Question

SUBJECT : SERVICE MARKETING

What are the main considerations kept in mind while designing and managing services processes , give any 7 considerations in points and elaborate them in detail ?

Answer 1

Some of the main considerations kept in mind while designing and managing services processes include:

The service itself: the essentiality of the actual process in service delivery is being recognized of late. The service itself is usually dependent upon its process even for intangible services such as legal services. The service and delivery process can be designed, implemented and monitored by employing some principles. While designing service processes, it is crucial for a service provider to carefully understand the process on which the service is dependent.

Customer participation in the process: customer presence is a must when some services are being performed. Thus, the customer is an important part of the production process and there’s a close interaction between the service provider and the consumer. For instance, services in beauty parlors, salons, restaurants etc. necessitate customer participation in the production process and thus enhances the degree of customization.

Location of service delivery: accessibility and availability of services are a crucial part of service delivery. Managing services processes encompasses prioritizing decisions about location of premises and services distribution. Overall, the service provider should choose to provide a location convenient to the customers.

Level of customer contact: this is the physical presence of the customer in the service system. Contact level with customers mostly depends on the type of service received and thus, a service can be high contact e.g. medical services or low contact e.g. ATM services. Designing service system should take into consideration high contact or low contact operations so as to achieve overall service quality.  

Degree of standardization: services may either be standardized or customized. Standard services are delivered in a standard format, designed for high volumes and use a very focused system. They require a workforce with relatively low technical skills. Customized services involve high divergence where judgment and flexibility are required on the part of the service provider. They interact with their customers to identify their needs. Customized services require high level of technical skill e.g. counseling services. Effectively designing and managing a service process demands being cognizant on the level of standardization of the service.

Variability of service: since services have a human element in them, there is the variability element. For instance, different employees at the beauty parlor may provide slightly different end-products. To overcome the variability issues, service providers can implement stringent norms during hiring, pushing for standardization and constantly recording customer satisfaction.

Complexity of the service: this is the amount and nature of steps involved in delivering services to customers. The degree of complexity can be assessed on the basis of the number of activities that contribute towards service delivery. Some services are not only highly divergent but highly complex in nature e.g. a doctor’s service. A profound understanding of the complexity of the service is very important in establishing the system design.