GAP ANALYSIS

Gap 1 (Knowledge Gap) "Do we know what our customers expect from us in respect to service?" 4 causes of Gap 1 1. Inadequate marketing research orientation 2. Lack of upward communication 3. Insufficient relationship focus 4. Inadequate service recovery Inadequate marketing research orientation Gap 1 - insufficient marketing research - research not focused on service quality - inadequate use of market research Lack of upward communication Gap 1 - lack of interaction between management and customers - insufficient communication between contact employees and managers - too many layers between frontline and top Insufficient relationship focus Gap 1 - lack of market segmentation - focus on transactions not relationships - focus on new customers not relationship customers Inadequate service recovery Gap 1 - lack of encouragement to listen to complaints - failure to make amends when things go wrong - no appropriate recovery mechanisms for service failures Gap 2 (Service Design and Standards Gap) what managers perceive that customers expect and the actual standards they set for service delivery 5 causes of Gap 2 1. poor system design 2. absence of customer-driven standards/lack of goal setting 3. inappropriate physical evidence 4. perception of infeasibility 5. lack of task standardization Poor system design Gap 2 - vague, undefined service designs - failure to connect service design to position Absence of customer-driven standards Gap 2 - goals not aligned wih customer standards/expectations - no formal process for service quality goal setting - lack of focus on customer requirements Inappropriate physical evidence Gap 2 - tangibles not in line with customer expectations - servicescape does not meet customer and employee needs - no maintenance/updating of servicescape Perception of infeasibility Gap 2 - to be committed to customer service, managers must believe customer expectations can be met Lack of task standardization Gap 2 - are programs designed/in place to provide consistent service Gap 3 (Service Performance Gap) - difference between organizational service specifications/standards and service delivery - occurs when employees are unable/unwilling to perform level of service desired by management 4 causes of Gap 3 1. deficiencies in human resources 2. customers do not fulfill roles 3. problems with service intermediaries 4. failure to match supply and demand Deficiencies in human resources Gap 3 - ineffective recruitment (employee job fit) - role ambiguity and conflict - poor technology and job fit - poor evaluation and reward systems - lack of empowerment, perceived control, and teamwork Customers who do not fulfill roles Gap 3 - customers lack knowledge of roles and responsibilities - customers negatively impact each other Problems with service intermediaries Gap 3 - channel conflict over objectives and performance - difficulty controlling quality/consistency - tension between empowerment and control Failure to match supply and demand Gap 3 - failure to smooth demand peaks and valleys - poor customer mix Why are franchises so prone to Gap 3? - customer interactions are more frequent - variations in service are more common (lack of consistent quality) - quality control/employee assessment is complicated across franchise Gap 4 (Communication Gap) ability of firm to deliver on promises 5 causes of Gap 4 1. lack of integrated marketing communications 2. ineffective management of customer expectations 3. overpromising 4. inadequate horizontal communication 5. failure to inform customers of behind the scenes service improvement efforts Lack of intergrated marketing communications Gap 4 - viewing each external communication as independent - not having interactive communications - absense of strong internal marketing Ineffective management of customer expectations Gap 4 - no customer expectation management - lack of education for customers Overpromising Gap 4 - in advertising, PR, personal selling - through physical evidence cues Inadequate horizontal communications - insufficient communication within/across all departments and branches (customer service staff should be involved in development of/informed of all external communications) - differences in policies across branches