service profit chain 2014

Presented by: Taj Zadhra-Ogunsola

Afro Technologies ® Nigeria 2014 ©

The Service Profit Chain

1. Afro Technologies - Service Quality Gaps

a. GAP 1: Knowledge Gap b. GAP 4: Communication Gap c. GAP 5: Perceptions Gap d. GAP 7: Service Gap Recommendation

Agenda

Afro Technologies™ 2014 Marketing Plan® Taj Zadhra-Ogunsola Country Director Lagos, Nigeria

The Service Profit Chain

Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166.


The Service Profit Chain’s Connection

The Service Profit Chain is vital to Afro Technologies in understanding the relationships between profitability, passenger loyalty and employee satisfaction, loyalty, and productivity within a customer-focus organisation and establishing a foundation for the company’s service marketing culture.

The links in the chain (which should be regarded as propositions) are as follows:

Profit and growth are stimulated primarily by passenger loyalty.

Loyalty is a direct result of passenger satisfaction.

Satisfaction is largely influenced by the value of services provided to passengers.

Value is created by satisfied, loyal, and productive employees.

Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver results to passengers.

Source: James L. Heskett, Thomas o. Janes, Gary W. Loveman, W. Earl Sasser, Jr,

Leonard a. Schlesinger, Originally published in 1994, and republished in 2008. Afro Technologies ® Nigeria 2014 ©

Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166.

Putting Service Profit Chain to work

Workplace design job selection

employee selection and development

employee rewards and recognition

Tools for serving customers

Service concept: Result for customers

Service designed and delivered to meet targeted customers’ needs

Retention Repeat business Referral

Operating Strategy and Service Delivery System


Passenger expectations

Adequate service Desired service

Passenger Expectation & Perception of Service

A comfortable ride

Affordable ride

An executive saloon

Driver knows my city. ePayment is acceptable

Haggling is a MUST

It’s totally cool!

Don’t carry CASH Smell is important

Mobile app


AfroCab Blueprint Framework

Application Support Process E-Booking System Distribution & Dispatch Ride

Request GPRS/Route Planning

Debit Commission from Driver & Credit AfroCab

Account

Onstage contact person (Driver)

Accept Request/and agreed fare

Collect Passenger Complete journey/End process on the app

Collect cash payment (e-Payment coming soon)

Customer Action Download app or use Web App process

Request a ride / Negotiate your Fare & Await Collection

Disembark at your Destination

Make Payment (Cash for now) /Rate Driver/Make a

Comment

Physical Evidence Mobile Hardware (Phone)

App/Website/Digital Media/Office/

Camera

Official Driver’s License Documentations for State or

Federal

Driver

Vehicle & Inspection

Line of Interaction Line of Visibility Line of Internal Interaction


Source: Adapted from A. Parasuraman

Afro Technology

(Company)

Driver/Afro Employees

(Providers)

Taxi App

(Technology)

Passengers

(Customers)

The Services Triangle and Technology


AfroCab to Support the Service Quality

Use of tangibles evidences in

digital and mobile advertising

Building a quality relationship

service by encouraging

employees to be efficient.

Meet passenger expectations

thanks to the service provided

by employees, the service

process and the service delivery

by drivers.

Adopt the PR ROPE Model to Identify which

channels make sense for external marketing in

terms of budget, target market and team size;

R. O. P. E.

Represent our organization well

Own the channels and have accountability

Participate in conversations

Engage users and measure engagement

Brand Awareness

Brand Equity

Brand Meaning

AfroCab’s Presented Brand

Passenger Experience with

AfroCab

External Brand Communications

Source: Service Branding Model, Berry (2000) Customer Based Brand Equity Model, Keller (1993) Brand Equity, Aaker and Joachimsthaler (2000 Afro Technologies ® Nigeria 2014 ©

Recommendation

Perception gap would lead to bad publicity from customers, direct and wrong consequences on the image’s enterprise, and loss of potential and actual business

AfroCab need to inform the customer all along the service process provide physical evidence educate its customers

Understand customer needs and knowing customer expectations.

Keep promises and provide the same services mentioned in advertising

Make gesture of goodwill to customers

Launch mystery ‘passenger’ waves to improve the results of AfroCab in welcoming new and existing customers.

Constant customer-feedback should be taken, including evaluation of the quality by a questionnaire and online surveys.

Prompt response to customer request, and sincere interest in problem-solving

• Curry the customers along the service process • Display physical evidence true that will be delivery in all external communications • Educate them on technology, service and options to select from

ThankYOU!