Servuction System and Marketing Strategies for Service Firms

Servuction: A Systematic Approach to Service Delivery

Servuction refers to the systematic organization of all physical and human elements within the client-business relationship. This is necessary for realizing the provision of services whose commercial characteristics and quality levels have been predetermined.

Key Elements of Servuction

  • The Customer: The consumer involved in the service creation. Their presence is indispensable.
  • Physical Support: The material support necessary for service production. This includes:
    • a) Instruments Required for Service: Objects, furniture, or equipment available to staff and/or the client.
    • b) Physical Environment: The surroundings, including location, buildings, scenery, and layout.
  • Contact Staff: Employees in direct contact with the client.
  • The Service: The core focus and result of the system. It results from the interaction between the customer, physical support, and contact staff.
  • The System of Internal Organization: The objectives, structure, and operations that condition the physical support and contact staff. It includes traditional company functions and those necessary for service completion.
  • Other Customers: Services are rarely offered to one customer at a time. For simplicity, consider two clients: A and B.

Marketing Strategies for Service Companies

Differences in Relationships with Customers

Not all businesses invest equally in providing services to all customers. While in the past, service companies treated all customers the same, today, they have more information and can classify customers based on profitability. Consequently, service levels may vary.

Companies must find ways to increase revenue from each customer segment. Some raise prices and reduce services for less profitable customers while pampering high-spending ones. However, companies offering different service levels must be cautious when claiming superior service, as poorly treated customers can damage their reputation.

Maximizing customer satisfaction and company profitability can be challenging. Other changes benefiting customers include:

  • a) Customers seeking the decomposition of service packages with separate prices for each item, allowing them to choose desired elements.
  • b) Customers preferring to deal with fewer vendors, leading some service organizations to offer a wider range of equipment.

Holistic Marketing for Services

Service encounters are complex interactions influenced by many factors. Adopting a holistic marketing perspective is crucial. The service outcome and customer loyalty depend on various factors. Holistic marketing for services requires:

  • External Marketing: Preparing, pricing, distributing, and promoting the service to customers.
  • Internal Marketing: Training and motivating employees to serve clients properly.
  • Interactive Marketing: Employees’ skills in dealing with customers. Customers judge service quality based on both technical and functional quality.