Managing Employees

Managing Employees

1. Importance of Employees in Service Experience

  • Employees shape customer perceptions and experiences through their interactions.

2. Services Marketing Triangle

  • Three Parties: Company, Employees, Customers.

  • Types of Marketing:

    • External (company to customers)

    • Internal (company to employees)

    • Interactive (employees to customers).

3. Internal Service Quality

  • Refers to how well employees are treated and supported, impacting motivation and performance.

4. Boundary Spanners

  • Employees who interface directly with customers and may experience emotional labor and role conflict.

5. Employee Attraction and Retention Strategies

  • Strategies include creating a positive work environment, providing growth opportunities, and recognizing contributions.

  • Common Hiring Mistake: Focusing solely on technical skills without considering cultural fit.

6. Zappos' Internal Marketing

  • Strong company culture emphasizing employee empowerment and open communication.

7. Empowerment

  • Allowing employees to make decisions can enhance service delivery but may lead to inconsistencies.

8. Interaction Quality

  • Three Sub-Dimensions:

    • Attentiveness

    • Responsiveness

    • Communication.

Managing Customers

1. Cruise Industry Customer Management

  • Companies may segment and manage customers differently based on profitability and engagement.

2. Characteristics of Services

  • Key Characteristics: Intangibility, inseparability, variability, and perishability necessitate active customer involvement.

3. Good vs. Bad Customers

  • Good Customers: Enhance value.

  • Bad Customers: Can disrupt service or harm the brand.

4. Customer Typology

  • Four Types of Customers:

    • Loyal

    • Price-sensitive

    • Indifferent

    • Problem customers.

5. Jaycustomers

  • Customers who disrupt service; types include aggressive, irresponsible, and abusive customers.

6. Recruiting Right Customers

  • Ensures sustainable profitability and enhances service quality.

7. Reasons for Lack of Complaints

  • Customers may feel it’s not worth their time, fear confrontation, or believe complaints won’t lead to changes.

8. Customer Lifetime Value (CLV)

  • A metric for forecasting the total value a customer brings over their lifetime, guiding marketing and service decisions.

Primary Data Collection

1. Types of Data

  • Primary Data: Collected firsthand.

  • Secondary Data: Collected by others; primary data is specific but can be costly.

2. Importance of Research

  • Helps understand customer needs, improve service, and maintain competitiveness.

3. Methods of Primary Data Collection

  • Surveys, interviews, observations, focus groups.

4. Benefits of Surveys

  • Cost-effective, can reach a large audience, easy to analyze.

5. Representativeness

  • Ensured through random sampling and stratification.

6. Considerations for Surveys

  • Question clarity, length, and format to avoid bias.

7. Question Creation Rules

  • Keep questions clear and concise; avoid leading questions.

8. Doritos Case Insight

  • Specific flavor preferences or snacking habits identified through consumer research.

9. A/B Testing

  • Comparing two versions to determine which performs better in achieving goals.

Case Studies: ZipCar and De Beers

1. ZipCar Challenges

  • Challenges include competition, managing customer behavior, and maintaining service quality.

  • Solutions: Streamlined user experience, improved marketing.

2. De Beers Challenges

  • Changing consumer perceptions of diamonds; the ‘Real is Rare’ campaign aims to restore value and exclusivity.

3. Generalizable Lessons

  • Understand customer behavior, adapt to market changes, and invest in brand equity.

Managing the Outcome, Demand, and Capacity

1. Outcome Quality

  • Three Sub-Dimensions:

    • Consistency

    • Reliability

    • Outcome satisfaction.

2. Factors in Evaluations

  • Tangibles (physical aspects), valence (positive/negative feelings), and waiting time perceptions.

3. Importance of Waiting Time

  • Impacts customer satisfaction and perceived service quality.

4. Queue Configurations

  • Types include single line, multiple lines, take-a-number systems, each affecting flow and efficiency.

5. Psychology of Waiting

  • Expectations, distractions, and perceived fairness influence customer experience.

6. Waiting Strategies

  • Strategies include avoidance, entertainment, and providing accurate wait times.

7. Walt Disney’s Wait Time Management

  • Involves pre-visit information, managing experience during the wait, and post-visit follow-up.

8. Demand and Capacity Management

  • Essential to balance service delivery and customer satisfaction.

9. Excess Demand and Capacity Scenarios

  • Strategies for managing peak times, overbooking, and service flexibility.

10. Capacity Constraints

  • Types include physical (facility size), operational (staffing), and resource-based (equipment).

11. Random vs. Predictable Demand

  • Examples include seasonal tourism versus year-round restaurants.

12. Shifting Demand

  • Methods include promotions, loyalty programs, and flexible pricing.

13. Shifting Capacity

  • Involves cross-training staff, flexible work hours, and utilizing technology.

14. Aligning Capacity and Demand

  • Adjusting staffing levels, scheduling, and resource allocation based on demand forecasts.