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Chapter 10Customer-Defined Service Standards
ObjectivesObjectives• Differentiate between company-defined and customer-defined
service standards• Distinguish among one-time service fixes and “hard” and “soft”
customer-defined standards• Explain the critical role of the service encounter sequence in
developing customer-defined standards• Illustrate how to translate customer expectations into behaviors and
actions that are definable, repeatable, and actionable• Explain the process of developing customer-defined service
standards• Emphasize the importance of service performance indexes in
implementing strategy for service delivery
Factors Necessary for Appropriate service Standards
Standardization of service Behaviors and Actions Translation of customer expectations into specific Service quality
standards Ex: Federal Express standardization service behaviors and actions
Factors Necessary for Appropriate Service Standards Standardization of Service Behaviors and Actions
Substitution of Technology for personal contact and human effort Improvement in work methods Combinations of these two methods
Formal service Targets and Goals Delivering consistently high service quality are noted for establishing
formal standards to guide employees in providing service Customer-Not Company-Defined Standards
Customer-defined Service Standards
Company-defined vs. customer-defined service standards. Company defined – Productivity, efficiency, costs,
technical quality. Translating customer expectations into
behaviors and actions that are definable, repeatable, and actionable.
Explaining the process of developing customer-defined service standards to employees.
Emphasizing the importance of service performance indexes in implementing strategy for service delivery.
Customer-defined Service Standards Standards that fill the gap 2 are customer defined standards-
Operational goals and measures based on pivotal customer requirements that are visible and measured by customers
Types of Customer-defined service standards “Hard” Customer-Defined Standards
Things that can be counted, timed, or observed through audits
Ex: Federal Express, Dell computer
“Soft” Customer-Defined standards Understanding and knowing the customer through
discussions with customer and opinion based measures Ex:General Electric, American Express
One-Time Fixes – are technology, policy or procedure changes that instituted, based on customer requirements
Examples of Hard Customer-Defined Standards
Examples of Soft Customer-Defined Standards
Development of customer defined service standards
Basing Standards on the service Encounter Sequence
Expressing Customer Requirements as specific Behaviors and Action
Measuring Behaviors and Actions Hard Measurements
Ex: Missing Proofs of delivery, Wrong day late deliveries
Soft Measurements Adapting standards Globally or locally
AT&T’s Process Map for MeasurementsAT&T’s Process Map for Measurements
Reliability
(40%)
Easy To Use
(20%)
Features / Functions
(40%)
Knowledge
(30%)
Responsive
(25%)
Follow-Up
(10%)
Delivery Interval Meets Needs
(30%)
Does Not Break
(25%)
Installed When Promised
(10%)
No Repeat Trouble
(30%)
Fixed Fast
(25%)
Kept Informed
(10%)
Accuracy, No Surprise
(45%)
Resolve On First Call
(35%)
Easy To Understand
(10%)
Business Process Customer Need Internal Metric
30% Product
30% Sales
10% Installation
15% Repair
15% Billing
% Repair Call
% Calls for Help
Functional Performance Test
Supervisor Observations
% Proposal Made on Time
% Follow Up Made
Average Order Interval
% Repair Reports
% Installed On Due Date
% Repeat Reports
Average Speed Of Repair
% Customers Informed
% Billing Inquiries
% Resolved First Call
% Billing Inquiries
TotalQuality
What Customers Expect: Getting to Actionable StepsWhat Customers Expect: Getting to Actionable Steps
Satisfaction ValueRelationship Solution Provider
Reliability EmpathyAssurance Tangibles Responsiveness Price
Delivers on TimeReturns Calls QuicklyKnows My Industry
Delivers by Weds 11/4Returns Calls in 2 HrsKnows Strengths of My Competitors
Requirements: DiagnosticityAbstract Low
Concrete
Dig Deeper
Dig Deeper
Dig Deeper
General Concepts
Dimensions
Behaviors and Actions
Attributes
High
Developing Customer-Defined StandardsDeveloping Customer-Defined Standards
1. Identify Existing or Desired Service Encounter Sequence
2. Translate Customer Expectations Into Behaviors/Actions2. Translate Customer Expectations Into Behaviors/Actions
4. Set Hard or Soft Standards
5. Develop FeedbackMechanisms
5. Develop FeedbackMechanisms
7. Track Measures Against Standards
Measure byAudits or
Operating DataHard Soft
Measure byTransaction-
Based Surveys
3. Select Behaviors/Actions for Standards 3. Select Behaviors/Actions for Standards
6. Establish Measures and Target Levels 6. Establish Measures and Target Levels
8. Provide feedback about performance to employees 8. Provide feedback about performance to employees
9. Periodically Update Target Levels and Measures 9. Periodically Update Target Levels and Measures
3. Select Behaviors/Actions for Standards
The standards are based on behaviors and actions that are very important to customers
The standards cover performance that needs to be improved or maintained
The standards cover behaviors and actions employees can improve
The standards are accepted by employees
The standards are predictive rather than reactive
The standards are challenging but realistic
Linkage between Soft Measures and Hard Linkage between Soft Measures and Hard Measures for Speed of Complaint HandlingMeasures for Speed of Complaint Handling
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N 2 4 6 8 12 16 20 24
W O R K I N G H O U R S
Large Customers
Small Customers
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Developing Service performance Indexes
Indexes set by identifying the set of customer defined standards
Companies build indexes by Understanding the most important requirements
of the customer Linking these requirements to tangible and
measurable aspects of service provision Using the feed back from these indexes to
identify and improve service problems
End
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