1. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 1 Chapter 3 Plugging into the Information Age

2. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 2 Objectives 1.To explore the services economy and the information age 2.To show how services marketers can use information technology as an employee tool for improving customer service and increasing productivity 3.To demonstrate how services marketers can enlist information technology to empower their customers 4.To explain how information technology can help bridge the physical distance between organization and customer and enable the interactive experience

3. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 3 Objectives (cont’d) 5.To illustrate the various ways in which services marketers can employ information technology to learn more about their customers and respond to them more effectively 6.To caution service organizations regarding the negative impact of technology 7.To convey the many challenges of using technology to manage customer interfaces in service industries

4. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 4 Outline I.Introduction II.Services and the Information Age III.Enabling the Interactive Experience IV.Curating Customer Information V.Coping with Negative Impacts of Services Technology VI.Challenges of Using Technology to Manage Customer Interfaces VII.Summary and Conclusion

5. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 5 Services and the Information Age

6. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 6 Services and the Information Age (cont’d) Technology in the Core Service Technology as a Supplementary Service Support Tool

7. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 7 Enabling the Interactive Experience

8. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 8 Empowering Employees Through Technology Technology Devices Networking

9. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 9 Empowering the Customer Self-service machines, such as vending or automated teller machines (ATMs) Computerized service delivery systems Intelligent agents Service robots

10. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 10 Curating Customer Information Advances in information technology have allowed organizations to collect large quantities of information about customers and to create and deliver customer services hitherto unimaginable. It has also become possible to move from mass marketing to targeting individuals.

11. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 11 Curating Customer Information (cont’d) Customer databases require several steps: –Group customers into categories: current customers, prospective customers, and lapsed customers –Data on the recency and frequency of each customer's purchases –Data on each customer's purchases over a period of about twelve months –Data on relevant customer information that will improve the company's ability to serve customer needs (preferred sizes, birthdays, credit card numbers, etc.)

12. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 12 Curating Customer Information (cont’d) Uses –Tracking customers' purchase patterns –Make purchase patterns easily accessible to the frontline service provider Cautions –Services marketers need to be very cautious about privacy issues as they create and use customer databases

13. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 13 Coping with Negative Impacts of Services Technology Technology will continue to play a critical role in service organizations’ competitive position. Service organizations often find that they have implemented new technology systems only to discover they have made no provisions for the absence of the technology during a power failure. Services employment levels may fall in absolute terms as technology replaces workers or reduces the need for workers.

14. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 14 Challenges of Using Technology to Manage Customer Interfaces Weak links in technological customer interfaces Steps for improving the technology of customer interfaces

15. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 15 Weak Links in Customer Interfaces Automated Idiocy –The rush to automate service functions often leads to systems that automatically do stupid things. Time Sink –New services technology can steal valuable time from the technology user. Law of the Hammer –Based on the idea that a small child with a hammer sees everything as a nail. Technology can be used too much! –An obsession with too many “bells and whistles”

16. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 16 Weak Links in Customer Interfaces (cont’d) Technology Lock –Technological designs persist long after their functional value is gone. Last Inch –Many customer interface problems occur at the point of contact between the customer and the technology. Hi-Tech Versus Hi-Touch –Customers face a confusing set of automated instructions when they really need to speak to a human being and not to a machine. Phone mail can become “phone jail.”

17. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 17 Steps for Improving the Technology of Customer Interfaces Provide marketer input into the technology of customer interface design –The marketer can help prevent design problems Stay customer-focused, not machine-focused –Essential to successful customer interface design Make services technology invisible to the customer –Place technology in the background Insist on flexible design –Insist on designs that offer employees and customers maximum flexibility

18. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 18 Web Sites Apple (http://www.apple.com), p. 34 & 36 Amazon (http://www.amazon.com), p. 35 eBay (http://www.ebay.com), p. 35 Google (http://www.google.com), p. 35 Facebook (http://www.facebook.com), p. 35 & 38 Youtube (http://www.youtube.com), p. 35http://www.youtube.com TED (http://www.ted.com), p. 35http://www.ted.com

19. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 19 Web Sites (cont’d) Wall Street Journal –Interactive edition (http://www.wsj.com), p. 37 –Careers resource (http://www.careerjournal.com), p. 37 LinkedIn (http://www.linkedin.com), p. 38 AT&T (http://www.att.com), p. 38 Ogilvy and Mather advertising agency (http://www.ogilvy.com), p. 38 HotWired (http://www.hotwired.com), p. 38

20. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 20 Web Sites (cont’d) Siebel Systems (http://www.siebel.com), p. 38 MySpace (http://www.myspace.com), p. 38 Newscorp (http://www.newscorp.com), p. 38 Dropbox (http://www.dropbox.com), p. 39

21. Fisk/Grove/John-4e, Copyright © Cengage Learning. All rights reserved. 1 | 21 Web Sites (cont’d) FedEx (http://www.fedex.com), p. 40 American Airlines (http://www.aa.com), p. 40 Travelocity (http://www.travelocity.com), p. 40 Dell Computers (http://www.dell.com), p. 41 Expedia (http://www.expedia.com), p. 43 Get Human (http://www.gethuman.com/us/), p. 43