Page 385 - Marketing Management

362 PART 5 SHAPING THE MARKET OFFERINGS

applies a 40-30-30 rule in its holistic approach to people, processes, and
products: 40 percent of resources go to training and invigorating staff,
30 percent to reviewing process and procedures, and 30 percent to creating
new product and service ideas. With its innovatively designed Boeing
777-300 ERS and Airbus A380 planes, SIA set new standards of comforts
in all classes of service, from eight private minirooms in first class to
wider seats, AC power supplies, and USB ports in coach. 26

A Shifting Customer Relationship
Not all companies, however, have invested in providing superior
service, at least not to all customers. In many service industries,
such as airlines, banks, stores, and hotels, customer satisfaction in
the United States has not significantly improved—or in some cases
Singapore Airlines goes to extra- 27
actually dropped—in recent years. Customers complain about
ordinary lengths to ensure that
inaccurate information; unresponsive, rude, or poorly trained workers; and long wait times.
every aspect of the passenger Even worse, many find their complaints never actually reach a live human being because of slow
experience exceeds expectations. or faulty phone or online reporting systems.
It doesn’t have to be that way. Fifty-five operators handle 100,000 calls a year on Butterball
Turkeys’ 800 number—10,000 on Thanksgiving Day alone—about how to prepare, cook, and serve
turkeys. Trained at Butterball University, the operators have all cooked turkeys dozens of different
ways and can handle the myriad queries that come their way, including why customers shouldn’t
stash turkeys in snow banks or thaw them in bathtubs. 28
Savvy services marketers are recognizing the new services realities, such as the importance of the
newly empowered customer, customer coproduction, and the need to engage employees as well as
customers.

CUSTOMER EMPOWERMENT Customers are becoming more sophisticated about
buying product-support services and are pressing for “ unbundled services.” They may desire
Customer service dissatisfaction
separate prices for each service element and the right to select the elements they want.
increasingly goes viral—Canadian
Customers also increasingly dislike having to deal with a multitude of service providers
singer Dave Carroll’s musical frus-
handling different types of equipment. Some third-party service organizations now service a
tration with United Airlines was
greater range of equipment.
downloaded by millions. Most importantly, the Internet has empowered customers by letting them vent
their rage about bad service—or reward good service—and send their comments
around the world with a mouse click.Although a person who has a good customer ex-
perience is more likely to talk about it, someone who has a bad experience will talk to
29
more people. Ninety percent of angry customers reported sharing their story with a
friend. Now, they can share their stories with strangers too. At PlanetFeedback.com,
shoppers can send a complaint, compliment, suggestion, or question directly to a
company, with the option to post comments publicly on the site as well.

United Breaks Guitars When Canadian singer Dave
Carroll faced $1,200 in damages to his $3,000 Gibson guitar after a United
flight, he put his creative energy to good use. He created a humorous video,
United Breaks Guitars, and launched it on YouTube with this catchy refrain:

“United, you broke my Taylor guitar. United, some big help you are.You broke it, you
should fix it. You’re liable, just admit it. I should have flown with someone else or
gone by car ’cuz United breaks guitars.”

Viewed over 5 million times, his follow-up video focused on his frustrating efforts to get United
to pay for the damage. United got the message. It donated a check for $1,200 to a charity
Carroll designated and now uses the incident in training baggage handlers and customer-
service representatives. 30