Customer-Defined Service Standards

• Factors Necessary for Appropriate Service

Standards

• Types of Customer-Defined Service

Standards

• Development of Customer-Defined Service

Standards

9-1
 Objectives :
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.

9-2
Service Quality Indicator (SQI)

9-3
 Factors Necessary for Appropriate Service
Standards

• Standardization of service behaviors and actions

– Standardization usually implies a non-varying 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.

9-4
 Service Standards
Standards are based on the most important customer
expectations and reflect the customer’s view of these expectations.

Customer- SOURCES
Customer- Customer Expectations
Defined
Defined Customer Process Blueprint
Standards
Standards Customer Experience
Observations

SOURCES
Company-
Company- Productivity Implications
Defined Cost Implications
Defined Company Process Blueprint
Standards
Standards Company View of Quality

9-5
 Counting…

“Not everything that counts can be counted...and not everything

that can be counted, counts.”

Albert Einstein

9-6
 Standards…

HARD 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)

9-7
 EXAMPLES OF HARD CUSTOMER DEFINED
STANDARDS
COMPANY CUSTOMER CUSTOMER DEFINED
PRIORITIES STANDARDS
DTDC On-Time Delivery No. of Packages delivered Late

Glenmark On-Time Delivery Deliver 98 % of all Products on time.

Distributors
Dell Computers On-Time Delivery Ship to Target ( % of Orders delivered on time
with complete accuracy
Computers work Initial Field incident rate – i.e.
properly Frequency of problems encountered by the
customers.

KPN Travels Reliability On-Time Departure

Responsiveness Two days reply to mails/same day for on-

to spot Complaints
complaints
 EXAMPLES OF SOFT CUSTOMER DEFINED
STANDARDS
COMPANY CUSTOMER CUSTOMER DEFINED
PRIORITIES STANDARDS

General Electric Interpersonal Take ownership of the call, Follow thru’ with
Skills of Operators promises. Be Courteous and Knowledgeable.

RitzCarlton Being treated with React quickly for any problems, Use proper
respect telephone etiquette, Do not screen calls, and
eliminate call transfers when possible.

X Hospitals. il, Respect Keep patient info confidential, Never discuss

Never discuss patients problems in public, Listen to patients
patients with empathy, Be courteous and do not use
jargons.

American - Resolution of Resolve problems at first contact (no transfers,

Express Problems no waiting etc.,), Communicate and give
adequate information,
- Treatment Listen and Do every thing to help – put at ease
Process for Setting Customer-Defined Standards

9-10
What Customers Expect: Getting to Actionable
Steps

9-11
 Responsiveness Standards at XYZ.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.

9-12
 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 r i or n”
a r io
customers at ease i w si t
r a po
a mu ting
S ai
“w 9-13
 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 
9-14
 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

9-15
 Standards at Taj Group
• Seven Service Culture • Core Worldwide Service
Standards Operating Standards
1. Smile • Reservations
2. Eye • Hotel Arrival
3. Recognition • Messages and Paging
4. Voice • Guest Room
5. Informed • Evening Service
6. Clean • Breakfast
7. Everyone • Room

9-16