Customer Participation in Services || Service Marketing

Summary

In this video, the importance of customer participation in the service process is discussed. It highlights that customers play a significant role as co-creators in many services, and their level of involvement can range from low to high. The video explores how service providers must design their processes to reduce errors, whether by adjusting the process, training customers, or offering employee assistance. Additionally, self-service technologies like ATMs and self-checkout lanes are examined, with a focus on ensuring ease of use and preventing mistakes. The video concludes with a reminder of the vital role customers play in the service industry.

Takeaways

• 😀 Customers are vital to the service process and can be co-creators of the service, often actively participating in the service delivery.
• 😀 Service providers must design the service process carefully because if customers make mistakes, the blame often falls on the service provider.
• 😀 Customer participation levels vary from low (e.g., ride-sharing) to high (e.g., using ATM booths), with moderate participation seen in services like hairdressing.
• 😀 To minimize service failures, businesses should identify where customers are likely to make mistakes and take steps to either redesign the process or provide better guidance.
• 😀 If customers make mistakes, having a strong service recovery system in place is essential to maintaining a positive customer experience.
• 😀 Self-service technologies (e.g., ATM, self-checkout lanes) involve the highest customer participation, but they come with challenges such as potential frustration if something goes wrong.
• 😀 Some customers may be hesitant to use self-service options due to fear of making mistakes or discomfort with technology, requiring businesses to provide adequate training and support.
• 😀 Businesses should also be aware of unethical behavior, where customers might try to exploit self-service technologies for extra benefits, and take precautions to prevent this.
• 😀 Designing effective self-service technologies involves ensuring customers can easily understand and use the system, balancing convenience with the need for clarity and error prevention.
• 😀 Services differ from products in that customers are often directly involved in the production process, which makes designing the service experience even more crucial.
• 😀 The video concludes with a reference to the Nobel Prize in Physiology or Medicine, awarded in 1920 for the discovery of the capillary motor regulating mechanism, highlighting the importance of understanding customer needs and the broader world of innovation.

Q & A

Why are customers considered a vital part of the service process?

Customers are often co-creators of the service, meaning their active participation can significantly influence the success or failure of the service process. Service providers need to design processes that accommodate this participation.

What are the different levels of customer participation in services?

There are three levels of customer participation: low, moderate, and high. Low participation involves minimal interaction, like in ride-sharing services. Moderate participation requires the customer to provide input, such as in hairdressing. High participation involves customers performing most of the tasks, as seen in self-service technologies like ATM withdrawals.

Can you provide an example of low customer participation?

An example of low customer participation is ride-sharing services. The customer only needs to make a reservation and be present at the pickup time, with minimal other involvement in the process.

What are the potential consequences if a service process fails due to customer participation?

If the service process fails due to customer actions, the service provider will often be held accountable, even though the customer played a role in the failure. This is why designing the process carefully is critical.

How can service providers reduce the likelihood of service failures related to customer participation?

Service providers can reduce failures by conducting trials, identifying where customers are likely to make mistakes, and addressing the root cause of these issues. They can then redesign the process, add employee support, or train customers to prevent errors.

What is the importance of having a proper service recovery system?

A service recovery system ensures that any mistakes made by customers are rectified quickly, maintaining a positive customer experience and preventing frustration.

What role does self-service technology play in customer participation?

Self-service technologies represent the highest level of customer participation, as customers are fully responsible for the service, like in ATM withdrawals or self-checkout lanes in supermarkets.

What are some challenges customers face when using self-service technologies?

Customers may feel uncomfortable using self-service technologies due to fears of making mistakes, lack of familiarity with the technology, or ethical concerns like attempting to gain extra benefits.

How can service providers ensure that customers are confident in using self-service technologies?

Service providers can offer training and design user-friendly systems to ensure customers are comfortable and confident when using self-service technologies.

What was the Nobel Prize in Physiology or Medicine awarded for in 1920?

The Nobel Prize in Physiology or Medicine in 1920 was awarded for the discovery of the capillary motor regulating mechanism, which explained how blood oxygen is supplied to muscles based on workload.