Initiatives To Manage Customer Dissatisfaction 1. Service Contracting a) Customer Service Contracting b) Internal Service Contracting* 2. Service Guarantees a) Guarantees to Customers b) Guarantees to Colleagues 3. Precondition: Enough Service Capability 4. Good Service Recovery Pays Off! (19%, 54%, 82% rebuy)

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