In: Finance
How do organizations manage service quality as a branding strategy?
Service Quality refers to the difference between customer expectations & service provider's actual performance. Some of the factors that affect the service quality are like :- ease of access & approachability of srvices, Aesthetics, attentiveness/ helpfulness of the service staff provider,cleanlinessof the premises, comfort of the customer, commitment of the management to solve customer problems, competence & reliability of the service provider, security of information 7 good health of customers etc.
When brands seek to refine their customer engagement strategy, a critical aspect of it is ensuring that contact center customer service operations are running smoothly. To achieve this, it is necessary to assess not only individual service agent performance but also the quality management practices of the organization in place. Some of the ways of improving service quality are as follows:-
In the current world, due to high competitive pressures, one of
the most significant strategies through which the organizations can
achieve sustainable competitive advantage is improving the quality
of their services. Different market researches conducted heve
indicated that improving the quality of service brings valuable
results for organizations and finally it leads to satisfaction and
loyalty of customers and to gain more market share and
profitability for organization.
On the other hand, branding strategy, as another competetive
strategy can help various businesses and organizations in achieving
their performances. Due to high cost of creating new brand,
organizations invest on their current brands in order to maximize
their profit by increasing the brand value and to have more
reputation in the today’s competetive arena.Relying on external
brands such as brand equity, brand identity, and brand personality,
customers determine and understand the quality of service. These
factors are more important for net services such as insurance in
which the quality of the provided services is less tangible and it
only gets relative in many of the transactions. The quality of
service in the insurance industry depends to performance of
employees and assets and resources of this industry. Therefore, the
insurance companies have realized that they should improve the
quality of service provided to their customers in order to attract
and retain their customers.
Quality of service is considered as an organizational asset and important financial performance and marketing factor of the company. By increasing efficiency and effectiveness in service providing, the profitability of the organization increases. Improving the level of service quality can help an organization differentiate itself from other organizations.
Brand identity is one of the most important issues in the field of marketing. Brand identity shows that how an organization wants to be perceived in the market. Each organization transfers its identity to customer through branding and marketing strategies. A brand has a distinctive identity when it provides relevant, durable, and believable promises regarding the value of the product, service. One brand with a strong identity is a safer place for customers because it leads to reduced uncertainty, in purchasing and consuming a product.
In an insurance company, reserches have shown that the five dimensions of service quality (tangible factors, reliability, assurance, responsiveness, and empathy) have positive impact on brand identity and personality. It is recommended for the insurance company managers and its representatives to use modern physical facilities in the location where services are provided. It is also recommended for employers of the Insurance Company and its representatives to perform their task at specified time to maintain the reliability of the company and its branches for customers because customers expect better and quick responsiveness by managers.Managers and employees of the insurance company and its representatives must be sensitive to customer requests and complaints. The employees should allocate enough time for customers and guide them in choosing the insurance type that provides the best benefits for customers.
Another example in the service sector is the hotel industry. Brand image is one of the key components that enable hotels to gain superior advantage over their rivals. Marketing experts emphasized the extreme importance of brand image for service firms because when the customers use service, they see the firm and its resources by their judgment of the interaction between them and their service providers. According to the various researches conducted in the hotel industry, it can be concluded that only empathy, responsiveness and reliability perceptions were drivers to building hotel brand image.