1. Chapter 10 Customer-Defined Service Standards

2. Objectives
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

3. 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

4. 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.

5. 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

6. Examples of Hard Customer-Defined Standards

7. Examples of Soft Customer-Defined Standards

8. 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

9. AT&T’s Process Map for Measurements
Business Process
Customer Need
Internal Metric
30% Product
30% Sales
10% Installation
15% Repair
15% Billing
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%)
% 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
Total
Quality

10. What Customers Expect: Getting to Actionable Steps
Requirements: Diagnosticity
Abstract Low
Satisfaction Value
Relationship
Solution Provider
General Concepts
Dig
Deeper
Reliability Empathy
Assurance Tangibles
Responsiveness Price
Dimensions
Dig
Deeper
Delivers on Time
Returns Calls Quickly
Knows My Industry
Attributes
Dig
Deeper
Delivers by Weds 11/4
Returns Calls in 2 Hrs
Knows Strengths of
My Competitors
Behaviors
and Actions
Concrete
High

11. Developing Customer-Defined Standards
1. Identify Existing or Desired Service Encounter Sequence
2. Translate Customer Expectations Into Behaviors/Actions
3. Select Behaviors/Actions for Standards
4. Set Hard or Soft Standards
Measure by
Audits or
Operating Data
Measure by
Transaction-
Based Surveys
Hard
5. Develop Feedback
Mechanisms
Soft
6. Establish Measures and Target Levels
7. Track Measures Against Standards
8. Provide feedback about performance to employees
9. Periodically Update Target Levels and Measures

12. 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

13. Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling10 9 8 7 6 5 4 3 2 1
Large Customers
Small Customers
W O R K I N G H O U R S

14. 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

15. End