of customer routed and one example of provider-routed in 300 to 500 wonds provid
ID: 366965 • Letter: O
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When the management of an organisation builds their service delivery system, one of the most significant decision they have to make is to decide how much freedom and customisation is to be offered to the customer. The outcome of the decision results into the pathways that the customer navigate through the service delivery system. Now, let us first understand what these pathways are. "A pathway is defined as the unique route that the customer takes through a service delivery system". The pathways can either be customer driven or provider driven and it solely depends on the level of control that the service provider wants to give to the customer.
In order to arrive at this decision, that is, the level of control and freedom that has to be provided to the customer, the management of the organisation make use of the service-positioning matrix. With the help of the service-positioning matrix, the management is able to define what should be the service encounter level of the customer with the system. At the same time, the system should ensure that the technical and behavioural needs of the customers are met. Depending on the level of independence the customer has, the services are classified into either customer routed or provider routed services. We will consider two scenarios to understand the two types of services.
Customer routed services: There are many possible pathways in a service delivery system. Whenever a customer has the freedom to decide for himself which pathway he wants to choose in order to meet his immediate needs and wants, such services are called customer-routed services.
Example - Suppose you want to join a health club. You go to the internet and search for the best health clubs in your locality. Out of all the displayed options, you shortlist few of them that meets your preferences. Now, before joining any particular health club, you would want to ensure a visit in each of them to see if they meet your pre-decided criteria. This may include hygiene, cleanliness, types of equipments, timings of the club, availability of personal trainer, etc. It may also include the availability of a particular activity in the health club. You may want to opt for swimming, gymnasium, football, squash, running or any other activity of your choice. Here also, you may have different purpose for joining the health club. It can be for weight loss, weight gain, muscle building, endurance building, strength training etc. You have the choice to decide which package you want - monthly, half yearly, or yearly.
Therefore, in the above example, customer has the complete choice to navigate through the pathway of his choice in the service delivery system. It offers high degree of freedom to the customer to decide what he wants.
Provider routed services: When the service provider has more control on the system and the customer has limited choices on which pathway he should navigate, such systems are called provider routed services.
Example - You want to withdraw cash for yourself. You walk-in to the nearest ATM. Now the Bank, as a service provider, has pre-defined pathways for you that you can follow through to withdraw cash from the ATM. There are very limited number of choices that the customer has and the service delivery is designed in a way that it offers no freedom or option of customisation to any ATM customer.
Another example of provider routed services is ordering food from Mc Donald’s or Dunkin Donuts. They have a pre-decided menu, combos and meal options and as a customer, it hardly offers you an option to freely navigate through their service delivery system.
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