The Flower of Service The Flower of Service •There are two types of supplementary services •1. Facilitating: either needed for service delivery, or help in the use of the core product •2. Enhancing: add extra value for the customer •In a well-managed service organization, the 8 petals and core are fresh and well-formed, 租車，運輸年會，主題公園，歌劇院 •Market positioning strategy helps to determine which supplementary services should be included • The Flower of Service Core Information Consultation Order-Taking Hospitality Payment Billing Exceptions Safekeeping 1. Facilitating elements 2. Enhancing elements 1. Facilitating Services – Information, Airlines, Amazon, RFID • Directions to service site • Schedules/service hours • Prices • Reminders • Warnings • Conditions of sale/service • Notification of changes • Documentation • Confirmation of reservations • Summaries of account activities • Receipts and tickets Facilitating Services – Order-Taking, Banks, Insurance company, OpenTable Applications • Memberships in clubs/programs • Subscription services (utilities) • Prerequisite based services (financial credit, college enrollment) Order Entry • On-site order fulfillment • Mail/telephone/e-mail/web order Reservations and Check-in • Seats/tables/rooms • Vehicles or equipment rental • Professional appointments Facilitating Services – Billing, Hotel restaurant, Rental car lot • Periodic statements of account activity • Invoices for individual transactions • Verbal statements of amount due • Self-billing (computed by customer) • Machine display of amount due Facilitating Services – Payment, Movie theater, Train, PayPal Self-Service • Insert card, cash or token into machine • Electronic funds transfer • Mail a check • Enter credit card number online Direct to Payee or Intermediary • Cash handling or change giving • Check handling • Credit/charge/debit card handling • Coupon redemption Automatic Deduction from Financial Deposits • Automated systems (machine-readable tickets that operate entry gate) • Human systems (toll collectors) 2. Enhancing Services – Consultation, Hairstylist, Diet center, Diagnostic test • Customized advice • Personal counseling • Tutoring/training in product use • Management or technical consulting Enhancing Services – Hospitality, Private hospital, Restaurant, Airlines Greeting Food and beverages Toilets and washrooms Waiting facilities and amenities • Lounges, waiting areas, seating • Weather protection • Magazines, entertainment, newspapers Transport Security Enhancing Services – Safekeeping, Bank, Department store Caring for Possessions • Child care, pet care • Parking for vehicles • Coat rooms • Safe deposit boxes • Security personnel Caring for Goods Purchased • Packaging • Transportation and delivery • Inspection and diagnosis • Cleaning • Refueling • Preventive maintenance • Repair and renovation Enhancing Services – Exceptions, Restaurant, Airlines Special Requests in Advance • Children’s needs • Medical or disability needs • Religious observances, vegetarian meals Handling Special Communications • Complaints • Suggestions Problem Solving • Assisting customers who have suffered an accident or a medical emergency Restitution • Refunds and compensation Managerial Implications •Not every core product is surrounded by all 8 petals supplementary elements. •People-processing and high contact services have more supplementary services. Low-cost, no-frills basis firms needs fewer supplementary elements •A company’s market positioning strategy helps to determine which supplementary services should be included. Managers should continually review their own policies and their competitors. •