Monitoring and Measuring Service Excellence by Andrew Clegg

Managing Customer Service

Monitoring and Measuring Service Excellence

Aims •  To examine and cri-que respec-ve quan%ta%ve and qualita%ve methodologies for monitoring and evalua-ng service quality •  To examine the basic approaches to service gap analysis and demonstrate how to calculate a sa%sfac%on index score •  Discuss and analyse the basic components of the Servqual model

Monitoring and Evalua7on •  Ac7vity 1: Monitoring and Feedback §  Make a list of the ways in which you could get feedback on the quality of service excellence §  Consider the rela;ve merits/ limita;ons for each of the approaches that you have highlighted

Monitoring and Evalua7on •  Approaches: –  Benchmarking –  Mystery Shopper –  Ques;onnaires/web-based surveys –  Interviews –  Focus groups –  Par;cipant/non-par;cipant observa;on –  Signiﬁcant event analysis –  Cause and eﬀect analysis –  Using social media as a mechanism to collect feedback

Monitoring and Evalua7on

Monitoring Tools: Ques7onnaire Surveys

Managing Customer Service Ac7vity 2: Customer Sa7sfac7on Surveys â&#x20AC;˘â&#x20AC;Ż What are the key issues when designing and implemen-ng a customer sa-sfac-on survey?

Ques7onnaires •  Key issues: –  Who are you surveying? –  What is it your are measuring/analysing? –  Sampling frame, bias and representa-veness –  Qualita-ve or quan-ta-ve approaches –  Ques-ons (open or closed)(data types) –  Ra-ngs scales/measuring customer service –  Customer par-cipa-on –  Level of analysis

Ques7onnaires Ques7on Design

•  How would you categorise these ques;ons?

Ques7onnaires Ques7on Design

Ques7onnaires Ques7on Design Expecta7on

Percep7on

Ques7onnaires Ques7on Design Expecta7on

Percep7on

Ques7onnaires Ques7on Design Expecta7on

Percep7on

Ques7onnaires Ques7on Design

Ques7on Design

Na7onal Marine Aquarium Plymouth

Ques7onnaires

Ques7onnaires Level of Analysis â&#x20AC;&#x201C; Axis Scales Location

9.4

Element of Service

Range of Merchandise

9.2

Price Level

9.1

Quality of Merchandise

8.9

Checkout Time

8.5

Staff Helpfulness

8.3

Parking

7.9

Staff Appearance

7.3 0

Importance Score

Ques7onnaires Level of Analysis â&#x20AC;&#x201C; Axis Scales Location

9.4

Element of Service

Range of Merchandise

9.2

Price Level

9.1

Quality of Merchandise

8.9

Checkout Time

8.5

Staff Helpfulness

8.3

Parking

7.9

Staff Appearance

7.3 6.5

7.5

8.5

Importance Score

9.5

Ques7onnaires Level of Analysis â&#x20AC;&#x201C; Importance v Sa7sfac7on Importance

Satisfaction

Location

9.2

Element of Service

Range of Merchandise

9.2

7.9

Price Level

9.1

8.8 8.9

Quality of Merchandise Checkout Time

8.3

7.7 7.9

Parking

8.6

7.3

Staff Appearance 6.5

7.5

9.1

8.5

7.4

Staff Helpfulness

9.4

8.5 8

8.5

Importance Score

9.5

Ques7onnaires Level of Analysis â&#x20AC;&#x201C; Importance v Sa7sfac7on Importance

Satisfaction

10 9.4

9.5

Importance Score

9.1

8.5

8.6

8.5

9.2

8.8

8.5 8.3 7.9

8 7.5

9.1 8.9

9.2

7.9 7.7 7.4

7.3

7 6.5 Staff Appearance

Parking

Staff Helpfulness

Checkout Time

Quality of Merchandise

Element of Service

Price Level

Range of Merchandise

Location

Service Gap Analysis

Techniques •  Priori7es for Improvement (PfI) •  Size of gap – a greater gain in customer sa-sfac-on will be achieved by closing a large gap rather than a small gap •  Importance to customers – closing a slightly smaller gap on something that is a top priority to the customer may therefore generate more sa-sfac-on gain than addressing a larger gap on an issue of lower importance

Techniques •  Priori7es for Improvement (PFI) •  Quick Wins – tackle one PFI which can be addressed easily to demonstrate prompt ac-on being taken as a result of the survey •  Policy/regula7ons – the closure of gaps may be constrained by circumstances beyond the control of the organisa-on

Monitoring and Evalua7on

Calcula7ng a Sa7sfac7on Score

Techniques Sa7sfac7on Index •  Step 1 – calculate the weigh;ng factors based on Importance scores Examples: Store loca7on: 9.4/68.6*100=13.70% Staﬀ appearance: 7.3/68.6*100=10.64%

Techniques Sa7sfac7on Index •  Step 2 – calculate the Sa7sfac7on Index

Sa7sfac7on Scores

Importance Scores

e.g. staﬀ appearance: 8.5*10.64%=.090 •  Overall weighted score = 8.41% [84.1%] - therefore company 84% successful in sa;sfying customers

Techniques Ques7onnaires •  Do not have to be quan;ta;ve!

Techniques

Techniques Content Analysis

Monitoring and Evalua7on

Monitoring Tools: Mystery Shopping & Mirroring Techniques

Managing Customer Service Ac7vity 6: Mystery Shopper •  What are the beneﬁts of a Mystery Shopper programme?

Monitoring and Evalua7on •  Beneﬁts of Mystery Shopping [1] •  Monitors and measures service performance •  Improves customer reten;on •  Makes employees aware of what is important in serving customers •  Reinforces posi;ve employee/management ac;ons with incen;ve-based reward systems •  Provides feedback from front line opera;ons •  Monitors facility condi;ons - asset protec;on •  Ensures product/service delivery quality

Monitoring and Evalua7on •  Beneﬁts of Mystery Shopping [2] •  Supports promo;onal programs •  Audits pricing & merchandising compliance •  Allows for compe;;ve analyses •  Compliments marke;ng research data •  Iden;ﬁes training needs and sales opportuni;es •  Educa;onal tool for training & development •  Ensures posi;ve customer rela;onships on the front line •  Enforces employee integrity

Monitoring and Evalua7on

Monitoring Tools: Social Media

Monitoring and Evalua7on

Monitoring Tools: Benchmarking

Deﬁning Benchmarking •  ‘the con-nuous process of measuring our products, services and prac-ces against the toughest compe-tors or those companies recognised as industry leaders’ [Camp, 1989] •  ‘the search for industry best prac-ce that leads to superior performance’ [Camp, 1989] •  ‘a con-nuous process comparing an organisa-on’s performance against that of the best industry considering cri-cal consumer needs and determining what should be improved’ [Vaziri, 1992]

Monitoring and Evalua7on •  Ac7vity 5: Benchmarking –  What are the seven Cs of benchmarking?

Monitoring and Evalua7on Benchmarking §  Challenge - should the service be provided? What is the best mix? §  Compare - engaging stakeholders in the process §  Consult - with stakeholders in seMng speciﬁca-ons and targets §  Compete - crea-ng variety and new markets §  Con7nuous improvement - based on an approach which is right for the organisa-on/des-na-on, supports working with others and which is responsive to a changing agenda §  Collabora7on - working in partnership to determine and deliver ‘best value’ §  Culture – recognising organisa-onal cultures

Monitoring and Evalua7on Benchmarking

Monitoring and Evalua7on Benchmarking Results Service Quality: Electrical Retailers

Monitoring and Evalua7on

Monitoring Tools: Servqual

Monitoring and Evalua7on •  Ac7vity 3: Servqual –  What is Servqual? –  What are the main strengths and weaknesses of Servqual as a measurement tool?

Introduc7on to Servqual •  Service Gap Analysis –  Formal means to iden-fy and correct gaps between desired levels and actual levels of performance –  Used by organisa-ons to analyze certain processes of any division of their company

Introduc7on to Servqual •  SERVQUAL is a ques;onnaire designed to measure the gap between the expecta;ons and percep;ons of a customer from a par;cular service. •  Customers’ percep;ons should equal or exceed customers’ expecta;ons to give them sa;sfac;on –  Customers’ percep%ons are based on the service delivered –  Customers’ expecta%ons are based on past experiences, word of mouth and personal needs

Zeithaml et al (1990): Performance Areas [RATER] •  Responsiveness: Willingness to help customers and provide prompt service •  Assurance: Knowledge and courtesy of employees and their ability to convey trust and conﬁdence •  Empathy: Caring, individualised aTen-on the provides its customers •  Tangibles: The appearance of physical facili-es; equipment and personnel •  Empathy: Caring, individualised aTen-on the provides its customers •  Reliability: Ability to perform the promised service dependably and accurately

Introduc7on to Servqual •  Emphasis is on ‘gap analysis’ – 22 items of measurement (e.g. modern equipment/prompt service) •  The ques;onnaire is divided into 2 main sec;ons: –  Expecta7ons measures what is an-cipated in an ideal service (on a 7-point scale) –  Percep7ons then measures those aspects of the service as actually delivered or experienced

Introduc7on to Servqual •  Sa7sfac7on (S) is conceptualised as the gap between expecta;ons and percep;ons •  So: S=Percep7on (P)- Expecta7on (E) •  Average expecta;on ra;ng is then subtracted from the average percep;on ra;ng: –  High nega7ve ra7ng = Training needed in certain dimensions –  High posi7ve ra7ng = Dimension is OK, no training needed

Introduc7on to Servqual For example:   A survey was taken which showed the averages for each dimension as follows: Dimension Percep7on Av Expecta7on Av Tangibles Reliability Responsiveness Assurance Empathy

5.4 5.6 3.2 6.2 2.8

2.4 4.6 3.5 3.4 4.2

What dimension should be emphasised?

Introduc7on to Servqual   Percep7on – Expecta7on = Diﬀerence   Tangibles:

5.4 - 2.4 =

3.0

Responsiveness:   Assurance:   Empathy:

5.6 - 4.6 = 3.2 - 3.5 = 6.2 - 3.4 = 2.8 - 4.2 =

1.0 -0.3 2.8 -1.4

Reliability:

•  Empathy has the lowest ra;ng therefore it is the

dimension where training should be emphasized the most. •  A focus should also be placed on Responsiveness because of its nega;ve ra;ng

Service Gap Analysis

Monitoring and Evalua7on •  Ac7vity 4: Servqual –  What are the diﬀerent gaps in Servqual? –  What causes the gaps and what are the respec-ve solu-ons?

Servqual: Service Gap Analysis

Introduc7on to Servqual

Gap 1 – The Knowledge Gap

Introduc7on to Servqual

Gap 1 – The Knowledge Gap •  Management do not

understand correctly what customers expect of their service

Introduc7on to Servqual

Gap 1 – The Knowledge Gap •  Management do not

understand correctly what customers expect of their service

What is the cause of this gap?

Servqual:

Gap 1 – The Knowledge Gap –  Insuﬃcient marke;ng research –  Inappropriate use of marke;ng research –  Lack of management/customer interac;on –  Inadequate service recovery –  Too many ‘layers in the organisa;on’

Servqual:

What is the solu%on to closing this gap?

Servqual

Gap 1 – The Knowledge Gap   Solu7on: Providers should be

encouraged to elicit detailed informa;on from consumers on what they require

Servqual

Gap 2 â&#x20AC;&#x201C; The Standards Gap

Servqual

Gap 2 – The Standards Gap •  Knowledge of

customer expecta;ons are not translated into customer-focused service speciﬁca;ons, standards or guidelines

Servqual

Gap 2 – The Standards Gap •  Knowledge of

customer expecta;ons are not translated into customer-focused service speciﬁca;ons, standards or guidelines

What is the cause of this gap?

Servqual

Gap 2 – The Standards Gap –  Inadequate management commitment to service quality –  Absence of process for sepng service quality goals, speciﬁca;ons and standards –  Inadequate standardisa;on of tasks –  Percep;on that all customer expecta;ons cannot be met –  Inappropriate physical ‘evidence’

Servqual

Gap 2 â&#x20AC;&#x201C; The Standards Gap Solu7on: The managementâ&#x20AC;&#x2122;s ability to specify the service provided needs to be realis;c and guided by clear quality standards

Servqual Gap 3 â&#x20AC;&#x201C; The Delivery Gap

Servqual Gap 3 â&#x20AC;&#x201C; The Delivery Gap Service speciďŹ ca;ons, standards or guidelines are not adhered to

What is the cause of this gap?

Servqual

Gap 3 – The Delivery Gap –  Poor employee-job fit –  Poor employee-technology fit –  Role ambiguity/conflict –  Lack of teamwork/empowerment –  Inappropriate supervisory control systems –  Customers not ‘fulfilling their service role’ –  Failure to match supply and demand –  Problems with service intermediaries

Servqual

Servqual Gap 3 – The Delivery Gap •  Solu7on - The ability of employers to deliver the service according to the speciﬁca;on needs to be closely monitored; staﬀ training and development is essen;al

Servqual Gap 4 â&#x20AC;&#x201C; The Communica7on Gap

Servqual Gap 4 – The Communica7on Gap –  Failure to communicate eﬀec;vely, both internally and with customers, about the service

What is the cause of this gap?

Servqual

Gap 4 – The Communica7on Gap –  Inadequate communica;on between salespeople and opera;ons –  Inadequate communica;ons between HR, marke;ng and opera;ons –  Diﬀerences in policies and procedures across departments –  Overpromising in adver;sing –  Overpromising in personal selling –  Not managing customer expecta;ons

Servqual

Gap 4 – The Communica7on Gap •  Solu7on: Promises made by the service providers in their marke;ng and promo;onal messages need to reﬂect the actual quality oﬀered

Servqual

Gap 5 â&#x20AC;&#x201C; Percep7on v Expecta7on

Servqual

Gap 5 – Percep7on v Expecta7on –  The consumer’s percep;ons of the service they received and experienced and their ini;al expecta;ons of the service –  The customer doesn’t understand the service process or what it is prac;cal and cost eﬀec;ve to deliver

Servqual

What is the cause of this gap?

Servqual

Gap 5 – Percep7on v Expecta7on –  Poor marke;ng and promo;on ac;vity –  Failure to deliver the product/experience to expected standards –  A combina;on of issues arising from gaps 1 to 4

Servqual

Gap 5 – Percep7on v Expecta7on –  Poor marke;ng and promo;on ac;vity –  Failure to deliver the product/experience to expected standards –  A combina;on of issues arising from gaps 1 to 4

What is the solu%on to closing this gap?

Servqual

Gap 5 – Percep7on v Expecta7on –  Solu7on: The gap between perceived and delivered service is reduced through progressive improvements in image, and the ability to deliver the expected service in an eﬃcient and professional manner

Learning Outcomes By the end of this session you should be able to: •  Examine, cri-que and apply respec-ve quan-ta-ve and qualita-ve methodologies for monitoring and evalua-ng service quality •  Examine the basic approaches to service gap analysis and be able to calculate a sa-sfac-on index score and graph gap analysis •  Discuss and analyse the basic components of the Servqual model