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Customer-Defined ServiceStandards

Factors Necessary for Appropriate Service Standards

Types of Customer-Defined Service Standards

Development of Customer-Defined Service Standards

ChapterChapter

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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Objectives for Chapter 10: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.

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FedEx Service Quality Indicator (SQI)

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Standards are based on the most important customerexpectations and reflect the customer’s view of these expectations.

Customer-Defined

Standards

Customer-Defined

Standards

Company-Defined

Standards

Company-Defined

Standards

SOURCESCustomer ExpectationsCustomer Process BlueprintCustomer Experience Observations

SOURCESProductivity ImplicationsCost ImplicationsCompany Process BlueprintCompany View of Quality

Service Standards

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Customer Service Report Card forPuget Sound Energy

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

Albert Einstein

Counting…

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SOFT STANDARDS AND MEASURESOpinion-based measures that cannot be observed and must be collected bytalking to customers (perceptions, beliefs)

HARD STANDARDS AND MEASURESThings that can be counted, timed,or observed through audits (time,numbers of events)

Standards…

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Examples of Hard Customer-Defined Standards

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Examples of Soft Customer-Defined Standards

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Exercise for Creating Customer-Defined Service Standards

Form a group of four people Use your school’s undergraduate or graduate

program, or an approved alternative Complete the customer-driven service standards

importance chart Establish standards for the most important and

lowest-performed behaviors and actions Be prepared to present your findings to the class

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Service Encounter Customer Requirements Measurements

ServiceQuality

Customer-Driven Standards and Measurements Exercise

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What Customers Expect: Getting to Actionable Steps

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Process for Setting Customer-Defined Standards

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Importance/Performance Matrix

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Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling

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Example of Customer-Defined Service Standards at Circuit City

Initial Sales Contact with Circuit City in Store act in a professional and courteous manner ask customer what he or she is looking for

offer to be available when needed if customer not ready

ask customer several questions about specific needs or wants

educate the customer about products in category explain the differences between products (such as TVs)

that customer is considering be honest about options and price

Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

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Example of Customer-Defined Service Standards at Circuit City

Checkout at Circuit City in Store act in a professional and courteous manner probe customer to assure that product meets needs and

reduce any anxiety and uncertainty that the customer might feel

explain the warranty service that accompanies the product

using what is known about the customer, explain the Circuit City customer service agreements that extend the warranty

explain the differences between CSA options, being sure to relate them to what the customer needs

encourage purchase, and fully explain how to implement CSA

Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

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Example of Customer-Defined Service Standards at Circuit City

Post-sale Follow Up telephone customer within next 7 days to ask

how TV is operating ask if client is ready to schedule first service if client is ready, establish date for first service send out postcard one week in advance of first

service call to remind customer and explain what needs to be done

Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

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Example of Customer-Defined Service Standards at Circuit City

Annual Follow Up send customers reminder cards that they have

either used the service or are due for a service call

two weeks after mailing card, call customers who have used service and assure that they are satisfied both with product and service

call each customer who has not used the service and schedule a “maintenance check-up” where service provider goes to home and checks and tunes television

Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

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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 customers at ease

Samura

i warri

or

“waiti

ng posit

ion”

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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 

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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

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Standards at Four Seasons

Seven Service Culture Standards

Core Worldwide Service Operating Standards

1. Smile

2. Eye

3. Recognition

4. Voice

5. Informed

6. Clean

7. Everyone

Reservations Hotel Arrival Messages and Paging Guest Room Evening

Service Breakfast Room

Exceptions are permitted if they make local sense

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Ritz-Carlton’s SQI Index

SQI Defects Points

1. Missing Guest Preferences 10

2. Unresolved Difficulties 50

3. Inadequate Guestroom Housekeeping 1

4. Abandoned Reservation Calls 5

5. Guestroom Changes 5

6. Inoperable Guestroom Equipment 5

7. Unready Guestroom 10

8. Inappropriate Hotel Appearance 5

9. Meeting Event Difficulties 5

10. Inadequate Food/Beverage 1

11. Missing/Damaged Guest Property/Accidents 50

12. Invoice Adjustment 3