The Customer's Satisfaction as the Main Factor of Company's Success - Essay Example

Service Report and Section # of Service Encounter Report Introduction Services marketing is one of the most growing phenomenon of today’s age, and it is that industry which is rapidly growing, thanks to the fact that the startup costs are not that high, and the major number of entrepreneurs are springing up in the services industry only. Services’ marketing has given evolution to the concept of marketing, and has brought the 4 Ps of marketing to a total of 7 Ps. Initially, the marketing mix consisted of the price, product, place and promotion, but when it comes to the marketing of services, the marketer has to make an extra effort by inculcating three further Ps to the original marketing offer. They are the people, process and the physical evidence. The people are the employees of the service organization, who are directly dealing with the customer. The process is the step by step flow of the way the customer interacts with the company and finally gets the work done. And the physical evidence is the solid proof or the feeling of going through a service that the customer gets through the aura, the tokens, the small things that the organization does. Overview of the theories There are a number of theories which govern the use of services marketing. The first among them is the way services’ marketing is classified. It is important for the service organization to understand that who they are directing their service at. (Georgi, 2006) In the case of a beauty parlour, the service is directed towards the person, the consumer itself. On the other hand, if we take the case of a flower shop, the service is being directed at a product, that is, the flower itself. The flower is the object which the customer is buying and it has to be perfect. Moreover, in service organization, there is a degree to which level of tangibility can be incorporated. When it comes to organizations selling pure products, the product itself is the biggest tangible asset that they are providing but this tangibility differs when it comes to various service organizations. (Lovelock, 2007) A restaurant has a middle degree of tangibility, where it cannot make the aura of the environment that it has created tangible, but the food that it is providing and the cutlery that it is selling in will be tangible. In the case of the beauty parlour, the products being used can be tangible but the feeling of beauty is intangible. Therefore, there is a presence of intangible aspect in service organization. In addition to that, inseparability can be easily brought between different services organizations providing the same services by changing one of the 7Ps of marketing, whether it is the physical evidence or the process of the get up of the people serving the customers. Then there is the perish ability of the service. Services tend to perish as soon as they are availed; therefore, they live longer in the emotional and in the intangible aspect of the customer. (Woodruffe, 1995) Services marketing also depends on the level of customer service, that is, whether the contact with the customer was high or low. (Gilmore, 2003) In some cases, the employees will have high contact with customer as opposed to the self service where there is low or hardly any contact between the customer and the organization. The marketing communication, the way the customer is allured to visit the service organization also counts. The promotional messages should suit the positioning of the service organization and should be tailored to the target market. (Berry, 2004) Moreover, the pricing strategies should suit the demographics of the target market which is being pursued. Application of the theories to the journal entries The theories that have been discussed above can be aptly applied to the 6 journal that have been filled later for the service encounter experienced at 6 different service organizations. When it comes to KFC, the service was basic; they provided the customer with good food and timely delivery. The friendliness of the customer was also not compromised. If we aim to describe a key satisfactory experience, then Starbucks needs to be discussed, because the customer had one of the highest ratings for the place and is very highly likely to visit it again. This was because the customer is now emotionally attached to the brand Starbucks. After a hard day at work, when the customer got the aura of a relaxing place, and it allowed them to unwind themselves from the worries of the life and escape the issues for a little moment, then that service organization has made a definite place in the minds and hearts of the customer. The customer will visit Starbucks whenever they will feel the need to relax and calm down. The fact that the customer just had to sit and wait for the order to arrive was also contributing to the fact that they felt special in this service organization. But this does not mean that self service organizations cannot score high when it comes to customers. Self service organizations should be as simple as possible and should not complicate the minds of the customer, since the customer is on his own in these service organizations. Take the case of the ATM, which was a self-service organization in the journal entries filled. The customer was not able to find cash in the ATM, and then since they were on their own, they could not even ask anyone else for help, someone who belonged to the service organization. Therefore, it is imperative for a self-service organization to be error free and to be as simple as possible. The customer should be able to find directions in various languages, and a catalogue type thing which would increase their ease with which they can finish the process. Face to face service organizations have an even higher burden on themselves. They have to satisfy the customer up front and if the customer faces any problems, they can easily complain to the people available to him. The service organization then has to rectify the issue as soon as possible. Conclusion In conclusion, it can be said that the customer experience is one of the most vital aspects which will determine the success or failure of the service organization. If the customer is satisfied with the overall experience, then he is sure to come back to the organization for future services. And if the customer finds even one mistake and is dissatisfied with what he was provided with, it can go very negatively for the firm, since the customer will tell about his bad experience to many other people in his social circle. Bad recommendations are the worst that can happen to a company. Thus, in the service organization, the customer is the king, and his experience is the deciding factor. (Mc-Coll Kennedy, 2003) From the friendliness of the waiter to the waiting time of the food, from the variety in the menu to the aura of the overall environment, from the way the product is customized to suit the customer to the delivery of the brand promise – these are the little things that matter in a service organization. Marketers in service industry have different perspectives in services marketing. One school of thought believes in services marketing which is totally engraved around the customer, and starts the moment the customer walks in the service organization while one believes in marketing which will just work to attract the customer to the organization in the first place. The former approach is the complete and comprehensive approach, and will lead the service organization to go a long way. Service Encounter Journal Entry: 1 Your name: Name of Firm: KFC Date of Encounter: 20th May 2010 Type of Service (industry): Food Time Encounter Occurred: 1 pm What specific circumstances led to this encounter? I went there for lunch during the lunch break that I get at work. Exactly what did the firm/employee say or do? They politely asked me for the order that I intended to place, and processed the order on their machine. They then printed the bill and conveyed the cash to me. How would you rate your level of satisfaction with this encounter? (Circle the appropriate number). Extremely unlikely Extremely likely 1 2 3 4 6 7 What exactly made you feel that way? The time lag between the placement of order and receiving of order was very short, and the food was tasty and hot. What could the employee/firm have done to make you happier with the encounter? Deals or discounts would have made me feel much better . How likely is it that you will go back to this service firm? Extremely unlikely Extremely likely 1 2 3 4 6 7 Service Encounter Journal Entry: 2 Your name: Name of Firm: Starbucks Date of Encounter: 19th May 2010 Type of Service (industry): Food Time Encounter Occurred: 5 pm What specific circumstances led to this encounter? I suddenly felt like having a chilled cold coffee, maybe it was the mid-day office blues and the effect of the whole day wrapping up. Exactly what did the firm/employee say or do? They asked me to seat myself and gave me a menu. The sofa on which I sat was very comfortable and the aura that was created in Starbucks was extremely relaxing and energizing. The waiting period was also not long, and I would not have minded waiting longer since I was so relaxed sitting there. The waiter got me the coffee at my table and kept it in front of me, with a smile. The coffee was also awesome. They then gave me the bill. I paid the bill and left the place with a fresh mind. How would you rate your level of satisfaction with this encounter? (Circle the appropriate number). Extremely unlikely Extremely likely 1 2 3 4 6 7 What exactly made you feel that way? The overall experience was amazing. It gave me value for money. What could the employee/firm have done to make you happier with the encounter? It was perfect already. How likely is it that you will go back to this service firm? Extremely unlikely Extremely likely 1 2 3 4 6 7 Service Encounter Journal Entry: 3 Your name: Name of Firm: ANZ ATM Date of Encounter: 18th May 2010 Type of Service (industry): Banking and Financial Time Encounter Occurred: 11 pm What specific circumstances led to this encounter? I suddenly realized that I had no petty cash left with me, and I needed to get some grocery for my place. So I went to the nearest ANZ ATM to withdraw some cash through my debit card. Exactly what did the firm/employee say or do? The machine asked me to insert the card and then the pin code. Once the processing started and it asked me the details of the account, it then flashed a “Sorry” message that the ATM was left of no cash. The machine then ejected back my card. How would you rate your level of satisfaction with this encounter? (Circle the appropriate number). Extremely unlikely Extremely likely 1 2 3 4 6 7 What exactly made you feel that way? I was in dire need of cash and since I needed the cash, I had to travel a little far away to access another ATM. Such a service from a bank as reliable as ANZ cannot be expected. What could the employee/firm have done to make you happier with the encounter? They could have provided me with the money, at the least. How likely is it that you will go back to this service firm? Extremely unlikely Extremely likely 1 2 3 4 6 7 Service Encounter Journal Entry: 4 Your name: Name of Firm: Gerry’s Flower Shop Date of Encounter: 16th May 2010 Type of Service (industry): Floral Time Encounter Occurred: 9 am What specific circumstances led to this encounter? It was finally my mother’s birthday and I wanted to pick flowers for her early morning to give it to her in breakfast. Exactly what did the firm/employee say or do? The flower shop owner showed me the variety that he had in the flowers, and asked me to customize a bouquet according to the kind of flowers that my mother liked. I kept on pointing at various flowers and he picked them up. Then he wrapped them in a bouquet, finishing it with a ribbon, and a blank note. I then made the payment and carried away the flowers with me. How would you rate your level of satisfaction with this encounter? (Circle the appropriate number). Extremely unlikely Extremely likely 1 2 3 4 6 7 What exactly made you feel that way? The experience was average, not too outstanding and there was nothing wrong in it as well. I got the work done, that is, buying the flowers. What could the employee/firm have done to make you happier with the encounter? He could have wrapped the bouquet in a different style or a beautiful manner. He just plain wrapped it up. How likely is it that you will go back to this service firm? Extremely unlikely Extremely likely 1 2 3 4 6 7 Service Encounter Journal Entry: 5 Your name: Name of Firm: Exclusive Boutique Date of Encounter: 15th May 2010 Type of Service (industry): Fashion & Apparel Time Encounter Occurred: 3 pm What specific circumstances led to this encounter? I, along with my mother, went to this boutique so I can buy her a dress for her birthday. Exactly what did the firm/employee say or do? The lady there was very friendly and showed us around the options that we had. She conveyed the latest fashion and style to us. She let us try the dresses that we found attractive. And then my mother found one that she liked, but the problem was that it was not her ideal fit. So they even offered to tailor it slightly so that it would fit her perfectly. They asked us to wait for 15 minutes only, in which they altered the dress accordingly. We then tried it on again, and it was perfect, as if it was made for my mother only. The payment was made then, and the receipt received. How would you rate your level of satisfaction with this encounter? (Circle the appropriate number). Extremely unlikely Extremely likely 1 2 3 4 6 7 What exactly made you feel that way? I was extremely happy with the overall experience, the lady employee, the dress itself and the customer service they gave of altering the dress. What could the employee/firm have done to make you happier with the encounter? The encounter was perfect. How likely is it that you will go back to this service firm? Extremely unlikely Extremely likely 1 2 3 4 6 7 Service Encounter Journal Entry: 6 Your name: Name of Firm: TCS Delivery Shop Date of Encounter: 10th May 2010 Type of Service (industry): Retail Time Encounter Occurred: 2 pm What specific circumstances led to this encounter? My mother’s birthday was a week away, so I wanted a cake and a perfume set to get delivered to her place. So I went to this delivery shop. Exactly what did the firm/employee say or do? They gave me a catalogue, which contained the options that I had in the perfumes and the cakes, along with their respective prices. I then had to fill a form with the recipient and the sender’s details. I then made payment and received a receipt. How would you rate your level of satisfaction with this encounter? (Circle the appropriate number). Extremely unlikely Extremely likely 1 2 3 4 6 7 What exactly made you feel that way? I liked the friendly customer service officer, and he also guided me as to the best available cakes and perfumes. What could the employee/firm have done to make you happier with the encounter? A display of the cakes and the perfumes would have made me feel better about my choice. I would have wanted to see, touch and feel the products before ordering them for my mother. How likely is it that you will go back to this service firm? Extremely unlikely Extremely likely 1 2 3 4 6 7 References Books Georgi, D. (2006) Services marketing: managing the service value chain. Prentice Hall. Lovelock, C. H. (2007) Services marketing: people, technology and strategy. Prentice Hall. Woodruffe, H. (1995) Services marketing. Pitman. Gilmore, A. (2003) Services marketing and management. Sage Publications. Berry, L. L. (2004) Marketing services: competing through quality. Simon & Schuster. Mc-Coll-Kennedy, J. R. (2003) Services marketing: a managerial approach. John Wiley & Sons. McColl, R. (1997) Services marketing: a managerial perspective. McGraw-Hill Apte, G. (2004) Services marketing. Oxford University Press. Hoffman, D. K. (2009) Services marketing: concepts, strategies and cases. Cengage Learning. Online Journals Vilnai-Yavetz, I., & Gilboa, S. (2010). The Effect of Servicescape Cleanliness on Customer Reactions. Services Marketing Quarterly, 31(2), 213-234. doi:10.1080/15332961003604386. Jing Bill, X., & Chan, A. (2010). A conceptual framework of hotel experience and customer-based brand equity. International Journal of Contemporary Hospitality Management, 22(2), 174-193. Retrieved from Business Source Premier database. Website Marketing teacher. Services Marketing and the Extended Marketing Mix (7Ps). Retrieved June, 03, 2010 from http://www.marketingteacher.com/Lessons/lesson_services_marketing.htm Read More