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•Customer Loyalty•Service GuaranteesTwo components to a Service Guarantee:•1) promise of service•2) actions taken if promise is not fulfilled•Service GuaranteesPearl Visioncustomer service guarantee•We want you to be happy with your new glasses. That’s why we’ll repair or exchange them for up to 30 days at no charge to you. This guarantee does not cover accidental damage, scratches or breakage. Valid at participating locations.PG&E Guarantee 1: Missed Appointments•PG&E will meet the agreed upon appointment time set with our customer during contact with our Call Center or automatically credit your account $30. •Service GuaranteesAlaska Airlines baggage guarantee•If your baggage is not at the baggage claim within 25 minutes of your plane parking at the gate, you’re entitled to a certificate for either a discount code for $25 off a future Alaska or Horizon flight or 2,500 Alaska Airlines Mileage Plan bonus miles. If we don’t meet our 25 minute guarantee, simply see an Alaska or Horizon Customer Service Agentand let them know. They’ll ensure that you receive your Baggage Service Guarantee certificate or Bonus Miles.Guarantee does not apply to baggage system malfunctions, severe weather delays or other conditions out of our control.
•Service Failure – NWA-Jan 1999 Detroit Storm•Links in the service-profit chain •Internal service quality•Employee satisfaction•Employee retention and productivity•External service value•Customer satisfaction•Customer loyalty•Revenue growth and profitability•The service profit chain•Moments of TruthJan Carlzon of Scandinavian Airlines (SAS) coined this term. Whenever customers come into contact with the service/process…deep and lasting impressions are formed.Operations managers need to manage all moments of truthHow many bad moments of truth does it take in the cycle of service to dissatisfy a customer? •Cycle of Service and Customer ContactFast-food drive-up window•Placing order–Was order received correctly–Right questions asked – size, type of sauce, topping•Payment process–Was coupon handled correctly•Providing the meal–Order complete–Packaging – drink tray
–Overflowing chocolate shake–Happy meal toy –Pull up to parking spot #7•Moments of Truth•Every instance in which a customer comes in contact with the provision of the service •Example (airline)–Making a reservation–Purchasing tickets–Checking baggage–Going through security–Getting to the correct gate–Boarding a flight–Stowing luggage in overhead bin–Beverage / food–Deplane–Picks up baggage–ALT-CAT 3.5 Moments of Truth•Your favorite musical group is in town. Identify the cycle of service and the moments of truth for attending the concert. •How would you improve each of the moments of truth?