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Customer Defined Service Standards
Prof. Sudeep Chatterjee
1ISB&M, Services Marketing
Functional Integration
Operations and Marketing often operate separately, each serving own internal goals
Creating service standards that address customer needs frequently requires altering the process by which work is accomplished
Structuring, calibrating, and monitoring2ISB&M, Services Marketing
Standardization
Standardization versus customization Standardization
– substitution of technology for personal contact
• on-line services, voice mail, automatic teller machines, automatic car wash
– improvement in work methods– combination of these two
3ISB&M, Services Marketing
Formal Goals Specific and measurable expressed as a percentage across
executions– Replace lost credit cards within 48 hours 98
percent of the time Examples of formal goals
– Call customer back within two hours– Answer phone within three rings– Connect new cable service by the date promised
4ISB&M, Services Marketing
Customer-Not Company defined standardsOperational standards based on pivotal customer
requirements that are visible to and measured by
Customers. These standards are deliberately
chosen to match customer expectations & to be
calibrated the way the customers views and
expresses them.
Knowing customer requirements, priorities, and
expectation levels can be both effective &
Efficient. Anchoring service standards on
customers can save money by identifying what
the customers value. 5ISB&M, Services Marketing
Types of Customer Defined Service Standards
These are standards that allow for translation of
customer requirements into goals and
guidelines for employee performance and
include Hard versus Soft service standards Hard-things that can be counted, timed, or
observed through audits Soft- These second category of measures are
opinion based measures & cannot be directly measured. These are documented using perceptual measures, and can be measured by talking to customers, employees or others.
6ISB&M, Services Marketing
Examples of Measures (Hard)
Time in Line, Transaction Time Number of Errors (Mistakes) per
Transaction Counts of Smiles, Using Customer
Name, Using Protocol. Violation of Dress Code Availability of Systems (Phone Lines,
Power)7ISB&M, Services Marketing
Examples of Measures (Hard)
Number of Complaints Received Number of Warranty Claims Number or Dollar Value of Sales Return on Assets Number of Repeat Customers Number of Infections per Surgery Number of Law Suits Filed
8ISB&M, Services Marketing
Examples of Measures (Hard)
Competitive Data Accuracy of Order Back orders Parts Availability Exceptions to Procedures Violations of Regulatory Codes
9ISB&M, Services Marketing
Examples of Measures (Soft)
Safety Convenience Cleanliness Availability Consistency Hospitality Credibility
10ISB&M, Services Marketing
Examples of Measures (Soft)
Waiting Time, Transaction Time Accuracy of Transaction Friendly Personnel Knowledgeable Personnel Helpful Personnel Costs Value Received
11ISB&M, Services Marketing
Service Encounter Sequences
Building blocks for customer-defined standards– Benefits
• understand specific requirements of customers• translate into specific behaviors and actions• facilitate behavior change in employees
12ISB&M, Services Marketing
Service Encounter Customer Requirements Measurements
ServiceQuality
Customer-Driven Standards and Measurements Exercise
13ISB&M, Services Marketing
14ISB&M, Services Marketing
Figure 9-2Figure 9-2
Getting to Actionable StepsGetting to Actionable Steps
Satisfaction ValueRelationship Solution Provider
Reliability EmpathyAssurance Tangibles Responsiveness Price
Delivers on TimeReturns Calls QuicklyKnows My Industry
Delivers by Weds 11/4Returns Calls in 2 HrsKnows Strengths of My Competitors
Requirements:
Abstract
Concrete
Dig Deeper
Dig Deeper
Dig Deeper
Diagnosticity:
Low
High
General Concepts
Dimensions
Behaviors and Actions
Attributes
15ISB&M, Services Marketing
Figure 9-3Figure 9-3
Process for Setting Process for Setting
Customer-Defined StandardsCustomer-Defined Standards 1. Identify Existing or Desired Service Encounter Sequence
2. Translate Customer Expectations Into Behaviors/Actions2. Translate Customer Expectations Into Behaviors/Actions
4. Set Hard or Soft Standards
5. Develop FeedbackMechanisms
5. Develop FeedbackMechanisms
7. Track Measures Against Standards
Measure byAudits or
Operating DataHard Soft
Measure byTransaction-
Based Surveys
3. Select Behaviors/Actions for Standards 3. Select Behaviors/Actions for Standards
6. Establish Measures and Target Levels 6. Establish Measures and Target Levels
8. Update Target Levels and Measures 8. Update Target Levels and Measures 16ISB&M, Services Marketing
17ISB&M, Services Marketing
Importance/Performance MatrixHIGH
HIGH
Performance
10.0
8.0
7.0
9.0
LOW
8.0 9.0 10.0
Importance
Improve Maintain
Delivers on promises specified in proposal/contract (9.49, 8.51)
Gets project within budget, on time (9.31, 7.84)Completes projects correctly, on time (9.29, 7.68)
Does whatever it takes to correct problems (9.26, 7.96)
Provides equipment that operates as vendor said it would (9.24, 8.14)
Gets price we originally agreed upon (9.21, 8.64)
Takes responsibility for their mistakes (9.18, 8.01)Delivers or installs on promised date (9.02, 7.84)
Tells me cost ahead of time (9.06, 8.46)
Gets back to me whenpromised (9.04, 7.63)
18ISB&M, Services Marketing
Figure 9-6Figure 9-6 Aligning Company Processes Aligning Company Processes
with Customer Expectationswith Customer Expectations
Customer Expectations
Customer Process Blueprint
Company Process Blueprint
Company Sequential Processes
AA BB CC DD EE FF GG HH
40 DaysNew Card
MailedLost Card Reported
Report Lost Card
Receive New Card
48 Hours
19ISB&M, Services Marketing