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Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinCustomer-Defined ServiceStandardsFactors Necessary for Appropriate Service Standards

Types of Customer-Defined Service Standards

Development of Customer-Defined Service StandardsChapter99-2Objectives for Chapter 9:Customer-Defined Service StandardsDistinguish 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.

9-3FedEx Service Quality Indicator (SQI)

9-4Factors Necessary for Appropriate Service StandardsStandardization of service behaviors and actionsStandardization usually implies a nonvarying sequential process similar to the production of goodsCustomization usually refers to some level of adaptation or tailoring of the process to the individual customerFormal service targets and goalsSetting specific targets for individual behaviors and actions; for example, the customer service standards set by Puget Sound Energy and shown in Figure 9.1.9-5Customer Service Report Card for Puget Sound Energy

9-6Standards are based on the most important customerexpectations and reflect the customers view of these expectations.Customer-Defined StandardsCompany-Defined StandardsSOURCESCustomer ExpectationsCustomer Process BlueprintCustomer Experience ObservationsSOURCESProductivity ImplicationsCost ImplicationsCompany Process BlueprintCompany View of QualityService Standards9-7Not everything that counts can be counted...and not everything that can be counted, counts.Albert EinsteinCounting

9-8

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) Standards9-9Exhibit 9.1: Examples of Hard Customer-Defined Standards

9-10Exhibit 9.2: Examples of Soft Customer-Defined Standards

9-11Process for Setting Customer-Defined Standards

9-12What Customers Expect: Getting to Actionable Steps

9-13Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling

9-14Responsiveness Standards at Zappos.comRespond to 80 percent of all incoming calls within 20 secondsRespond to all e-mail messages in less than four hoursRespond to live (online) chats in less than 10 seconds.

9-15Soft Standards at Toyota in JapanStandards for salespeople patterned after samurai behaviors:Assume the samurai warriors waiting position by leaning five to ten degrees forward when a customer is looking at a carStand with left hand over right, fingers together and thumbs interlocked, as the samurais did to show they were not about to draw their swordsDisplay the Lexus Face, a closed-mouth smile intended to put customers at ease

Samurai warriorwaiting position9-16More Soft Standards at Toyota in JapanStandards for salespeople patterned after samurai behaviors:When serving coffee or tea, kneel on the floor with both feet together and both knees on the groundBow more deeply to a customer who has purchased a car than a casual window shopperStand about two arms lengths from customers when they are looking at a car and come in closer when closing a dealPoint with all five fingers to a car doors handle, right hand followed by left, then gracefully open the door with both hands

9-17Hard and Soft Service Standards at FordAppointment available within one day of customers requested service dayWrite-up begins within four minutesService needs are courteously identified, accurately recorded on repair order and verified with customerService status provided within one minute of inquiryVehicle serviced right on first visitVehicle ready at agreed-upon timeThorough explanation given of work done, coverage and charges

9-18Standards at Four SeasonsSeven Service Culture StandardsCore Worldwide Service Operating StandardsSmileEyeRecognitionVoiceInformedCleanEveryone

ReservationsHotel ArrivalMessages and PagingGuest Room Evening ServiceBreakfastRoomExceptions are permitted if they make local sense9-19