By definition, service excellence entails all aspects of any organization that defines the basic approach on constantly and consistently exceeding customers' needs. Service excellence supports the need in considering and exceedingly meeting customers' needs in a more consistent approach such that, the needs of the consumers are met under superior technique as an approach to add value to the clients (Freemantle, 1999). By deliberately exceeding the client's expectations, any organization is able to attain service excellence. When attaining this aspect, it's vital to consider the diverse consumer needs' as well the approach applied by the competing firm.
Similarly, service excellence consider offering and exceeding clients satisfaction by establishing quality interaction between the consumers and immediate employees who several occasions interact with the clienteles when offering services or even when making a sale. According to Jensen (2001), customers consider their plight is attended to when firms relentlessly offer quality services or other products as per the perceived expectation from the customers. When customer's interests, values and satisfaction needs are met at all times, then chances are that such clients will perhaps communicate positive image of the business thus increasing opportunity for return purchase.
Components of Service excellence
It's vital to note that, service excellence has been popularized as an effective corporate change initiative that primarily focuses on all customers' benefits by engendering positive culture that will nurture, support and even drive productive customer service excellence. Premised on the need for insurmountable competitive edge, service excellence constitute of various components such as customer satisfaction, customer service and customer focus (Leebov, 2003). Customer focus entails all procedures used by any firm in offering services or products that aligns with the clients' expectations.
Product is termed as focused on a consumer's need or a given market niche preferences if the provision of such product is relevant to the desires as well as expectations from the customers. Currently, various firms focus on customers' needs by deliberately undertaking research in an attempt to offer relevant, quality as well as consistent products that exceedingly satisfies the customers (Gee, 1999). Customer focus is more significant in service excellence as it determines the level at which the organization is aligning its provision of products with defined customer expectations.
Similarly, customer focus paves the way for clear communication of customers' changing preferences when formulating customer-focused strategy prior to offering any product. In addition, customer service plays a key role under service excellence provision. Under customer service, any organization invests in offering quality products to its clienteles, during or even after purchase. This component is significant in that, it assist any business to determine whether the services or products offered met consumers' needs above the mere satisfaction level. In fact, quality customer service provisions offer an opportunity for the firm to enhance customer's satisfaction level. Additionally, it helps in evaluating the effectiveness of firm's customer oriented culture, and possibly improve on the same (Snow, 2009). Customer service helps any firm to attain excellence service provisions threshold by allocating need resources, both material and human, in offering superior services to diverse clients. Finally, customer satisfaction entails organization's ability in measuring how services and products offered meet or even surpass customer's expectation. As a key component to service excellence, customer satisfaction helps in determining how well the business venture aligns its provision with set standards. It's also significant
Competitive advantage and service excellence
Competitive advantage is the defined advantage over all competitors which is primarily gained by providing clienteles greater value, by either offering lower prices or even greater benefits as well as services that justifies the higher price considerations given for various products or services. There are three aspects of relationship between competitive advantage and service excellence. First, competitive advantage supports the need for product differentiation as core focus in service excellence. As part of positional advantage, differentiation helps any firm in attaining it service excellence by instituting procedures viable in surpassing customers' requirements (Jensen, 2001).
Secondly, competitive advantage supports product differentiation which offers the platform for the organization to create and enhance superior value in service provision. In service excellence, superior product or service is a vital element which is supported by the cost benefit associated with firm's competitive edge (Hinich, 2007). Finally, competitive advantage and service excellence aims at utilizing available resources as well as capabilities in creating ultimate results by enhancing superior value creation procedures. Both element assist any organization in creating customer focused product or service by enhancing ability to offer superior, all-time and competitive products.
Key Change Factors in provision of high level services
In provision of high level services key change factors relate to the firm's forces that determine the ability of the firm in offering quality services. These factors determine the ability of any organization in reaming relevant in service provision. Key Change Factors offers any firm an opportunity to enhance its value creation capacity by capitalizing on it weakness in order to offer quality services among customers. These factors also influence the firm's cost benefits associated with customer quality service as well as satisfaction amid competition. First, customer involvement is a vital factor as the change implemented will have a direct impact on the customers' expectations from the firm. As a change factor, customer involvement assists the firm in determining the exact quality standards to be included during product improvement (Woods & Zemke, 1999). Secondly, competitor's interest plays a pivotal role in determining the quality changes or provisions to be made on the product.
Competitor's competitive approaches assist any organization in crafting techniques that supports business strategy in becoming more competitive in service provision. Similarly, once the firm understands the competitor's interests then its easier to develop a strategy that will counteract avert possible competition that may result from competitor's superior provisions to target customers. Thirdly, staff or employees determine the level at which service provision is attained by any firm. The skills, capacities as well as the essential training such employees' posses in customer service affect the implementation of any service provision procedures. Employees' value influences the level of customer satisfaction by indirectly or directly affecting organization interaction with its clients prior to offering any change on service provision. Finally, organizations capacities or resources and strategy affect the pace at which the business may remain competitive in superior service provision. The ability to align firm's resources with superior value creation in service provision is determined by the firm's capacity in internal control.
Q2: Benefits of Service Excellence to the organization
Service excellence offers any organization with vital tools that assist the business to face the unpredictable future more confidently and similarly maintain customer focus. First, service excellence enhances profit margins and business profitability levels. Such instances arise, as customer services enhances positive relations between the clients and the organization that leads to increased sales margin. Profitability of any organization is likely to grow if more emphasis is laid on customer focus (McCarthy, 2005). Secondly, any organization records high rate of repeat sales or business. For instance, when a client is satisfied chances are that such customers will consider relying on the same organization that guarantees quality. As a result, such organizations may create customer loyalty at lower costs considerations than the normal situations when repeat business cases are too low. Similarly, repeat business goes along with relationship creation and partnership between the clienteles and the organization, thus adding competitive value to the business.
Thirdly, out of service excellence any firm will report high numbers of customer referrals that supports the business marketing procedures. This approach helps the organization in cutting-down on customer-creation costs related to marketing campaign. As a result, the saved finances may be used for diversification purposes in firm's effort to widen it business units coverage or in service provision on existing portfolios. In addition, service excellence assists any organization in lowering staff turnover that goes along with reduced hiring costs. Similarly, service provision gives a business an opportunity to enjoy high pricing setting benefits in profit maximization.
Additionally, satisfied customers are more likely to repay their bills or other accruals within the shortest time possible. This enables the organization to avert any chances of uncollectible debts that leads to financial misappropriation, hence reduced profits. More often debt defaulters are associated with dissatisfaction in the service delivered (Woods & Zemke, 1999). Alternatively, service excellence leads to improved employees' morale and customer retention. Well treated customers are likely to be brand royal, and perhaps refer to the same organization for their future needs. This is mainly achieved if the organization tends to always offer superior customer service that clearly identifies with clients needs or even preferences. This assists the organization to report above-average-profitability.
Trough service excellence, any organization is able to exactly know customers' expectations, and perhaps changes on their preferences. Such considerations help the organization to be more competitive, mange stressful situations effectively and possibly enhance or eve change on its strategy. For example, the organization can easily detect its contribution to customer's dissatisfaction and probably device appropriate approaches in creating customer satisfaction as an attempt to effectively handle competition (Snow, 2009). Under this aspect, the organization can effectively increase customer credibility and similarly, add value to the entire organization.
Importance of service Excellence to the customers
Customers benefits a lot in terms of guaranteed quality services and well as value for their finances. Service excellence is premised on provision of superior product or even services at a given consideration. When customer's needs are met at defined price that suit their needs, customers' enjoys value for money. In addition, customers also reserve an opportunity to select or choose product as per their preference since service excellence offers any firm to market a variety of products in the market as an attempt to remain relevant in product provision. Additionally, customers are able to benefit from courtesy and friendliness attitude exhibited by service providers, thus have an opportunity to air their views on necessary product improvement (McCarthy, 2005). Customers' security and safety is considered during product modification as this play a role in standard adherence procedures under service excellence.
As drawn from above the analysis under organization's benefits related to service excellence, improved employees' morale and customer retention offers the best cost benefit to the organization. Any organization would consider having motivated employees, as a key strategy in achieving the organizational mission. Having motivated workforce would require huge capital investment but the benefit derived from this undertaking helps the organization remain profitable.
Similarly, customer retention would require the organization to have empowered R&D team that constantly adjusts firm's product improvement ability with the changing customers' preferences. This approach in enhancing customer retention is done at a cost, but long-run benefits associated with brand royal consumers assist in improving organization's performance. In improving employees' morale as well as customer retention, incentive costs in boosting morale ought to be considered. Similarly, customer retention can be achieved by effectively meeting publicity as well as promotional costs (Leebov, 2003). From customer perspective, the opportunity to select various products is a more cost-effective importance associated with service excellence. Here the organization needs to consider product differentiation costs as well as improvements costs only, as an attempt to offer a variety of superior product where the client can select from.
Q3: Changing Customer needs: McDonald's Incl, Case
McDonald has been affected by health concern issues that have changed customer's needs as well as preferences for fast-food. Customers now prefer healthy eating, thus affecting firm's sales trends from mainstream menus (Watson, 2001). Health issues are likely to have a great impact on profitability trends on McDonald if measures are not taken to improve the products offered. Customers' lifestyles have been influencing eating habits among local consumers who prefer convenient food joints. Major cases of heart diseases, obesity, and even cancer have been mainly attributed to lifestyle choices.
Rising publication and concern for health living will most likely affect financial performance in this industry as fast-foods are not only known for high fat contents, but also generally perceived as unhealthy. The impact of cost price has also influenced customers' needs where due to perceived economic turmoil customers have preferred cheap fast-foods, perhaps offered by McDonald's competitor (Watson, 2001). There is also a change in customer's spending patterns. Performance of McDonald's in has in the recent past been negatively affected by the consumers spending habits. Factors such as recent rise in food, energy and oil prices have affected the customer needs.
As an attempt to respond to this need, McDonald ought to restructure and possibly eliminate fats in their diet even if this causes a decline in sales. Similarly, the firm may prefer an inclusion of more tradition oriented dishes in the menu to cater for customer's who may prefer traditional cuisine. Innovative advertising may assist in attracting potential customers as well as retain brand royal clients by assuring them of quality assurance adherence in fast-food preparation. McDonald ought to settle for product differentiation by introducing new products to keep up with change in clientele preferences, spending habits and demographics. For example, McDonald may opt to modify or even improve dishes such as Angus beef-burger and Premium Chicken sandwiches.
By definition, customer focus aims at deriving and implementing customer inputs during product development prior to making a sale. Here deliberate efforts are made to acquire necessary information during product designing, and allow for possible modification in meeting customers' needs. Any organization considers customers input a great resource during product designing, innovation or even modification. For example, in modern business world organizations use interactive approaches in obtaining value adding information from various clienteles as an attempt to address this issues presented by the customers prior to normal product marketing procedures.
Such procedures used as an indicator of customer focus may include emails, phone-call or even use of suggestion boxes. Similarly, customers focus considers value adding at all business organization levels, without necessary limiting organization's efforts to mere customer service and sales. For example, an individual working under marketing department may relay vital information to the organization on the need to improve or even modify existing product focused on the needs presented by various customers. Finally, customer focus enhances quality skills among the workforce as an attempt to have the employees consider customer needs first in order to satisfy them during service provision.
Exceeding customer expectations
The value associated with exceeding customer expectations relate to five areas namely; competitive advantage, satisfying changing needs, retaining customers and goal attainment. According to Gee (1999), when a firm exceeds customer expectations by offering a superior product, the level of satisfaction in such customers is attained thus creating positive organization's image. The value attached to positive organization's image helps the management in employing various approaches in meeting diverse needs presented by various customers.
Competitive edge as an organization's value advantage assists in consistently meeting customers' needs in an innovative way amid competition from rivals. Surpassing customers' expectations builds brand royalty among existing as well as potential clients thus enhancing high customers' retention. In addition, firm's goals are easily met when customers' needs are met exceedingly, giving the firm an opportunity to enjoy repeat business benefits and referrals advantage in making sales (Hinich, 2007). Finally, it's easier for the firm to align its efforts in meeting changing customer needs by making it a habit to constantly surpass customer expectations. This approach support customer satisfaction procedures adopted by the organization.
Q4: Mission Statement
Any mission statement consists of short formal written statement that primarily defines the purpose of any company entity or organization. Mission statement has four major purposes. First, mission statement defines the sole purpose that the organization efforts ought to be geared to. It defines the key responsibilities that the venture has upon its various stakeholders (Jones, 1998). Mission statement thus clearly illustrates who the organization's or company stakeholders are, and the key role the venture has towards them. It's organization's mission statement that clarifies to the customers the services as well as the products that the business venture offers. The statement also helps to distinguish the organization's undertakings from other competing firm's under similar industry. Finally, mission statement forms the basis for the organizations values and behavior standards that supports the business strategy in mission attainment.
Services standards constitute of quality product or service specifications used during product production or even services delivery procedures. Services standards are mainly linked with procedures, typical designs or construction specification, definitions of terms or even performance criteria, among others (Jensen, 2001). The main purpose of service standards is to offer quality assurance among consumers on the service or product offered in the market.
Service quality conformity helps any organization to communicate consumer concern image on nay product of service offered. Similarly, service standards assist the organization in delivering quality services and / or products with consumer in mind. This approach adds value to the firm by assuring end-users of quality accreditation on product offered. According to Freemantle (1999), services standards indicate any need for product modification or necessary innovation in meeting clients' needs, since standards may be used as a measure quality adherence.
Staff values constitute of key organization's specifications on staff standards, codes of conduct implicit behavior, attitudes or even dressing codes. Staff values assist in defining the acceptable way or behavior within the workplace environment that clarifies normal conduct that is upheld in the organization. These values build quality workplace culture that enhances employees' morale within the organization (Hinich, 2007). Similarly, staff values enhance conformity as well as uniformity among workplace where issues such code of dressing are considered during normal working procedures in the organization. Uniformity creates positive image in relation to employees' treatment by the firm. In addition, values builds originates and strengthen creative as well as innovative culture since employees' motivation to positively contribute to the organization is highly upheld under growth sustenance.
Under European Accreditation legislations, any firm hailing from member state ought to comply with he laws advanced as from June 2008, seeking to offer a framework that defines quality provision on products or services across Europe (Subiotto, 2005). The legal frame work constitutes of two tier approach. First, the laws offer regulations on stand conformity on produced products. Secondly, the regulation provides a general framework on accreditation on product standards as an attempt to indicate government concerns on customers' confidence on various products offered by manufacturers.
The framework also indicates the primarily role that the standards observations ought to consider when instituting quality measures or specification on any product. All member accreditation bodies are recognized under this law. A case to point relates to is the Belgium Coca cola where product accreditation procedures have seen the firm grow in profitability upon observation on such laws by the organization (Hay, 2004). Such accreditation has been associated with the deliberate effort of the firm in quality assurance and standards specification during production procedures. This has impacted heavily on firm's service excellence provision procedures.
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