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Customer-Defined Service Standards
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McGraw-Hill © 2000 The McGraw-Hill Companies
1
SMSM
McGraw-Hill © 2000 The McGraw-Hill Companies
Chapter 9
CUSTOMER-DEFINED SERVICE STANDARDS
McGraw-Hill © 2000 The McGraw-Hill Companies
2
SMObjectives for Chapter 9:Objectives for Chapter 9:Customer-defined Service Customer-defined Service
StandardsStandards
• 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
McGraw-Hill © 2000 The McGraw-Hill Companies
3
SM
Figure 9-1Figure 9-1
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
Source: AT&T General Business Systems
McGraw-Hill © 2000 The McGraw-Hill Companies
4
SMExercise for Creating Exercise for Creating
Customer-Defined Service Customer-Defined Service StandardsStandards
• Form a group of four people• Use your school’s undergraduate or graduate
program, or an approved alternative• Complete the customer-driven service standards
importance chart• Establish standards for the most important and
lowest-performed behaviors and actions• Be prepared to present your findings to the class
McGraw-Hill © 2000 The McGraw-Hill Companies
5
SMService Encounter Customer Requirements Measurements
ServiceQuality
Customer-Driven Standards and Customer-Driven Standards and Measurements ExerciseMeasurements Exercise
McGraw-Hill © 2000 The McGraw-Hill Companies
6
SMFigure 9-2Figure 9-2
Getting to Actionable StepsGetting 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:
Abstract
Concrete
Dig Deeper
Dig Deeper
Dig Deeper
Diagnosticity:
Low
High
General Concepts
Dimensions
Behaviors and Actions
Attributes
McGraw-Hill © 2000 The McGraw-Hill Companies
7
SM
Figure 9-3Figure 9-3
Process for Setting Process for Setting
Customer-Defined StandardsCustomer-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. Update Target Levels and Measures 8. Update Target Levels and Measures
McGraw-Hill © 2000 The McGraw-Hill Companies
8
SM Importance/Performance MatrixImportance/Performance MatrixHIGH
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 projects correctly, on time (9.29, 7.68)
Does whatever it takes to correct 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 on promised date (9.02, 7.84)
Tells me cost ahead of time (9.06, 8.46)
Gets back to me whenpromised (9.04, 7.63)
McGraw-Hill © 2000 The McGraw-Hill Companies
9
SMFigure 9-5Figure 9-5
Linkage between Soft Measures and Linkage between Soft Measures and Hard Measures for Speed of Hard Measures for Speed of
Complaint HandlingComplaint HandlingS
A
T
I
S
F
A
C
T
I
O
N2 4 6 8 12 16 20 24
W O R K I N G H O U R S
Large Customers
Small Customers
10
9
8
7
6
5
4
3
2
1
0
McGraw-Hill © 2000 The McGraw-Hill Companies
10
SM
Figure 9-6Figure 9-6 Aligning Company Processes Aligning Company Processes
with Customer Expectationswith Customer Expectations
Customer Expectations
Customer Process Blueprint
Company Process Blueprint
Company Sequential Processes
AA BB CC DD EE FF GG HH
40 DaysNew Card
MailedLost Card Reported
Report Lost Card
Receive New Card
48 Hours