10-1
Customer-Defined ServiceStandards
Factors Necessary for Appropriate Service Standards
Types of Customer-Defined Service Standards
Development of Customer-Defined Service Standards
ChapterChapter
1010
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
10-2
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.
10-3
FedEx Service Quality Indicator (SQI)
10-4
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
10-5
Customer Service Report Card forPuget Sound Energy
10-6
“Not everything that counts can be counted...and not everything that can be counted, counts.”
Albert Einstein
Counting…
10-7
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…
10-8
Examples of Hard Customer-Defined Standards
10-9
Examples of Soft Customer-Defined Standards
10-10
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
10-11
Service Encounter Customer Requirements Measurements
ServiceQuality
Customer-Driven Standards and Measurements Exercise
10-12
What Customers Expect: Getting to Actionable Steps
10-13
Process for Setting Customer-Defined Standards
10-14
Importance/Performance Matrix
10-15
Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling
10-16
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.
10-17
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.
10-18
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.
10-19
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.
10-20
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”
10-21
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
10-22
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
10-23
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
10-24
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