Service companies: focus or falter

A tightly focused service strategy is the key to good performance. Without a strategy, a firm cannot develop a concept of service to rally employees, identify conflicts between corporate strategy and customers, or devise ways to measure service performance and perceived quality. Developing a service...

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Bibliographic Details
Published in:Harvard business review 1989-07, Vol.67 (4), p.77-85
Main Authors: Davidow, W H, Uttal, B
Format: Magazinearticle
Language:English
Subjects:
Canada
Consumer Behavior
Corporate image
Customer services
Health administration
Hernia
Hospital-Patient Relations
Hospitals, Special - organization & administration
Market positioning
Market segmentation
Market strategy
Marketing
Marketing of Health Services - methods
Organizational Objectives
Product Line Management
Public Relations
Quality control
Service industries
Supply & demand
United States
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Summary:A tightly focused service strategy is the key to good performance. Without a strategy, a firm cannot develop a concept of service to rally employees, identify conflicts between corporate strategy and customers, or devise ways to measure service performance and perceived quality. Developing a service strategy is an basic step toward choosing an optimal mix and level of service for different customer sets. Almost all great service providers have taken the same 3 steps. First, they segmented the market carefully and designed core products and core services to meet the needs of their customers bases. Second, they realized that only the customers know what they want. Therefore, they researched the needs of the customer base thoroughly, both with formal research programs and by paying close attention to what the customer was saying. Third, they were careful to set the expectations of the customer at the right level. The firms underpromised and overdelivered.
ISSN:0017-8012