8 The Role of Customers in Service Delivery

The Role of Customers in Service Delivery

Service management presents unique challenges compared to traditional product-based industries, with one of the most significant being the role that customers play in service delivery. Unlike in manufacturing, where customers are primarily end-users of finished products, in services, customers are often active participants in the creation and delivery of the service itself. Understanding these customer roles is crucial for effective service management and delivery.

Customer-Introduced Variability in Services

While there are five types of customer-introduced variability in services (arrival, request, capability, effort, and subjective preference), we’ll focus on capability and effort variability due to their direct impact on customer participation in service delivery.

Capability variability refers to the differences in customers’ skills, knowledge, or abilities that affect their interaction with the service. For example, in a self-service checkout at a grocery store, some customers may be tech-savvy and complete the process quickly, while others might struggle and require assistance.

Effort variability relates to the varying levels of engagement or work that customers are willing to invest in the service process. For instance, in a fitness center, some clients may be highly motivated and follow their workout routines diligently, while others may require constant encouragement and guidance from trainers.

Customer Co-Production in Services

Customer co-production or co-creation is a fundamental concept in service management, referring to the active involvement of customers in creating and delivering the service. This involvement is often essential for the service to be successfully completed. For example, in healthcare, patients must provide accurate information about their symptoms and follow treatment plans for effective care. In education, students must engage with course material and complete assignments to learn effectively.

Principles and concepts of customer co-production include:

1. Joint responsibility: Both the service provider and the customer share responsibility for the service outcome.
2. Customer as partial employee: Customers perform tasks that could potentially be done by service staff.
3. Customization: Co-production often allows for greater customization of services to meet individual customer needs.
4. Value creation: The customer’s involvement contributes to the creation of value in the service process.
5. Resource integration: Customers bring their own resources (knowledge, skills, time) into the service process.
6. Variability: Co-production introduces additional variability into the service process, as customer inputs and efforts can vary.

Customers as Active Participants in Experiential Services

Experiential services are those where the customer’s experience is central to the service offering. In these services, customer engagement is not just important—it’s necessary. Higher education is a prime example of an experiential service. Students must actively participate in lectures, discussions, and assignments to gain knowledge and skills. The quality of their education depends significantly on their level of engagement and effort.

Multiple Roles of Customers in Service Delivery

Customers can assume various roles in service delivery, often simultaneously. These roles include:

1. Customers as Component Suppliers: Customers provide inputs necessary for the service. For example, in tax preparation services, clients supply financial information.
2. Customers as Labor: Customers perform tasks that could be done by employees. Self-checkout in retail or self-service at gas stations are examples.
3. Customers as Design Engineers: Customers may influence service design. For instance, in custom jewelry making, customers often specify design elements.
4. Customers as Production Managers: Customers may direct aspects of service delivery. In a restaurant, customers decide the order and timing of their meal.
5. Customers as Products: In some services, customers themselves are acted upon. This is evident in healthcare or personal training services.
6. Customers as Quality Assurance: Customers often judge and provide feedback on service quality. Customer reviews and ratings are examples of this role.
7. Customers as Inventory: Customers may wait for service, analogous to inventory in manufacturing. This is seen in queues at banks or amusement parks.
8. Customers as Competitors: Customers may choose to perform the service themselves rather than use a provider. DIY home repairs exemplify this role.

Implications for Service Management

Recognizing and effectively managing these customer roles is crucial for service organizations. Strategies for leveraging customer involvement might include:

1. Designing services that optimize customer participation
2. Providing tools and resources to enhance customer capabilities
3. Creating incentives for customer effort and engagement
4. Training staff to guide and support customers in their various roles

However, managing customer roles also presents challenges, such as maintaining service consistency with varying levels of customer input and balancing efficiency with customization.

Customers’ active co-creation of the service experience directly influences the quality of the service outcome. Given this intricate relationship between customer roles and service delivery, it becomes crucial to examine how these roles influence service quality.

In this module, we will delve deeper into the concept of service quality, exploring how customer participation shapes quality perceptions, measurement techniques, and strategies for quality improvement in the complex landscape of service management.