Gaps Model of Service Quality 2-1

Customer-Defined Service Standards Chapter 9 Customer-Defined Service Standards Factors Necessary for Appropriate Service Standards Types of Customer-Defined Service Standards Development of Customer-Defined Service Standards 9-2

Objectives for Chapter 9: Customer-Defined Service Standards Distinguish between company-defined and customer-defined service standards. Differentiate among “hard” and “soft” customer-defined standards and one-time fixes. 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. 9-3

FedEx Service Quality Indicator (SQI) 9-4

Factors Necessary for Appropriate Service Standards Standardization of service behaviors and actions Standardization usually implies a nonvarying sequential process similar to the production of goods Customization usually refers to some level of adaptation or tailoring of the process to the individual customer Formal service targets and goals Setting specific targets for individual behaviors and actions; for example, the customer service standards set by Puget Sound Energy and shown in Figure 9.1. 9-5

Customer Service Report Card for Puget Sound Energy 9-6

Service Standards Customer-Defined Standards Company-Defined Standards Standards are based on the most important customer expectations and reflect the customer’s view of these expectations. Customer-Defined Standards SOURCES Customer Expectations Customer Process Blueprint Customer Experience Observations SOURCES Productivity Implications Cost Implications Company Process Blueprint Company View of Quality Company-Defined Standards 9-7

Counting… “Not everything that counts can be counted...and not everything that can be counted, counts.” Albert Einstein 9-8

Standards… HARD STANDARDS AND MEASURES SOFT STANDARDS AND MEASURES Things that can be counted, timed, or observed through audits (time, numbers of events) SOFT STANDARDS AND MEASURES Opinion-based measures that cannot be observed and must be collected by talking to customers (perceptions, beliefs) 9-9

Exhibit 9.1: Examples of Hard Customer-Defined Standards 9-10

Exhibit 9.2: Examples of Soft Customer-Defined Standards 9-11

Process for Setting Customer-Defined Standards 9-12

What Customers Expect: Getting to Actionable Steps 9-13

Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling 9-14

Responsiveness Standards at Zappos.com Respond to 80 percent of all incoming calls within 20 seconds Respond to all e-mail messages in less than four hours Respond to live (online) chats in less than 10 seconds. 9-15

Soft Standards at Toyota in Japan Standards for salespeople patterned after samurai behaviors: Assume the samurai warrior’s “waiting position” by leaning five to ten degrees forward when a customer is looking at a car Stand with left hand over right, fingers together and thumbs interlocked, as the samurais did to show they were not about to draw their swords Display the “Lexus Face,” a closed-mouth smile intended to put customers at ease Samurai warrior “waiting position” 9-16

More Soft Standards at Toyota in Japan Standards for salespeople patterned after samurai behaviors: When serving coffee or tea, kneel on the floor with both feet together and both knees on the ground Bow more deeply to a customer who has purchased a car than a casual window shopper  Stand about two arms’ lengths from customers when they are looking at a car and come in closer when closing a deal Point with all five fingers to a car door’s handle, right hand followed by left, then gracefully open the door with both hands  9-17

Hard and Soft Service Standards at Ford Appointment available within one day of customer’s requested service day Write-up begins within four minutes Service needs are courteously identified, accurately recorded on repair order and verified with customer Service status provided within one minute of inquiry Vehicle serviced right on first visit Vehicle ready at agreed-upon time Thorough explanation given of work done, coverage and charges 9-18

Standards at Four Seasons Seven Service Culture Standards Core Worldwide Service Operating Standards Smile Eye Recognition Voice Informed Clean Everyone Reservations Hotel Arrival Messages and Paging Guest Room Evening Service Breakfast Room Exceptions are permitted if they make local sense 9-19