All Time Service Available Call Girls Marine Drive 📳 9820252231 For 18+ VIP C...
Matching Supply & Demand & CRM
1. MATCHING SUPPLY & DEMAND IN
SERVICE INDUSTRY , CRM & MGMT
STRATEGY
BY
DEVANAND MENON
PRATHAMESH PARAB
2. OBJECTIVE
• Explain:
• the underlying issue for capacity-constrained services
• the implications of capacity constraints
• the implications of different types of demand patterns on
matching supply and demand
• Lay out strategies for matching supply and demand
through:
• shifting demand to match capacity or
• flexing capacity to meet demand
• Demonstrate the benefits and risks of yield management
strategies
• Provide strategies for managing waiting lines
3. Fundamental Issue
the underlying issue for capacity-constrained
services
Lack of inventory
perishability (cannot store up)
simultaneous product and consumption (cannot be
transported from one place to another)
4. Managing Demand and Capacity
No buffer for services from
demand.
Demand volatile
Goal: supply and demand
balanced at optimum
capacity
Under utilizing when
demand is below optimum
capacity
If demand is above
capacity then quality may
suffer
5. What is the Nature of Demand Relative to
Supply?
Extent to which
supply is
constrained
Peak demand
can usually be
met without a
major delay
Peak demand
regularly
exceeds
capacity
Wide
Narrow
1
2
Electricity
Natural gas
Telephone
Hospital maternity unit
Police and fire
emergencies
Insurance
Legal services
Banking
Laundry and dry cleaning
4
Accounting and tax
preparation
Passenger
transportation
Hotels and motels
Restaurants
3
Services similar to those
in 2 but which have
insufficient capacity for
their base level of
business
6. Understanding Capacity Constraints and
Demand Patterns
Capacity Constraints
Time, labor,
equipment and
facilities
Optimal versus
maximal use of
capacity
Demand Patterns
• Charting demand
patterns
• Predictable cycles
• Random demand
fluctuations
• Demand patterns
by market segment
7. Managing Demand
Shift demand from
high to low demand
periods.
Decrease demand
during peak demand
periods.
Stimulate demand
during low demand
periods.
8. Strategies for Shifting Demand
to Match Capacity
Demand Too High
Demand Too Low
Shift Demand
•
•
•
•
•
Use signage to communicate
busy days and times
Offer incentives to customers for
usage during non-peak times
Take care of loyal or regular
customers first
Advertise peak usage times and
benefits of non-peak use
Charge full price for the service-no discounts
•
•
•
•
•
Use sales and advertising to
increase business from
current market segments
Modify the service offering
to appeal to new market
segments
Offer discounts or price
reductions
Modify hours of operation
Bring the service to the
customer
9. Shifting Demand
Advantages
Disadvantages
Business is not lost.
Customers may not
Service quality is not
want to shift.
Customers may not
have control over when
they use the service.
adversely affected.
Increased efficiency.
13. Strategies for Flexing Capacity
to Match Demand
Demand Too High
•
•
•
•
•
•
•
Flex Capacity
Stretch time, labor, facilities and
equipment
Cross-train employees
Hire part-time employees
Request overtime work from employees
Rent or share facilities
Rent or share equipment
Subcontract or outsource activities
•
•
•
•
Demand Too Low
Perform maintenance
renovations
Schedule vacations
Schedule employee
training
Lay off employees
14. Who are the customers in a hospital?
Patients
Family members
Referral Doctors
Suppliers
Employees
Who is the key customer in the hospital?
15. What is patient satisfaction?
Patient Satisfaction is “hospital services and its
perception by the patient” minus ”patient
expectations”
0 = Patient Satisfied
- = Patient Dissatisfied
+ = Patient Delighted
Patient satisfaction measures need to be
developed from the patients perspective
Patients are becoming better informed
Involve patients for making improvements
Patient satisfaction is not Static but Dynamic
16. Patient Expectations
Good Medical Care
Cleanliness
Good Nursing Care
Good Coordination
Less Waiting Time
Cooperation among
Excellent Hospitality
the Staff
Discipline
Communication &
Information
Transparency in
charges and
procedures
Personal Attention
Courteous Behavior
Affordable Charges
17. Challenges in Service Marketing
Giving a feel for the “product”
Managing Demand Fluctuations
Maintaining Quality
Cost Containment
Attitudinal block in using proven marketing
principles in service marketing
18. Factors that promote Demand Perspective
Services are available for longer or
convenient hours
Patients are provided information through
Brochures, Publicity, etc on services
available
Services are reliable and offered promptly
Required equipment are available
Patient friendly Systems & Procedures
19. Factors that promote Demand
- Accessibility Perspective
Good public transportation
Centrally located
Outreach Programs to reach out to the
Rural People
20. Factors that promote Demand
- Affordability Perspective
Standard pricing structure
Charges affordable by most of the people in
the Community
Transparency in Patient Fees – no hidden
charges
Simple procedure for getting
free/subsidized care
21. Factors that increase Demand
- Promotion Avenues
Structured approach with designated staff
Good Rapport with Community
Publicity through different media
Promotion at Outreach activities
Meetings/seminars for other doctors
Developing a referral network
Promotion through satisfied patients
Industrial tie-up for routine examination of
their employees
22. Factors that affect Demand
- Attitude Perspective
Reasons for Low Demand:
Sophisticated technology will automatically
trigger demand
Belief that patients, if need eye care, will
definitely come to us
Providing Service as per Providers’ Convenience
Systems & Procedures are not patient friendly
Gap between Patients’ Expectations &
Providers’ Perception
Lack of patient orientation
23. Factors that demand attitude :- perspective
Skilled Doctor & other staff
Standard Clinical Protocol
Good Administrative System & Procedures
Courtesy & Politeness
Proper Explanation
Clean environment and comforts meeting
or exceeding expectations
Systems to monitor clinical outcomes &
Patient satisfaction
24. Factors that promote Demand
- to the Rural areas & the poor
Reasons for Low
Demand:
No one to Escort
Fear of Surgery
Ignorance
No desire for surgery
No time for Surgery
No money for surgery
Promoting Demand:
Counseling to build
confidence that Staff
will take care
Health education
Explain benefits
Free Transport/Food
Free/subsidized
Surgery
27. What is CRM?
•
The approach of identifying, establishing,
maintaining, and enhancing lasting relationships
with customers.”
•
CRM “is a business strategy that aims to
understand, anticipate and manage the needs of
an organisation’s current and potential customers”.
(know,target,sell,service)
•
CRM is a shift from traditional marketing as it
focuses on the retention of customers in addition
to the acquisition of new customers