7.1. Customer-Defined Standards

8/8/2019 7.1. Customer-Defined Standards

1/17

Customer Defined Service 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


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


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.


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


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.


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.


8/17

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)


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


10/17

Examples of Measures (Soft)

y Safety

y Convenience

y Cleanliness

yAvailability

y Consistency

y Hospitality

y Credibility


11/17

Examples of Measures (Soft)

y FriendlyPersonnel

y Knowledgeable Personnel

y Helpful Personnel

y Value Received


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


13/17

Service Encounter Customer Requirements Measurements

Service

Quality

Customer-Driven Standardsand Measurements Exercise


14/17


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


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


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)

Documents

7.1. Customer-Defined Standards