MSMEs Level Up: 4 Service Quality Models to Enhance Consumer Experience

Jakarta – The upgrading of MSMEs is not only marked by an increase in business scale, turnover, or the number of customers. This transformation is also evident in how business actors change their business patterns from being informal and manual to becoming more professional, standardised, and able to adapt to market needs.

In material regarding MSME upgrading based on the Regulation of the Minister of Cooperatives and SMEs, innovation capability and service quality to consumers are important parts of the business development process. This means that the higher the stage of an MSME, the greater the demand for the quality of service provided to customers.

Service models in MSMEs can be observed through several stages. At the initial stage or micro category, service is still personal and transactional. The owner usually also acts as the person serving customers, with interactions relying on closeness or direct relationships. The payment system is also still simple, such as cash or static QRIS, while the complaint handling mechanism is not yet formal.

Furthermore, at the growth stage or micro to small, businesses begin to build two-way communication with consumers. Business actors start using Instagram, TikTok, and WhatsApp Business to answer questions, receive orders, and obtain customer feedback. The payment system also develops by providing bank transfers and digital wallets, while service begins to apply basic hospitality standards.

At the developing stage or small category, service begins to rely on standardisation and consistency. Interaction with customers no longer depends on the business owner, but is regulated through Standard Operating Procedures (SOP). Consumers gain clarity regarding delivery estimates, return policies for defective goods, and product quality guarantees. Businesses at this stage may also have a dedicated admin for customer service and use e-commerce or payment gateways.

Meanwhile, businesses at the ready-to-upgrade stage or medium and export-ready category are at a more integrated level of service. Consumer satisfaction begins to be measured and managed through Customer Relationship Management (CRM). Service can include official warranties, fast complaint handling, and personalisation such as providing special promotions. Technology is also increasingly utilised through chatbots, omnichannel systems, and measurable digital marketing.