Chp.

12 Customers' Roles in Service Delivery

4/4/2001

Customer Contributions and Roles in Service Delivery

MKTG/HTM 386 Spring 2001

Introduction
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Customers play roles in service delivery Customers contributions influence service outcomes Where can we go wrong?
If customers: n lack understanding of their roles n are unwilling or unable to perform their roles n are not rewarded for good performance n other customers interfere
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Objectives
Emphasize the importance of customers in successful service delivery n Describe the variety of roles that service customers play n Review strategies for involving service customers effectively Result: productivity, quality, and customer satisfaction
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Class Exercise
Think about a unique service which you have consumed, about which you are quite satisfied.

Class Exercise
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The Importance of Customers in Service Delivery

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What service have you selected? Describe your role as a customer. How did you learn your role? How important is the customer to the service delivery process? How would you describe your level of participation? What influence do other customers have on your service experience?

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When might other customers enhance/diminish your experience? Could you be considered a partial employee of this organization? Why or why not? When might you, as the customer, be able to enhance/diminish your experience? Is this a service that you might, at some point, be able to provide for yourself? Why or why 5 not?

Participation is inevitable, often indispensable The needed level of participation matters

inputs include information, effort, or physical possessions n low, moderate, high
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MKTG/HTM 386

Chp. 12 Customers' Roles in Service Delivery

4/4/2001

The Importance of Customers in Service Delivery

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Customers Roles
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Other customers matter, too

can affect the nature of the service outcome n can enhancecan detract
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Customers as Productive Resources Customers as Contributors to Service Quality, Value, and Satisfaction Customers as Competitors
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examples for each

Customers as Productive Resources

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Customers as Contributors to Service Quality, Value, and Satisfaction

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The concept of the partial employee

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part of the service firms human resources customers contribute effort, time, and resources (like employees do)

The logic: design customers participative roles to maximize their contribution to the service creation process
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With ineffective customer role performance, the desired service outcome is not possible Effective role performance contributes to:
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new tasks not yet doing get better at tasks already doing

quality of the outcome your own (i.e., customers) satisfaction

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Customers as Contributors to Service Quality, Value, and Satisfaction

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Customers as Competitors
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Meansasking qs, taking responsibility, even complaining when needed Customers can create value for themselves
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When customers perform the entire service alone Then dont need the provider at all Its a question of:
Internal Exchange (DIY) vs. External Exchange (Hire someone)

e.g., IKEA

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MKTG/HTM 386

Chp. 12 Customers' Roles in Service Delivery

4/4/2001

Strategies for Enhancing Customer Participation

Q: Whats at stake? A: Productivity, Positioning, Service Quality, Customers Satisfaction Potential Strategies: n Define Customers Jobs n Recruit, Educate, and Reward Customers n Manage the Customer Mix
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Strategies for Enhancing Customer Participation

Effective Customer Participation

Define Customer Jobs

Recruit, Educate, and Reward Customers

Manage the Customer Mix

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Define Customers Jobs

Q: What type of participation do you want from customers?
Consider: existing level and nature of the service
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Technology Spotlight: Services Production Continuum

Customer Production

Joint Production

Firm Production

Job 1: Helping Yourself Job 2: Helping Others Job 3: Promoting the Company
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Gas Station Illustration 1. Customer pumps gas and pays at the pump with automation 2. Customer pumps gas and goes inside to pay attendant 3. Customer pumps gas and attendant takes payment at the pump 4. Attendant pumps gas and customer pays at the pump with automation 5. Attendant pumps gas and customer goes inside to pay attendant 6. Attendant pumps gas and attendant takes payment at the pump
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Convenience Store Gas

What role do you want customers to play?

Recruit, Educate, and Reward Customers

*Use models of employee behavior n Recruit the right customers
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Where do you want to accept payment? What are the pros/cons of each approach?
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need customers who will be comfortable with their roles make roles clear in company communications

Educate and train customers to perform effectively

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socialize customers into the organization

values, expectations, necessary skills

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MKTG/HTM 386

Chp. 12 Customers' Roles in Service Delivery

4/4/2001

Recruit, Educate, and Reward Customers

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Recruit, Educate, and Reward Customers

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Educate and train... (cont.)

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Reward customers for their contributions

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tools
orientation programs written literature signage learning from others

possible rewards (from customers view)

greater personal control over the service increased access time savings monetary savings psychological and physical benefits

Weight Watchers example w/in chapter

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make benefits/rewards plain to see! tailor benefits/rewards to customer needs

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Managing the Customer Mix

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Summary
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Compatibility Management
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managing multiple and sometimes conflicting segments numerous examples in the hospitality industry

Attract homogeneous consumers Physical grouping Customer codes of conduct Make employees sensitive to potential conflicts

Focusing here on the role of customers in service delivery Reasons exist for these gaps in customer performance Customers serve three primary participative roles Can develop strategies to enhance effective customer participation
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Questions for Guest Speaker April 11th, 6:30pm

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JoAnn Tripp, Director of Sales, Omni Hotel, Richmond

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Develop 2-3 questions, such as:

Nature of sales careers? Tips for initial job in hospitality sales? Tips for career success? Structure and function of hotel sales professional? Other items??
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MKTG/HTM 386