Developing and maintaining a service culture | My Assignment Tutor

Developing and maintaininga service cultureChapter 4© Hudson & Hudson. © Hudson & Hudson.Customer Service for Hospitality & Tourism Customer Service for Hospitality & TourismDeveloping and maintaining aservice cultureChapter 4Topics coveredo A definition of internal marketingo The four-step internal marketing processo Establishing and maintaining a service cultureo Developing a marketing approach to human resourcemanagemento The importance of disseminating marketinginformation to employeeso The way to implement a reward and recognitionsystem‘At Your Service’ Spotlight:Four Seasons Hotels and ResortsThe Golden RuleFocus on managing mid-sized luxury hotelsService more important than fixtures and fittings• Value-added extrasExternal quality control audits• 300 operating standardsStrong internal service culture• Staff recruitment, perks, awards and internal promotionCustomer base• Repeat guests, willing to pay, recommend to friendsRecognition and Awards• Five Diamond Award, Fortune’s Hall of Fame,Great Place to Work® Award, Robb Report ‘most exclusive brands of all time’Internal marketing…marketing aimed internally at a company’s own employeeso Enables employees to deliver brand promise and satisfy guestso Ensure consistently high serviceo Four-step process:• Establish a service culture• Develop a marketing approach to human resource management• Disseminate marketing information• Implement reward and recognition systemo Too few organizations apply the concepto Corporate distraction (boost revenues, cut costs)o But growing awareness that internal marketing will lead to profitsLink between internal marketingand profitsINTERNALMARKETING1. Service Culture2. Marketing approach to HRM3. Communication4. Reward & RecognitionSERVICEQUALITYGAPS modelMeasuringService QualityCUSTOMERSATISFACTIONLOYALTYRelationshipmarketingPROFITSFigure 4.1Establishment of a service cultureo Organizational culture• Formal and informal guidelines, actually activities• Shared values and beliefs, behavioral norms• Individuals understanding of organizational functionso Marketing culture• Unwritten policies and guidelines and behavioral norms• Defines importance of marketing, manner of execution• Particularly important for service organizations• Strong link between type of marketing culture and profitsService culture….a culture that supports customer service through policies,procedures, reward systems, and actionso Culture must support customer serviceo Leaders crucial for transmitting, preserving cultureo Commitment from management• Positive attitude toward customers and employees• Time and money transmitting value system• Properly trained employees respond appropriately• Empowered to do so by the organizationo Establishing a service culture may have regional characteristicsThe importance of empowerment….the act of giving employees the authority to identify and solve guestproblems or complaints on the spot, and to make improvementsin the work processes when necessaryo Impacts customer perceptions of service qualityo Essential aspect of internal marketingo Involves decentralized decision-making• Demonstrated trust, respect for employees’ judgmento Gronroos’s interactive marketing concept• Empowered front-line employees• Control over task performanceo Contingent on variability of customer needs, task complexityo Not suited to all employeesEmpowerment and disempowerment:tourism and hospitality operationsBenefits of Empowerment Drawbacks of DisempowermentMore responsive service Limited authority to meet service needsComplaints dealt with quickly Complaints dealt with slowlyGreater customer satisfaction Higher level of costs in generating new customersMore repeat business Fewer loyal customersWell-motivated staff Poor motivation and low moraleLess turnover of staff High turnover of staffIncreased productivity Low productivityLower labor costs Low wages but high labor costsIncreased profits Low profitsTable 4.1 (Source: based on Lashley, 1995)Marketing approach to humanresource managemento Involves the use of marketing techniques to attract and retaingood employees• Thinking creatively attracting qualified employees• Understanding the employee market• Building a positive company imageo Assist with employee motivation, incentives, training• Changing behaviors difficult, costly post-recruitment• Right type of training can reduce ambiguity, and improveservice deliveryo Continuous training can improve morale and reduce turnover• Hospitality industry turnover double that of other industriesDeveloping employee prideo Pride motivates people to excel• More effective than money or positiono Pride builders accomplish this by• Setting aspirations that touch emotions• Pursuing a meaningful purpose• Cultivating personal relationships of respect• Becoming a person of high character• Injecting humor along the waySnapshot:WestJet : Fostering a caring cultureCanada’s Most Admired Corporate Cultureo Airline loved by consumers, media and travel tradeo Pride in product intrinsic to WestJet’s successo Internal service as important as external service• Employee empowerment fundamental for spontaneity• 4 Kudos program• CARE department – Create A Remarkable Experience• Sense of ownership, profit sharing• Hire for attitude and train for skill• Consistently profitableDissemination of marketinginformation to employeeso Frequency, quality, accuracy of communication• Moderates ambiguity• Increases job satisfactiono Communication mechanisms• One-to-one• Company meetings• Training sessions• Newsletters, emails, reports, videotapes• Blogs (e.g. Southwest)Southwest’s blog forcustomers and employeesEmployee exclusion fromthe communication cycleo Many companies exclude customer-contactemployees from communication cycleo Managers or supervisors fail to convey informationo Frontline employees should be informed of• Promotions and new products• Changes in the service delivery processes• Action steps in marketing plano Poor internal communication a service quality risk• Customer-contact employees not able to deliveradvertising promisesImplementation of rewardand recognition systemso Employees should be made to feel happy and proud of their jobs• Canadian survey – being made to feel valued important motivatoro Organizations should• Communicate performance objectives• Provide relevant training• Provide feedback• Provide recognition (non-cash rewards)• Tailor rewards to the interests of the employeeso Employee dissatisfaction may lead to bad publicityCase Study:Micato Safaris – simply the best in the world!o Serving more than 5,000 clients a year, Micato programs deliverexperiences and lodgings in destinations throughout East Africa, SouthernAfrica and India.o Micato has a well-deserved reputation for giving guests an experience thatgoes far deeper than any other tour, with access to sites rarely open totourists, while supporting the local economy in myriad ways.o It is the family touch that drives Micato’s differentiation, but the companyhas also had to adapt more recently to new consumer demands.

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