Customer Contact

Customer Contact

* Higher production efficiency

* Lower sales opportunity

* Workers with technical skills

* Focus on paper handling

* Office automation

High customer contact

* Lower production efficiency

* Higher sales opportunity

* Workers with diagnostic skills, more flexible and personable

* Focus on client mix

* Client/worker teams

Customer-Introduced Variability – variability within the service delivery system results from the uncertainty introduced by customers which comes in many forms.

* Arrival

* when customers will arrive to consume a service

* Request

* what customers ask for in the service-product bundle

* Capability

* ability of customers to participate

* Effort

* willingness of customers to participate

* Subjective preference

* preferences of customers in how service is carried out

Manager’s Tool: Service Recovery

* Failing right before the customer’s eyes!

* Actions to compensate the customer for a failed service.

* Swift and appropriate action.

Manager’s Tool: Service Guarantee

* Benefits to the customer

* Promise of service to be delivered

* Payout to customer if promise not delivered

* FedEx package delivery On time, or it is free!

* Good for the organization

* Focuses on customer (service promise)

* Clearly defines payout

* Improves customer loyalty

Production-line approach – services should be standardized and the service facility itself should be designed to minimize mistakes or deviations from the standarts. Service delivery is automated as much as possible so that costs are low. Provider-routed/low customization

Contrasting Views:

* Production-line approach to service

* Standardization

* Automation

* Employees are the center of service delivery

* Use technology to support front-line employees

* Value...