Download Service Is Front Stage: Positioning Services for Value by J. Teboul PDF

By J. Teboul

This ebook features a uncomplicated yet robust definition of providers established upon a separation among back-stage and front-stage actions. providers take care of entrance interactions, construction and production with back-stage operations. Teboul makes use of this contrast to systematically discover the real problems with the sphere.

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Extra resources for Service Is Front Stage: Positioning Services for Value Advantage (Insead Business Press)

Sample text

In fact, each “moment of truth” is made up of several interactions: with people, with other customers, with the delivery process. Customers have a global evaluation of the service. ” However, every time their experience fails to match their expectations, they debit this account. Unfortunately, one debit equals several credits, and a single minus or defect could ruin the whole experience. As Jan Carlzon explained in Moments of Truth:3 Last year, each of our 10 million customers came in contact with approximately five Scandinavian Airlines employees, and this contact lasted an average of 15 seconds each time.

The most intense and expensive interaction is a face-to-face with an expert; the least intense and expensive is a 50 T H E S E R V I C E - I N T E N S I T Y M AT R I X simple online link between two computers on the web. The cost difference is huge and is not always justified, as a face-to-face with an expert is not necessarily better than a face-to-face with a teller equipped with an expert system, and an interaction with a teller is not necessarily better than an interaction with an automatic teller machine.

This explains the growth in call centers and online businesses. To cut costs and achieve economies of scale, the interface is reduced to a minimum, and the activities are shifted to the back stage. The trend now is to industrialize services. Relatively pure services (such as hairdressing, law firms, consulting and entertainment) are labor-intensive and offer few prospects of productivity gains, since it is difficult to reduce the contact time. In conclusion, the dotted line separating the service sector from the industrial sector is less significant than the solid line dividing backstage and front-stage activities, products and services.

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