10 Trends identified in the Service Sector in 21st Century

At the beginning of 21st Century, special issues have developed in area of marketing due to drastic changes in business environment and intense competition that has compelled the marketers to change the way of doing business. Marketing is changing and that’s obvious. The focus of marketing has widened from the classic product, price, and place, promotion to incorporate the yield management, customer experience and customization that necessitates marketer to concentrate on issues such as processes, people and consumer insight. Escalating customer’s demands, development of technology, increasing competition, increasing consumerism all have been main causes that led strategic change in marketing. Service sector in post industrial economies is facing unprecedented changes. Service marketing in 21st century is all about achieving return on investment (ROI) and relationship (ROR), retaining customer and increasing customer lifetime value. The changing role of marketing in service sector demands efficient and effective management of customers, channels, marketsContinue reading

How to Use Customer Service as a Competitive Advantage for Small Businesses?

Customer service is the provision of service being provided by the seller to customers before, during and after a purchase of any product. A customer is a person who buys products (goods or services) from a shop or a business organization. Customer service is a series of activities designed to enhance the level of customer satisfaction — that is, the feeling that a product or service has met the customer expectation. It is also the process of assisting another person or persons who buys goods and services from a shop. In order to make the organization effective and productive, all the employees need to develop a positive service attitude towards customers. The goal of quality customer service in any organization is to send a positive message with a good attitude to the customers to make them more loyal and happy thereby. Such a message must focus on addressing the needsContinue reading

Dealing With Customer Complaints

The Customer is always right! There are occasions when the customer is right, however there are also times when the customer is not entirely right or when their behavior in making a complaint is such that they need to be appropriately challenged so that the substantive issue is dealt with. Tactics for Dealing with Customer Complaints When dealing with customer complaints, mangers can use tactics based on a five-category scheme called conflict-handling modes: competing, compromising, collaborating, accommodating and avoiding. Competing: (It has been decided that enough is enough, if the customer sues, you’ll meet them in court) Repeat what you have said Remind them that they can have their goods back Warn the customer that you will not continue the conversation if they become abusive Note what is said (possibly need to use in court) Keep calm yourself and remain professional Recognize when the conversation has gone on longContinue reading

Service Failure and Recovery

Service Failures Even with the best service organizations, failures can just happen — they may be due to the service not available when promised, it may be delivered late or too slowly (some times too fast??), the outcome may be incorrect or poorly executed, or employees may be rude or uncaring. All these types of service failures bring about negative experiences. If left unfixed they can result in customers leaving, telling others about the negative experiences or even challenging through consumer courts. Research has shown that resolving the problems effectively has a strong impact on the customer satisfaction, loyalty, and bottom-line performance. Customers who experience service failures, but are ultimately satisfied based on recovery efforts by the firm, will be more loyal. The Recovery Paradox It is suggested that customers who are dissatisfied, but experience a high level of excellent service recovery, may be more satisfied and more likelyContinue reading

Service Encounters

From the customer’s point of view, the most vivid impression of service occurs in the service encounters or “Moment Of Truth,” when the customer interacts with the service firm. This is the foundation to “Satisfaction of Service Quality” — it is where the promises are kept or broken. The concept of service encounter was put forth by Richard Norman, taking the metaphor from Bull Fighting. Most services are results of social acts, which take place in direct contact between the customer and the service provider. At this stage the customer realizes the perceived service quality. Every “Moment of Truth” is Important — according to Scandinavian Airlines, each one of their 10 million customers come in contact with 5 employees. Thus the airlines say there 50 million moments of truth — each one is managed well and “They prove they are the BEST”. Encounter Cascade The encounter cascade refers to aContinue reading

Consumer Decision Process In Services Marketing

Knowledge of the Buyer In buying decisions many times other people also influence the decision. In services these roles are played by many persons. In purchase of any service six distinct roles are played. They are; Initiator : The person who has a specific need and proposes to buy a service Influencer : The person or group of persons whom the decision maker refers to or who advice the decision maker Gate Keeper : The person or organization or promotional material, which act as filter on the range of services which enter the decision choice Decider : The person who makes the buying decision Buyer : The person makes the actual purchaser User : The actual user. Consumer Decision Making Process in Services Marketing The consumer’s decision to purchase or reject a product or service is the moment of final truth for the marketer. It signifies the marketing strategy hasContinue reading