Service Logic (Delta Force Paintball)

Service logic as explained by Grönroos (2010). He says, “The essence of the service logic for the customer and the provider, respectively, is: 

1. When using resources provided by a firm together with other resources and applying skills held by them, customers create value for themselves in their everyday practices (customer service logic). 
2. When creating interactive contacts with customers during their use of goods and services, the firm develops opportunities to co-create value with them and for them (provider service logic).” (2010, p. 299) 

Gronroos (2008, pp. 223-224) argues service logic involves five major factors.

1. Understanding the value that emerges for customers by consuming or using offerings of an organisation and knowing how services alone or together with information, physical goods or other kinds of tangibles contribute to this value.
2. Understand how total quality is perceived in customer relationships to facilitate such value and how it changes over time
3. Understanding how an organization (people, technology and physical resources, systems and customers) will be able to produce and deliver this perceived quality and support customers' value creation.
4. Understanding how an organization should b developed and managed so that the intended quality and value are achieved
5. Making an organization function so that this perceived quality and value are achieved and the objectives of the parties involved (the organization, the customers, other parties, etc.) are met. 

This means the firm has to understand the following:

1. The perceived quality and value in their everyday activities and processes customers are looking for. 
2. how to create that value support for the customer
3. how to manage the resources available to the organization to achieve such service-based value creation. 

The example of Delta Force Paintball shows how this service logic involves understanding the broader social, cultural and technological trends for people seeking novel experiences. 

Delta Force Paintball

Paintball is a sport or a war game in which players compete, in teams or individually, to eliminate opponents by tagging them with paintballs. 

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Illustration 1: The cast of 'The Big Bang Theory' play paintball 

Equipment is very important in paintball. The paintballs themselves are capsules containing water-soluble dye with gelatine outside shell which is propelled from a paintball gun. 

Protective clothing is also important, including a compulsory face-guard. Players are required to wear masks when in the field of play, and there are strict protocols around safe practice to ensure no one is really harmed. 

Games can be played on outdoor or indoor fields. There are many examples on the Internet of maps of fields of play, one of which is reproduced below of Paintball facility in Australia. A game field can be created with natural or artificial terrain. In New Zealand, one initial terrain included an abandoned freezing works facility. Players use cover to launch sallies against the enemy or to defend their position. 

Terrain Map Skirmish HQ Gold Coast Paintballing Facility in Australia 

You can even get applications now for phones and other hand-held devices to orient players and help them strategize during gameplay.

Screenshot of Interactive Map Marker for use during Paintball play  

Many different games and scenarios can be run by organizers. Generally, games involve: Speedball, played on a small flat area with artificial barricades; Woodball, played in the woods; and Milsim, which is short for military realism – scenarios are based on real-world combat situations. Scenarios include capture the flag, invade an area, or find a thing, zombie apocalypse, elimination rounds, and so on. Games can last from seconds or be played over several days. There are also 'freedom' paintballers, who 'go bush' and play amongst themselves in free play. Luckily paintballs are biodegradable. 

In the USA and Britain, the game is played regularly as a competitive organized sport. There are even professional teams. Paintball facilities and technologies are also used in training for military forces, law enforcement, paramilitary services and security organizations, riot response, and for training people in the "non-lethal suppression of dangerous suspects”. 

Delta Force Paintball was established in the United Kingdom in 1989. Delta Force made a big impact because they made the sport more professional, and oriented paintball to families and social activity more generally, rather than focusing on competitive fighting. Success factors for Delta Force's have been their focus on professional customer service, safety, and family-oriented fun and enjoyment. 

Since their entry into paintball, player numbers have significantly grown, as has player satisfaction, according to their website. After starting in England they expanded into Wales and Scotland, and are now located in 7 countries on 3 continents. Their Woodhill facility is the first Delta Force paintball facility in NZ, and they intend to expand and develop facilities in and around all major cities in NZ. 

The inspiration for Delta Force terrain is film and terrain is clearly designed with specific scenarios in mind. Delta Force Paintball at Woodhill in Auckland featured an Egyptian themed area (‘Raiders of the Lost Arc’), and also found inspiration in the films 'Tomb Raider', 'Tropic Thunder', 'Resident Evil' and 'Fuel Dump'. 

'State-of-the-art' equipment revolutionised the sport. Although basic equipment (guns, face helmets and overalls) are made available, upgrades available and people can bring their own equipment. Although rapid action guns (machine guns) are not allowed in NZ, guns can be upgraded, and own equipment may be worn by committed and regular players. 

Delta Force Paintball focus on the social nature of the game, suggesting a paintball session could be used as an event like Buck or Hen parties, Birthdays, Corporate functions, or just groups of friends or family to have a good fun day out. On their Facebook page you can see a large number of family groups, groups of children, and many women, indicating the spreading popularity of the sport into sectors it did not previously attract. 

Delta Force Paintball says it wants to have paintball centres in every major city in New Zealand, and with the continued growth of the activity, this seems reasonably likely. They say "It is our corporate goal to promise you the very best paintballing experience imaginable – in terms of quality, safety, value and enjoyment". They now have 20 years experience in the business, and employ more than 1000 people worldwide. 

Managing quality is an issue for an organisation like Delta Force Paintball like it is for any service organisation. Professional Standards can be recognised by belonging to professional associations, like the UKPA (United Kingdom Paintball Association). Paintball can also have their facilities rated by independent authorities.

A day out paintballing is not cheap, especially for a family. Other than price, another barrier to involvement is the travel - a car-hike into the outskirts of North Auckland. Despite the cost and the effort to get there many dedicated paintballers engage in Paintballing regularly at Woodhill and other facilities. In terms of overcoming the cost barrier, Delta Force have several tactics. They promote through booths and stalls at University Orientation Days and in Shopping Malls, offering low cost or free entry to the facility, with the first 100 paintballs free. Facebook deals are available, they have a price match promise, and other special deals to encourage first-taster use and return custom. Once at the facility paintballs must be bought and this is where Delta Force makes much of its money. Costs are available on their site. 100 paintballs do not last long, especially if you are new to the game and excitable. Some new players can use 100 balls in 10 minutes of play.

An interesting aspect of Delta Force Paintball is the way it co-creates value with the customer through levering excitement about the game through interactive gaming culture, social media, and film. The experience of playing Paintball directly draws on gaming experiences such as Halo, classic ‘shoot-em-up’ games, and films like Tropic Thunder and Zombie Apocalypse. 

References 

Grönroos, C. (2010). Service management and marketing: Customer management in service competition. Chichester: John Wiley and Sons Ltd. 

Wikipedia reference for 'Paintball' at http://en.wikipedia.org/wiki/Paintball

http://www.theaucklander.co.nz/news/egyptian-ruins-unveiled-for-games/1053057/

Delta Force Paintball Woodhill on Facebook http://www.facebook.com/deltaforcewoodhillforest

How Paintball works at http://entertainment.howstuffworks.com/paintball1.htm

Service Guarantee

A service guarantee is a promise and so it drives the process and outcome. A guarantee helps everyone understand what the organisation delivers in terms of an experience process and outcome, and it also drives continuous operational improvement and the service recovery programme.

Activity: Answer the following questions:

1. What is a service guarantee?
2. Name some excellent service guarantees you are aware of. How do they work to create confidence in the service and increase perception of quality of the service?
3. Consider ‘The Warehouse’ guarantee below. If you make a purchase at the Warehouse how does the guarantee make you behave and feel? What would the challenges be for a manager at the Warehouse to manage their guarantee?
4. What are the four acid tests of a service guarantee? (see below)
5. What are the downsides of guarantees? Design a guarantee for a service of your choice based on the principles outlined in the text (including that it is meaningful; easy to understand; explicit; unconditional; and the payout).

What are the benefits of having a guarantee like this and what could go wrong?

Two examples of guarantees are given below.

Countdown Online Grocery Shopping Guarantees:

The Warehouse returns policy is available here.   Below are their procedures for people who would like to return a product:

Further Reading


Hart, Christopher (1988). ‘The power of unconditional service guarantees’, Harvard Business Review, July-
August, pp. 54-62.

Firnstahl, Timothy (1989). ‘My employees are my service guarantee’, Harvard Business Review, July-August, pp. 4-8.

Fitzsimmons, J., & Fitzsimmons, M. (2006). Service management: Operations, strategy, information technology. (5th ed.). Sydney: McGraw-Hill/Irwin.

Kashyap, Rajiv (2001). ‘The effects of service guarantees on external and internal markets’, Academy of
Marketing Science Review, No. 10.

Service Package

Sometimes service managers refer to service packages. The service package is a way of understanding what a service offering is made up of. A service package can be made up of both tangible elements and intangible elements. Sometimes these are divided into five elements:

1. Supporting Facility:  The physical resources that must be in place before a service can be sold.  Examples are a golf course, ski lift, hospital, airplane.
2. Facilitating Goods:  The material purchased or consumed by the buyer or items provided by the consumer.  Examples are food items, auto parts, legal documents, golf clubs.
3. Explicit Services:  Benefits readily observable by the senses.  The essential or intrinsic features.  Examples are quality of meal, attitude of the waiter, on-time departure.
4. Implicit Services:  Psychological benefits or extrinsic features which the consumer may sense only vaguely. Examples are the privacy of loan office, the security of a well-lighted parking lot.
5. Information. 

The service package concept can help managers focus on managing quality. Managers can go through each of the elements of the package concept and decide how to ensure quality service provision across all the elements involved. Then a simple checklist can be created so that quality can be managed.

An example of a checklist for a hotel is below. You can see a mixture of the five elements above made describable in the checklist so they can be assured.

Service Productivity Model - Grönroos

Service productivity

The basic productivity challenge for service businesses is explained by Professor Grönroos in the video below.





Essentially Grönroos is saying that if services implement manufacturing models to service process delivery performance is negatively impacted (see Grönroos Figures 9.1 to 9.3).

Cost-cutting approaches are normal in manufacturing processes but if taken in service businesses then eventually profit will go down. Why? In manufacturing or product logic cost-cutting shouldn't decrease profitability (say if linked to the uptake of technology or getting rid of excess bureaucracy). But, if using service logic, if processes are constantly cut then perceptions of quality will eventually go down. People will notice that there is less help available, there are longer waiting times, etc. and so revenue will go down. Costs do go down of course but profitability also goes down. The consequence for a service business is that they should know where their breaking point is. But this breaking point is difficult to discern so managers have to be very careful to watch out for when profits start to go down as this is a strong signal service logic is not operating.

As an alternative to using a product logic, Grönroos argues for service logic in increasing productivity. This is explained in more detail in Figure 9.4 below. One needs to understand the actual process of creating value in order to understand where costs can and can't be cut, and where investment should be made to increase productivity. So for example, understanding what is a back-office process that can be automated. Or understanding what front of office self-help activities might be able to be pushed toward the customer that they could get value from (e.g. online banking and the ability to manipulate money between accounts).

Grönroos Figure 9.4

For service businesses, the focus is always on the relationship with the customer. If cost-cutting impacts negatively on this relationship then the service logic which should underpin the relationship is at risk. Of course, cost-cutting is sometimes desirable and advisable, but Grönroos argues that the relationship should underpin all decision-making and this is shown in Figure 9.6 below. Productivity is improved in this model by investing in the relationship's continuity by gaining mutual value out of the relationship. He links this to learning as these relationships are always dynamic and growing.

Grönroos Figure 9.6

Reference

Grönroos, C. (2010). Service management and marketing: Customer management in service competition. Chichester: John Wiley and Sons Ltd.