The document discusses managing customer satisfaction at a Maruti authorized service station. It outlines the service process in 4 stages: service initiation, in-service experience, service delivery, and post-service experience. It notes that service contributes 75% of earnings from a customer over their lifetime. Factors like time, communication, staff behavior and expertise impact customer satisfaction at each stage of service. Measuring and closing gaps between expectations and perceptions is important to improve satisfaction.
Service Marketing Management - Managing Customer Satisfaction at a authorized car service station
1. Managing Customer Satisfaction at
a Maruti authorized service station
Service Marketing Management – Group Project
Team (EPGP):
D.Gopalakrishnan (0910021)
Mukesh Sharma (0910036)
Sujeet Kumar (0910062)
INDIAN INSTITUTE OF MANAGEMENT, BANGALORE
December 1, 2009
2. Table of Contents
OBJECTIVE ..........................................................................................................2
INTRODUCTION ..................................................................................................3
LIFETIME VALUE OF A CUSTOMER .........................................................................3
FACTORS AFFECTING CUSTOMER SATISFACTION ....................................................4
SERVICE PROCESS ................................................................................................ 5
SERVICE INITIATION ............................................................................................... 6
IN-SERVICE EXPERIENCE .......................................................................................... 7
SERVICE DELIVERY ................................................................................................ 7
POST-SERVICE EXPERIENCE ......................................................................................8
MARUTI SERVICE PROCESS....................................................................................9
MEASURING & CLOSING THE GAPS ....................................................................... 10
GAP-1 ............................................................................................................. 11
GAP-2 ............................................................................................................. 13
GAP-3 ............................................................................................................. 14
GAP-4 ............................................................................................................. 17
GAP-5 (CUSTOMER GAP) ...................................................................................... 19
MAPPING SATISFACTION CATEGORIES ................................................................. 23
SATISFACTION CATEGORIES .................................................................................... 23
MEETING EXPECTATIONS ....................................................................................... 24
CHALLENGES .................................................................................................... 26
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
CUSTOMER ....................................................................................................... 26
COMPETITOR .................................................................................................... 26
COMPANY ........................................................................................................ 28
CONTEXT ......................................................................................................... 28
OPPORTUNITIES (WITH RECOMMENDATIONS) ............................................................. 29
TECHNOLOGY ................................................................................................... 29
BUNDLING ........................................................................................................ 29
LEVERAGING EFFICIENCY ....................................................................................... 30
MOBILE SERVICE ................................................................................................. 30
SERVICE GUARANTEE ........................................................................................... 31
EXTENSIVE NETWORK .......................................................................................... 31
OTHER RECOMMENDATIONS ............................................................................. 32
MEASURING THE GAPS .......................................................................................... 32
CLOSING THE GAPS .............................................................................................. 33
TACKLING CHALLENGES ........................................................................................ 34
DELIGHTERS ...................................................................................................... 35
REFERENCES ..................................................................................................... 39
1
3. OBJECTIVE
This project covers the various aspects of managing customer satisfaction at a Maruti authorized dealer
workshop.
Through this project we aim at understanding and analyzing the customer satisfaction management
systems, presently followed by Maruti workshops, and its significance through the perspectives learnt in
the subject “Service Marketing Management”.
At the end of the project, we also attempt to suggest recommendations for improving the present
Customer Satisfaction management systems of Maruti workshops based on our learning in the subject.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
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4. Managing Customer Satisfaction at a Maruti
authorized service station
INTRODUCTION
An automobile is a quite unique product. Unlike pure services, it has a component of the product
quality which affects the overall experience of the customers and unlike pure products it has a service
component which also significantly affects the overall experience of the customers. There are many
products today in which there is some component of service which a customer may or may not
experience but an automobile is one such product which has a component of Periodic Maintenance
Service (PMS) i.e. the regular service which a customer definitely experiences during the ownership of
the product.
For a typical automobile, a customer visits the workshop to avail service almost 3 times per year for
regular maintenance as well as intermittent repairs. A car is owned by a person for almost 4-5 years on
an average. Hence, during the entire lifetime of a car, a customer experiences after-sales service almost
12-15 times while he experiences the sales just once. As the ratio of overall experience is significantly
skewed towards after-sales service, hence the service satisfaction has a significant effect on the loyalty of
a customer.
LIFETIME VALUE OF A CUSTOMER
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
The typical lifetime value of a customer (not discounted to present value) who purchases a small car and
avails service and body repair needs of his car for 5 years would be as follows:
S.No. Activity Amount % Net Margin No. of Lifetime Earned
spent Margin earned visits in value during
(Rs.) (Rs.) lifetime (Rs.)
1 Purchase of car 3,50,000 1% 3,500 1 3,500 Sales
2 First year insurance 10,500 10% 1,050 1 1,050 Sales
(~ 3% of insured
value)
3 Car accessories 10,000 15% 1,500 1 1,500 Sales
Total margin earned thru SALES 6,050 ~ 24%
4 Service 3,000 15% 450 15 6,750 Service
5 Body Repair 10,000 25% 2,500 2 5,000 Service
6 Annual Insurance 7,000 10% 700 4 2,800 Service
renewal
7 Resale of 2nd hand 2,00,000 2.5% 5,000 1 5,000 Service
car purchased from
customer
Total margin earned thru SERVICE 19,550 ~ 76%
3
5. In the above table, the amounts assumed are an approximate conservative estimate from the Maruti
Suzuki’s dealers’ data.
As we can see from the above data that Service contributes to almost 75% or three-fourths of the
margin earned from each customer. Hence, it becomes critical to focus on the service experience of a
customer as it has a major contribution to the bottom-line of an automobile dealership.
But, there are 3 important behaviors of a customer which every automobile business desires to
ensure that the earnings detailed in the above table are virtually achieved in perpetuity:
1. Recommend – The satisfaction of a customer with the service experience will influence the
“word-of-mouth” of the customer and hence have a strong effect on the business received from
the friends and relatives of the customer.
2. Revisit – The satisfaction of a customer with the service experience will also have an effect on
the repeat visit of the customer for fulfilling the repeat service needs of his vehicle.
3. Re-purchase – The satisfaction of a customer with the service experience will also affect the
re-purchase behavior of the customer when he decides to replace his vehicle with a new one.
Thus indirectly the service satisfaction has an effect on the entire spectrum of earnings during the
lifetime of a customer.
FACTORS AFFECTING CUSTOMER SATISFACTION
For an automobile, the customer satisfaction is affected by 2 factors:
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
1. Service quality
2. Product quality
Service
Quality
Customer
Satisfaction
Product
Quality
As per the importance study conducted by M/s. JD Power, product quality (i.e. Problems
Experienced) has just ~25% effect on the customers’ satisfaction while the service quality (i.e. total of
remaining factors) has almost ~75% impact. The same is depicted below in the pie chart.
Thus we also see that in automobile ownership, the service quality has a higher impact on the overall
customer satisfaction than the product quality. Moreover, an automobile service provider has little
control on the product quality which is mainly affected/ controlled by the manufacturer.
Hence, it is important and rather more relevant for a dealership to focus more on service quality rather
than product quality.
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6. Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
Keeping the above facts in mind, our further discussions shall focus primarily on Service Quality.
In order to understand how to manage customer satisfaction, we will first describe the various stages of
getting a vehicle serviced. Then we shall describe the ways that can be adopted to measure the gap
between the perception and expectation. In the subsequent section we will try to describe the ways in
which the gaps can be closed & service quality be improved and finally we shall recommend ways in
which the entire experience can be designed to excel in customer satisfaction.
SERVICE PROCESS
The entire service process which a customer undergoes can be broken down into 4 main stages:
1. Service Initiation
2. In-Service Experience
3. Service Delivery
4. Post-Service Experience
In the following sub-section, we will try to understand what the customer evaluates during each step of
the service process. This will help us in designing the entire service experience to take care of potential
shortfalls. In each of the steps of interaction, we will also try to understand the hygiene factors and the
activities which can delight the customer.
5
7. Service Initiation
This is the stage in which a customer gets his vehicle into the service. The convenience and speed with
which the customer is able to get his vehicle into the service process determines the satisfaction level of
the customer. Usually the customers give their vehicle in the morning before going to the office.
Hence, usually time is the essence here. Customers usually feel that as the workshop staff is technically
qualified hence the time spent for getting his vehicle into service is of no use. The anxiety level of the
customer increases exponentially with the increase in waiting time as he has a time-bound activity
planned after that (reaching office on time).
The subsequent interaction of the customer is with the Service Advisor of the workshop who is a
technical person. His responsibility is to understand the service needs of the customer and understand
the exact problems with the vehicle so that the same can be conveyed to the supervisor and technician
for necessary rectification. Hence, the Service Advisor is a vital link between the customer (who is
facing the problem) and the technician (who will rectify the problem). This is usually the first link of the
communication chain. As we know, the strength of the weakest link will decide the strength of the
entire chain.
The aspects of service which a customer would evaluate in this stage are:
1. When arrived at workshop, the time taken for someone to acknowledge his presence
2. Time spent waiting to speak to the Service Advisor
3. Overall performance of the Service Advisor
a. Understanding specific problems with the vehicle
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
b. Asking questions to clarify further needs
c. Listening to the customer
d. Behavior (Giving attention and treating with courtesy)
e. Knowledge and expertise
4. Overall opinion of facility
a. Convenience of location
b. Cleanliness of facility
c. Convenience of days and hours of workshop operation
6
8. If there is a gap in understanding the customer and vehicle service requirements then it leads to a
snowballing effect which will increase the magnitude of problems during the delivery of the vehicle in
the evening. This is depicted pictorially above.
In-Service Experience
This stage is particularly applicable to the customers wait in the workshop premises while the vehicle is
being serviced. This is also a critical phase of the overall customer experience as most of the times either
his own vehicle or other customers’ vehicle is being seen by the customer while it is being serviced.
Hence, it has a significant impact on the confidence level of the customer as while giving the vehicle for
service, the customer is entrusting the care and safety of the vehicle to the workshop personnel. Time is
also the essence here as a customer who is waiting for the service to be completed will generally expect
the vehicle to be returned faster than a customer who has given his vehicle for serviced and gone back to
his office/ home.
But, whether the customer is waiting or not, he would definitely expect communication from the
workshop in case the vehicle requires additional repairs which may either attract additional cost or time
or both.
The aspects of service which a customer would evaluate in this stage are:
1. Comfort during the waiting period
2. Cleanliness of the waiting area
3. Amenities available in the waiting area like beverages, TV, magazines etc.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
4. Communication in case additional time or cost or both are required
If there is a lapse in the communication while the vehicle is in service, then it can also add to the
snowballing effect and lead to a bigger problem in the evening during vehicle delivery. This is also
depicted in the picture shown in the previous sub-section.
Service Delivery
This is the stage when the customer visits the workshop or waits and collects the vehicle after the
completion of service. Delivery is an important part of the entire link as it is a crucial opportunity to
make it up to the customer in the event of any lapse which may have happened while accepting the
vehicle. During the delivery, customer would expect the vehicle to be in a state better than when he left
the vehicle for servicing. This is the stage of service when the customer evaluates the fulfillment of all
promises made to him i.e. regarding time, cost and work. Here too the time is an important factor, but
the customer is not in as much hurry as he is likely to be when he leaves the vehicle for servicing in the
morning. But, as the customer makes payment for the services he has availed, he expects the value of
service he receives to be worth what he is paying for. Though the customer would be able to realize and
evaluate the quality of service completely after using the vehicle for a few days, he can very well
evaluate the basic aspects of service during the delivery itself.
This is the time when the customer again interacts with the Service Advisor and hence gets the
opportunity to complete his assessment.
The aspects of service which a customer would evaluate in this stage are:
1. Acknowledgement of customer’s arrival at workshop
7
9. 2. Time taken to bring the vehicle after arrival of customer
3. Promptness of having vehicle ready when promised
4. Overall performance of Service Advisor
a. Honesty
b. Fulfillment of commitments
c. Behavior (Giving attention and treating with courtesy)
d. Knowledge and expertise
5. Explanation of work done
6. Explanation of charges/ bill amount
7. Cleanliness of vehicle
8. Fairness of charges
9. Thoroughness of fulfilling requests
10. Availability of parts for service
11. Overall opinion of facility
a. Convenience of location
b. Cleanliness of facility
c. Convenience of days and hours of workshop operation
12. Dealer taking ownership of service to assure of any problems in future
Service Delivery is the last stage of service when physical interaction happens between the customer and
the workshop staff. After this, a physical interaction may be required only in the event of requirement
of any service recovery activity. On the other hand, if a customer experiences a lapse in service at the
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
time of delivery, then the service recovery activity may be required on-the-spot depending on the time
required for the activity and time available with the customer.
Post-Service Experience
This is the stage of the service when customer evaluates the quality of service by using the vehicle.
Here, there is no physical interaction between the customer and the workshop as the customer is all by
himself. This is a critical stage as when the customer takes delivery of vehicle after completion of service
he may not be able to completely evaluate the service performance. As most of the customers are not
technically competent, hence they may not be able to differentiate between product problem and
service problem. For few days (~ 1 month) after service, even if any problem crops up with the vehicle
due to product quality, the customer may attribute it to poor quality of service performed by the
workshop. On the other hand, as the customer is usually in a hurry during the delivery of the vehicle,
he may not be able to thoroughly evaluate the performance of the vehicle then. Hence, it becomes
critical to keep track of the customer for few days after service in order to assess the satisfaction of
customer.
The aspects of service which a customer would evaluate in this stage are:
1. Ability to understand and diagnose problem mentioned
2. Quality of work performed
3. Trouble free operation
4. Ease of maintenance and repair
5. Dealership’s concern for service
6. Work done right first time
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10. MARUTI SERVICE PROCESS
The complete process from acceptance of vehicle to delivery in a Maruti service station is shown below:
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
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11. MEASURING & CLOSING THE GAPS
Customer satisfaction is defined as the gap between the performance of workshop and the expectations
of customer. The performance of workshop is the quality of service as “perceived” by the customer and
expectation is the customer’s “preconceived notion” of what he will get or what he deserves. As we can
see from the diagram below, even if a workshop delivers same quality to 2 different customers A & B,
one of them can be dissatisfied while the other can be satisfied depending on the difference in their
expectations.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
Thus it is important to strive to deliver higher levels of service quality in order to be able to match or
exceed the expectations of a significant majority of customers.
From the “Gaps model” we know that customer satisfaction/dissatisfaction (Gap-5: gap between the
expected and the perceived service) is a function of the other gaps (Gap 1 to 4) depicted in the chart
below.
10
12. In order to improve customer satisfaction, it is important to measure it. Thus in this section, we will
understand how different gaps are measured by Maruti.
Gap-1
This is the gap between the service expected by the customer and understanding of the same by the
organization. This gap can exist because of insufficient communication between the service provider and
the user/ service receiver. This can also happen because of lack of willingness of the management of an
organization to investigate customer expectations. If there is a gap in understanding, then it can lead to
wrong allocation of resources and hence wastages at the cost of customer satisfaction.
In Maruti, this gap is not measured directly by the company. The company relies on the annual
Customer Satisfaction Study done by M/s.JD Power. JD Power designs the customer satisfaction survey
by studying the various processes in a workshop. The various processes are clubbed under various
factors which serve as the common denominator for a group of processes. The factors are further
broken down into attributes which a customer expects or observes or experiences during the course of
service. After that sample customer study is conducted in the market to understand the importance
customers have for each of the attributes. The feedback of the sample of customers is then collated to
arrive at the average importance weights for each of the attributes which are further clubbed to derive
the weightages for each of the factors. The summation of factors further leads to the Customer
Satisfaction Index (CSI).
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
11
13. In order to close the gap, this study to assess the importance of various service factors to customers is
done once in 5 years. The same is communicated by JD Power to all automobile companies in the
country. Maruti adopts the Customer Satisfaction study on similar lines and revises its design at the
same time when JD Power does. This is done in order to be able to compare the results of JD Power
study results with the internal study done by Maruti.
The design of JD power study in 2003, 2004, 2008 and 2009 is given below.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
12
14. As we can see from the pie-charts above the design of the study (i.e. factor weightages) remained the
same during 2004-2008 (i.e. 5 years). It was different in 2003 and was again modified in 2009.
Gap-2
This is the gap between the service provider’s perception of user’s expectations and the service
standards laid down by the company. This gap may exist because of unreasonable or unrealistic
expectations or lack of experience of the persons responsible for determining and setting the standards.
Maruti has developed Service Quality Standards (SQS) over the years in order to convert the
understanding of customer’s expectations to implementable processes. It is difficult to measure this gap
as it is difficult to directly quantify the defined processes. However, it is possible to gauge the
effectiveness of the processes and standards defined.
In Maruti, this gap is closed by continuously modifying the service standards based on internal customer
satisfaction surveys and external satisfaction surveys like that conducted by M/s.JD Power. Depending
on the feedback of customers and the importance they attach with the different aspects of service,
standards are developed by a department within the service Division dedicated for this purpose. The
standards and operating procedures are usually developed through either brainstorming or by
transferring best practices of workshops who would have already implemented some system with
success to live-up to the particular expectations of customers. The system thus decided are documented
in the SQS manual and communicated to workshops throughout the country for uniform
implementation.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
SQS-2008
SQS No. Service Standard
1 Vehicle returned clean
2 Completed all of the work requested
3 Reasonable charges for servicing
4 Vehicle delivery at promised delivery time
5 Work done right first time
6 Explanation of work prior to service
7 Addressed appropriately
8 Reasonable time for servicing
9 Informed when the vehicle would be ready
10 Waiting area clean
11 Explanantion of work after service completed
12 Service personnel neatly dressed
13 Informed when service was completed
14 Reasonable wait at the service centre
15 Repair order provided before service
16 Informed when to schedule next visit
17 Sevice charges explained
18 Post service follow - up by workshop personnel
19 Workshop open on weekends
20 Workshop open during late hours
21 Informed vehicle settings changed SQS-2003
22 Notified for service by workshop personnel SQS No. Service Standard
23 Transportation provided 1 Vehicle Ready at Promised Time
24 Free loaner car provided 2 Reasonable Time for Servicing
25 Estimate provided before service 3 Washing Quality of Vehicles
26 Dealing with IQS cards and owners manual feedback cards 4 Dealership Values your Business
27 Home visit by service advisor 5 Reasonable Charges for Servicing
28 Steering committee meetings at dealer workshops 6 Reasonable wait at the Service Centre
29 Focus customer meet 7 Procedure for Post Service Follow-up by Workshop Personnel
30 Analysis and closure of CSI cards 8 Procedure for Service Reminder by Workshop Personnel
31 Scrutinizing of CSI cards 9 Importance of Value Added Services to the Customers
32 Spare parts availabiltiy at workshop 10 Standard Operating Procedure for Final Inspection
33 Free pick up and drop for lady customers 11 Standard Operating Procedure for Road Test
34 One page follow-up by workshop personnel 12 Standard Operating Procedure for CSI Cards
35 Road test 13 Handling of IQS Cards and Owner’s manual Feedback Cards
36 Final inspection 14 Procedure for OMR Follow-up Workshop Personnel
37 Greeting customers on birthday and anniversary 15 Procedure for handling Repeat Jobs
13
15. As we can see from the tables above, there were 15 Service Quality Standards (SQS) in 2003. Over the
years, based on customer’s evolving preferences and feedbacks, new SQS were developed and in 2008
there were 37 SQS i.e. 22 new standards were developed over a period of 5 years.
Thus it is important to continuously evolve new standards and modify existing standards to keep up
with the changing expectations of customers.
In each standard, few measures of performance haven been identified and benchmarks have been set for
all quantifiable aspects. The performance benchmarks as are given in the table below.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
Service Performance Benchmarks
These are the measurable aspects of the Service
quality standards which are least expected
from a workshop. These standards are
communicated and monitored for the entire
workshop to quantify the performance and
target improvements. Based on customer
feedbacks, the performance benchmarks also
undergo revision from time to time.
Gap-3
This is the gap between the service standards and the actual service delivery. This gap is all about the
implementation. The best of the systems may have been developed but because of human factor, it leads
to heterogeneity and hence this gap may arise.
In Maruti, this gap is measured by conducting SQS audits (once in a quarter) at workshops. These audits
usually last 2 full days as it requires a thorough audit of workshop systems. Based on the criticality of a
14
16. system, each parameter is attributed a weight and eventually a score out of 100 is calculated for each
workshop. In an SQS audit there are 2 components – Enablers and Results. Enablers are the audit points
which for systems while Results are the data incorporated from different sources of customer feedback.
The sample SQS audit form is shown below. The exhibit below shows the portion of the audit for SQS-
01: Vehicle returned clean. Similar audit is done for all the remaining standards.
(S.Q.S.-01) - Vehicle returned clean
Check points for SQS Status Scored %Marks
Sl.No. Verification documents/activities Remarks Full mark Scored marks Full mark marks scored
implementation OK / NG
Is dedicated washing supervisor(s) Check washing supervisor(s) availabilty in
1
available in the workshop? the workshop. OK 5 4
Is the washing supervisor's control
Check washing supervisor's control
2 register available and entries made till
register for entries as per SQS-03/F1 format. NG one stage only 10 4
date?
Whether the GM/WM audit is being
Check GM / Works manager's 6 audit check Washing audit to be
ENABLERS
3 carried out on daily basis as per the
lists for entries. NG done by GM/WM 5 2
prescribed checklist?
Is washing quality display board Check washing quality display board for
4
available and entries updated? updation on audit day. OK 5 4
Check the final washing process after final
Is the final washing being done after final
6
inspection?
inspection as per flow chart on the audit NG one stage washing only 5 2
day.
Is manpower in washing area available Check total washing manpower and
7 as per norms and assigned specific jobs assignment for each washing job (refer to NG Avg. 4.5 vehicles/person 10 4
as per washing process? SQS).
55 28 50%
Is the washing check list displayed in the Check display of check list in the washing
8 washing area? Distribution of work in area. Whether distribution of work is NG 5
washing area. being followed and displayed.
Check internal CSI feedback card of last
9
3 month card on the parameter 94% 12
RESULTS
Give % of satisfaction from all sources. Diff
Check 42 Point A* feedback of last 3 of psf calibration with R.O. should be
10
month card on the parameter deducted while taking % psf satisfaction of
76% 27
CCE.(e.g. R.O. psf is 78% and dealer psf is 10 7.7
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
83%, % of satisfaction on the parameter is
11 Face to Face on the parameter 80% , we should take (83-78) 5% les 76% 27
PSF STATUS (A* customer) on the
12
parameter 75%
The sample summary sheet of SQS audit as arrived after conducting the complete audit is shown below:
Dealer Service Quality System Report Name of Dealer
Date of Audit 17.02.09 ~18.02.09 AMBAL AUTO
Name of Auditor P.K. Jain
Approved by Dealer Side Participants
Director MACE
Mr. Sivakumar K
Mr. Mahendran - CCM
Mr. Lawrence - Sr. Mgr.
Issued by Counselor MACE
Final Score 70%
Standard Operating Procedures Enablers(%) Results(%)
(1) Vehicle Returned Clean 71% 77%
(2) Completed all of the work requested 25% 79%
(3) Reasonable Charge for Servicing 50% 78%
(4) Vehicle Ready when promised 75% 78%
(5) Work done right first time 100% 79%
(6) Explanation of Work prior to service 100% 79%
(7) Addressed Appropriately 100% 82%
(8) Reasonable time for Servicing 0% 79%
(9) Informed when vehicle would be ready 0% 96%
(10) Waiting area clean 97% 81%
(11) Explanation of work after service completed 100% 80%
(12) Service Personnel neatly dressed 70% 100%
15
17. In order to close this gap, a workshop focuses on providing necessary resources (manpower, technology
etc.) and the softer aspects of hiring, retaining, developing and motivating manpower to get the best
adherence to systems.
The steps to close gap-3 are depicted in the chart below:
For a customer-oriented delivery:
1. Hire the right people
2. Develop people to deliver quality
service
3. Provide needed support systems
4. Retain the best people
To take care of hiring the right people, there are basic qualifications laid down for hiring manpower in
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
workshops for eg. a Service Advisor should either be DAE or ITI with min. 5 years experience;
Technician should be min. ITI, Works Manager should be BE with min.3 years experience or DAE with
min. 7 years experience.
The measures to train the hired manpower are also laid down by Maruti. There are multiple layers of
technical trainings and specific soft skill trainings depending on the role. For eg. Technician should be
min. Basic and Advance trained, Service Advisor should be min. Basic, Advance and SA training
completed. Similarly Works Manager should have attended WM training apart from basic & Advance
training. However, the empowerment and team work depends on the workshop management culture.
The support systems are also provided through SQS and periodic audits. The technology and equipment
is also specified by Maruti for eg. there should be 1 computer and printer set for opening and closing
job-cards for every 10 working bays.
The practices to focus on manpower retention are however dependent totally on the workshop
management and are not much specified by Maruti except that the systems of incentives are suggestive.
In order make the workshop focus on the different aspects of the above-mentioned HR strategies, the
norms have been laid out in the Balanced Scorecard and an annual audit is performed to evaluate all
workshops. The workshops are then given incentives based on their overall performance in the audit.
This serves as an incentive for workshops to implement the systems and procedures suggested by
Maruti. The Balanced scorecard rates the dealership on a scale of 1000 points of which Service resources
and performance are evaluated on 355 points. Within this, Customer Satisfaction Index has a weightage
of 150 points i.e. more than 40% weightage.
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18. Gap-4
This gap exists because of the difference between actual service delivery and the external
communications and promises made by the service provider. Elevated claims or promises become the
standard for setting expectations and the standard against which they will be judged. Failure to deliver
can result from inaccurate marketing communications, lack of or poor coordination between marketing
and delivery personnel, and over promising. The external communications also lead to development of
customers’ expectations and perceptions.
In Maruti, this is captured through the different sources of customer feedbacks. Currently workshops
make explicit promises to customers in terms of quality of work, cost and time. In other areas,
presently there are not many explicit service guarantees made to customers except for the warranty
support from manufacturers.
This gap can be closed by:
1. training and familiarizing manpower on the delivery capability of the service systems
2. under-promising to customers to lower their expectations
3. educating customers to reduce the gap due to erroneous interpretations
Train &
familiarize
employees
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
Reduce
Gap-4
Under
Educated
promise to
customers
customers
In order to train and familiarize manpower with the systems and the delivery capability, Maruti
conducts training on SQS standards, Service Advisor procedures etc. and workshops conduct training to
familiarize manpower with the operating procedures particular to the dealership.
To under-promise customers, the Service Advisors and Marketing executives are imparted the
necessary training to keep cushion when promising customers. For example, Service Times have been
communicated to all dealers for the time taken for various services (with some cushion). A sample is
given below:
17
19. Customer education in Maruti is done through personal interactions like Customer Education Meets,
explanation before and after completion of work, and elaborate written material like Customer
Information Boards (used to convey the labour rate, spares cost and workshop details), warranty terms
and conditions. A Sample of the board is shown below:
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
Usually the communication gaps creeps up in warranty. Customers assume that all repairs are covered
under the warranty clause till the validity of the policy. However by clearly mentioning the clauses in
Owner’s Manual and explaining the same during the delivery of new vehicle, this gap can be reduced.
Customers should
also know this
Customers are usually
aware only of this
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20. A sample of a detailed warranty policy the same is appended above showing what customers are usually
aware of and what needs to be communicated in order to reduce the gasp while handling warranty.
Gap-5 (Customer Gap)
This is the gap which is a function of the above mentioned 4 gaps. From a customer’s point of view this
is the most important gap which leads to dissatisfaction. It can be taken care of by taking care of rest of
the gaps. This is the gap between the customer’s perception and expectation. Perceptions are usually
formed after or during the course of the service, while expectations are usually formed either before or
during the course of the service. However, every customer has a zone of tolerance which is defined as
the gap between the expectations of ideal service and minimum tolerable expectations.
This is measured through various customer feedback collection systems. The various stages of a typical
service process and different feedbacks collection points are depicted below:
Customer entry
Job-card opening Customer lounge
feedback
Vehicle servicing inside Customer may wait in
workshop Customer Lounge or go back to
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
home/office
Instant feedback
Job explanation & Vehicle
Delivery
Handing over 34 point
feedback
Bill payment
Customer exit
Post Service followup,
34-point internal
feedback, 42-point
The broad summary of various feedbacks is: MSIL feedback
Collected
S.No. Feedback Collected through Stage of feedback collection
by
1 Customer lounge feedback Dealer Written, In-person While customer is waiting in lounge
2 Instant feedback Dealer Written, In-person During the delivery of vehicle
Customer advised to send after 1 week of
3 34-point Internal Feedback Dealer Written, Thru post
vehicle usage
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21. Verbal, Thru
4 Post Service Follow-up Dealer On 6th day after service
telephone
Maruti Sent & collected thru post after 1 month
5 42-point MSIL feedback Written, Thru post
Suzuki of service
Among the above feedbacks, except 42-point MSIL feedback, all other feedbacks are requested from
100% customers. The 42-point MSIL feedback is sent to 200 customers per workshop per quarter. As
the 34-point and 42-point feedbacks are received back by the workshop and Maruti respectively through
post, hence the feedback receipt is not 100%. 34-point feedbacks are received back from usually ~15%
customers while 42-point feedbacks receipt is ~25%. On the other hand, the other feedbacks are
received from more than 90% customers.
Customer lounge feedback is collected from the customers who wait and avail the lounge facility till the
service of their vehicle is completed.
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
Instant feedback card is collected from customers at the time of delivery of the vehicle after showing the
customer his vehicle and after completing the necessary explanation of work and charges, but before the
payment of bill or while payment of the bill. The intention is to know the first quick impression of the
customer after completion of service in order to get an opportunity to understand and rectify the
customer dissatisfaction on-the-spot regarding few basic critical aspects.
The 34-point feedback card is given to customers at the time of delivery of the vehicle alongwith a pre-
stamped envelope. This is a comprehensive feedback and customer is requested to send the feedback
after a week of usage of vehicle i.e. after duly assessing the performance of the vehicle for a considerable
period of time.
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22. The 42-point feedback card is sent by Maruti to customers after 1 month of completion of service in
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
order to get a comprehensive direct feedback about the service provided by channel.
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23. The format is appended above. This feedback form is similar to the 34-point feedback card.
Post Service followup is the only telephonic mode of collecting feedback. A call is made to all customers
on the 6th day after the completion of service. This feedback mode is used to gain candid feedback from
all customers as the other comprehensive written feedbacks cover only a small sample of customers. In
order to know the true feedback, the call is made by Customer Care Executive (CCE) instead of the
Service Advisor. The script used by CCEs is given below:
There are 2 ways to close this gap:
1. Proactive way – This is presently done by compiling and analyzing feedbacks and taking
actions on a monthly basis. The feedbacks are also shared with the workshop employees in
order to sensitize them towards customers. Countermeasures are taken in order to plug the
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
gaps permanently.
2. Reactive way – This is presently done through various methods of service recovery.
Depending on customers’ convenience and the nature of problem, the customer is either
attended at workshop or at his premises.
The complaints are analyzed and corrective & preventive actions taken are recorded. The format for
analysis of negative feedback received through 42-point MSIL feedback is appended below.
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24. MAPPING SATISFACTION CATEGORIES
Satisfaction Categories
All activities in a workshop which a customer experiences can be segregated under 3 satisfaction
categories.
1. Monovalent Dissatisfiers – These are the hygiene factors/ must-be requirements as per
Kano’s model in the absence of which a customer would be dissatisfied but the presence does
not contribute to satisfaction.
2. Bivalent Satisfiers – These are the satisfiers as per Kano’s model in the presence of which a
customer would be satisfied while the absence would lead to dissatisfaction.
3. Monovalent Satisfiers – There are the delighters as per Kano’s model in the absence of
which a customer would not be dissatisfied but the presence will satisfy a customer i.e. have
positive impact on customer’s mind.
The different activities under the 3 satisfaction categories are shown below. At Maruti, an SQS has been
developed in order to set the procedures and standards for each satisfaction attribute. The SQS
corresponding to each attribute also mapped below.
SQS-01
SQS-06
SQS-03
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
SQS-07
SQS-02
SQS-10
SQS-05
Monovalent SQS-12
Dissatisfiers SQS-04
SQS-08
SQS-09
SQS-11
SQS-13
SQS-14
SQS-17
SQS-16
SQS-18
SQS-22
Bivalent
SQS-15
Satisfiers SQS-19
SQS-20
SQS-25
SQS-23
Monovalent
SQS-24
Satisfiers
In the above chart, the impact has been calculated through the customer satisfaction survey done by JD
Power.
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25. Meeting expectations
The various steps adopted to meet the expectations of customers against each attribute are given below.
Each of the attributes has also been mapped with the corresponding dimension(s) of SERVQUAL model
of service quality (RATER system).
S.No. Attribute/ expectation Steps to meet expectations
1 Vehicle returned clean 1. Set procedure for washing, washing sequences, manpower allocation
(Tangible) 2. Manpower norms – 2.5 cars per washer per day; 1 supervisor per 500
cars
3. Washing Final check by supervisor for all vehicles
4. Keeping 2 persons in delivery area for final mopping just before
delivery to the customer
2 Explanation of work prior 1. Sufficient Service Advisors (SAs) – 7 job-cards per day per SA
to service (Assurance, 2. Jotting down the customer’s demands on job-slip
Empathy) 3. Taking customer approval of work to be done by signing on job-slip
3 Reasonable charges for Giving ready reckoner to SAs mentioning prices of fast moving parts
servicing (Assurance) and labour
Benchmarking labour rates and spare prices with competitors
Communicating the cost estimate with detailed breakup before start
of service and taking customer approval
Displaying the charges prominently on Customer information Board
4 Addressed appropriately Soft skill behavioural training for employees especially SAs
(Assurance, Empathy)
Managing Customer Satisfaction at a Maruti authorized service station | 12/1/2009
5 Completed all of the work Mentioning all customer demands on job-slip
requested (Reliability) Explaining during delivery all the work done
Offering road test to customer to show proper completion of work
6 Waiting area clean Dedicated person/ attendant to ensure cleanliness
(Tangible) Fixed cleaning schedule for housekeeping staff
7 Work done right first time Availability of proper tools and equipments
(Reliability) Trained technicians
8 Service personnel neatly Multiple uniforms for workshop staff
dressed (Tangible) Regular audit by managers to ensure cleanliness
9 Vehicle ready when Developing & communicating standard times for each type of service
promised (Reliability) to workshop staff
Using time cards to communicate time to all w/s staff for each vehicle
Taking cushion of 30 mins for each vehicle
Hourly tracking to monitor work progress
Vehicle allocation to technicians based on promised times
10 Reasonable time for Developing & communicating standard times for each type of service
servicing to workshop staff
(Responsiveness) Explaining customers in detail, the jobs involved and work that will
be carried out in the morning
Manpower norms – 3 vehicles per technician per day, 1 supervisor &
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