Chartered Institute of Customer Relationship Management

Assignment: Post Graduate Diploma In Customer Relationship Management (PGDCRM)

MODULE: Customer Service Standards

DUE DATE: 12 August 2022

LECTURER: DR M. T. Nkosi

Maneta Linnys Dzauma

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TABLE OF CONTENTS

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Question One
a. What are customer service standards?

Service Standards are the key behaviours that we must all consistently demonstrate for
our customers to really “feel” who we are. They are a framework that we each work
within that helps create and sustain our service culture, we can say these are tried and
tested best practices which we can apply when delivering services to customers. These
are repeatable, harmonised, agreed and documented way of doing something. Standards
contain technical specifications or other precise criteria designed to be used consistently
as a rule, guideline, or definition. Customer service standards dictate the ways in which
customers are to be treated and the best practices to be observed when interacting with
them. They set a target for companies to meet customer needs through the use of its
people, systems and technology. They are important for customers, potential customers,
employees and management of a business. They help to define what a customer can
expect and to remind management and employees of the challenge and obligations that
they face.

b. Explain with examples, Customer-designed customer service standards?

Standards are based on the most important customer expectations and reflect the
customer’s view of these expectations. Service standards are consistent
with customer priorities. This means they must address aspects of the service that
customers value most within available resource allocations. They are developed in
consultation with key internal stakeholders the employee, to ensure that they are
meaningful and match the organisations’ overall purpose and values. It is important to
note that customers buy based on emotions rather than logic or reason. Exceptional
customer care inspires future purchasing behaviour more than data and facts.

Steps to Follow Designing Customer Service Standards

1. Establish Priorities for Service Standards
2. Plan and develop

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3. Implement the standards
4. Measure performance against service standards
5. Act on the results

Process for developing customer-defined standards.

Source: slideshare.net

1. Identify Existing or Desired Service Encounter Sequence:

Customer billing will start one calendar day after the activation of their AT&T FlexWare
service at a site would be an appropriate example of an existing or desired encounter.

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2. Translate Customer Expectations Into behaviors/actions:
Abstract customer expectations are translated into concrete specific behaviors/actions associated with
each encounter.
3. Select behaviors/actions for standards:
Standards are based on behaviors and actions that are very important for the customers and standards
cover performance that need to be improved or maintained. Standards are accepted by employees
Standards are predictive rather than reactive. Standards are challenging but realistic.
4. Set Hard or Soft Standards:
Companies are biased towards hard standard. First we must establish a soft standard.
5. Develop Feedback Mechanisms:
Hard standards involve mechanical counts or technology enabled measurements. Soft
standards, employee monitoring through customer feedback.
6. Establish measures and target levels:
Companies can relate levels of customer satisfaction with actual performance of a behavior. For example:
Airline waiting line. The passengers who come to airport would report at the respective
counters in the first stage with relevant documents and tickets. For each flight service
three counters are opened and passengers are free to join any of the queues at counters.
At those counters the passengers are issued with the boarding passes after verification of
documents. In the second stage where immigration cum security pass activity is
performed. The system is considered as two stages multiple channels Jackson Queuing
model. Data is continuously recorded for at various times in each of the day and at
various counters at the stages.
The data is analysed and the arrival rate of passengers, service rate of passengers, waiting
time in the queue system and length of system are computed. The quality control charts
are drawn to depict the waiting time of the passengers in the queues before boarding the
respective flights. If the waiting time is exorbitantly high and hence optimized the
serving system with the addition of optimum number of servers. With the proposed
addition of optimum servers the total cost is optimized and the waiting time of passengers

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before boarding the respective flights is reduced greatly and improves the customer’s
satisfaction.

7. Track measure against standards:

Figuring out what goes wrong and prevent it from happening again.
8. Provide feedback about performance to employees:
Communication of performance on its service quality to its employees to identify and correct problems.

Customer Service Standard Examples

Accessibility Standards
In order to simplify access and use of our service, an organization / department / team
vows to:
 Provide service during the normal business hours, being from 8: 30 am to 12:00
pm and from 1:00 pm to 4: 30 pm, from Monday to Friday.
 Provide information, upon request, on various supports, such as audio, electronic
text and in large characters in order to respond to the needs of individuals with
disabilities or impairments.
 Communicate with the customers in the official language of their choice.
 Change its voicemail message daily, stating name, day and availability. If out of
office or on vacation, stating the time or day of return, and the name and phone
number of the person to contact for immediate help.
 Activate automatic out-of-office messages on email when absent – stating the
time or day of return, and the name and email address of the person to contact for
immediate help.

Availability Standards
Making information available and demonstrating our willingness to help are important
aspects to our activities. This is why an organization / department / team) vows to:
 Answer calls before the third ring.
 The phone system always offers the option to talk to someone.

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  Always confirm receipt of emails within 24 hours. If the answer is not available,
the anticipated delay needed will be communicated. It must not go over 5 business
days.
 Process evaluation requests within 10 business days.
 Process orders for products already available within 2 days of reception.
 Answer to general communications within the following delays:
 Message left on voicemail: within 4 business hours.
 Email: within the business day following the employee’s return at work
 Fax or letter: within 2 business days.
 Social media: within 2 business days.
Reliability Standards
 Inform customers of any change and clearly explain the reason for the change.
 See that all documents, tools, and website content is up-to-date.
 Provide exact and up-to-date information on products, programs and services.
 Give written confirmation on product or service price before starting.
 Ensure clarity and precision of documents, forms, instructions, as well as graphic
and written communication.
Safety Standards
Customers are guaranteed:
 Respect and protection of confidentiality of personal information.
 Encryption during electronic transactions.
 Personnel identification (uniforms, badges, business cards).
Courtesy Standards
 Only transfer the client’s call once there is someone to reach who can answer his
request.
 Always be punctual.
 Always address the customer with appropriate formality.
Flexibility Standards

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  All employees have the authority to make a decision to accommodate a customer
if this decision costs less than $150.
Credibility Standards
 Ensure the sending of letters emails and other documents without errors.
 Opt for an appropriate dress code.

c. Why are customer service standards necessary?

A service is intangible product based transactions. Quality, efficiency and consistency in

services helps a service in success. Service standards helps an organisation in delivering
quality, efficiency and consistency. These standards improve and monitor performance and
quality of the service provided. Service standards are expected behaviours and etiquettes
expected out of all persons related with the service firm. They ensure a customer focused
provision of services and thus ensuring customer satisfaction. It involves a set practice
standards.

These range from basic levels to sophisticated systems. They are a useful guide to
employees. Non-existence of service standards causes uncertainties. It causes inconsistency
in service delivery. Good services standards could not be set up without thorough
understanding of customer needs and expectations. Service standards are integral part to
customer satisfaction.
Customer standards helps in meeting customer needs. They also helps in practical handling
of the resources and costs. They enable diligence in service provision. Standards should not
be set too low or too high. They are measurable. Assessing standards is an important
process in service marketing.
Service standards provide the behavioural template by making expectations clear.
Service standards lead to consistent service and can be a valuable training resource They
set benchmarks that can be used to monitor and improve service standards They provide
the proper tools to help staff achieve standards set They provide necessary tools to
evaluate current customer service quality.

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They provide information that helps pinpoint problems areas in service so corrections
can be made. They create an environment where rewards can be given based on whether
standards are reached and maintained. Service standards can also form a valuable part of
marketing material, whether in print or web form.
Service standards represent an important element for customer service excellence, as well
as good yield management. They clarify customer and employee expectations, facilitate
results-driven management, and promote customer satisfaction.
A standard is an “evaluation base” and a “defined excellence degree” wanted by the
organization and by customers. A service standard is a reasonable and measurable
expectation from the customer, and an honest commitment taken by the service provider,
to attain or surpass expectations.
Service standards have such goals as to establish and yield objectives for employees for
example answer the phone before the third ring. Inform customer about what they have
the right to expect for example wait time under 10 minutes.
When clearly stated, service standards equip the personnel with the right tools to bring
customer satisfaction and facilitate engagement.

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Question Two
What are the economic benefits of customer service standards?
In business, getting people in the door is a key to success. But an even bigger challenge
that businesses face is to keep customers coming back. A buyer who makes one
purchase is likely an impulse buy or a buy from need. Buyers who make repeat
purchases are customers the business can serve for years to come. That’s why we can’t
discount the benefits of customer service standards. Great service standards make a
customers feel that they are important and that the business care about developing a
long-term relationship that means more than just making a sale.

Generates Repeat Business

One of the main benefits of customer service standards is that it persuades people to do
business with the company more than once. Repeat sales are not accidental, and without
creating a positive customer experience, buyers will go elsewhere. One of the
advantages of customer service standards is that it creates personal connections with the
target audience. When buyers are treated with kindness and respect, it develops a
relationship that makes customers reluctant to go elsewhere with their business. It is
important to note that the advantages of good customer service don’t just stop during a
transaction, whether on the phone or in person. By taking an additional step such as
sending a thank-you email after each purchase, it confirms the value of buyers
regardless of the amount of their purchase. When customers have a good service
experience, they’re more likely to stick with a brand. Getting it right, customers will keep
coming back for more therefore customer service standards promote customer loyalty

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Enhances Business Reputation

Boosting a company’s reputation is another of the advantages of customer service

standards. Customers often talk about their experience when dealing with businesses,
especially if it's unusually good or poor. By delivering strong customer service, a
company is making use of the effective marketing tool known as word-of-mouth
advertising. Customers will be happy to tell their friends and relatives about how well
the business has taken care of them, resulting in additional advertising at no cost
customers will be doing sales and marketing for the business. Word of mouth is a very
strong indicator as to how an organisation is perceived and there are massive practical
values including savings on marketing costs many people respond positively to
recommendations from family and friends, and naturally customers don’t want to risk
leaving an organisation with a great reputation.

Combats Higher Prices

A small business, simply may not be able to afford to offer the low prices that the
corporate chain stores around the corner charges. One of the hidden benefits of
customer service standards is that by providing excellent customer service, the business
can offset the effect of higher prices by offering a better customer experience. When a
company has earned the reputation of providing high-end customer service, it enjoys
the leeway to charge more for it products and services because buyers will pay a
premium to feel valued and wanted.

Provides Competitive Advantage

What separates an organisation from its competition? Offering slightly different

products or services with an astounding unique selling proposition, an organisation
need to take advantage of the benefits of good customer care through customer service
standards. In a time where customers often complain about the lack of service or the
feeling that they mean little to a business, providing excellent customer service can set
the business apart from their competitors. By emphasizing customer service standards

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in an organisation marketing strategy and then backing it up, the business will set
themselves apart from companies that don’t deliver on their promises, creating a sense
of uniqueness about their business. The business must differentiate from competition if a
customer is choosing between an organisation and a competitor and it’s a close run thing,
then offering that bit extra can make all of the difference. A customer service excellence
certification tells potential customers what they can expect and will make them choose a
supplier they can trust.

Improves Employee Morale

The benefits of good customer care can also impact the kind of work environment you
create at your company. When your employees see that you emphasize customer
service and all that goes into it, which includes respect for others, kindness, and going
the extra mile, they will feel more connected to the values and principles on which your
company is founded. This can lead to a more pleasant environment and make
employees feel good about what they do.

Engages Employees

It’s hard to get everyone in an organisation committed and focussed on a single goal. But
a certification for customer service excellence is one of those goals that people can buy
into and engage with, because they can have a degree of control over it. People will
always be the single biggest factor behind success or failure and if they are all working
towards a common objective of being the best, or one of the best, for customer service
this can galvanise the whole organisation.

Making Cost Savings

Being excellent at customer service means the organisation focus on what the customer
wants. This also means the business does not focus on what they don’t want and if it’s not
important to the customers, should it be important to the business? Organisations that
have cut out the things their customers don’t care about have been able to remove non-
value-adding processes and put more resource onto the things that matter. They have also

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saved money and in the economic climate like Zimbabwe is in, such efficiencies must be
encouraged.

Increase In Performance Indicators

Whether it’s an increase in new customers, increased customer loyalty, increased

customer satisfaction, increased revenue or all of them, being excellent at customer
service means that the business sees these key performance indicators going in the right
direction. Top providers of customer service in any economy are all successful
organisations doing well even in a difficult financial climate.

Being Consistent

A standard can help a business to create a consistent level of customer service across the
whole organisation. If everyone is working towards a common objective and guidelines,
it will be much easier to deliver the same level of service, even if this is through multiple
sites all over the country, or even the world. Business is becoming increasingly global
and consistency between different countries is a big challenge that a certification can help
to bridge.

Win More Business

With product and processes becoming more and more similar, customer service is one of
the few areas in which an organisation can differentiate themselves and also stand out.
When involved in bids or tender processes, having a certification can be a huge
advantage. It is likely that, in the future, it will be mandatory for customer service
standards to be a prerequisite on tender proposals. But even before then, if an
organisation is able to demonstrate an independently recognised certification it will put
them ahead of many rivals in the bid process.

Grow Business Abroad

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A customer service standard, and particularly one that is recognised globally, is a badge
that can help businesses to sell and grow outside of its local market. International
companies will look for indicators that reassure them that they can trust their suppliers. In
an increasingly global marketplace, this is a factor that can maximise the potential for
growth.

The International Standard for Service Excellence (TISSE) has been developed by The
International Customer Service Institute (TICSI) with the objective of making it the
global standard for quality customer service. The aim of TISSE is to enable organisations
to focus their attention on the delivery of excellence in service quality while at the same
time providing recognition of success through a formal third party certification scheme.
The International Standard for Service Excellence is implemented and certified by a
global network of regional partners. As highly trusted partners of the Institute, they
provide official recognition to all organisations committed to customer service
excellence. An organisation that fulfils most of the requirements of TISSE can choose to
be internationally certified by one of those partners. TISSE holds the status of an
independent standard to remain current and competitive in an environment where changes
in perceptions of service excellence are customer driven and therefore dynamic. Previous
revisions of TISSE were known as The International Customer Service Standard (TICSS)
and all future revisions will take place every two years.

Brand ambassadors

Loyal customers are likely to tell others about their good experiences with a brand. This
word-of-mouth advertising is priceless, especially in today’s world of social media,
which can quickly amplify that goodwill. Of course, consumers also are quick to take to a
social platform to share a bad experience, ramping up the pressure on brands to get
service right.

Upsell, cross-sell

When a business has a holistic view of the customer, they can spot opportunities to offer
customers new products or services. The lifetime value of a customer, on average, is

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worth 10 times more than their first purchase. Consumers say the experience that
companies provide including customer service is a decisive factor in making a purchase.
And many are willing to pay a higher price for a better experience.

Competitive edge

Brands that deliver exceptional customer service differentiate themselves to gain market
share against the competition.

Boost the bottom line

Companies can learn a lot about how to improve their products or services from the
issues raised by customers, and make improvements to drive more sales. And business
that delivers great service can have sales increases of 20% or more of total revenue.

ISO Methodology

People involved in standardization are convinced that their work generates considerable
benefits for organizations, markets and society. Yet substantiating and quantifying the
real world value of voluntary standards is not an easy task. This is why ISO has
developed the “ISO Methodology”, a consistent approach to measuring this value, which
has been tested in around 30 company case studies in over 20 countries across the globe.

The results speak for themselves: standards do create value for the organizations that use
them and it is possible to quantify it. The following summary describes, in a nutshell,
how we quantify the economic value of applying standards.

Objectives of the ISO Methodology

The ISO Methodology aims to identify and quantify the microeconomic benefits of
standards, i.e. the economic contribution the use of standards makes to company profits
or the costs/revenues of an organization. All the standards assessed in this approach,
whether they are international, regional or national standards, published by standards

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development organizations, industry groups or other consortia are the result of an open,
consensus-based process and are Methodology summary Quantifying the economic
benefits of standards 4 made available to the public. Such standards are often called
“external standards” by standards users. Company “internal” standards which are
developed by the company itself and are typically not shared with other parties are not
covered in this assessment. “To be able to measure and quantify how standards have
helped

Key benefit 1: Streamlining internal operations One main finding is that standards can be
used to streamline the internal processes of a company, for example by reducing the time
needed to perform specific activities in the various business functions, decreasing waste,
reducing procurement costs and increasing productivity. The case studies consistently
report that the contribution of standards to the gross profit of companies ranges between
0.15% and 5% of the annual sales revenues. Key benefit 2: Innovating and scaling up
operations Some case studies provide examples where standards served as the basis for
innovating business processes, allowing companies to expand their suppliers’ network or
to introduce and manage new product lines effectively. In other instances, standards
helped mitigate the risk to companies of introducing new products onto national markets.
Key benefit 3: Creating or entering new markets Standards have been used as the basis
for developing new products, penetrating new markets (both domestic and export),
supporting the market uptake of products, and even creating markets. In exceptional
cases, the impact of standards far exceeded the figure mentioned above, with companies
achieving a gross profit contribution of up to 33% of their annual revenue, which helped
them position themselves as leaders in their field, at least over a certain period of time.

Conclusion

The benefits of achieving certification against an international standard are numerous and
will vary across different sectors and organisations. What does not vary is how valuable
these benefits are to any economy. Customer service standards promotes growth of the
business, by enhancing quality and competitive edge, building strong brands that can
compete globally. Increased market share, enhances the bottom line and in turn this

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enhances economic growth, business and industry competitive ness through acceptable
international standards. Customer Service Standards position businesses to compete on
the global markert.

Question Three
List and explain the types of customer service standards that can be designed at
each stage of the Customer Interaction Cycle.

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Source: slideshare.net

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Hakansson and Snehota state that (1995); pp.384-385): “what makes the economy
of relationships so special is indeed that a relationship has functions (economic
consequences) for several actors and thus the outcomes of different relationships
are interdependent...... Thus it is not enough for any actor to be concerned just
about itself in order to be successful, as is suggested on all recommendations
based on the market theory.”

References

International Organization for Standardization ISO Central Secretariat Case postale 56

CH -1211 Genève 20 Switzerland www.iso.org

Terziev, V., Banabakova, V., Georgiev, M., Customer service standards, Proceedings of
INTCESS 2018- 5th International Conference on Education and Social Sciences 5-7
February 2018- Istanbul, Turkey, 2018, pp. 431-437.

Terziev, V., Banabakova, V., Georgiev, M., Possibilities for determining customer’s
profitability, Proceedings of INTCESS 2018- 5th International Conference on
Education and Social Sciences 5-7 February 2018- Istanbul, Turkey, 2018, pp. 438-444.

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