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7.1. Customer-Defined Standards

The document discusses customer-defined service standards. It notes that operations and marketing often have separate goals, and creating service standards to meet customer needs requires changing processes. It discusses standardization versus customization and different forms of standardization. The document provides examples of formal goals, hard and soft customer-defined standards and measurements, and outlines a process for setting customer-defined standards based on identifying service encounters and translating customer expectations into behaviors and actions.

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120 views17 pages

7.1. Customer-Defined Standards

The document discusses customer-defined service standards. It notes that operations and marketing often have separate goals, and creating service standards to meet customer needs requires changing processes. It discusses standardization versus customization and different forms of standardization. The document provides examples of formal goals, hard and soft customer-defined standards and measurements, and outlines a process for setting customer-defined standards based on identifying service encounters and translating customer expectations into behaviors and actions.

Uploaded by

vikasgoyal86
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Customer Defined Service Standards

Functional Integration

Operations and Marketing often operate separately,


each serving own internal goals
Creating service standards that address customer
needs frequently requires altering the process by
which work is accomplished
Structuring, calibrating, and monitoring
Factors necessary for appropriate service standards

Standardization versus customization


Three forms of standardization of service
1. substitution of technology for personal contact
 on-line services, voice mail, automatic teller machines, automatic
car wash
2. improvement in work methods
3. combination of these two
Standardization

Standardization does not mean that service is


performed in a rigid, mechanical way.

Customer-defined-standardization ensures that the


most critical elements of a service are performed as
expected by the customers, not that every action in a
service is executed in a uniform manner.
Formal Goals

Specific and measurable


expressed as a percentage across executions
 Replace lost credit cards within 48 hours 98 percent of
the time
Examples of formal goals
 Call customer back within two hours
 Answer phone within three rings
 Connect new cable service by the date promised
Customer -Not Company- Defined Standards

Customer-Defined Standards are operational


standards based on pivotal customer requirements
that are visible to and measured by customers.

A current company-defined standard that does not


meet customer expectations is the common practice
of voice-activated telephone support systems that do
not allow consumers to speak to humans.
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 or
others.
 Soft standards provide direction, guidance, and feedback to
employees in ways to achieve customer satisfaction and can be
quantified by measuring customer perception and beliefs.
Examples of Measures (Hard)

Time in Line, Transaction Time


Number of Errors (Mistakes) per Transaction
Violation of Dress Code
Availability of Systems (Phone Lines, Power)
Examples of Measures (Hard)

Number of Complaints Received


Number of Warranty Claims
Number or Rupees Value of Sales
Return on Assets
Number of Repeat Customers
Number of Infections per Surgery
Number of Law Suits Filed
Examples of Measures (Soft)

Safety
Convenience
Cleanliness
Availability
Consistency
Hospitality
Credibility
Examples of Measures (Soft)

Friendly Personnel
Knowledgeable Personnel
Helpful Personnel
Value Received
Service Encounter Sequences

Building blocks for customer-defined standards


 Benefits
 understand specific requirements of customers
 translate into specific behaviors and actions
 facilitate behavior change in employees
Customer-Driven Standards
and Measurements Exercise
Service Encounter Measurements
Customer Requirements

Service
Quality
Getting to Actionable Steps
Requirements: Diagnosticity:

Satisfaction Value Abstract Low


Relationship General Concepts
Solution Provider

Dig Reliability Empathy


Deeper Assurance Tangibles Dimensions
Responsiveness Price

Dig Delivers on Time


Deeper Returns Calls Quickly Attributes

Dig Delivers by Friday Behaviors


Deeper Returns Calls in 2 Hrs
Knows Strengths of
and Actions
My Competitors

Concrete High
Process for Setting Customer-Defined Standards

1. Identify Existing or Desired Service Encounter Sequence

2.2.Translate
TranslateCustomer
CustomerExpectations
ExpectationsInto
IntoBehaviors/Actions
Behaviors/Actions

3.3.Select
SelectBehaviors/Actions
Behaviors/Actionsfor
forStandards
Standards

4. Set Hard or Soft Standards

Measure by Measure by
Audits or Hard 5.5.Develop Transaction-
DevelopFeedback
Feedback Soft
Operating Data Mechanisms Based Surveys
Mechanisms

6.6.Establish
EstablishMeasures
Measuresand
andTarget
TargetLevels
Levels

7. Evaluate performance to Standards

8.8. Update
UpdateTarget
TargetLevels
Levelsand
andMeasures
Measures
Importance/Performance Matrix
HIGH 10.0

Improve Maintain
Does whatever it takes to
correct problems (9.26, 7.96)
 Delivers on promises specified in proposal/contract (9.49, 8.51)

Gets project within budget, on time (9.31, 7.84)
Completes projects

correctly, on time (9.29, 7.68)
   Gets price we originally agreed upon (9.21, 8.64)
Tells me cost ahead of time (9.06, 8.46)
9.0   
Provides equipment that operates as vendor said it would (9.24, 8.14)
Gets back to me when
Takes responsibility for their mistakes (9.18, 8.01)
promised (9.04, 7.63)
Delivers or installs on
Importance promised date (9.02, 7.84)

8.0

LOW 7.0
HIGH
8.0 9.0 10.0

Performance

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