Customer-Defined Service Standards

• Factors Necessary for Appropriate Service Standards • Types of Customer-Defined Service Standards • Development of 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. Emphasize the importance of service performance indexes in implementing strategy for service delivery.

Nonvarying sequential process and all outcomes are uniform Goal – produce consistent service product

Some level of adaptation or tailoring of the process to individuals
Develop services that meet each customers individual needs

Standardization can take 3 forms:
1. Substitution of technology for personal contact and human effort 2. Improvement in work methods 3. Combination of both

Standardization accomplished by technology or by improvements in work process, reduce gap2

Company-Defined

Standards

Customer-Defined Standards

Standardized – productivity, efficiency, cost & technical quality

expectations Steered by customer perceptual measures of service quality or satisfaction

Customer requirements &

What does the customer see?

Things that can be counted, timed, or observed through audits Reliability  “ do it right the first time ”  “ honor your promises “  “ right on time “ Ensure speed or promptness with delivery & handling complaints

Understanding and knowing the customer

Opinion-based measures that cannot be observed and must be collected by talking to customers, employees & others ( perceptions, beliefs )
Important for person-person interactions such as selling and delivering process for professional services

• 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

Technology, policy, or procedural changes that, when instituted, address customer requirements. Those company standards that can be met by an outlet making a one-time changes that does not involve employees and therefore does not require motivation and monitoring to ensure compliance. Also deals with aspects of service that goes beyond human performance

Hard Standards – operational measures that can be counted, timed or observed through audits

Soft Standards – Uses opinion based measures that can be measured ONLY asked from the customer

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Appointment available within one day of customer’s requested service day *Write up begins within four minutes or less of customer’s arrival* Service needs are courteously identified, accurately recorded on repair order and verified with the customer Vehicle serviced right on the first visit *Service status provided within one minute of inquiry* Vehicle ready at agreed upon time Thorough explanation given of work done, coverage and charges

Basing Standards on the Service Encounter Sequence.
◦ Firms are concerned with service encounter quality ◦ Is the first service encounter important? Or the last?

EXPRESSING CUSTOMER REQUIREMENTS AS SPECIFIC BEHAVIORS AND ACTIONS
“Effective service standards are defined in very specific ways that enables employees to understand what they are being ask to deliver. These standards are set and measures in terms of specific responses of human behaviors and actions.”
 Broad conceptual terms like “improve skill in the company” are difficult to interpret, measure and achieve.  Research don’t tell what is wrong and what is right

REQUIREMENTS •Satisfaction •Value •Relationship •Solution provider
DIG DEEPER

DIAGNOSTICITY LOW

ABSTRACT

GENERAL CONCEPT

•Reliability •Assurance •Responsiveness •Tangibles •Delivers on time •Return call quickly

DIMENSIONS

DIG DEEPER

ATTRIBUTES

DIG DEEPER

•Delivery by Wednesday •Return call in 2 hours

BEHAVIORS AND ACTIONS CONCRETE HIGH

HARD MEASUREMENTS

Hard measurement consist of counts or audits that provides feedback about the operational performance of a service standard. EG:- missing proofs of delivery, damage packages

SOFT MEASUREMETS

Relationship and Trailer survey
Long term and higher level of abstraction, annual relationship survey Associated with specific service encounter , short and administered close in time.

Process for Setting Customer-Defined Standards
1. Identify existing or desired service encounter sequence 2. Translate customer expectations into behaviors/actions 3. Select behaviors/actions for standards 4. Set hard or soft standards 5. Develop feedback mechanisms Hard 6. Establish measures and target levels Soft

7. Track measures against standards
8. Provide feedback about performance to employees 9. Update target levels and measures