Reaching New Heights . . .Reaching New Heights . . .Reaching New Heights . . .Reaching New Heights . . .

Quality Service FoundationQuality Service FoundationChapter IIIChapter III

Integrating Marketing in the Leisure IndustryIntegrating Marketing in the Leisure Industry

Quality ServiceQuality ServiceQuality ServiceQuality Service

• Involves every aspect of an agency• Is about doing the right things, the right way, the first

time• Is the foundation of effective marketing• Is the way agencies differentiate themselves

Quality Service is…Quality Service is…Quality Service is…Quality Service is…

Exceeding the expectations of those served in a

leisure service agency.

You tell 10 people about a negative experience and You tell 10 people about a negative experience and they will tell . . .they will tell . . .

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Service ExpectationsService ExpectationsService ExpectationsService Expectations

• Experience with the facility itself • Experience with other like-facilities • Advertisements developed by the agency • Other people’s perceptions • Seasonality issues • Personal needs

It’s not what you say, but what is heard.

It’s not what you show, but what is seen.

It’s not what you mean, but what is understood.

Perception is reality.

Key Concepts in Quality ServiceKey Concepts in Quality ServiceKey Concepts in Quality ServiceKey Concepts in Quality Service

• Word-of-Mouth

• Quality Culture

• Moment of Truth

Word-of-Mouth MarketingWord-of-Mouth MarketingWord-of-Mouth MarketingWord-of-Mouth Marketing

Quality experiences will result:• repeat visitors

• loyal customers

• a public that shares positive word of mouth communications to others

Quality CultureQuality CultureQuality CultureQuality Culture• Commitment to quality

• Involvement of all staff in the process• • Willingness to learn information that may not be what

the agency “wants to hear” from employees or customers

• Willingness to examine the organization from the top down

• Willingness to make changes and make it a better place to be, visit and work

Moment of TruthMoment of TruthMoment of TruthMoment of Truth

Living a lasting impression with people you serve.

Moments of Truth:• passing an employee in the hall and using his/her

name

• returning a telephone call or email within 24 hours

• conducting a performance evaluation in person

Quality Service SystemsQuality Service SystemsQuality Service SystemsQuality Service Systems

• providing quality service to both internal (employees) and external (customers) guests

Physical &TangibleAspects

(Products, equipment, policies,

procedures, environment, and human resources)

INTERACTION(Input)

Leadership

INTERACTION(Feedback)

Level ofSatisfaction

(Employee, guest, and other stakeholders)

INTERACTION(Reinforce/recover)

INTERACTION(Delivery)

QualityService System

Quality of the

Experience

Quality Service System Model

Quality System ModelQuality System ModelQuality System ModelQuality System Model

• Design (focus groups, surveys)

• Production (100% guarantee, training, service program)

• Empowerment

• Perception (training, rewards)

• Outcomes

Defining EmpowermentDefining EmpowermentDefining EmpowermentDefining Empowerment

Empowerment is the degree of freedom available to employees to make their own decisions and

enable an organization to be as responsive as possible to guest needs.

(Younis, 1997)

EmpowermentEmpowermentEmpowermentEmpowerment

Empower employees by:1. Giving them information.

2. Providing employees with the tools to do the job.

3. Establish boundaries for levels of empowerment, let them know what they can do!

4. Training employees on making decisions and gaining comfort in doing what is best for guests.

5. Coaching and supporting employee decisions.

Service Recovery ImpactService Recovery ImpactService Recovery ImpactService Recovery Impact

• 45-96%45-96% Do NOT complain (small purchases) Do NOT complain (small purchases)

• 45-63%45-63% Who have NOT Who have NOT complained will NOT returncomplained will NOT return

• 70-92%70-92% Return if resolved Return if resolved

Sources of Guest DissatisfactionSources of Guest DissatisfactionSources of Guest DissatisfactionSources of Guest Dissatisfaction

1. Employees

2. The physical environment

3. Other guests

4. The agency’s products/services, policies, procedures, operations and marketing

Types of Dissatisfied CustomersTypes of Dissatisfied CustomersTypes of Dissatisfied CustomersTypes of Dissatisfied Customers

• Passive

• Problem Solving

• Aggressive

LEAD and ACT Service Recovery LEAD and ACT Service Recovery SystemSystem

LEAD and ACT Service Recovery LEAD and ACT Service Recovery SystemSystem

1. Listen!

2. Empathy (sorry, glad, sure)

3. Ask Questions

4. Discuss (they, can, alternatives)

5. Action

6. Communicate (internally and externally)

7. Theory of WOW!

How to Practice the Theory of WOWHow to Practice the Theory of WOWHow to Practice the Theory of WOWHow to Practice the Theory of WOW

• Research

• Service Recovery System

• Culture

Relationship ManagementRelationship ManagementRelationship ManagementRelationship Management

Relationship management is developing techniques to engage consumers (e.g. visitors, employees, board members) for the long-term to produce

desired outcomes.

Gaining “Customer” LoyaltyGaining “Customer” LoyaltyGaining “Customer” LoyaltyGaining “Customer” Loyalty1. Identify the behavior desired from various “customers” (e.g.

more volunteerism, less vandalism)2. Understand what influences loyalty (e.g. accountability,

credibility and trust)3. Stay in touch with agency stakeholders.4. Develop policies that are guided by numbers 2 and 3.5. Document and communicate the need for policy; don’t just say

“trust me.”6. Don’t exaggerate.7. Clearly identify how you are investing agency resources.8. Keep employees or leaders aware of their role in building

loyalty.9. Act on what is important to your “customers.”10. Annually review agency practices including these loyalty

concerns.

Customer Loyalty Assigned Customer Loyalty Assigned ReadingReadingCustomer Loyalty Assigned Customer Loyalty Assigned ReadingReading

Relationships

are Built

on Trust!

SSTRATEGIES TRATEGIES FFORORBBUILDING UILDING TTRUSTRUSTSSTRATEGIES TRATEGIES FFORORBBUILDING UILDING TTRUSTRUST

Communicate effectively & convincingly

Display caring

Be fair

Admit errors/lack of knowledge

Trust customers

Keep your word

Provide peace of mind

IIMPORTANCE MPORTANCE OOF F LLOYALTYOYALTYIIMPORTANCE MPORTANCE OOF F LLOYALTYOYALTYCost 5 times more to acquire new customers

50% of consumers will complain to frontline

75% complain in B2B

Small-ticket = 96% do not complain

Large-ticket = 50% complain to frontline

Large-ticket = 5-10% escalate to mgt

50% simply go away

Tell up to 16 friends

Businesses lose 10-15 per yearSource: TARP

PPROVIDER ROVIDER CCHARACTERISTICS HARACTERISTICS AAFFECTING FFECTING LLOYALTY (1)OYALTY (1)PPROVIDER ROVIDER CCHARACTERISTICS HARACTERISTICS AAFFECTING FFECTING LLOYALTY (1)OYALTY (1)

Responsiveness

Adaptability

Communication skills

Decisiveness

Enthusiasm

Ethical behavior

CCHARACTERISTICS HARACTERISTICS AAFFECTING FFECTING LLOYALTY (2)OYALTY (2)CCHARACTERISTICS HARACTERISTICS AAFFECTING FFECTING LLOYALTY (2)OYALTY (2)

Initiative

Knowledge

Perceptiveness

Planning ability

Problem-solving ability

Professionalism

MMAKING AKING TTHE HE CCUSTOMER USTOMER #1#1MMAKING AKING TTHE HE CCUSTOMER USTOMER #1#1Positive initial contact

Establish rapport

Identify/satisfy needs

Exceed expectations

Follow up

Encourage return

EENHANCING NHANCING SSATISFACTION (1)ATISFACTION (1)EENHANCING NHANCING SSATISFACTION (1)ATISFACTION (1)

Pay attention

One customer at a time

Know your customers

Give special treatment

Service at least adequately

EENHANCING NHANCING SSATISFACTION (2)ATISFACTION (2)EENHANCING NHANCING SSATISFACTION (2)ATISFACTION (2)

Do the unexpectedHandle complaints effectivelySell benefits not featuresKnow your competition

Gaining Employee LoyaltyGaining Employee LoyaltyGaining Employee LoyaltyGaining Employee Loyalty

• Dissatisfied employee

• Satisfied employee

• Loyal employee

Gaining Non-user/Stakeholder Loyalty

Customer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementCustomer Relationship Management

• Gather information on customers• Develop an appropriate plan for targeting customers• Communicate this information to employees• Reach the desired consumers (e.g. email a discount

coupon for a program that the agency knows would interest the consumer)