Term Paper on "Services Organization Recovery a Hair Salon"
Term Paper 10 pages (2695 words) Sources: 6
[EXCERPT] . . . .
Services Organization Recovery: Hair SalonService recovery is a marketing concept that encapsulates the most customer-focused marketing strategy possible. According to Fred van Bennekom (no date given), the goal of service recovery is to identify customers with issues and then address those issues to the customer's satisfaction. It is believed that by doing this, it promotes customer retention and positive word-of-mouth.
The underlying economic case for service recovery is simple - it costs a lot of money to win a customer in the first place, much more than it will cost to retain them. Moreover, bad experiences lead customers to bad mouth the company, resulting in a decline in future business. Yet many firms do not actively engage in service recovery. Van Bennekom (no date given) outlined five stages of service recovery, from the lowest (moribund) to the highest (infused). Often times service firms fall into either the second-lowest (reactive) or middle (active listening) category. In this case I will consider a hair salon, and how to bring the service recovery function to the highest level.
Timeline Act I
Front
Stage
Contact Person (visible)
Contact Person (invisible)
Back Stage
Physical Interaction internal)
IT processes
Book the appointment
W)
Response time
Script for booking
Sound & tone of voice if in person
Appearance of employee
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Building interior
Nature of neighborhood
Accept appointment
Confirm appt details
Check availability
Maintain appt book
Maintain stylist schedule
Maintain phone service
Confirm Appointment
Script for confirmation
Sound & tone of voice
Confirm appt details
Mark appt as confirmed
Maintain appt book
Maintain stylist schedule
Maintain customer contact info
Maintain phone service
Customer arrival
W)
Appearance/demeanor of reception staff
Reading material
Decor of salon
Comfort of furniture
Script for greeting
Sound & tone of voice
Greet customer
Confirm appointment
Update appt status
Offer reading material
Inform stylist of arrival
Acquire reading material
Maintain appt book
Maintain premises
Act II
The Consultation (F)
Script for consultation
Stylist attentiveness
Stylist responsiveness to customer needs
Breadth of styling options
Discuss the options
Devise a plan with customer
Formulate plan
Stylist training
Maintain premises
The Styling (W, F)
Quality of styling
Time to complete
Adherence to consultation
Shampoo, rinse, cut, dry, color, style
Stylist training
Store supplies
Acquire supplies
Maintain premises
Post-Style Consultation (F)
Script for post-style consultation
Level of stylist concern
Possible involvement of salon staff
Consult with client regarding quality of the workmanship
Possible sale of supplies
Managerial oversight
Store supplies
Acquisition & delivery of supplies
Maintain premises
Payment
Inform client of monies owing
Receive payment
Opportunity to solicit feedback
Possibly set up next appt
Script for payment
Inform client of bill
Solicit feedback
Book next appt
Accept payment
Return change if necessary
Process payment
Clean up for next customer
Maintain adequate float
Maintain credit card facilities
Moments of Truth
There are three critical moments of truth for a hair salon - when a customer books an appointment, when they arrive for the appointment, and when the service has been performed.
The first moment of truth is when the customer books an appointment. At this point, the customer has been attracted. Whatever marketing function has brought the customer to the door or to the telephone, they have chosen to give the salon a chance. It is important to remember that the value of the stylist's work to the customer is more than just that of a simple cash transaction. While many other products and services can be replaced, discarded or otherwise dismissed, a haircut has a greater sense of permanency. If the cut is poor, it cannot be undone. All that can be done is an attempt to cover it up. Because of this, the decision to use a certain salon or stylist is not taken lightly. The customer is putting his/her appearance, which is essentially an extension of his or herself, on the line. Therefore the customer needs to feel 100% confident. That is why even talking to the receptionist represents a moment of truth. The customer has the choice at that point to simply change his or her mind about making the appointment, and find another salon, should he or she feel uncomfortable about the service they are about to receive.
The second moment of truth is when the client arrives for the haircut. At this point, they still have neither paid nor received any service. Once again, it is critical that they feel 100% comfortable with the situation. The service level here should be very high. The risk that the client walks away is lower than at the appointment-making stage, but the damage is higher since at this stage there is no opportunity to recover the lost business. The stylist merely has free time for which they are not being paid.
At this stage, one of the biggest risks is with regards to the client's time. Should the stylist be running behind schedule, this represents a potential problem that must be dealt with proactively. Essentially, the customer has been asked to set aside some of their time. They are not necessarily undertaking the appointment at their convenience, it is as much at the convenience of the stylist. So respect for the client's time is paramount. That is what makes this such a key moment of truth - there is the risk of service failure from the outset here and any inability to address the issue or fail to recognize the client's needs can result is a total customer service failure.
The third moment of truth is after the service has been performed. It is rare that somebody would walk out of a haircut in the middle, so we can presume that once the client has allowed the stylist to proceed, they will allow the stylist to finish. This moment of truth is one for both the stylist and the salon. Until this point, the salon has been largely responsible for the moments of truth. Here it is the service rendered that is being evaluated. Future business will depend on customer satisfaction. This is also an industry that relies heavily on word-of-mouth promotion, and negative word-of-mouth can have damaging effects.
This moment not only entails the service that has been rendered but the post-service evaluation process as well. It is there that the customer will be evaluating the service rendered and therefore both the stylist and the salon must ensure that the client's needs have been met. The salon industry is relatively unique in that this mode of direct, immediate customer feedback is ingrained into the way business is conducted. Most businesses, even within the service sector, do not have such a feedback mechanism built into their regular process.
The final moment of truth is when the customer models their new hairstyle to their friends. This is an important moment of truth not only because the customer typically places a lot of value on their friends' opinions of the styling work, but also because word-of-mouth is such a key factor in the salon business. So not only is this a moment of truth for one customer at the end of their particular transaction cycle, it is the potential beginning of several other transaction cycles.
There are several determinants of satisfaction for a hair salon. The first is the customer service level of the salon staff, in terms of making the appointment. Their friendliness and professionalism can impact the overall satisfaction. Another determinant are the hours the salon keeps - are these convenient for the customer?
With respect to the stylist, the performance of the haircut is the most important determinant of satisfaction in the entire process. Another determinant is the consultation process before the cut is implemented. This important part of the process not only will have an impact on the satisfaction gained from the cut itself, but is also key to building confidence in the process and in the salon. It helps in avoiding problems as well, because the customer is involved in shaping the final service rendered. The service after the cut is also important, from the final consultation with the stylist, to the service level given by the salon staff during the payment and exiting process. The final determinant of satisfaction is when feedback is received from the customer's friends. If the friends do not respond positively to the new style, the customer's satisfaction will diminish.
Service Recovery Strategy Plan
The first part of the service recovery plan should be to address the issue at each of the three major moments of truth. For each moment, a strategy should be in place to identify service failures and initiate the recovery process. It is not sufficient to merely react to a complaint - the salon must actively solicit feedback. Currently, most salons will solicit feedback at the third moment of truth, but even at that point there is more than can be done.
The first moment of truth is the point at which the appointment is made. For the customer, the decision made at this moment is whether or not to proceed with… READ MORE
Quoted Instructions for "Services Organization Recovery a Hair Salon" Assignment:
Services Marketing
Company: A Hair Salon
Please download the file in the link below:
http://home.exetel.com.au/ecoon/SM-flowchart.zip
Service organisation: A Hair Salon company
students are required to an***** the service organisation in question in more elaborate detail. Write a report that addresses the following:
1. What is the service organisation's front stage and back stage functions? Present this as a blueprint ***(MUST BE THE SAME WAY OF PRESENTING as shown in the file of "SM-flowchart.zip" as provided)***
2. What are the "moments of truth" for this service organisation? Show the determinants of satisfaction/dissatisfaction for this Hair Salon organisation
3. Devise a service-recovery strategy plan for the service organisation to deal with various critical incidents.
How to Reference "Services Organization Recovery a Hair Salon" Term Paper in a Bibliography
“Services Organization Recovery a Hair Salon.” A1-TermPaper.com, 2008, https://www.a1-termpaper.com/topics/essay/services-organization-recovery-hair/41434. Accessed 5 Oct 2024.
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