Frei "The Four Things a Service Business Must Get Right" – Flashcards

1: The offering 2: The funding Mechansm 3: The employee management system 4: The customer management system

The service customers actually want There are often tradeoffs (walmart is cheap, and has huge selection, but employee service is crap)

Excellence comes at a cost; How will excellence be paid for? 1: Charge the customer in a palatable way (Bank open longer, gives lower checking interest rates to pay for it) 2: Create win-win b/t operational savins and value-added activities (progressive) 3: Spend now to save later (software design to save on customer service) 4: have the customer do the work (airline checkin)

Design the service so employees CAN succeed. Bank keeps down prices by hiring for attitude (not too bright, though) and designs services so it is easy to succeed. No need to pay highly capable individuals