Managing for Service

Excellence

Week 2
 Agenda

• Last week highlights

• Case Study: The Ritz-Carlton hotel company
• Learning outcome and Rationale
• Customer expectations
• The Kano Model
• Trip Advisor: interactive discussion
• Map a customer journey: your turn
• The summary
 • Service excellence is the foundation of
successful organizations in the hospitality
and service industries.
Last week • the SERVQUAL model: defines service
quality across five dimensions: reliability,
Highlights responsiveness, assurance, empathy, and
tangibles (Parasuraman, Zeithaml, &
Berry, 1988).
Case Study: The Ritz-Carlton hotel
company
 Case Study Analysis: The Ritz-Carlton Company
Has become synonymous with luxury service and customer
satisfaction.
Watch the 2 videos and do a small search:
• What Steve Jobs Learned From The Ritz-Carlton | Forbes (y
outube.com)
• The Ritz Carlton case study (youtube.com) ( sounds quality
is low)

Homework Key Points:

a) The Ritz-Carlton Credo Card emphasizing on respect,
dignity, and the importance of treating customers and
employees with the highest level of care.
b) The Ritz-Carlton Motto: "We are ladies and gentlemen
serving ladies and gentlemen." Explore how this motto
reflects the company's commitment to creating memorable
experiences for its guests.
c) Three Steps of Service: 1) A warm and sincere greeting. 2)
Anticipation and fulfillment of each guest’s needs. 3) A fond
farewell.
 Case Study Analysis: The Ritz-Carlton Company

Discussion Questions:
1. What is your view about the Ritz-Carlton legendary service?
2. How does Ritz-Carlton ensure reliability, responsiveness,
assurance, empathy, and tangibles in its service delivery?
3. How does Ritz-Carlton empower its employees to make
Homework decisions that enhance the guest experience?
4. What lessons can other companies learn from Ritz-Carlton's
approach to service excellence?
5. Share with us a real story of this Service Excellence from the
Ritz-Carlton
Few will be randomly selected to present their answer next
class (case study is part of Mid-Term Semester and class
participation points)
Understanding Customer
Expectations
Learning Outcomes:
1. Identify the factors that shape customer
expectations in service settings.
2. Map a customer journey to understand key
touchpoints and potential service gaps.
3. Analyze how exceeding customer expectations can
lead to customer loyalty.
Rationale:
• Understanding customer expectations is critical for
delivering excellent service.
• This week focuses on how expectations are formed
and how they can be managed.
• By mapping customer journeys, students will gain
insights into the customer experience, which is
vital for identifying opportunities to improve
service quality.
How customer centric are you?
Video: what are the key elements/points?
 1. Personal Needs:
• Every customer has individual needs that influence
their expectations.
• These could be related to specific dietary restrictions in
a restaurant or personal comfort preferences in a hotel.
Factors • Identifying and meeting these personal needs is key to
shaping creating satisfaction.

customer 2. Past Experiences:

expectations • A customer’s previous experiences with your brand or

other similar services shape their current expectations.
• If they’ve had positive interactions before, they’ll likely
expect the same or better in future visits.
• Negative past experiences can make customers
skeptical or cautious.
 3. Word-of-Mouth & Online Reviews:
• Customers often base their expectations on
recommendations from friends or reviews found online.
• Platforms like Yelp or TripAdvisor play a crucial role in
setting customer expectations before they even walk
through the door.
• One negative review can set low expectations, but
Factors multiple positive reviews can significantly raise them.

shaping 4. Marketing Communications:

customer • Your advertising, promotions, and overall messaging in

marketing campaigns set the stage for customer
expectations expectations.
• Over-promising in ads can lead to unmet expectations if
the service does not match the marketing.
Example: A customer visiting a high-end restaurant
expects excellent service, quality food, and a pleasant
ambiance based on personal needs (e.g., dietary
preferences), recommendations from friends, and the
restaurant’s upscale marketing materials.
 The Kano M odel of C ustomer Satisfaction (Kano, 1984)

A. Basic Factors (Must-Have):

• These are the essential features or services that customers expect as the bare minimum. Without these, they
will be dissatisfied.
• For example, a hotel must provide cleanliness, safety, and basic amenities like towels and toiletries.
• Failing to meet these basic needs results in immediate dissatisfaction but providing them does not
necessarily delight customers—it just meets their expectations.
B. Performance Factors (More is Better):
• These are features where the better they are delivered, the more satisfied the customer will be.
• For example, fast check-in at a hotel or the quality of food at a restaurant.
• The higher the performance, the more satisfied the customer becomes.
• These elements are often what differentiate your service from competitors.
 The Kano M odel of C ustomer Satisfaction (Kano, 1984)

C. Excitement Factors (Delighters):

• These are the unexpected features that go beyond basic or performance needs and surprise the customer,
leading to delight.
• In a hotel, this could be a complimentary room upgrade or a personalized welcome note.
• These factors are not expected, but when they are present, they create a memorable experience, fostering
loyalty.
Example for a hotel stay:
Basic Factors: Clean room, functioning amenities, security.
Performance Factors: Fast check-in, room comfort, quality of service.
Excitement Factors: A surprise welcome gift, personalized attention, or room upgrade.
Unmet Expectations and Customer
Dissatisfaction

Impact of Unmet Expectations:

• When a customer’s expectations are not met, dissatisfaction occurs. This often leads to
negative reviews, complaints, and sometimes, a refusal to return to the business.
• Even basic failures such as poor cleanliness or slow service can create significant
dissatisfaction, especially when the expectation was set higher.
The Role of Communication:
• Poor communication during service can exacerbate unmet expectations.
• For example, if a restaurant advertises a “fast service” model but fails to deliver food quickly,
customers feel misled, and this unmet expectation contributes to a negative perception of
the restaurant.
Unmet Expectations and Customer
Dissatisfaction

Long-Term Impact:
• Unmet expectations don't just result in one-time dissatisfaction—they can affect long-term
customer retention and brand reputation.
• A customer who has a negative experience is more likely to share that experience with
others, which could deter potential future customers.
Example:
• A customer books a room at a luxury hotel expecting high-quality amenities and superior
service.
• If they find the room dirty and staff unresponsive, their unmet expectations lead to
immediate dissatisfaction, often reflected in negative reviews on platforms like TripAdvisor.
 The Power of Exceeding Expectations:
• Going beyond what the customer expects leads to
customer delight and loyalty.
• When a business surpasses expectations, the customer
feels valued and special, which increases their likelihood
to return.
Exceeding For example, a restaurant that surprises a regular customer
with a complimentary dish or personalized service creates
Expectations a memorable experience that deepens customer loyalty.
and Building Word-of-Mouth Advocacy:

Loyalty • Delighted customers are more likely to share their

positive experiences with others, both in-person and
online.
• Word-of-mouth is one of the most effective forms of
marketing because it’s perceived as more trustworthy.
• Exceeding expectations can turn customers into brand
advocates who actively promote your business.
 Building Long-Term Relationships:
• Exceeding expectations creates long-term customer
relationships.

Exceeding • When customers are consistently delighted, they are not

only more likely to return, but they are also more
Expectations forgiving if a mistake happens in the future because they
trust the business.
and Building Example:
Loyalty A hotel offering a free upgrade to a guest who frequently
stays with them exceeds expectations.
The guest may now be loyal to the brand, refer others to
the hotel, and leave positive reviews.
 Creating a Service-Centric Culture:
• Leadership plays a crucial role in embedding a culture of
service excellence within an organization.
• Leaders set the tone for what is expected and how service
Leadership’s should be delivered.

Role in • They need to model the behavior they expect from

employees and reinforce the values of putting the
Embracing a customer first.
Culture of Training and Empowerment:
Service • Leaders must invest in training programs that equip
employees with the skills to not only meet but exceed
Excellence customer expectations.
• Empowering employees to make decisions that enhance
the customer experience (such as addressing issues on the
spot) is key to fostering a culture of service excellence.
 Encouraging Continuous Improvement:
• Leaders must encourage a mindset of continuous
improvement.
• This includes soliciting regular feedback from customers
and employees to identify areas for service improvement
and innovation.
Leadership’s • By promoting a culture of learning, leaders ensure that
Role in service standards evolve with customer needs.
Recognizing and Rewarding Excellence:
Embracing a • Recognizing employees who go above and beyond for
Culture of customers encourages the entire team to strive for
Service excellence.
• Leadership should celebrate and reward exceptional
Excellence service, reinforcing the importance of customer satisfaction
in the organization.
Example: At Ritz-Carlton, employees are empowered by
leadership to spend up to $2,000 per guest to resolve service
issues or provide unexpected delights.
This kind of leadership fosters a culture where exceeding
expectations is the norm, not the exception.
What does it mean for you?
1. To feel heard, appreciated, and valued.
• Sometimes, a transaction is just a transaction. However, for many customers and in many
industries, it goes beyond that. When someone hands over their money, there are a few
things that may be happening:
• They have a problem that needs solving. They are trusting you to solve it or at least help.
• They are giving you payment not just for service but as a vote of confidence that you're the
right choice.
• That's why when a situation arises where they need to reach out to you, it can feel personal.
In these cases, what they really want is to feel heard and valued. This is even more important
than getting the issue resolved so long as you set the right expectations.
 1. To feel heard, appreciated, and valued.
• Sometimes, a transaction is just a transaction.
However, for many customers and in many
industries, it goes beyond that.
• When someone hands over their money, there
are a few things that may be happening:
• They have a problem that needs solving. They
are trusting you to solve it or at least help.
Customer • They are giving you payment not just for service
expectations but as a vote of confidence that you're the right
choice.
• That's why when a situation arises where they
need to reach out to you, it can feel personal.
• In these cases, what they really want is to feel
heard and valued. This is even more important
than getting the issue resolved so long as you set
the right expectations.
2. For the process to feel easy and without friction.
• Imagine you're a runner. You're sprinting toward the finish line when you encounter an
unexpected hurdle. You leap over it, disrupting your momentum, and when you hit the
ground again, you have to recover your lost speed.
• Once you hit your stride again, another hurdle has been put in front of you, once again
disrupting your run.
• Runners are working toward athletic goals, personal records, and perhaps a medal or trophy.
Customers who have the option to use an alternative product do not have that same
motivation, so each roadblock that they encounter is one more thing that causes distress in
the customer service journey.
• In fact, according to new data gathered after the COVID-19 pandemic, more than half of
those surveyed (58%) said their customer service expectations are higher today than they
were a year ago.
• If they encounter too many roadblocks and too much friction, they may abandon the effort
altogether if they don't perceive it's worth it, and you don't get the opportunity to resolve
their issue, explain the best aspects of your service or product, and delight them.
3. To see action being taken regarding the request or issue.
• It's not enough to be friendly and empathetic with customers on the phone.
• The fact of the matter is that they reached out for a reason. In most cases, you should be able
to address their question or solve their issue. In the cases in which you can't, customers
expect you to take action.
• While you may not be able to provide a solution, you can:
• Give them alternative solutions to their issue.
• Provide information about any plans that are in motion regarding the issue.
• Forward their concern to the proper department to improve in the future.

4. For an action to be relatively quick.

• 67% of individuals with those higher expectations expect customer service to be faster.
• In the digital age of one-click purchases and instant messaging, instant gratification is
influencing customer behavior. Businesses are then finding ways to adapt with it.
For example, 36% of companies now deliver real-time customer insights to staff to empower
them to resolve issues better and quicker.
5. For all communication to happen on a channel that is convenient for them.
• The days of only reaching a company by phone are over as more businesses increase
the number of channels they're present on.
• Now, customer service strategy might encompass multiple channels, such as chat,
email, social messaging, knowledge bases, and SMS.
• As customers get used to this level of flexibility from other experiences, it will become
even more necessary to implement it in your own business.

Why Is Meeting These Expectations Important?

• As expectations change and get more demanding, it's far easier to fall short in
customers' eyes.
• Only 3% of customers think customer service is unimportant when making a
purchasing decision, and 92% will stop purchasing from a company after three poor
experiences.
• As innovators continue to improve their customer experience and advance service
expectations, failing to meet them can have a big impact on your bottom line.
The customer journey
map
 Elements of a customer journey map

a) Customer Persona
• You can’t understand your customer’s experience until you know who your customer is. If
you haven’t already created a customer persona to represent a group of your customers,
start there.
b) Phases
A phase is the general stage of decision making and purchasing the customer is in. You can
break down buying stages in several ways, but here’s a basic outline:
• Awareness: The customer realizes they have a need, problem or opportunity.
• Research: They research solutions to determine whether to make a purchase and evaluate
options.
• Consideration: They decide they’ll make a purchase to address their need, and they narrow
down their options.
• Purchase: They choose a solution and buy it.
• Support: The customer uses the product or service, engages with the company and decides
whether to purchase again.
 Elements of a customer journey map
c) Touchpoints
• Touchpoints are every interaction the customer has with your brand throughout the buying journey.
Phases may each include several touchpoints.
The touchpoints of your customer’s journey depend on your approach to marketing, sales, product
and customer service. They might include things like:
• Marketing collateral, like posters, stickers, billboards, flyers, commercials or display ads
• Physical properties, including your storefront or office space
• Digital properties, including your website and social media pages
• Interactions with your staff, such as cashiers, customer service reps and sales reps
• Purchase experience, including the price and checkout process
• Any post-purchase follow-up from your company, like an email or phone call
• Ongoing customer support
• Renewal or cancellation of your service
 Elements of a customer journey
d) Customer Thoughts, Actions and Emotions
• This is where you plot the precise customer experience at each touchpoint. What are they thinking
to themselves? Which steps do they take? How are they feeling?
• Don’t guess at this information! Get real feedback from your customers through surveys and—even
better—live interactions with your customer support staff. Basic CSAT (customer satisfaction), NPS
(net promoter score) and CES (customer effort score) questions are a great place to start.

e) Opportunities
• Once you’ve plotted your customer journey, you can include room to note opportunities based on
what you see on the map.
• Opportunities are anywhere you can remove pain points and improve the buying journey for your
customer—where are your customers hitting roadblocks that keep them from buying (or coming
back)?
1. Decide what to measure.
Get clear on your goals, so you know what to
look for as you plot your customer journey.
2. Create your customer persona.
6 Steps to
Start with knowing which buyer you’re focused creating a
on and what their general needs and wants are.
journey map
3. Define your customer buying phases.
What are the stages your customer goes
through between discovering their problem and
deciding to purchase your product or service?
Which stages happen after purchase?
4. Plot your touchpoints.
Within each phase, where does your customer
interact with your brand?
5. Add customer thoughts, actions and emotions.
At each touchpoint, what is the customer 6 Steps to
prompted to think, do and feel? creating a
6. Note your opportunities. journey map
Based on your goals and what you discover
through your customer journey map, which
changes can you make at each touchpoint or
within each phase to improve the customer
experience?
 Group activity: customer journey
mapping

Creating an efficient customer experience

Objective:
• To quickly analyze a customer journey for a service scenario, identifying key
touchpoints, service gaps, and opportunities to exceed customer
expectations.
 Step by step instructions
Scenario Assignment (3 minutes):
Each group will be assigned a short scenario (e.g., dining at a casual restaurant, checking into a hotel,
ordering delivery from a fast-food chain).
Outcome: Groups will use this scenario as the basis for their journey map.
Identify Key Touchpoints (5 minutes):
• Groups will list 4-6 major touchpoints in the customer journey.
• Examples for a restaurant:Reservation/booking.Arrival and seating.Ordering.Meal delivery and service
check-in.Payment and exit.
Outcome: A list of the most important touchpoints in the journey.
Identify One Service Gap and One Opportunity to Exceed Expectations (10 minutes):
• At each touchpoint, the group will briefly discuss and:
• Identify one potential service gap (e.g., slow service during ordering).
• Suggest one way to exceed expectations at that touchpoint (e.g., offering personalized recommendations).
 Step by step instructions
Outcome: A simple analysis of gaps and opportunities to enhance the customer experience.
Present Findings (10 minutes)
Each group will give a 2-minute presentation to the class, walking through:
• The touchpoints they identified.
• One service gap and one idea for exceeding expectations.
• Outcome: A concise presentation of the journey and recommendations for improvement.
 Scenarios
1. Dining at a Casual Restaurant:

A group of friends makes a reservation at a popular casual dining restaurant. They arrive, are seated, order drinks and food, enjoy the meal, and
pay the bill. The restaurant is known for its friendly atmosphere but has been criticized for slow service during peak hours.

Focus Areas: Reservation process, arrival and seating, food ordering, meal delivery, bill payment, and departure.

2. Checking into a Mid-Range Hotel:

A business traveler arrives at a mid-range hotel for a two-night stay. They check in, receive assistance from the staff, experience the room and
amenities, and check out after their stay. The hotel has a reputation for clean rooms but mixed reviews regarding front desk service.

Focus Areas: Online booking, arrival and check-in, room experience, customer service interactions, and check-out.

3. Ordering Takeout from a Fast-Food Chain:

A customer orders takeout using a mobile app from a fast-food chain. They select their order, customize a meal, choose delivery, and track the
order. The fast-food chain is known for quick service but has occasionally struggled with order accuracy.

Focus Areas: Online ordering experience, order customization, delivery time, order accuracy, and post-delivery feedback.

4. Booking a Spa Treatment:

A customer books a 90-minute spa treatment at a luxury spa. They schedule the appointment, arrive at the spa, receive a massage, and leave. The
spa has a high-end reputation but has recently received feedback about its front desk service and wait times.

Focus Areas: Booking the appointment (online or by phone), arrival and check-in, treatment experience, customer service interactions, and post-
treatment follow-up.
 Next week
homework

• Go to Trip Advisor and find examples of

venues who did not meet customers
expectations.
• Share, explain why and what part of the
customer journey was missed?
• Few of you will present their findings next
week
• Post on the discussion on Canvas: screen
shot of the review and write your
comments
Q&A