CUSTOMER-DEFINED Service Standards Roja Lahijaninejad Elham Khalilinejad

Standardization OF Service Actions Translation of customer expectation into specific service quality standards Does not mean that service is performed in a rigid, mechanical way Close GAP2(not having the right service quality standards)

Translation of customer expectation into specific service quality standards

Does not mean that service is performed in a rigid, mechanical way

Close GAP2(not having the right service quality standards)

Factors Necessary for Appropriate Service Standards Standardization of Service Behaviors and Actions Substitution of Technology for human contact Improvement in work method Combination of these two methods Formal Service Target and Goals Specific targets for individual behaviors Specific targets for overall company Customer-Not Company-Defined Standards Company Defined: Internal- Productivity, Efficiency, Costs Customer Defined: Requirements that are visible and assessed by consumers .

Standardization of Service Behaviors and Actions

Substitution of Technology for human contact

Improvement in work method

Combination of these two methods

Formal Service Target and Goals

Specific targets for individual behaviors

Specific targets for overall company

Customer-Not Company-Defined Standards

Company Defined: Internal- Productivity, Efficiency, Costs

Customer Defined: Requirements that are visible and assessed by consumers .

Types of Customer-Defined Service Standards The type of standard that close provider gap 2: Hard Customer-Defined Standards: things that can be counted, timed, or observed through audits. Fedex: # packages on right day, packages on wrong day, missed pickups Soft Customer-Defined Standards: things that cannot be counted, timed, or observed through audits and are Opinion-based measures . General Electric Phone operators :understanding customers question, Following through on promises, Being Courteous, Being Knowledgeable

The type of standard that close provider gap 2:

Hard Customer-Defined Standards:

things that can be counted, timed, or observed through audits.

Fedex: # packages on right day, packages on wrong day, missed pickups

Soft Customer-Defined Standards:

things that cannot be counted, timed, or observed through audits and are Opinion-based measures .

General Electric Phone operators :understanding customers question, Following through on promises, Being Courteous, Being Knowledgeable

One-Time Fixes A Type of Company-Defined standards that are Technology, Policy, or procedure changes that, when instituted, address customer requirement. MCDONALD use single waiting line instead of multiple line for best serving customer

A Type of Company-Defined standards that are Technology, Policy, or procedure changes that, when instituted, address customer requirement.

MCDONALD use single waiting line instead of multiple line for best serving customer

Process for Setting Customer-Defined Standards 2. Translate customer expectations into behaviors/actions 5. Develop feedback mechanisms Measure by audits or operating data Hard Soft Measure by transaction- based surveys 3. Select behaviors/actions for standards 6. Establish measures and target levels 7. Track measures against standards 8. Provide feedback about performance to employees 9. Update target levels and measures 2. Translate customer expectations into behaviors/actions 1. Identify existing or desired service encounter sequence 4. Set hard or soft standards

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 Metric 30% Product 30% Sales 10% Installation 15% Repair 15% Billing % Repair Call % Calls for Help Functional Performance Test Supervisor Observations % Proposal Made on Time % Follow Up Made Average Order Interval % Repair Reports % Installed On Due Date % Repeat Reports Average Speed Of Repair % Customers Informed % Billing Inquiries % Resolved First Call % Billing Inquiries Total Quality Source: AT&T General Business Systems

What Customers Expect: Getting to Actionable Steps Satisfaction Relationship Reliability Empathy Assurance Tangibles Responsiveness Price Delivers on time Returns calls quickly Knows my industry Delivers by Wednesday Returns calls in two hours Knows strengths of my competitors Requirements: Abstract Concrete Dig deeper Dig deeper Dig deeper Diagnosticity: Low High General concepts Dimensions Behaviors and actions Attributes Value Solution Provider

Select behaviors/actions for standards standards should; 1. Based on behaviors that are very important to customers 2. Cover performance that needs to be improved. 3. Cover behaviors employees can improve 4. Accepted by employees 5. Predictive rather than reactive 6. Challenging but realistic

standards should;

1. Based on behaviors that are very important to customers

2. Cover performance that needs to be improved.

3. Cover behaviors employees can improve

4. Accepted by employees

5. Predictive rather than reactive

6. Challenging but realistic

Importance/Performance Matrix

Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling S A T I S F A C T I O N 2 4 6 8 12 16 20 24 W O R K I N G H O U R S Large Customers Small Customers 10 9 8 7 6 5 4 3 2 1 0

Conclusion Customer-defined standards are at the heart of delivery of service that customers expect: they are the link between customer’s expressed expectation and company actions to deliver to those expectations.

Customer-defined standards are at the heart of delivery of service that customers expect: they are the link between customer’s expressed expectation and company actions to deliver to those expectations.