Page 278 - DMGT510_SERVICES_MARKETING

Unit 14: Service Strategies

Communicating with Customers Notes

A service firm must inform the customers about the peak rush hours that will help them
understand the pattern and shift their business hours accordingly. Some customers may not be
interested in conducting their business during peak hours as the service delivery may get
delayed or the service might not meet the expected standards.

Example: Bankers are usually very busy during first few days of the month and on
Mondays because banks reopen after a day’s leave, so they can inform the customers about this,
some of them may prefer to carry out their transactions with the bank later in the month and on
other days than Monday.

Altering the Timings of Service Delivery

Service organizations should note the periods when the customers need to or want to deal with
the service provider. Maintaining business hours accordingly would help the customers as well
as the service provider.

Example: On Sundays, usually there is heavy rush at salons, therefore, they can start
their operations a bit early and close late on Sundays.

Difference in Prices

Some service organizations may choose to vary their prices with the intention of shifting demand
from high-demand periods to low-demand periods.

Example: Theatre owners often reduce the rates of morning shows to attract crowds in
that show or fast food joints reduce the rates during noon.
However, this call for cautious approach by companies as the customers might expect the same
prices during their next interaction with the service company. Also, there is the danger of the
service firm ending up attracting other segments instead of their target market segment.

14.3.2 Altering Capacity to Meet Demand

Some of the strategies are:

Employ Part -time or Contract Workers

Organizations focus on recruiting part time or contract workers instead of full-time employees
in order to meet the changes in demand.

Example: Retail outlets employ more floor executives during the high demand season
like festival season and consultants hire additional staff during the financial year-ending when
there is a peak demand for their services.
Outsource

This is a very popular method employed by today’s organizations to handle demand variations.
When firms feel that hiring additional workers to meet a temporary increase in demand is too
expensive, they employ the services of other firms that specialize in performing the required

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