Service is Segmented

There is no such thing as universally "good" service. Different market segments have different needs and therefore require different types of service. Excellent service for one group of customers can be worthless or even detrimental to another.

Service must be planned and tailored for each distinct customer category a company sells to.

Examples of Service Segmentation:

• OEM vs. End User: An OEM (Original Equipment Manufacturer) buying a computer system wants spare parts and training for their own technicians. An end user wants the supplier to fix the system on-site, and fast.
• Discount vs. Luxury Retail: A discount store customer's definition of good service is low prices and high availability. A luxury store customer's definition is expert advice, reassurance, and a high-touch sales experience.
• International vs. Domestic Air Travel: An airline's service is segmented. It may have to hold domestic flights to accommodate late-arriving international passengers, providing good service to one segment at the expense of the other.

A company must analyze its customer base and implement a service strategy that matches the specific needs of each segment. Trying to provide a one-size-fits-all service offering will inevitably lead to failure.