1) The document discusses the development of customer defined service standards by XYZ Courier Service and other companies. It outlines factors like standardization, formal targets, and customer expectations that inform effective service standards. 2) Hard standards that can be counted like on-time delivery percentages are discussed as well as soft standards collected from customer feedback. Examples include standards set by Ford and a bank. 3) The process of developing customer defined standards involves identifying service sequences, translating customer expectations into behaviors, setting targets, tracking performance, and getting employee feedback to continuously update standards.

1. Session 12
Customer Defined Service Standard

2. Case Situation 01
• A XYZ COURIER SERVICE COMPANY DELIVER
SERVICE QUALITY INDEX.
• The particulars of index was based on customer
complaint received within two to three year.
• HIERARCY OF HORRORS ----wrong day deliveries,
right day late delivery, pick up not made, lost
package,customers misinformed, billing and
paper work mistakes, employees performance
failure, damage package

3. • Company further develop 12 items SQI based on
customer feedback received.
• These items have further given weightage. These
weightage or item ----changed slightly over time.
• Finally developed SQI in 2018 based on relative
importance of each components to customers.
• Company started focusing on numbers of error
rather than percentage.
• In this way XYZ Company is able to perform
better all the times and kept eye on changing
customer expectations.

4. Contents
• Factors appropriate necessary service
standards
• Types of customer defined service standard
• Development of customer defined service
standard

5. Factors appropriate necessary service
standard
• Standardization of service behaviour and
actions
• Formal service targets and goals
• Customer defined standard

6. • ( the degree to which task and behaviour can be
standardized or routinised)
standardisation- means each step is laid out in order and
outcome are uniform
customisation-some level of adoptation or tailoring of
process to the individual customers.
standardisation of services takes place with substitution of
technology for personal contact and human efforts,
improvement in workmethods and combination of these two.
WEBSITE AND MOBILE APPLICATIONS
ROUTINISED TAX AND ACCOUNTING SERVICE DEVELOPED BY
H&R BLOCK.

7. FORMAL SERVICE TARGET AND GOAL
• How long it takes to conduct transactions?
• How quickly they settle customer complain?
• How frequently service fails?
• XYZ OURIER COMPANY EXAMPLE

8. CUSTOMER DEFINED STANDARD
• EXAMPLE TO RTO OFFICE

9. Customer defined expectation
• Sources customer expectation, customer
experience, customer process blueprint and
observation

10. Types of Customer defined service
standard
• Hard Customer defined service standard
• Things that can be counted through audit
• Soft customer defined service standard
• That can’t be counted observed, must be
collected by talking to customers.

11. • Examples Ford Motor Company
• Surveyed 2400 customers for developing
customer care standard ----Questions asked
Specific expectation for automobile sales and
services…….FORD used the input to help identify
the level of services that dealership would need
to provide to receive Blue Oval Certified status.
The seven specific service standard were
established as most critical to customer in service
department of dealerships.

12. • Appointment available within one day of customer
requested service day
• Write up begin within four minutes or less of customer
arrival
• Service needs are identified, accurately recorded on
repair order and verified with customers.
• Vehicle serviced right on the first visit.
• Service status provided within one minutes of enquiry
• Vehicle ready on agreed upon time.
• Through explanation given of work done, coverage and
charges.

13. Hard Standard
• Write 3 examples
• Airlines
• Bank
• E Commerce

14. Soft standard
• Write 3 examples
•

15. Development of customer defined
standard
• TURNING CUSTOMER REQUIREMENTS IN SPECIFIC
BEHAVIOUR AND ACTION
Case of FORD MOTOR ---discussed yesterday
Another case of Blue Dart ----
title – Delivering CUSTOMER DEFINED SERVICE
STANDARD
A major multinational bank was involved in large scale merger,
the first of its kind in India. It was necessary to transfer
complete loan base to the new owners, with customers’
consent. The bank required a receipt of every customers’
authorisation to fulfill legal requirement and a very little short
time to complete this activities. It has a large data base and
required absolute precision.

16. • Blue dart offered its expertise and provided
domestic priorities service to track each
document , ensuring it was delivered to
customer and return to bank within the
required time. The exercise was planned and
executed meticulously. Since then the new
owner has continued the relationship with
Blue Dart using its services for all their
distribution needs.

17. Process of developing customer
defined standard
• Identify existing or desired service encounter sequence
• Translate customer expectation into behaviour and
actions
• Determine appropriate standard
• Develop measurement for standard
• Establish target level for standard
• Track measure against standard
• Provide feedback about performance to employees
• Update target level and measure

18. Identify existing or desired service
encounter sequence
• Service Blue printing
• Service encounter -------degree of impact on
satisfaction

19. Translate Customer expectation into
specific behaviour and action
• Relate Ford and Blue dart case

20. Determine appropriate standard
• The standards are based on behaviour and actions that
are very important for customers.
• The standards cover perfomance that needs to be
improved and maintained
• The standards cover behaviours and actions employees
have control over and can improve.
• The standards are understood and accepted by
employees.
• The standards are predictive not reactive, based on
current and future expectation, not on past complain.
• The standards are challenging but realistic.

21. Develop measurement for standard
• Hard measurement and soft measurement.
• FORD CASE

22. Establish Target level for standard
• Ford case
• Blue dart case

23. Track measure against standards
• Ford case
• Blue dart case

24. Provide Feedback about performance
to employees
• XYZ COURIER SQI publication available to
every one

25. Periodically update target level and
measures
• Frequent change in weightage in SQI of XYZ
Courier

26. Developing Service Performance
Indexes
• SQI
• SPI

27. Any Questions
• --------------thanks.