The assurance of the service delivery in accordance with the value proposition, the user/customer demand, and the encounter experience is an essential matter in the management and outcome. It is to ensure that the agreed attributes are met with their superior value (excellence) and the user approval with maximum satisfaction. These compliance commitments define the link between service and end user, and set up a reliable, effective, and long-term relationship, as well as the branding construction and its positioning in the user mind as it is postulated by the discipline of marketing.
Servimetry is the term associated with the concept of Servilogy, conceived and developed in this work to mean the application of principles, knowledge, methodologies, and tools in measuring the management and performance of the service and the relationship with the user/customer.
Compliance management as a strategic process for ensuring the proper service delivery is an organizational logistical support formed by the set of activities and components used in the provision and confirmation of an agreed value. It is systemic and bimodal in its approach to service and aimed at strengthening quality, consistency, and trust, as well as satisfaction and relationship with the end user. Its analysis and treatment allow the specific objective of measuring compliance with the shared value proposition from the user’s perspective. It can be modeled and managed according to the type or nature of the service delivered and with the possibility of being endorsed by an independent entity.
The servitization process entails in its development, the design of a strategic management model to ensure compliance with the delivery phase, the meeting point, the interaction, the experience, and the probable attraction of the added service.
Service Compliance Management Pattern
There are several standard references related to information, activity, and technology, for the design of a compliance management system (ITIL4, ISO/IEC20000-1: 2018, COBIT, eTOM, etc.) that can be adaptable to the peculiarities of each organization. However, the immaterial nature of the service, its heterogeneous nature, and the active participation of the user in the experience of value co-creation give rise to the particular confection of a pattern of fulfillment appropriate to their distinctive quality.
In this context, the service compliance management process distinguishes three phases:
Service Code
It is the set of principles and values, policies, norms, and business guidelines that are binding on the service proposal: user profile, delivery strategy, user encounter and experience, relevant instrumentation and measurement process, and service audit. The provisions of this code, aimed at planning, activities, operations, performance, and accountability for compliance, govern the personnel behavior at all levels of the organization, as well as its associates, allies, and related parties.
This service regulation conforms specifications such as:
(a) Service principles. The set of beliefs and values that define the company commitment, guide, and regulate the provision of service to the internal and external organization user: quality of service, responsibility and compliance in delivery, transparency in interaction and communication, and so on. The heterogeneous nature of service and the user’s expectation define the relevant attributes of the service’s value proposition.
(b) Service policy. It establishes the guidelines and procedures that describe and govern the commitment, performance, and compliance of the organization in its service offering. Define service essential elements such as:
• Know the needs and expectations of the user and always give them the highest priority.
• Maintain a positive, attentive, and cordial attitude during the performance at the encounter point and interaction with the user.
• Adapt the service system to the user requests and expectations.
• Ensure to the user through the engineering and architecture of the service, an environment of convenience, comfort, and safety.
• Attend with decisive character, promptness, diligence and impartiality, the dissatisfaction and inconvenience of the user.
(c) Service performance scorecard. It is the organizational management instrument for measuring the performance and evolution of the activity, the objectives, and outcomes of the company’s service through the establishment of benchmarks and key performance indicators (KPI). The distinctive character of the service business compared to the manufacturing one leads to the identification of the difference between both processes to empower and create the appropriate and effective service management scorecard.
The service process presents different dimensions and attributes in relation to manufacturing companies, particularly in regard to people, operations, and artifacts. The people-oriented service process and its reason for being as a business are defined by the interaction of creating memorable experiences for the end user.
What attributes that characterize the service business are necessary to know in order to create and institute a set of KPI and a service-balanced scorecard?
The following chart shows the characteristic attributes of the service business.
Table 3.1 Attributes of the service business
Factor | Attributes |
Input | Data, information, knowledge |
Supplier | Few with intense bonding |
User | Look for results, solutions, experiences. Participates in the delivery of the service, performance is an intangible complex to measure, etc. |
Process | Sequence of integrating activities of people, approaches, methods, materials, equipment, and tools. |
Outcome | Experiences that create the result: satisfaction, solution, bonding, trust, etc. |
From this distinctive perspective, the creation of a service-balanced scorecard focuses on defining the principles and criteria for measuring performance and identifying and establishing the key success indicators for its measurement process and subsequent action.
This activity distinguishes the service mode and the five phases in the value chain:
1. The commitment of the organization, company, and business.
2. The employee identification and commitment with the organization and the end user.
3. The excellence or quality level in the operation and delivery process.
4. The end-user experience and satisfaction.
5. The customer connection and trust.
The structure of the service-balanced scorecard serves as a reference instrument for measuring compliance and conformity with the service purposes. It offers a complete vision at the level of (A) user, (B) management, (C) operation, (D) performance, and (E) supplier that are shown as an illustration in Table 3.2.
Measurement of Service Compliance
The process of applying the evaluation methods and instruments from the user’s perspective, analysis of the information, interpretation of the results, issuance of the report, and adoption of actions related to compliance and conformity of the service proposal.
Conceptually, the service measurement is based on its intangible nature and the user´s leading role. In this context, the orientation of the verification methods and instruments is directed in contrast to those of manufacturing, outside the company. It is the fulfillment, conformity, satisfaction, and linking of the user’s needs and expectations with the value proposition, its implementation, delivery, meeting, and the service experience along with essential correspondence to the service business success and sustainability.
The availability of reference methods and instruments for measuring service is wide and varied. In this phase of the process, known, proven, and frequently used instruments are presented by companies in the key areas of management, operation, and performance.
Table 3.2 Service performance indicators
Vision | Objective | Indicator | Measurement (*) |
User | Satisfy | Compliance | Servqual/E-S-Qual |
Experience | Experience | NPS/CES | |
Trust | Retention | NPS | |
Management | Lead | Leadership | |
Grow | New services | NPS | |
Operation | Execute | Efficiency | ISO standards |
Improve | Technology | ||
Performance | Deliver | Performance | Various performance evaluation tools |
Comply | Compliance | ||
Supplier | Deliver | Reliability | Various performance evaluation tools |
(*) Models and tools
1. The Servqual1/E-S-Qual2 model. It is one of the best known and applied tools in measuring the quality-of-service business, from the user´s perception and expectation. It offers a version for assessing the quality of the face-to-face service and another for the virtual or electronic service delivered over the Internet.
In the face-to-face model, the quality of the service is conceptualized in 21 questions grouped into five (5) dimensions: reliability, responsibility, assurance, empathy, and tangible that are adaptable to the situations of each evaluated service and described in the table below:
Table 3.3 Servqual dimensions
Dimension | Description |
1. Reliability | Ability to execute and deliver the service on time, in the same way and without defects. |
2. Responsibility | Willingness and responsiveness |
3. Assurance | Competence to provide the service |
4. Empathy | Flexibility to place oneself in the user’s position |
5. Tangibles | Physical appearance of personnel, facilities, and communication |
Source: Parasuraman, A., V. Ziethaml, and L. Berry. 1988. “SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality.” Journal of Retailing 62, no. 1, pp. 12–40.
In the electronic model, the user assesses the service quality from the perspective of how the website efficiently and effectively facilitates the search, purchase, and delivery of the service. This is done through a questionnaire of 11 questions grouped into 3 dimensions: contact, responsiveness, and compensation for incidents and noncompliance.
Table 3.4 shows the evaluated attributes.
2. The Kano model.3 It is a tool for identifying, classifying, and measuring the relationship between the attributes of a product and the degree of satisfaction they produce for the consumer. This model results in theory for product development by focusing on distinctive specifications, rather than initially focusing on consumer needs. It establishes five quality categories to catalog customer preferences:
Table 3.4 E-S-Qual dimensions
Attribute | Description |
Reliability | Correct technical operation of the site and the accuracy of service promises (have items in stock, deliver what was ordered, deliver when promised), billing, and product information. |
Responsiveness | Promptness of response and ability to solve problems and resolve questions and concerns. |
Access | Ease to access the site quickly and connecting with the company when necessary. |
Flexibility | Choice of payment methods, shipping, purchase, search, and return of items. |
Ease to navigate | The site contains functions that help users to easily find what they need; it has good search functionality and allows the user to move easily and quickly from one side to the other of the pages. |
Efficiency | The site is easy to use, is structured correctly, and requires minimal information to be entered by the user. |
Assurance/trust | The trust that the user feels in their interaction with the site based on the prestige of the site, the products, or services it sells, and the clear and truthful information presented. |
Security/privacy | Degree to which the user believes that the site is safe from intrusions and that personal information is protected. |
Price knowledge | Degree to which the user can determine the shipping price, the total price, and the comparative prices during the purchase process. |
Site aesthetics | Appearance of the site |
Customization/personalization | How much and how easily the site can be adapted to the preferences, stories, and ways of buying of individual users. |
Source: Zeithaml, V.A., A. Parasuraman, and A. Malhotra. 2005. “E-S-Qual: A Multiple-Item Scale for Assessing Electronic Service Quality.” Journal of Service Research 7, no. 3, pp. 213–233.
• Reverse or Rejection: Characteristics of the product perceived as negative and that produce rejection.
• Indifferent: The product attributes that do not have a favorable or unfavorable impact on customer satisfaction.
• Basic or expected (Satisfactors): Minimum attributes of a product that the consumer expects and that causes dissatisfaction if they are not there.
• Desired (Unsatisfying): Attributes requested of a product and that significantly influence consumer or user satisfaction. They are indicators of competitiveness.
• Attractive (Delightful): Attributes that surprise the customer which he also values. Their absence does not impact customer satisfaction.
Source: Kano, N., N. Seraku, F. Takahashi, and S. Tsuji. 1984. “Attractive Quality and Must-Be Quality.” Hinshitsu: The Journal of the Japanese Society for Quality Control 14, no. 2, pp. 39–48.
3. Recommendation index: better known as NPS, net promoter score. It is a method/indicator for measuring customer satisfaction and loyalty oriented by the answer to the question about the probability of recommending, advising, or referring a product (service, company, business, brand, event, etc.) to another person (friend, relative, etc.).4
The response on a scale of 0–10 allows the identification of three (3) categories of clients: detractor (0–6), passive (7–8), and promoter (9–10).
It is considered a method of generalized use, simple, and an accurate indicator of the experience lived at the encounter place, be it face-to-face or digital.
4. Effort index: CES, customer effort score, is a metric that estimates the degree of effort of a user (time and energy) to manage and achieve their purpose (buy, use a service, request information, or solve a situation) each time they access and interact with a company or brand. It is measured by the question: How easy is it for you to achieve what you require from this company? Using a numerical rating scale of 1–7, where 1 indicates the greatest probability of repurchase, increased spending, and user recommendation, while a score of 7 shows the most difficult or negative experience. A score of 7 also indicates the true probability of not only not returning but of commenting on it in their immediate environment as well as on social networks with its undesirable consequences.
The logic behind the ease of the experience is that the less effort, the greater the possibility of winning the loyalty of the user.5
5. Customer experience index: As its name indicates, it measures the experience of the user with the encounter, interaction, and comfort of the service. Having a holistic vision of the customer’s perception in the service encounter implies estimating a set of variables, some of them already considered in the previous sections, such as satisfaction, NPS, CES, retention, desertion (churn), customer value, and so on.
In this context, emotions are a central factor to consider. The importance of emotions is in decision-making and the customer bond creation which are keys to customer loyalty.
In this area, the arrangement of systems, models, and tools is varied and extensive, starting from Robert Plutchik’s “wheel of emotions”6 to Forrester’s CX index,7 one of the best known and most authorized on the topic.
The Compliance Assurance
The managerial verification process between the organization’s commitment and the service performance considers how the established principles correspond to the company’s governance scheme. The results and recommendations are reported for continuous monitoring and assurance.
In this phase, possible barriers to satisfactory fulfillment of the service commitment are recorded, analyzed, and managed: unforeseen events or events that occurred during the service process. These possible barriers could be difficulties that prevent the provision of the service, additional requests, or requests outside the service proposal and inconveniences in accessing the service.
Management of Service Compliance
Purpose
The following application exercise seeks to consolidate knowledge about the process and instruments for ensuring performance and service compliance and the experience with the user.
Select one of the tools described in the previous chapter and apply it to a known service of your interest.
(a) Design the application instrument or use an available format
(b) Validate the instrument for understanding and accuracy
(c) Select at least 10 service users
(d) Apply instrument, tabulate, and analyze information. Prepare a report and be prepared for presentation.
Outcome
Appropriation of knowledge and development of skills for the management of service compliance assurance.
Final Acknowledgment
Upon completing this application exercise, the reader will have acquired sufficient knowledge of instruments for measuring service delivery, performance, and experience; as well as acquired skills for the management of the assurance of the fulfillment of the service with the user.