PART III:

Managing the Customer Interface

Chapter 8
Designing and Managing
Service Processes
Service Processes

 Service processes are the structured series of

activities through which a service is delivered to
customers.
 Understanding these processes is essential for
providing high-quality service and ensuring customer
satisfaction.
 Effective service process design can lead to
operational efficiency, cost savings, and a
stronger competitive position in the market.
 Characteristics of Service Processes
1. Intangibility: Services cannot be seen, touched, or owned. This characteristic
complicates customer evaluation before purchase, making trust and reputation critical.
Consumers may rely on online reviews or recommendations for services like healthcare or
education.

2. Involvement: Customers often participate actively in the service delivery process. This
involvement can significantly affect the outcome. In a fitness center, the level of
engagement from members can influence their results and satisfaction.

3. Variability: Service quality can fluctuate based on who provides it, where, and when.
This variability can arise from differences in employee performance, customer mood, or
even external factors like time of day. A restaurant's service may vary between lunch and
dinner shifts depending on staff experience and restaurant busyness.

4. Perishability: Services cannot be stored for later use. An empty seat on a flight or a
missed appointment represents lost revenue that cannot be recovered.
 Steps of Designing an Effective
Service Process:
1. Identifying Customer Needs: Understanding what customers expect is the
foundation of service design. Conducting surveys, focus groups, and market research
helps to gather insights into customer preferences and pain points.

2. Mapping the Service Process: Visualizing the service process helps identify all
customer interactions and service touchpoints. Tools like flowcharts or service
blueprints can illustrate the customer journey, highlighting critical steps and potential
bottlenecks.

3. Defining Service Specifications: Setting clear standards for service delivery is

essential. This includes specifying acceptable service times, quality levels, and
responsiveness. A hotel might establish a standard for check-in times to enhance
customer satisfaction.

4. Designing Service Delivery Systems: Creating systems that support efficient

service delivery is crucial. This involves integrating technology, training staff effectively,
 Service Blueprinting
 Service blueprinting is a valuable tool for visualizing service
processes. It includes:
- Customer Actions: Steps taken by customers during the
service delivery (e.g., making a reservation).
- Frontstage Activities: Interactions visible to customers
(e.g., staff greetings).
- Backstage Activities: Processes that support service
delivery but are not seen by customers (e.g., kitchen
operations in a restaurant).
- Support Processes: Additional systems that ensure service
delivery (e.g., IT support).
 Blueprinting helps organizations identify potential failures and
areas for improvement, ensuring a smoother customer
A diagram that visualizes the relationships between
different service components.
 Managing Service Processes
 Effective management of service processes involves several
strategies:

- Standardization: Developing consistent procedures minimizes

variability and ensures quality. Fast-food chains typically use
standardized training programs to ensure uniform customer service
across locations.
- Flexibility: Allowing for customization in service delivery can
enhance customer satisfaction. A travel agency may tailor vacation
packages to meet individual customer preferences.
- Technology Integration: Utilizing technology can streamline
service processes, improve efficiency, and enhance customer
interactions. CRM systems can help track customer history and
preferences, leading to more personalized service.
 Performance Metrics
 To manage service processes effectively, organizations must
establish key performance indicators (KPIs).
 Common metrics include:
 Service Time: The average time taken to deliver a service.
 Customer Satisfaction Scores: Feedback collected through
surveys or ratings.
 Service Error Rates: The frequency of mistakes or failures in
service delivery.
 Duration of Service Interruptions: How long the service was
unavailable.
 Regularly monitoring these metrics helps organizations identify
areas for improvement and ensure high service quality.
 Service Process Improvement
 Continuous improvement is essential for maintaining and
enhancing service quality.
 Techniques include:
- Lean Management: Focuses on eliminating waste and
improving flow in service processes. A restaurant might
streamline its order-taking process to reduce wait times.
- Six Sigma: A data-driven approach aimed at reducing
process variation and improving quality. Organizations might
use Six Sigma to analyze service delivery data and identify
patterns in service failures.
 The 5 Steps of Six Sigma

1. Define: the process to focus on and define the problem it wishes to

solve.
2. Measure: the initial performance of the process, create a
benchmark, and pinpoint a list of inputs that may be hindering
performance.
3. Analyze: the process by isolating each input, or potential reason for
any failures, and test the possible root of the problem.
4. Improve: implement changes that will improve system performance.
5. Control: adds controls to the process to ensure it does not become
ineffective once again.
 Technology in Service Processes
 Technology plays a critical role in modern service delivery. It
can automate tasks, improve communication, and enhance
the overall customer experience.
 Examples:
- Online Booking Systems: Allow customers to schedule
services at their convenience.
- Chatbots: Provide immediate responses to customer
inquiries, improving service speed.
- Mobile Apps: Enable customers to access services and
information easily.
 While technology offers many benefits, organizations must
ensure it complements, rather than replaces, the personal
touch that customers often value.
 Service Failures and Recovery
 Service failures can occur due to various reasons, including poor
training, system errors, or miscommunication.
 Addressing these failures effectively is crucial for customer
retention. Organizations that handle service failures effectively can
turn dissatisfied customers into loyal advocates.
 Recovery Strategies:
1. Apologizing Sincerely restores customer trust.
2. Offering Compensation as discounts, free services, or other
compensations can help mitigate dissatisfaction.
3. Taking Corrective Actions by implementing changes to prevent
future failures demonstrates commitment to quality.
 Discussion

 Reflect on your own experiences with service processes;

consider:
- What processes you have found particularly effective or
ineffective?
- How would you suggest improving a service you
frequently use?
- What role do you think technology plays in your service
experiences?