Service Process

When manufacturing goods, the process involved takes place in the factory’s premises, keeping the customers at bay. The customer rarely comes in contact with the manufacturing process, as those processes that lie with the factory premises, lie in the sole domain of operations.

Interaction of the customers with the system should be a part of the service creation and hence this makes the customer be a part of the service process. The service failures often are the result of inadequately and inappropriately designed service processes.

Services which depend on customer contact or customers are the recipient of service actions, the customer side of the process can be mapped by identifying service delivery process. A chart that draws and lists the various contact points when the system and the customer come in contact to create a value is known as a flow chart.

Service production and consumption are inseparable, and therefore the customer acts as a co-producer of many services. The service delivery is the outcome of the service process. The process constitutes the service itself. The service characteristics of inseparability and par­ticipation often make the customer, interact and become a part of the process.

Despite such importance of the service process, sometimes service organizations pay very little systematic attention to this aspect of business. As a result, service processes evolve on their own with internal bias or no focus at all. Therefore, it is not surprising that many service organizations are not adequately equipped to serve the customer well and such processes limit the efficiency of the operations.

It is a process to deliver requested service to the end user. Let us take an example of a company which is known for its service processes DTDC begin its operations in the year 1990 and since then, year by year they have achieved various milestones based on their service quality.

This company thrives on its quick service and the reason it is able to do so is its confidence in its processes. To top it, the demand of these services is such that they have to deliver optimally without a loss in quality or in quantity. Thus, the process of a service company in delivering its product is of utmost importance.

Quality of a service is defined by the way it is been processed thus detailing the service process becomes very important for all service provider. Service processes intensely interact with the customer. Production processes differ from service processes. The customer only perceives the output of a production process he selects it and pays for it.

Process is an element of the extended marketing-mix of services marketing. A process outlines the procedures and methods to be followed to produce and deliver a service. It also determines the extent of customer involvement and participation required in service creation and delivery. Therefore, process explains a series of activities, their sequence and the role to be played by the service provider, the intermediaries and the customer. It plays an important role in determining the quality of service design, production and delivery.

It is not possible to differentiate production from delivery in services as they are inseparable in nature. Therefore, process includes all the activities related to production as well as delivery of the service. Further, processes need complete dedication and commitment of the service personnel in order to be completed successfully.

Companies, not only in the manufacturing sector, but in the service sector as well, gain competitive advantage over other players with improved processes. A well-designed and well-executed process increases operational efficiency, offers convenience to customers, reduces the cost of offering services, and improves the efficiency of service delivery. Effectively, it helps in achieving the goal of customer

Characteristics of Service Process

1. Divergence

Often, service providers adapt their services to match customer needs, as a single service might not cater to all. The degree, to which a service provider can vary services, deviating from the standard service, is known as divergence. Divergence provides an opportunity for the service provider to customise services for his customers, and serve them better. For example, many tourism companies customise their holiday packages according to customer needs.

2. Complexity

The process of creating and delivering a service involves many activities. While some activities might be quite simple, others can be quite complex. The complexity of a process should take into consideration the contribution of the different activities to service quality.

The activities that contribute to service quality in an interaction between a banker and a customer may include the friendliness shown by the banker, his knowledge about the products, the speed at which the service is offered to the customer, etc. At the same time, the number of activities in the production and delivery of a service increase with the increase in divergence, i.e., complexity increases with divergence.

3. Service Location

The nature of the service being offered largely determines the service location. Services can be delivered at the service provider’s location, at the customer’s location, at a neutral location or virtually, depending on their nature. For example, customers can either visit a hotel to have dinner or they can order home delivery.

In the former case, the service location is the hotel, and in the latter, the customer’s home is the service location. A tourist operator offers his services at the tourist spot, which is a neutral location. A banker offers his services virtually when he provides internet-banking facilities to customers. Therefore, service location depends on the alternatives available to the service provider and the customer.

4. Customer Participation and Interaction

Service processes should be designed depending on the extent of interaction with the customer and his participation in service production and delivery. The level of customer interaction and participation differs from service-to-service. For example, the level of interaction between a banker and a customer is negligible in mobile banking transactions while the level of customer participation is high in deciding and ordering a menu for a wedding.

It can also differ from channel-to-channel for the same service. The perceived quality of a service is enhanced if a customer has prior knowledge of the service process. For example, a customer who has an idea about the check-in process at an airport will be more comfortable and can appreciate the improvements made by the airline in the process, when compared to a customer who has no knowledge of the check-in process.

5. The Service Itself

Services can be either process-based or technology-based. Process-based services involve many activities that a customer has to go through before obtaining the service. For example, a student aspiring to join an IIM (Indian Institute of Management) course or any other business institution has to fill-up an application form, take the entrance test and appear for an interview, group discussion, etc., before gaining admission. Process-based services involve many people, with high levels of interaction between them.

The service provider has an opportunity to improve the quality of service at every step and in each interaction. On the other hand, equipment or technology-based services require very little inter-personal communication between a service provider and his customer.

For example, internet banking, offered by many banks like ICICI, HDFC, GTB, etc., has almost eliminated the need for personal interaction between a service provider and his customer. Through technology-based services are efficient and convenient for customers, service providers lose an opportunity to enhance the quality of service through personal interaction. Further, any problem in the teleological systems of the service provider affects the quality of service production and delivery too.