Service
Differntiation
Differentiated
service is a design pattern for business services and software, in which the service
varies automatically according to the identity of the consumer and/or the
context in which the service is used. Sometimes known as smart service or context-aware
service.
The
main factors which can be used for service differentiation are:
1. Ordering ease: Refers to how easy it is for you to place an order with the
company. Baxter Healthcare has eased the ordering process by supplying
hospitals with computer through which they send orders directly to Baxter;
consumers can now order and receive groceries without going to the supermarket
through web-based service such as peapod and net grocer. Thus these services
have differentiated themselves through ease of ordering.
2. Delivery: It is related to how well the product or service is delivered to
the customer, covering speed, accuracy and customer care. Deluxe check printer,
inc., has built an impressive reputation for shipping out its checks one day
after receiving an order- without being late once in 18 years.
3. Installation: refers to the work done to
make a product operational in its planned location. Buyers of heavy equipment
expect good installation service. Differentiation by installation is
particularly important for companies that offer complex products such as
computers.
4. Customer
training: refers to how
the customer’s employees are trained to use the vendor’s equipment properly and
efficiently. General Electric not only sells installs expensive X-rays
equipment in hospitals, but also gives extensive training to users of this
equipment.
5. Customer consulting refers to data, information system and advising services that
the seller offers to buyers. For example, the Rite aid drugstore chain’s
communications program, called the Vitamin Institute, provide customers with
research so they can make more educated judgments and fell comfortable asking
for help. On the Web, Rite Aid has teamed with drugstore.com to offer even more
health-related information.
6. Maintenance and repair: describes the service
program for helping customers keep purchasing products in good working order,
an important consideration for many products.
These
are 6 steps to achieve service differentiation. Each of these steps can be seen
implemented in leading service chains / companies.
Service
Differntiation Strategies
1.Service
Performance
If your business provides basic
services to customers, promising and delivering consistently high-quality
services can help you differentiate. A lawn care business could establish a
quality service reputation if it consistently provides neat and detailed lawn
mowing, trimming and edging services. A landscape business could do the same
with a friendly and customer-oriented approach and top quality designs and
project completions that leave customers feeling satisfied.
2.Service
Experience
In some cases, businesses
provide the tools and means by which customers apply or use services on their
own. Internet service providers provide the technology and means for customers
to access the Web, for instance. To promote quality differentiation, an ISP
might emphasize low amounts of service downtime and access to fast broadband
speeds. Essentially, the quality in this type of service arrangement is the
ease of use, consistency and overall value the customer derives from his use of
the service.
3.Service
Resolution
Service resolution is also
critical to success in service quality differentiation. Any type of business,
whether product- or service-oriented, can differentiate itself with elite
performance in service resolution. This involves carrying out the steps
necessary to resolve customer problems or fix product or service errors.
Companies that succeed in service differentiation typically have well-trained
service employees who follow basic steps to listen to customer problems, work
toward a satisfactory resolution and follow up to ensure the customer is happy
with the outcome.
4.Challenges
Service quality differentiation
is typically more challenging than product differentiation, largely because
services are performed by people. Whether proactively delivering services or
responding to customer complaints, it takes consistent performance from
employees to make service differentiation work. Finding talented employees and
training them is one step. However, employees are human, and the events of
their personal and professional lives can get in the way of consistently
optimum service performance.
