Provider Gap 2

Key Factors Leading to Provider Gap 2

Service Standards

The type of service standards that close provider gap 2 are customer defined standards.

Customer defined standards are measures based on customer requirements that are visible to and measured by customers rather than on company concerns such as productivity or efficiency.

some components of service can be subject to standards, others are more difficult

which ones are more likely to be subjected to standards?

FedEx Service Quality Indicator (SQI)

Factors Necessary for Appropriate Service Standards

Standardization of service behaviors and actions Standardization usually implies a nonvarying sequential

process similar to the production of goods Goal: consistent service product

Customization usually refers to some level of adaptation or tailoring of the process to the individual customer

Goal: service that meets expectations

Formal service targets and goals Setting specific targets for individual behaviors and actions;

for example, the customer service standards set by Puget Sound Energy and shown in Figure 9.1.

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Customer Service Report Card for Puget Sound Energy

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

Standards…

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often involves automatic data capturetend to be more functional and objectivecustomer expects these: on-time, error-free, responsive, call-backs, lost calls, etc.hard to argue with these

Exhibit 9.1: Examples of Hard Customer-Defined Standards

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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)

Standards…

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more difficult to capture data, requires research; more judgmental, subjective

relates more to the interpersonal and softer side of service delivery

how we treat the customertone of voice, seem to care, knowledgeable, helpful, courteous, able to contact them, etc.

Exhibit 9.2: Examples of Soft Customer-Defined Standards

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Remember the movie called “Taxi” ???? In this movie there is a scene where a customer asks a cab driver (Queen Latifah) to get her to the airport (so he will not miss his plane) in less than 15 minutes. She proceeds to get him there in less than 10 minutes, speeding and driving recklessly along the way.

TAXI

Taxi

This illustrates how hard-standards (getting the customer to the airport in 15 minutes or less) have been accomplished at the expense of soft-standards (being delivered to the airport in a safe and comfortable manner)

What Customers Expect: Getting to Actionable Steps

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Responsiveness Standards at Zappos.com

Respond to 80 percent of all incoming calls within 20 seconds

Respond to all e-mail messages in less than four hours

Respond to live (online) chats in less than 10 seconds.

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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. Smile2. Eye3. Recognition4. Voice5. Informed6. Clean7. 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 IndexSQI 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