In this article we will see that a service is any function that one part offers to another, is intangible and does NOT imply ownership over something.
Mix of Services
In this category we can identify 5 types of offer:
1. Tangible assets
2. Well tangible with additional services: ej pc, a smartphone.
3. Hybrid: includes goods and services alike, eg a restaurant
4. Main service with additional secondary goods and services: eg a main service such as an air travel with additional services such as refreshments
5. Service only: intangible service.
It is important to know that services can be based on equipment (machines) or people, always the services require the presence of the client, can satisfy a need either personal or business and can be differentiated by being profit or No, or being public entities Or private.
It is difficult for customers to evaluate the quality of services, so there are some goods that can be evaluated BEFORE (goods) or AFTER (services) the purchase.
Characteristics of services
– Intangibility: however services can be made tangible from:
– Place (rows, layout of desks).
– People (see busy employees).
– Equipment (equipment with homogeneous style).
– Communications Material (text and photographs should suggest efficiency).
– Symbols (identification symbols that are efficient).
This is how a brand experience is created from the dimensions: sensorial, affective, behavioral.
– Inseparability: production and consumption are simultaneous, the limitations of inseparability can be overcome by working with larger groups, work more quickly or training more service providers.
– Variability: depends on who, how, where and to whom services are provided.
To increase the quality of your service providers can:
– Invest in good recruitment and training practices: recruiting the right employees.
– Standardize service processes and performance.
– Monitor customer satisfaction: system of suggestions and complaints.
– Expiry: since they are NOT consumer goods, the fluctuation of demand must be analyzed to provide an optimal service.
In order to match demand and supply, you can:
– Set peak and normal prices.
– Cultivate demand NO peak.
– Complementary services: offer other services while clients wait.
– Have employees at peak times.
– Have employees perform only essential tasks at peak times.
– Increase consumer participation.
– Shared Services.
– Facilities to expand.
At present, services are experiencing difficulties because:
– The relationship with customers is changing.
– Increased customer decision-making power.
– Co-production of the client: the client actively participates in the production process.
– Redesign processes and redefine the role played by the client.
– Incorporate the right technology to help employees / customers:
– Create high performance clients and make them understand the importance of their participation in the process.
– Solidarity between clients.
In services, positive attitudes of employees contribute to customer loyalty.
Handle to perfection:
– External marketing: service provided to the client, set their price and distribute it (4 P’s).
– Internal marketing: training and motivation for employees to serve their customers well.
– Interactive marketing: ability for employees to serve the client, the key to this is teamwork, empowerment and technology are important.
Good management of service companies
Service companies have in common:
– Strategic concept: clear sense of WHO is the customer.
– Commitment of the top management: commitment to the quality of the service.
– High quality standards.
– Levels of profitability: rewarding those who spend a lot to keep them as consumers as long as possible.
– Control systems: measuring customer satisfaction Differentiation of services.
– Service options: primary (what the client expects) or secondary services.
– Innovation: new categories of service such as online travel or private aviation.
Quality of service management
Service and customer loyalty is determined by variables such as price, discomfort, response to service failure, competition or ethical issues. Gaps that prevent good quality of service:
– Between expectations and perception of management: managers do not correctly perceive the needs of customers.
– Between management’s perception and quality of service specification: the client’s needs are perceived but there is no standard of performance.
– Between quality and delivery specifications of this: poor training of customers.
– Between delivery of the service and communications abroad: expectations are affected by advertisements of the company.
– Between the service perceived and expected: quality level lower than expected.
Factors that determine the quality of service
Concerns about the service associated with a product
– Reliability and frequency of failures.
– Periods of inactivity.
– Additional costs.
In this way, these factors cause the buyer to estimate the life cycle cost = cost of purchase + discounted cost of repairs and maintenance-discounted residual value facilities.
After Sales Service Strategy
– Evolution of customer service: companies delegate customer service to authorized dealers or distributors.
– Imperative of customer service.