Services Marketing

The Customer Defined

Service Standards

1
 Customer Defined Standards

Customer Defined Standards – Operational goals & measures based on

customer requirements that are visible and measurable to customers

GAP 2

Employee Defined Standards

Company Defined Standards

Standardization doesn't mean performing services in a

routine and mechanical manner

Customer Defined standardization ensures that most

critical elements of service is performed as expected by
customers in a uniform manner
Service Standardization

Can Service be Standardized ?

Customized services are rated

to be of better quality
Employees may be less
empowered
Service Standardization

Routine Services

Employees can perform actions mor

efficiently
Specialists can delegate routine
tasks to the subordinates & get
focused
 Service Standardization

3 Forms
1 Substitution of
Technology for
personal contact or
human effort

2 Improvements in
work methods

3 Combination of both
Customer Defined Standards
HARD – Customer Defined Standards

• that can be Counted

• that can be Timed
• that can be Observed
• that can be Audited

Customer Priority Customer Defined Standards

On Time Delivery Shipped right

Computer Works Properly
Calls serviced on time
Problems fixed on time

On Time Delivery No. of packages late of the right day

No. of packages late of the wrong day
No. missed pickups
Customer Defined Standards
SOFT – Customer Defined Standards

• Opinion based measures – that cannot be observed

and must collected by talking to customers &
employees

Customer Priority Customer Defined Standards

Interpersonal skills Being knowledgeable & courteous
of operators
Understanding customer request or
Problem solving problems
Tone of voice

Resolution of problems Resolve problems at first contact

Listen – do everything to help
Put card member at ease
Process for developing Customer
Defined Service Standards
1 Identify Service encounter sequence

2 Translate Customer Expectations into behaviors/Actions

3 Select behaviors/Actions for standards

Set Hard & Soft Standards

4

5 HARD Develop Feedback Mechanisms SOFT

6 Establish measures & target levels

7 Track measures against standards

8 Provide feedback about performance

9 Update target levels & measures

 Personal Loan Process - EXAMPLE

Customer Expectations
Service Encounter Sequence Reliability HARD

Features HARD
Enquiry with the
1
Bank/Lender Ease of Process
HARD
Knowledge SOFT

responsive SOFT
Select
2 Documents Collection
SOFT
behaviors/A
Follow up
ctions for
Informed
HARD standards
Scope for
3 Document verifications No repeat trouble HARD improvement,
Acceptance by
Speed employees
HARD

Accuracy , No surprise HARD

4 Approval No hidden T&C HARD

HARD
Timeliness

FEED BACK MECHANISMS , ESTABLISH MEASURES, TRACK,

FEEDBACK TO EMPLOYEES ON PERFORMACE, UPDATE 9
 Service Performance Indexes
Outcome of the Customer Defined Standards Process – SPI
is the comprehensive collection of the most critical
standards

1 Understanding the most important requirements of the customer

2 Linking these requirements to tangible and measurable aspects

3 Using feedback from these indexes to identify and improve service

provisions
Should service standards be universal

Services across countries cannot standardized b/c expectations

vary and support / infrastructure varies

Responsiveness Varies by Culture

Reliability varies by Culture