Chapter 8
Designing and Managing
Service Processes
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 1
Developing a Blueprint – Some Basic Advice
Identify key activities in creating and
delivering the service
Distinguish between front stage (what
customers experience) and back stage
Chart activities in sequence
Show how interactions between customers
and employees are supported by backstage
activities and systems
Establish service standards for each step
Identify potential fail points
Focus initially on “big picture” (later, can drill
down for more detail in specific areas)
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 2
Service Blueprinting: Key Components
1. Define standards for frontstage activities
2. Specify physical evidence
3. Identify principal customer actions
4. ------------line of interaction (customers and front stage personnel)--------
5. Front stage actions by customer-contact personnel
6. ------------line of visibility (between front stage and backstage)--------------
7. Backstage actions by customer contact personnel
8. Support processes involving other service personnel
9. Support processes involving IT
Where appropriate, show fail points and risk of excessive waits
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 3
Simplified Example: Blueprinting a Hotel Visit
(extract only)
Physical Hotel exterior, lobby, Elevator, corridor,
Evidence employees, key room, bellhop
Stage
Make Arrive, Check-in Go to
Customer reservation valet park at reception room
Line of Actions
Interaction
Employee Doorman Receptionist
Front
Actions greets, valet verifies, gives
Face-to-face takes car key to room
Phone
Contact Rep.
records,
confirms
Line of
Visibility
Valet Make up
Backstage
Parks Car Room
Enter Register
data guest data
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 4
Improving Reliability of Processes
by Failure Proofing
Analysis of reasons for failure often reveals opportunities
for failure proofing to reduce/eliminate risk of errors
Errors include:
treatment errors—human failures during contact with customers
tangible errors—failures in physical elements of service
Fail-safe procedures include measures to prevent omission
of tasks or performance of tasks
incorrectly
in wrong order
too slowly
not needed or specified
Need fail-safe methods for both employees and customers
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 5
Process Redesign: Principal Approaches
(Table 8-1)
Eliminating non-value-adding steps
Shifting to self-service
Delivering direct service
Bundling services
Redesigning physical aspects of service processes
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 6
Customers as Co-Producers:
Levels of Participation in Service Production
Low – Employees and systems do all the work
Medium – Customer inputs required to assist provider
Provide needed information, instructions
Make personal effort
May share physical possessions
High – Customer works actively with provider to
co-produce the service
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 7
Self Service Technologies (SSTs)
Self-service is ultimate form of customer involvement in
service production
Customers undertake specific activities using facilities or systems
provided by service supplier
Customer’s time and effort replace those of employees
Concept is not new—self-serve supermarkets date from
1930s, ATMs and self-serve gas pumps from 1970s
Today, customers face wide array of SSTs to deliver
information-based services, both core and supplementary
Many companies seek to divert customers from employee
contact to Internet-based self-service
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 8
Service Firms as Teachers:
Well-trained Customers Perform Better
Firms must teach customers roles
as co-producers of service
Customers need to know how to
achieve best results
Education can be provided through:
Brochures
Advertising
Posted instructions
Machine-based instructions
Websites, including FAQs
Service providers
Fellow customers
Employees must be well-trained to
help advise, assist customers
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8- 9
Managing Customers as Partial Employees
to Increase Productivity and Quality
1. Analyze customers’ present roles in the business and
compare to management’s ideal
2. Determine if customers know how to perform and have
necessary skills
3. Motivate customers by ensuring that will be rewarded for
performing well
4. Regularly appraise customers’ performance; if
unsatisfactory, consider changing roles or termination
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 10
The Problem of Customer Misbehavior –
Identifying and Managing “Jaycustomers”
What is a jaycustomer?
A customer who behaves in a thoughtless or abusive
fashion, causing problems for the firm itself, employees,
other customers
Why do jaycustomers matter?
Can disrupt processes
Affect service quality
May spoil experience of other customers
What should a firm do about them?
Try to avoid attracting potential jaycustomers
Institute preventive measures
Control abusive behavior quickly
Take legal action against abusers
BUT firm must act in ways that don’t alienate other
customers
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 11
Six Types of “Jaycustomer”
Thief – seeks to avoid paying for service
Rule breaker – ignores rules of social behavior and/or procedures for
safe, efficient use of service
Belligerent – angrily abuses service personnel (and sometimes other
customers) physically and/or emotionally
Family Feuders – fight with other customers in their party
Vandal – deliberately damages physical facilities, furnishings, and
equipment
Deadbeat – fails to pay bills on time
Can you think of others?
How should firms deal with each of these problems?
Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 8 - 12
