Download - Customer-Defined Service Standards
10Chapter
Customer-Defined Service Standards
Factors Necessary for Appropriate Service Standards
Types of Customer-Defined Service Standards
Development of Customer-Defined Service Standards
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Translating Expectations into Delivery
The Standards GapThe difference between what we do and howcustomers looks at it.
Factors Influencing this Gap
Standardized versus Routinized Service
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Company versus Customer Defined Standards
Company Defined-Internal- Productivity, Efficiency, Costs
Customer Defined-Requirements that are visible and assessedby consumers.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Types of Customer Defined Standards
Hard Standards- things that can be counted, timed, or observed through audits.
Soft Standards- things that cannot be counted, timed, or observed through audits. Opinion-based measures.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Exhibit 10.1
Examples of Hard Customer-Defined Standards
From Ex 10.1Customer-defined Standards
Fedex # packages on right day# of packages on wrong day# of missed pickups
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Exhibit 10.2
Examples of Soft Customer-Defined Standards
General Electric Taking ownership of callPhone operators Following thru on promises
Being CourteousBeing Knowledgeable
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Figure 10.2
AT&T’s Process Map for Measurements
Reliability
(40%)Easy To Use
(20%)Features / Functions
(40%)
Knowledge
(30%)Responsive
(25%)Follow-Up
(10%)
Delivery Interval Meets Needs
(30%)Does Not Break
(25%)Installed When Promised
(10%)
No Repeat Trouble
(30%)Fixed Fast
(25%)Kept Informed
(10%)
Accuracy, No Surprise
(45%)Resolve On First Call
(35%)Easy To Understand
(10%)
Business Process Customer Need Internal Metric30% Product
30% Sales
10% Installation
15% Repair
15% Billing
% Repair Call% Calls for HelpFunctional Performance Test
Supervisor Observations% Proposal Made on Time% Follow Up Made
Average Order Interval% Repair Reports% Installed On Due Date
% Repeat ReportsAverage Speed Of Repair% Customers Informed
% Billing Inquiries% Resolved First Call% Billing Inquiries
TotalQuality
Source: AT&T General Business Systems
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
SatisfactionRelationship
Reliability EmpathyAssurance TangiblesResponsiveness Price
Delivers on timeReturns calls quicklyKnows my industry
Delivers by WednesdayReturns calls in two hoursKnows strengths of my
competitors
Requirements:Abstract
Concrete
Dig deeper
Dig deeper
Dig deeper
Diagnosticity:Low
High
General concepts
Dimensions
Behaviors and actions
Attributes
Figure 10.3
What Customers Expect:Getting to Actionable Steps
ValueSolution Provider
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
1. Identify existing or desired service encounter sequence
2. Translate customer expectations into behaviors/actions
4. Set hard or soft standards
5. Develop feedback mechanismsMeasure by
audits oroperating data
Hard SoftMeasure bytransaction-
based surveys
3. Select behaviors/actions for standards
6. Establish measures and target levels
Figure 10.4
Process for Setting Customer-Defined Standards
7. Track measures against standards
8. Provide feedback about performance to employees
9. Update target levels and measures
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Exercise for Creating Customer-Defined Service Standards
Form a group Use your school’s Financial Aid Program 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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Service Encounter Customer Requirements Measurements
ServiceQuality
Customer-Driven Standards and Measurements Exercise
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Figure 10.5
Importance/Performance Matrix