Post on 09-Apr-2018
8/8/2019 7.1. Customer-Defined Standards
1/17
Customer Defined Service Standards
8/8/2019 7.1. Customer-Defined Standards
2/17
Functional Integration
y Operations and Marketing often operate separately,each serving own internal goals
y Creating service standards that address customer
needs frequently requires altering the process bywhich work is accomplished
y Structuring, calibrating, and monitoring
8/8/2019 7.1. Customer-Defined Standards
3/17
Factors necessary for appropriate servicestandards
y Standardization versus customization
y Three forms of standardization of service1. substitution of technology for personal contact
on-line services, voice mail, automatic teller machines, automaticcar wash
2. improvement in work methods
3. combination of these two
8/8/2019 7.1. Customer-Defined Standards
4/17
Standardization
y Standardization does not mean that service isperformed in a rigid, mechanical way.
y Customer-defined-standardization ensures that themost critical elements of a service are performed asexpected by the customers, not that every action in aservice is executed in a uniform manner.
8/8/2019 7.1. Customer-Defined Standards
5/17
Formal Goals
y Specific and measurable
y expressed as a percentage across executions
Replace lost credit cards within 48 hours 98 percent of
the timey Examples of formal goals Call customer back within two hours
Answer phone within three rings
Connect new cable service by the date promised
8/8/2019 7.1. Customer-Defined Standards
6/17
Customer -Not Company- Defined Standards
y Customer-Defined Standards are operationalstandards based on pivotal customer requirementsthat are visible to and measured by customers.
y A current company-defined standard that does notmeet customer expectations is the common practiceofvoice-activated telephone support systems that do
not allow consumers to speak to humans.
8/8/2019 7.1. Customer-Defined Standards
7/17
Types of Customer-Defined Service Standards
1. Hard Standards
Things that can be counted, timed, or observed through audits
2. Soft Standards
Must be documented using perceptual measures. They are opinion based measures and cannot be directly
measured.
They are collected by talking to customers, employees orothers.
Soft standards provide direction, guidance, and feedback toemployees in ways to achieve customer satisfaction and can bequantified by measuring customer perception and beliefs.
8/8/2019 7.1. Customer-Defined Standards
8/17
Examples of Measures (Hard)
y Time in Line, Transaction Time
y Number ofErrors (Mistakes) per Transaction
y Violation of Dress Code
y Availability of Systems (Phone Lines, Power)
8/8/2019 7.1. Customer-Defined Standards
9/17
Examples of Measures (Hard)
y Number of Complaints Received
y Number of Warranty Claims
y Number or Rupees Value of Sales
y Return on Assets
y Number ofRepeat Customers
y Number of Infections per Surgery
y Number of Law Suits Filed
8/8/2019 7.1. Customer-Defined Standards
10/17
Examples of Measures (Soft)
y Safety
y Convenience
y Cleanliness
yAvailability
y Consistency
y Hospitality
y Credibility
8/8/2019 7.1. Customer-Defined Standards
11/17
Examples of Measures (Soft)
y FriendlyPersonnel
y Knowledgeable Personnel
y Helpful Personnel
y Value Received
8/8/2019 7.1. Customer-Defined Standards
12/17
Service Encounter Sequences
y Building blocks for customer-defined standards
Benefits
understand specific requirements of customers
translate into specific behaviors and actionsfacilitatebehavior change in employees
8/8/2019 7.1. Customer-Defined Standards
13/17
Service Encounter Customer Requirements Measurements
Service
Quality
Customer-Driven Standardsand Measurements Exercise
8/8/2019 7.1. Customer-Defined Standards
14/17
8/8/2019 7.1. Customer-Defined Standards
15/17
GettingGetting toto Actionable StepsSteps
Satisfaction Value
Relationship
Solution Provider
Reliability Empathy
Assurance TangiblesResponsiveness Price
Delivers on Time
Returns Calls Quickly
Delivers by FridayReturns Calls in 2 Hrs
Knows Strengths of
My Competitors
Requirements:
Abstract
Concrete
Dig
Deeper
Dig
Deeper
DigDeeper
Diagnosticity:
Low
High
General Concepts
Dimensions
Behaviors
and Actions
Attributes
8/8/2019 7.1. Customer-Defined Standards
16/17
Process for Setting Customer-Defined Standards
1. Identify Existing or Desired Service Encounter Sequence
2. Translate Customer Expectations Into Behaviors/Actions
4. Set Hard or Soft Standards
5. Develop Feedback
Mechanisms
7. Evaluate performance to Standards
Measure by
Audits or
Operating Data
Hard Soft
Measure by
Transaction-
Based Surveys
3. Select Behaviors/Actions for Standards
6. Establish Measures and Target Levels
8. Update Target Levels and Measures
8/8/2019 7.1. Customer-Defined Standards
17/17
Importance/Performance Matrix
HIGH
HIGH
Performance
10.0
8.0
7.0
9.0
LOW
8.0 9.0 10.0
Importance
Improve Maintain
Delivers on promises specified in proposal/contract (9.49, 8.51)
Gets project within budget, on time (9.31, 7.84)Completes projectscorrectly, on time (9.29, 7.68)
Does whatever it takes tocorrect problems (9.26, 7.96)
Provides equipment that operates as vendor said it would (9.24, 8.14)
Gets price we originally agreed upon (9.21, 8.64)
Takes responsibility for their mistakes (9.18, 8.01)
Delivers or installs onpromised date (9.02, 7.84)
Tells me cost ahead of time (9.06, 8.46)
Gets back to me whenpromised (9.04, 7.63)