Chapter 8: Designing and Managing Service Processes

1. Services Marketing 7e, Global Edition Chapter 8: Designing and Managing Service Processes

2. Overview of Chapter 8 1. Flowcharting Customer Service Processes 2. Blueprinting Services to Create Valued Experiences and Productive Operations 3. Service Process Redesign 4. The Customer as Co-Producer 5. Self-Service Technologies

3. 1. Flowcharting Customer Service Processes

4. Flowcharting Service Delivery Helps to Clarify Product Elements • Technique for displaying the nature and sequence of the different steps in delivery service to customers • Offers way to understand total customer service experience • Shows how nature of customer involvement with service organizations varies by type of service: • People processing • Possession processing • Mental Stimulus processing • Information processing

5. Flowcharts for People and Possession Processing Services (physical, 可見，不可見，核心利益)

6. Flowcharts for Mental Stimulus and Information Processing Services (intangible, information, less active role)

7. 2. Blueprinting Services to Create Valued Experiences and Productive Operations

8. Developing a Blueprint • Developing a Blueprint (building vs. services) • Identify all key activities in creating and delivering service • Define “big picture” before “drilling down” to obtain a higher level of detail • Advantages of Blueprinting • Distinguish between “frontstage” and “backstage”, e.g., 會計師事務所常疏忽前台表演 • Clarify interactions and support by backstage activities and systems, e.g., 牙醫師，病人，接待 都要檢視劇本，增、減、調整作業 • Identify potential fail points; take preventive measures; prepare contingency

9. Key Components of a Service Blueprint Jane Kingman-Brundage, 1989 • 高級餐廳的雙人晚餐，食材佔成本 20~30% • 9（Y 軸：上到下） * 14 （ X 軸：左到右） • Objectives: • Identify fail points & risks of excessive waits • Set service standards • Fail-proof process

10. Key Components of a Service Blueprint （上到下） • 1. Define standards for frontstage activities • 2. Specify physical evidence • 3. Identify principal customer actions • 4. Line of interaction ------------------------------------------- • 5. Frontstage actions by frontline personnel • 6. Line of visibility ---------------------------------------------- • 7. Backstageactions by customer contact personnel • 8. Support processes involving other personnel • 9. Support processes involving IT

11. Blueprintingthe Restaurant Experience: AThree-Act Performance （左到右: 3 acts, 14 steps） • Act 1: Prologue and Introductory Scenes （第一印象很重要） • Act 2: Delivery of Core Product （太快、太慢都不好） • Cocktails, seating, order food and wine, wine service • Potential fail points: Menu information complete? Menu intelligible? Everything on the menu actually available? • Mistakes in transmitting information a common cause of quality failure • Customers may not only evaluate quality of food and drink, but how promptly it is served or serving staff attitudes • Act 3: The Drama Concludes （盡量快） • Remaining actions should move quickly and smoothly, with no surprises at the end • Customer expectations: accurate, intelligible and prompt bill, payment handled politely, guest are thanked for their patronage

12. Blueprinting the Restaurant Experience: 9 * 14 的左上方，完整圖見附件

13. Improving Reliability of Processes Through Fail-Proofing • Identify 1. F: fail points, 2. W: delay, • Analysis of reasons for failure reveals opportunities for failure-proofing to reduce/eliminate future errors • Poka-Yoke technique, TQM fail-safe methods, prevent errors in manufacturing process, e.g., service employees: 外科醫師托盤凹槽，餐廳圓、方杯墊。 customers: ATM警示音，飛機化妝室警示燈。

14. Setting Service Standards and Targets • Service providers set standards for each step sufficiently high to satisfy and even delight customers • What is not measured is not managed. • Must be expressed in ways that permit objective measurement • First impression is important • Shape and control customers' expectation. • For high-contact service, the concluding step is important • Performance targets – specific process and team performance targets for which staff are responsible for

15. Setting Standards and Targets for Customer Service Processes • Responsiveness • Reliability • Competence • Accessibility • Courtesy • Communication • Credibility • Confidentiality • Listening to the customer Processing time to approve applications 80% of all applications in 24 hours 24 hours Creates a Base to Measure Customer Satisfaction Define/Process Departmental Service Goals Define Service Quality Goals for Staff

16. 實例 • 國道客運：臺北/新竹線 • 貨運物流：竹貨 vs. 大榮 • 航空站：出/入境 • 飛機引擎維修：拆/組

17. 產業鏈 • 安全 • 機械零故障 • 準點 • 按班表 • 備用管理 • 機隊 • 發動機 • 品質 • 飛行時數保證 • 時間 • 維修時間縮短 • 能量 • Overhaul • Performance • Minimum • 零件修復 • 技術指導

18. 一般性的價值鏈模式 1. 主要活動： 進貨後勤，作業，出貨後勤，行銷，服務 2. 支援活動： 基礎結構，人力資源，物料管理。

20. 企業價值鏈

21. 作業基礎經濟地圖

22. 3. Redesigning Service Processes

23. Why Redesign? • Revitalizes process that has become outdated, e.g., Singapore's Libraries: RFID, smart bookshelves • Changes in external environment make existing practices obsolete and require redesign of underlying processes • Rusting occurs internally • Natural deterioration of internal processes; creeping bureaucracy; evolution of spurious, unofficial standards • Symptoms: • - Extensive information exchange • - Data that is not useful • - High ratio of checking control activities to value-adding activities

24. Why Redesign? • Redesign aims to achieve these performance measures: • Reduced number of service failures • Reduced cycle time from customer initiation of a service process to its completion • Enhancedproductivity • Increased customer satisfaction

25. Process Redesign: Approaches and Potential Benefitse.g., Amazon combined 1, 2, 3.

26. Process Redesign: Approaches and Potential Benefits

27. 4. The Customer as Co-Producer

28. Levels of Customer Participation

29. Customers as Partial Employees • Customers can influence productivity and quality of service processes and outputs • Customers not only bring expectations and needs but also need to have relevant service production competencies • For the relationship to last, both parties need to cooperate with each other

30. Managing Customers

31. 5. Self-Service Technologies

32. Self-Service Technologies (SSTs) • SSTs are the ultimate form of customer involvement where customers undertake specific activities using facilities or systems provided by service supplier • Customer’s time and effort replace those of employees • Information-based services lend selves particularly well to SSTs • Used in both supplementary services and delivery of core product

33. Self-Service Technologies (SSTs) Many companies and government organizations seek to divert customers from employee contact to Internet-based self-service • Disadvantages: • Anxiety and stress experienced by customers who are uncomfortable with using them • Some see service encounters as social experiences and prefer to deal with people • 犯罪集團可複製你的銀行卡？從登機證搜索你的個人資訊？ Advantages: • Time and Cost savings • Flexibility • Convenience of location • Greater control over service delivery • High perceived level of customization

34. What Aspects of SSTs Please or Annoy Customers? • Key weakness: Few firms incorporate service recoverysystems such that customers are still forced to make telephone calls or personal visits

35. Putting SSTs to Test by Asking a Few Simple Questions • Does the SST work reliably? • Firms must ensure that SSTs are dependable and user-friendly • Is the SST better than interpersonal alternatives? • Customers will stick to conventional methods if SST doesn’t create benefits for them • If it fails, what systems are in place to recover? • Always provide systems, structures, and technologies that will enable prompt service recovery when things fail

36. Managing Customer’s Reluctance to Change • Increasing customer’s participation level in a service can be difficult • Marketing communications to be used to: • Prepare customer for change • Explain the rationale and benefits • What customers need to do differently in the future

37. Summary • Service blueprinting can be used to design a service and create a satisfying experience for customers • Blueprinting a restaurant (or other service) can be a three-act performance • Prologue and introductory scenes • Delivery of the core product • Conclusion of the drama

38. Summary • Service standards and targets are different and can be used to evaluate performance • Service process redesign reduces service failure and enhances productivity • When the customer is a co-producer, issues to consider are • Levels of customer participation • Self-service technologies (SST) • Psychological factors in customer co-production • Aspects of SST that please or annoy customers