QUALITY ASSURANCE
Strategic Customer Service Enhancement
A key to successful and cost effective marketing in competitive markets is to differentiate an organization, and its programs, facilities and services, from the competition on features or dimensions most important to its target markets. Quality and customer service are primary discriminators. Thus, it is important that organizations address quality assurance and service enhancement aggressively.
Indications are that quality is one of the most relevant and cost effective ways to augment and add value to service offerings. Studies show that customers are generally willing to pay higher prices for a product or service if they perceive it to be of superior quality. Also, it is more difficult for competitors to offset a true “quality advantage” through price-cutting or increased advertising alone (Sherden, 1988).
Failure to continually improve product and service quality will make it difficult for businesses and organizations to retain existing customers and attract new ones. Failure to meet the quality expectations of customers not only reduces potential revenues, it also increases operating costs, including the cost associated with correcting quality related problems (e.g., redressing complaints). Systematic program and service quality problems can also negatively effect employee morale, attitudes, and productivity which often leads to a further deterioration of service quality and image. An organization’s image and performance, with respect to quality, can also significantly impact its ability to attract funding and retain quality employees.
What is Quality Service and Experiences?
One reason why many service businesses, agencies and organizations have failed, or been slow to develop strategic service/experience improvement programs, is that they have a hard time defining quality in a way that it can be managed and evaluated. Many organizations can not clearly define the concept of quality, never mind specific aspects or dimensions of quality. Service organizations generally have the greatest difficulty conceptualizing and defining quality. This is to some extent due to the inherent and complex nature of services that was discussed earlier in this chapter.
Event though the complex nature of recreation experiences and characteristics of services make it difficult specify and measure quality, it is still important and possible to define service quality. What is important to recognize is that there is no universal definition of quality? A definition that is appropriate and works for one organization may not be applicable in others. Quality must be customer relevant and organization relevant. Since different organizations target and serve different customers, they must develop their own definition of quality based on customer expectations. Parks and recreation organization have to make their s own assessment of what its customers expect and perceive "quality" to be.
While it is true that customer relations and hospitality are important elements of service quality and recreation marketing, however alone are not enough to ensure that customers have quality recreation experiences and positive perceptions. Customers evaluate the quality of recreational experiences and service simultaneously on both functional and technical quality. Technical quality is what customers receive. Examples are the skill of instructions, cleanliness of a campsite, and the maintenance of a tennis court. Functional quality is how the service is delivered including such things as the knowledge, responsiveness and cordiality displayed by the organization’s staff.
Although definitions of recreation experience and service quality will vary, most authors agree that any definition must be customer focused and relevant Any definition of quality that does not include the customer’s viewpoint is incomplete, and any concept of quality that is not oriented to customer satisfaction will not be adequate. John Guspari (1988) argues forcefully that “The customer is the final arbitrator when it comes to quality.” There is general agreement that, “It is not those who offer the product but those whom it serves - customers, users - who have the final word on how well a product fulfills needs and expectations (Blume, 1988).” 1984
Most definitions of service quality emphasize that the key elements in determining customers’ perceptions of quality are:
· Their expectations
Expectations are predictions made by customers about how a service provider is going to perform, not necessarily how it does perform (Guspari, 1988). Customer expectations are formed based on:
Ø Their image of the organization,
Ø Their prior experience with the organization, and its products and services,
Ø The marketing mix including promotional messages, and
Ø Word-of-mouth communication from other people who have experience or perceptions about the products or services.
· A comparison of the service experience they received (or perceived they received) with their expectations.
· The after-experience evaluation of the degree to which the product or service met their expectations.
· The degree of success in control for variability.
An expectation-based definition of quality requires a business or organization to identify, continually monitor, and if possible anticipate changing customer expectations. It is important to recognize that defining quality as meeting customer expectations does not eliminate the need to develop product and service performance standards. It means standards must relate to customer expectations.
A number of the definitions reviewed stressed that it is not enough to meet customer expectations. Organizations must exceed them. While it is true that if organizations consistently exceed expectations, customers will have a
strong sense of perceived quality, defining quality as consistently exceeding customer expectations is too abstract in that it does not provide a definitive standard. Defining quality as meeting customer expectations provides a clear target provided that customer expectations are determined and communicated to staff.
The Management of Customer Service Enhancement
According to one management expert, “Managers of businesses have three primary objectives: (1) to enhance customer satisfaction, (2) strengthen competitive position, and (3) improve earnings (Butterfield, 1987).” Obviously, the success of for profit businesses are dependent on how well it meets the needs and expectations of their customers. But, managers of not-for-profit organizations and agencies must attract funding and maximize net public benefits. A quality assurance program can contribute significantly to the achievement of all these management objectives. It will also help focus employees, decisions and processes on customer expectations and satisfaction.
The quality of services and experiences provided by park and recreation organizations can and must be managed.
Service quality problems can be divided into three general categories (1) poor performance on the part of particular employees, (2) special and unforeseen circumstances (e.g., weather, equipment breakdowns) and, (3) process failures. Problems with organizational processes account for more than three-quarters of all quality failures (Orsii, 1982). Focusing on processes can best enhance service quality, because focusing on processes helps prevent problems from occurring (Moore, 1987; Hansen et.al., 1988). " Fundamentally the process that must be managed is the process by which various departments and employees function together to provide value to its customers (Guspari, 1988).” According to Philip Crosby (1979), quality management is a systematic way of guaranteeing that organized activities happen the way they are planned.
As Salton (1988) put it, the process of quality improvement all boils down to creating a conducive environment (system), providing the necessary support and tools, and motivating individuals to realize the achievement of quality goals. This is clearly a management function and responsibility. Even though service enhancement is a responsibility shared by all employees throughout the organization, ultimate responsibility falls not to customer contact staff (e.g., receptionists, and technicians) but rather to top and middle managers.
The Need for Comprehensive Service Improvement Strategies
The fact that park and recreation customers and other stakeholders (e.g., elected officials, sponsors, and volunteers) are demanding improved quality should be sufficient reason organizations to develop service improvement programs. For agencies and non-profits service quality can affect public support and funding. Most customers have a wide range of recreation and activities and providers to choose among. Customers are not reluctant to shift to organizations that provide programs, facilities and services and products that meet or exceed their expectations even if it means paying more or traveling greater distances. One service expert put it this way, “Your best customer is someone else’s best prospect (Drier, 1987).”
Quality recreation programs, facilities and services don’t just happen. Park and recreation organizations must develop, implement and evaluate the effectiveness of comprehensive service improvement program that focus simultaneously on facility, program and service(s) quality. Service improvement efforts should be integrated within the framework an organizations strategic plan. A plan is needed to connect your business -decisions and activities - to customer expectations (Brown, 1987a).” Without a plan, the tendency in many organizations is to deal with the symptoms of quality problems (Vavoso, 1987), and to place primary responsibility for quality on employees, and not on management where it really belongs.
Without question, handling of customer concerns and complaints is an important component of customer service but a service enhancement program should focus on preventing problems by creating attitudes and controls that make prevention possible (Orsini, 1982). Preventing quality related problems is preferable and usually less costly than redressing customer complaints. Responding to customer complaints is no assurance the problem won’t occur again. Also, preventing quality problems before they occur can improve employee morale and productivity by reducing the time and stress associated with dealing with dissatisfied customers. While it is true that superior service and complaint handling can mediate compensate for occasional product and facility technical shortcomings, it cannot compensate for products and facilities which consistently fail to meet customer expectations. It is a myth that a pleasant smile can remedy all problems.
Successful service improvement efforts can also enhance the effectiveness and efficiency of marketing communications and public affairs efforts by enhancing customer bonds, by creating an image of quality, and through support from positive word-of-mouth communication. It is very difficult and very costly for organizations to effectively promote products and services to quality conscious markets if they have reputations for poor or inconsistent quality. Consistently providing quality facilities, programs, products and services can provide organizations with a very effective marketing communication theme. A reputation for high quality will also encourage marketing partnerships with other organizations.
Organizations that have a reputation for delivering quality services and products also find it easier to attract and retain quality employees. "In organizations where quality is poor and customer dissatisfaction is high, employee morale is often low and employee retention is difficult. Organizations that have service enhancement programs tend to treat their employees with the same respect, care, and responsiveness as customers. Marriott Corporation and other quality service organizations work hard to attract, support and retain quality employees because it knows that quality people desire to work for quality organizations.
A service enhancement program can actually reduce costs. According to Philip Crosby (1979), once a quality improvement program is implemented, most managers agree that quality is free. Crosby contends that “What costs money are the unquality things -- all the actions that involve not doing things right the first time.” This includes costs associated with responding to customer complaints, reduced productivity, employee stress and turnover, and in some instances, liability costs.
Other bonuses from implementing effective quality assurance include: more effective management and managers, customer-focused innovation, internal partnerships between employees and different departments, and a better image and relationship with the local community.
Service Enhancement Programs
Service enhancement programs should: (1) move quality from an abstract concept to something that can be managed and evaluated by identifying customer expectations and the level of program, facility and service features and performance required to meet those expectations, (2) identify, assess the cost effectiveness, and prioritize new programs, services, facilities, and processes for improving quality; and (3) serve as the basis for educating the organization about quality and the approach the organization plans to take to improve quality.
While, there is no universally correct approach to improving the quality of recreation programs, facilities and services, experience and research indicate that the following elements are common to most successful programs (See Figure 11- ) :
1. Develop and sustain an organizational commitment and climate for service improvement.
2. Identification of existing and prospective customers, their program, facility and service expectations, and their perceptions.
3. A comprehensive program, facility and service audit
4. Service improvement program
· Service quality objectives
· Technical and functional performance standards
· Human Relations Program
· Participative Management and Empowerment
· Complaint Solicitation, Handling and Analysis System
· Employee Education
· Point-of-Purchase and Promotion Post Consumption
· Customer Education
5. Monitoring and evaluating customer satisfaction and results of service improvement efforts
Organizational commitment and climate for service improvement
Gaining commitment to quality and service improvement is so important that it must be the first step in a service improvement program. Even the best intentioned, most well designed service improvement program will fail unless management, support staff, and front-line line employees are committed from the very beginning. Employees must be genuinely concerned and feel responsible for improving the quality of programs, facilities and service. Top management cannot assume that their employees or managers are already committed to quality improvement.
The success of any quality assurance effort depends significantly on the early and full support of top management Employee support is a direct function of perceived management commitment. Without management support and leadership the quality program will lack a sense of importance and employees will either disregard the effort, or treat it in a very apathetic way (Kurman, 1987). Commitment to quality and continuous improvement must come from the top. As Edward Demming (1982), one of the pioneers in quality assurance stated, “It is not enough that top management commit themselves by affirmation for life to quality. They must know what they are committing to, i.e., what they must do. Mere approval is not enough... they must act.” Managers in organizations must also win employee commitment by:
· Marketing the concept of quality and service to their employees. They must convince and demonstrate to all employees that their individual performance and concern for customers has an impact on quality and customer satisfaction, which in turn will affect the long-term well being of the organization, and therefore their well being (Hagan, 1984).