MGT 3501 Lecture Notes - Lecture 5: Waffle House, Customer Retention, Service Level
Document Summary
Service operations is responsible for producing the services of an organization and providing them directly to its customers. Services are activities offered by one party to another. Service level and cost must be properly balanced. Good service = happy/satisfied customers = increased profits. A 5% increase in customer retention can increase profits by 25% The most effective way to grow business is to turning satisfied customers into loyal customers. What pleases one customer may not please the next. The variability of what pleases a customer is enormous. Tough to develop cost effective and efficient procedures. Setting and meeting customer expectations is key. When customer expectations are in line with expectations set by the firm, satisfaction is high. Most conflict comes from a misunderstanding of expectations. Variety of store designs, designed to be very welcoming and relaxing. Want the customer to stay all day. One store design, designed to eat food quickly and be efficient for the staff.
