Service is Front Stage: Positioning Services for Value by James Teboul (auth.)

By James Teboul (auth.)

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By James Teboul (auth.)

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Additional info for Service is Front Stage: Positioning Services for Value Advantage

Sample text

Because a service is a one-off performance in the presence of the customer, it has to be right the first time, at the very moment of delivery. Contrary to what happens in a factory, once a service has been delivered it is difficult to improve or correct it. The performance cannot be measured, controlled or corrected during the delivery without the customer’s being aware of it. It is also much more difficult to find out how the customer perceives the experience during the interaction; the perception is immediate, subjective and qualitative.

Variety, customization High intensity Gourmet restaurant Standard product Benihana Shift of Benihana position – is it sustainable? 12 The service-intensity matrix for the restaurant business On the other hand, being in the bottom right corner is not more comfortable. As the service offering gets very standard, the main competitive differentiator is price. What are the options? One option is to become number one or two in the industry to benefit from economies of scale in the back stage. Another option is to increase the scope and the variety of the offering by introducing a more differentiated menu or other services, such as playgrounds for children.

No, no, my head is unique. ” would be the customer’s answer. To reduce the intensity of interaction, lower-paid assistants could help the professional, washing the hair and doing menial tasks. Another solution is to convince the customer to do part of the job – maybe wash his hair himself. ” So a good way to reduce the intensity of interaction is to play on the process dimension (cycle time, simplification of the interaction) and on the people dimension (expertise leverage, co-production). There is a huge cost difference between a face-to-face interaction with an expert, a telephone call and a web transaction.

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