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Service Management

All system flaws whether in the business world or the human world have a cost attached to them. In the case of the bank, inconsistencies in the service delivery and meeting the client needs created the following costs. • Cost of labor: – for all the agency staff hired in the card centers, there would be costs related to the labor they provided • Materials cost: – the cost of paper used to print documents and all required paperwork increased with every transaction made correcting the banks errors in names.

The customers had to make their accommodation payments by cheque as opposed to the credit card payment they were used to.

• They spent most of the cash they had to clear hotel bills, cost they were not ready to incur

• Borrowing costs: – the customer had to borrow cash from a friend to make a call to Sue.

• Phone costs: – these were incurred whenever the customers had to call back about an issue with unsatisfactory services they got from the bank.

Works cited Case Exercise – Calling Sue (n. d) Gronroos, C. , 1990. Service Management and Marketing-Managing the Moments of Truth in Service Competition, Maxwell MacMillan, Massachusetts. Lovelock, C. H.

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, 1992, A basic toolkit for service managers (Ed. ), Managing Services- Marketing, Operations, and Human Resources, Prentice-Hall, New Jersey, pp. 17-30

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