Variability
Once you have decided to buy a Honda Accord, you know that there will be no variation in the quality of the Accord from one Honda dealer to another. Manufactured goods tend to have automated processes and quality assurance procedures that result in a consistent product. However, the quality of a service can vary by many factors, including who provides it, where it is provided, when it is provided, and how it is provided. The more your business relies on humans to provide services (instead of automation), the more susceptible you are to variability.
How can you manage this challenge? Establishing standard procedures (or checklists) can ensure consistent service delivery. If you have employees, training is essential. Can technology improve an aspect of your business? One obvious example of technology’s impact is illustrated by ATMs reducing bank teller service variability for customers. Don’t forget the “little things” like invoicing and newsletters. Any time you have a “customer touch” you have an opportunity to demonstrate consistency and professionalism, which will translate into your customer’s perception that your service is consistent in quality.
Now put a few of these characteristics together to improve your competitive position. In order to be successful, a small service business must not only attract new customers, but it must also develop long-term relationships with existing customers. Take advantage of the opportunities offered by the characteristics of “inseparability” and “variability” to build trust and satisfy your customers—and earn their loyalty and referrals.
As you explore the unique characteristics of your service business, do not become overwhelmed by the challenges they present. “Challenges” are simply disguised opportunities. Now that you have this information, turn one or more of these service characteristics into a competitive advantage for your business.