Introduction
Every organization intends to improve its customer service to enhance the visibility of customer satisfaction and loyalty. In the relationship and service marketing, the company may come up with some service standards to justify the purpose. Obviously, the management of the company has to integrate with needs and wants of customers, especially in the service industry, when making effective customer service strategies. In this competitive and dynamic business era, companies can gain and sustain the competitive advantage through extraordinary customer services. In IT Stinks, different service levels or standards are not up to the mark. Brad Howard, a senior executive of a private company, has many things to speak regarding service of the company.
The Case
Brad Howard is a senior organizational consultant. He travels in different regions frequently to perform different tasks, assigned by his company. He often uses the car rental services to travel writhing cities. He is a loyal customer of IT Stinks. Unfortunately, he did not get car rental service according to expectations and service standards. For Instance, air freshener smell was very bad, as even it sprayed vents as well. Also, the toxic gas from vents permeated his clothes. He took his lugged and went back to the terminal, as he was so angry. He did not get a reasonable response from the service staff after complaining about the situation. Instead of apologizing, the service staff changed the car for him with no discounts, upgrade and extra facilities against the incontinence that brad Howard faced in the first car. Thus, the service went beyond the expectations, which did not satisfy him, and he has to think about his relationship with this company.
Literature review
Theory of Customer Service Provision
The theory of customer service provision refers to different activities, which are to be performed by the company for customers against the reasonable compensation. Normally, to enhance the visibility of service provision, the company must have a qualified staff to provide different services, which are promised or expected. In the context of the business, the service provision is delivery of intelligible resources such as skills, knowledge, and facilitation.
a-Impact of Service Characteristics on Service Provision
The impact of service characteristics on the service provision is in the limelight. In the service business, there are four different service characteristics, which create an impact on the service provision. These characteristics are intangibility, inseparability, Perishability, and variability. The intangibility of the service creates an impact on the provision, as there is a need to provide services after purchases. The service provision can be shaped regarding the nature of the business. For Instance, if a customer is facing difficulties, the company can have an adequate knowledge to guide accordingly. The inseparability characteristic also creates an impact; the service management directs the service provision according to the customer expectations. The management knows factors, which can lead towards the dissatisfaction. Moreover, the Perishability characteristic refers using the service provision at the right time and location. For Instance, if a customer needs service on the spot, the management must have to provide the pertinent service. Perishability is a prominent service characteristic, which directs the provision according to need and time. Furthermore, the service must contain the variability, the needs and expectations can be charged with the passage of the time, and the company management may intend to revise its service provision to meet needs and satisfy customers (Bernazzani, 2017).
b-Service Failure
There are different causes regarding the service failure. The service failure is a big source of customer disaffection. In the competitive market, the customer may be converted due to the failure of the services. When the management does not solve customer problems after the purchases, it seems a service failure. Some causes of the service failure, derived from different research studies and observations are as under
Cause of Service Failure and Prevention Strategies
The first cause of the customer service failure is the absence of customer service goals. The company may not have service goals and objectives to direct the service process and satisfy the customers. Lack of defined goals enables the service disruptions and clarity, and it seems a big problem for car rental companies such as IT Stinks. The pertinent strategy to prevent the service failure is developing a framework of service goals and objectives to set service standards and measures (Dash, et al., 2014).
Many organizations intend to put wrong people wrong job activities. Obviously, if a person is not skillful and experienced, he cannot provide the high-quality services accordion to standard, Thus, due to an appropriate staffing process, there is always the chance of the service failure. For service prevention, the appropriate strategy is hiring people, which have customer service skills and experiences. The values can be created for customers if the pertinent pool of employees deals with the customers to solve their issues (Gye-Soo, 2007).
Another prominent cause of the service failure is lack of training for customer service staff. Training helps employees to identify needs and problems of customers, which may result in the high-quality service. Thus, if the employee does not know the need and complexities of problems, especially in the car rental company, the service failure is quite visible. In the service department, the management has to engage employees to train them and provide a platform to integrate with new service trends. It seems a better strategy for service prevention.
Another cause of customer service failure, which is pertinent to the car rental industry, is the insufficient time management. For Instance, the service staff of Service Company does not value the time of the customer. Pertinent to the case, if Brad Howard misses his business meeting due to poor service, the service seems vulnerable. The management of the company must have to integrate with different business operations and complexities, which enables different solutions in different circumstances. The business integration is the best strategy for the value of the time (Heinonen, 2014).
The sense of appreciation is a big factor when providing a service to the customer. If the management does not recognize the issue and apologize, the customer can perceive negatively. Even in the contemporary business in the service industry, the management does not take the responsibility of different issues and create the sense of appreciation, and it causes the service failure. Some ethics are to be adopted in the service process to create the sense of appreciation, as it can help to reduce the visibility of the service failure (Manalo, 2015).
c-Service Recovery Strategies
Some customer service recovery strategies can be implemented in the company to make the difference. For Instance, the first prevention strategy is treating the customer fairly. Despite having different customer ranges, the company must provide fair and equal services to the person who takes a big car for rent must be treated fairly. On the other hand, a person with a small car must also is treated with same intentions. Also, cultivating the relationship with the customers the best prevention strategy and it enables employees to engage the customers in an effective and lucrative manner, especially in the car rental company. Learning from the recovery experiences is important for the company. If the company faces problems several times, it must identify the flaw in the service process to enable the long-term service sustainability. Another key service prevention strategy is learning from the lost customers due to the service failures. Keeping an eye on defects or flaws, which causes the customer conversion, is a good approach to recover effectively (Manalo, 2015).
d-Complaints Handling Techniques
Listening to the customer with an open mind is an effective technique to handle the complaint through this; the service management creates the space to derive different insights and come up with the pertinent solution. In the modern service organizations as IT Stinks, the management can repeat the problem back to the customer, as it helps to understand the complaint or issue that the customer faces. In the end, the right solution at the right time may be provided by the company. Another modern technique is neutralizing the anger due to the problem, faced by the customer. It seems good to show empathy to meet this purpose. Following up the complaint is a good technique because helps the management to improve the business. Monitoring and evaluating the solution and sending some gifts or giving some discounts to customers seems interesting. Purpose of sending the gift can justify the contribution of the customer in the business or service improvement (Kułyk, et al., 2017).
Example of Successful Strategies and Techniques
For example, in the Ritz-Carlton Hotel Company, the management has trained employees to create the power of recognition and engagement, which enables the great employee engagement. In result, these employees, using fairness strategy, and follow up techniques have depicted the remarkable guest engagement in the competitive hotel industry (Bernazzani, 2017)
Another example can be derived from the Skift and Socialbakers, an airline company, which is in the limelight due to the customer services strategies on social media channels. The service management listen to the customer with an open mind and intends to provide the solution immediately at the right time (Manalo, 2015). Using social media channels is the best approach to execute all techniques and strategies mentioned above.
Theory Application in IT Stinks
a-Critical Evaluation of Service Failure
In IT Stinks service process, the big reason for the service failure lacks the training of the staff. Despite listening to complaints from Brad Howard, they did not respond effectively, which disappointed him. Instead of upgrading the car according to requirements, the staff changed the car. They did not pay attention to the cause and worked on alternative, which increased the cost at both, the company and the customer end. Relative to the service provision theory, Brad did not receive the expected services against the paid money. IT Stinks company has wrongly put people in the service process. These people not have skills or knowledge about different business and need or requirements of the customers in exchange for acceptable compensation. It seems another cause of the service failure in this company. Interestingly, the nature of the job of Brad Howards was not understood by the IT Stinks staff in the service department. For Instance, they did not provide the services according to expectations because they did not understand the value of time. The service provisions are triggered by the needs and requirements at the first attempt, which can save the time of Brad Howard (Dash, et al., 2014).
b-Application of Theory for Service Recovery
As far as the theory of customer service is concerned, the most important thing for the management of the company was to develop the framework of service standards to provide the required services. IT could utilize the service recovery opportunities in an effective and lucrative manner. For Instance, the service provision theory indicates the certain compensation to have some certain services. Thus, in the given amount, the company had to treat the customer fairly. The staff at the terminal could reveal the facts about the air freshener and size of cars instead of changing the car immediately to get away from the issue. In the service provision, if the customer contains the loss; the company has a responsibility to compensate it accordingly. Thus, after cloths being permeated, the compensation could have been provided by the company to recover the service (Heinonen, 2014).
c-Critical Analysis of Holistic Costs
Critically, a due to lack of service recovery initiatives, the company makes $15. It seems a win of $15 for the company, as the staff does not want to increase the expanses of the company. However, as far as the contemporary business is concerned, the intangible holistic cost is visible. For Instance, if the company intends to recover the services regarding dry-cleaning and purgation of the car, total expenses are $45. However, according to the theory of service provision, the customer does not have to pay this amount to the company. Thus, the intangible cost exists at the company’s side. On the other hand, Brad Howard lost his time, clothes, and struggled due to ineffective services. This intangible cost frustrated him and made him angry. Now, relative to the tangible cost, if the company could upgrade the car, I could save cloths and prevent the health effects due to toxic gases leaked from vents of the car. Brad Howard’s company is spending $50,000, and if Brad Howard, a member of the committee of the company, does not have comfortable physical approached in the car, this cost cannot be justified (Gye-Soo, 2007).
d-Relationship Improvement with Brad Howard
Now, if the company wants to improve relations with Brad Howard a., there is a need for some strategic considerations. First, the company management has to understand the business of Brad Howards to provide the time value. The long-term relationship can be sustained by the company directs the service provisions, which are expected. Form car size to upgrading, the service provision must be triggered by the expectations and needs of Brad Howard. Brad Howard visits the company frequently, and it seems good to redefine the provisions after identifying main causes of this problem. With the perspective of the company, an appropriate training process is needed to engage the bad Howard in an effective and curative manner. Understanding the needs and purpose is a big thing, which can be carried to improve and sustain the relationship (Dash, et al., 2014).
Recommendations
In the service and relationship marketing, it is recommended to strengthen the customer service skills according to nature of different businesses. IT Stinks must have to develop techniques and skills in the service process to align with the business objectives of Brad Howard. Moreover, the clear communication in the customer service and provision process is highly recommended, as it can help to understand problems and provide good solutions on the right. IT Stinks, through good communication, can appreciate, or acknowledge depicting the empathy and neutralizing the anger or frustration. IT sink company can make different segments to provide the value for each customer issue, and it, in the end, the long-term relation sustainability can be attained.
Conclusion
In the end, it is to conclude that every business may have different strategies or techniques to provide the customer services. The customer satisfaction, especially in the car rental industry, is the big measure for the management. The intention of the IT Stinks in this contemporary business environment must be towards the service quality, standards, and innovations. The success of the service and relationship marketing can be ensured in this company through focusing on elaborated strategies and techniques.
References
Bernazzani, S., 2017. 4 Good Customer Service Examples (and What You Can Learn From Them). [Online]
Available at: https://blog.hubspot.com/customer-success/good-customer-service-examples
[Accessed 21 February 2018].
Dash, M., Havaldar, K. K. & Jacob, A., 2014. Exploring a New Dimension of Customer Service and its Impact on Sales Growth and Loyalty. International Journal of Customer Relations; New Delhi, 2(1), pp. 14-22.
Gye-Soo, K., 2007. The Service Recovery Strategies, Customer Satisfaction, Customer Loyalty. Asian Journal on Quality; Bingley, 8(1), pp. 76-86.
Heinonen, K., 2014. Multiple perspectives on customer relationships. The International Journal of Bank Marketing; Bradford, 32(6), pp. 450-456.
Kułyk, P., Michałowska, M. & Kotylak, S., 2017. Assessment of customer satisfaction with logistics service in the light of the results of the research. Management; Zielona Góra, 21(1), pp. 205-222.
Manalo, J., 2015. The Secret to a Successful Airline Customer Service Twitter Account. [Online]
Available at: https://skift.com/2015/07/31/the-secret-to-a-successful-airline-customer-service-twitter-account/
[Accessed 21 February 2018].
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