Service efficiency and service
quality have often been considered two different dimensions that don’t work
well together. As service quality improves the efficiency of service moves
downward. Likewise, as service quality moves down efficiency can move upwards. Conventional
wisdom may not be accurate. A study by Talluri, Kim and Schoeherr (2013) used
both transactional and survey data to show how service quality and efficiency
can work together.
What they did find was that service
efficiency should be improved through the development of higher levels of
technology before moving into service demand quality. Without efficiency in
place quality becomes more expensive. Focusing on efficiency and then on
quality appears to push growth higher.
Efficiency allows for the use of
less resources to service customer’s needs. As core service functions are
defined the processes and procedures streamline to cut out any waste. There may
not be a lot of options in the types of services offered to customers but there
is also less waste in the overall process.
Customers like a level of
customization when handling and solving their problems. If they have an issue
then general flexibility in dealing with that issue is beneficial. However,
this customization reduces the overall efficiency of the organization. Customers
may be happy but they are soaking too many resources to maintain profitability.
Developing customer service should
be streamlined to meet certain organizational objectives. Once the efficient
aspect of customer service has been covered it is possible to expand the range
of service to raise overall satisfaction. Like a cycle the process of
streamlining and then offering enough flexibility to meet customer needs is
important.
The report helps administrators put
in perspective the tradeoffs of efficiency and quality. It also helps them
understand that these concepts are not necessarily mutually exclusive. It is
possible to improve on efficiency and then work on offering enough flexibility
within defined limits to serve customers adequately. When done together it can
save the company money and improve upon customer satisfaction.
Talluri, S., Myung, K. &
Schoenherr, T. (2013). The relationship between operating efficiency and
service quality: are they compatible? International
Journal of Production Research, 51 (8).