MANAGEMENT OF

SERVICES MARKETING
PERFORMANCE MEASUREMENT
Performance measurement is commonly used in the case
of products

In case of services, due to their variable & perishable

nature, the performance measurement were not applied
universally

However, due to increasing competition in the services

sector, it is becoming essential to have performance
measurement
PERFORMANCE MEASUREMENT
Performance measurement can be broadly defined as the
ability to –
Identify desirable service
Identify the measures of desirable service
Identify the key resources to provide the service
Measure the service performance
Measure the resource use & expenditure in delivering the
requisite service
PERFORMANCE MEASUREMENT
Productivity is the ability of the organization to produce
what the customers want & the ability to use the
resources efficiently in order to produce the desirable
service
Productivity is the measure that tells us about the
manner in which resources are being used to produce
desirable output
Eg: No. of buyers / No. of total stores visitors
(Measures to indicate success rate amongst the footfalls)
PERFORMANCE MEASUREMENT
Not all the services are equally amenable to the
quantitative analysis
Wherever the quantitative content is higher than
qualitative content, output or efficiency can be effectively
measured
In the case of services that are high in qualitative
measurements, such standards as number of operations
performed per day, would not be true measures
ASSOCIATED MEASUREMENTS
Efficiency – it is the measure of the rate or speed with which the
input is converted into output
Emphasis is on securing maximum output from the minimum
usage of the resources
This is a purely quantitative measure of performance
Eg: in the case of retailing, getting highest turnover per sq. m. of
shelf space will be a strong measure of its efficiency
Effectiveness – this indicates the extent to which the goal is
achieved
Eg: a management institute can be deemed effective if it
manages to secure high profile & high salary jobs for its students
ASSOCIATED MEASUREMENTS
INEFFECTIVE EFFECTIVE
INEFFICIENT Business dies quickly Business survives

EFFICIENT Business dies slowly Business thrives

 HOW TO IMPROVE ORGANIZATIONAL
PRODUCTIVITY?

Cost of control
Use of technology
Achieve parity between skills requirements &
availability
Customer participation
Husbanding the high profile skills
 USE OF TECHNOLOGY FOR PERFORMANCE
ENHANCEMENT & CONTROL
~ Control of services means ability to manage the
encounters between the service provider & the customers
in a manner that will give greater satisfaction to the
customer
~ use of technology in the services –
--- technology is available on a 24hr, 365 day basis
--- service delivery using technology is always high class
--- running cost of electronic technology are not high
--- processing speeds high
CUSTOMER ENCOUNTER MANAGEMENT
One of the key areas of control to be exercised in service
delivery is the management of the customer encounters

Types of encounters:
Direct personal encounter
Eg: doctor sees a patient in dispensary
Indirect personal encounter
Eg: one could get advice on buying/selling of securities by
subscribing to a new business letter
Cascade encounters
CUSTOMER ENCOUNTER MANAGEMENT
Factors Influencing the Encounters:
 Expectations management
 Service delivery rules
 Ambience
 Training

Personal Factors which Influence the encounter:

Proximity or distance from the customer
 Social or formal distance for business purposes (1.5-3mts)
 Personal distance (0.5-1.2mts)
 Intimate distance (15-50 cms)
CUSTOMER ENCOUNTER MANAGEMENT
Posture
The gaze
The facial expressions
The voice & tone

The sources of delight & displeasure in an encounter

The recovery
Adaptability
Spontaneity
Coping