Service Quality

Question 1

Service Quality can be assessed and improved by use of the SERVQUAL model. Describe the FOUR gaps which can be identified using the SERVQUAL process.

Answer 1

Gap 1: Misunderstanding requirements:
Relates to not listening effectively to customers

Gap 2: Mis-specifying the service
Relates to poor translation of customer requirements into service specifications

Gap 3: Underperforming against specification
Relates to failing to do what you set out to do

Gap 4: Miscommunication with customers:
Relates to poor presentation of performance data

Question 2

Consider a management consultancy and discuss how the four gaps described above might occur.

Answer 2

Gap 1: Misunderstanding requirements:

• Having a ‘sell what you know’ approach to customers
• Being more concerned with winning the business than understanding the issues.

Gap 2: Mis-specifying the service

• Having limited repertoire of solutions and fitting the closest rather than defining a unique solution for the customer.
• Limiting the scope of the spec even if this does not fit the initial agreement

Gap 3: Underperforming against specification
- Selling using experienced consultant but farming out the work to less qualified - and cheaper - staff.
Cutting corners to keep costs down/mismatching resources to promises.

Gap 4: Miscommunication with customers:

• Poor or infrequent updates
• Use of excessive jargon

Question 3

Discuss how you would go about reducing the gaps you have identified.

Answer 3

Gap 1: Misunderstanding requirements:

• Use tools like QFD to clarify understanding of requirements,
• Engage in frequent discussion with a range of client personnel
• Take a learning approach to evolving requirements

Gap 2: Mis-specifying the service

• Drive all solutions from customer requirements
• Review scope and goals with customer requirements
• Benchmarking with similar organisations to ensure goals are appropriate

Gap 3: Underperforming against specification
Relates to failing to do what you set out to do
- Ensure that the skills of consultants used match the promises made
- Use matrices to ensure alignment of resources to objectives
- Review performance regularly with a focus on learning from gaps and taking action

Gap 4: Miscommunication with customers:

• Talk regularly
• Have a learning focus
• Speak plain English
• Seek the views of the client on current performance.

Question 4

Discuss the logic, in a customer service context, of Sir Richard Branson’s comment that: “If I look after my staff they will look after my customers”.

Answer 4

The logic of that statement refers to the fact that key aspects of service such as responsiveness and empathy are likely to be impacted negatively if staff are unhappy. It is, for example, difficult to have empathy with an unhappy customer if you are unhappy with you working conditions. Likewise, poorly trained or equipped staff will struggle to give the impression of reliability or to convey assurance.

Question 5

State and briefly describe the dimensions of service quality which affect customers.

Answer 5

Tangibles: Appearance of physical facilities, equipment, personnel and communications materials

Reliability: Ability to perform the promised service dependably and accurately

Responsiveness: Willingness to help customers and provide prompt service

Assurance: Knowledge and courtesy of employees and their ability to convey trust and confidence

Empathy: Provision of caring individualised attention to customers.

Question 6

Describe the challenge analysis approach under the SERVQUAL system to evaluate priorities for improvement. (Prioritisation Matrix)

Answer 6

The gap analysis seeks to place all the elements of service quality identified on a four quadrant model with the vertical axis indicating the significance to the customer and the horizontal axis indicating the gap between the customer expectations and the customer perception of performance. The point is to assess where the priorities for improvement effort lie.

If the importance is high and the performance gap is large, then this is a high priority for improvement. (Increase Resources)
If the importance is high and the gap low then the organisation is appropriately addressing that aspect of service quality. (Well done, Keep it Up)
If the importance is low and the performance gap large, then this is a lower priority for improvement. (Second Priority for Improvement)
If the importance is low and the gap low then the organisation may be able to direct resources away from this aspect onto more urgent issues. (Reduce Resources)

Question 7

Describe the concept of a ‘Moment of Truth’ with respect to service quality. Briefly discuss two things that might sensibly be done to increase the likelihood of a successful outcome.

Answer 7

The concept of a ‘Moment of Truth’ refers to the fact that every time a customer has direct contact with a company or any of its employees there is an opportunity to create an impression (positive or negative). To be truly customer focused it is essential to focus on ensuring a focus on managing such opportunities.
Two things that might sensibly be done to increase the likelihood of a successful outcome are:
Empower employees to take appropriate action to satisfy the customer
Train employees to understand the importance of these interactions and in customer care skills.