What do you mean by service quality management? Describe its benefits for a retail organization?

Service Quality Management

The process of managing the quality of services delivered to a customer according to his expectations is called Service Quality Management. It basically assesses how well a service has been given, so as to improve its quality in the future, identify problems and correct them to increase customer satisfaction. Service quality management encompasses the monitoring and maintenance of the varied services that are offered to customers by an organization.

The following are the important benefits from service 

Whether you are in the software business offering services to clients or operate in the food, hospitality or travel industry, service quality management is integral to managing customer expectations and business growth. The service quality can either relate to the service potential, service process or the service result.

quality management.

Expansion of Loyal Customer Base: Customer loyalty is vital to the retail organization. The larger the loyal customer base, the greater are the benefits. The superior quality of the service leads to higher satisfaction and some times delight to the customers. The highly satisfied customers generally become loyal customers.

Positive Word of Mouth: The loyal customers will become unpaid campaigners of the retail organizations. They share their positive experiences with their friends, relatives and remain as credible campaigners. 

Increase in Market Share: The loyal customer base and the positive word of mouth increase the demand of the retail organisation. The large number of new customers leads to large market share and loyal employees.

The qualitative performance gives achievement satisfaction to the employees.

The pleasant interaction with customer and co-employees creates a very positive work environment and contributes for employee satisfaction. Satisfied employees are generally more loyal and productive. Therefore, retail organizations which focus on service quality enjoy low employee turnover

Reduced Cost: Quality means doing things right at the first time and every time. Therefore, the mistakes would be either nil or very few. There may be some marginal expenditure on correcting mistakes or to give refund to dissatisfied customers. Service quality impact prevents mistakes and thus leads to increased productivity and lower cost.

Can Be Away From Competition: Retail organizations known for their excellence in service quality will not be judged by price factors in selecting out of choices available to the consumers. The retail company, therefore, can be away from price-based-cut-throat competition. Even when the companies do have to compete on the price, they usually are in a good position to do so because of their high productivity and low cost due to focus on service quality.

Increased Profitability: Research studies indicated that companies known for their quality service are profitable companies. The increased turnover, increased customer base, increased market share and high productivity at low cost naturally leads to continuous growth in profits and in business.

Subcribe on Youtube - IGNOU SERVICE

For PDF copy of Solved Assignment

WhatsApp Us - 9113311883(Paid)