12
10 Chapter Customer-Defined Service Standards Factors Necessary for Appropriate Service Standards Types of Customer-Defined Service Standards Development of Customer-Defined Service Standards

Customer-Defined Service Standards

Embed Size (px)

Citation preview

Page 1: Customer-Defined Service Standards

10Chapter

Customer-Defined Service Standards

Factors Necessary for Appropriate Service Standards

Types of Customer-Defined Service Standards

Development of Customer-Defined Service Standards

Page 2: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Translating Expectations into Delivery

The Standards GapThe difference between what we do and howcustomers looks at it.

Factors Influencing this Gap

Standardized versus Routinized Service

Page 3: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Company versus Customer Defined Standards

Company Defined-Internal- Productivity, Efficiency, Costs

Customer Defined-Requirements that are visible and assessedby consumers.

Page 4: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Types of Customer Defined Standards

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

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

Page 5: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Exhibit 10.1

Examples of Hard Customer-Defined Standards

From Ex 10.1Customer-defined Standards

Fedex # packages on right day# of packages on wrong day# of missed pickups

Page 6: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Exhibit 10.2

Examples of Soft Customer-Defined Standards

General Electric Taking ownership of callPhone operators Following thru on promises

Being CourteousBeing Knowledgeable

Page 7: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Figure 10.2

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 Metric30% Product

30% Sales

10% Installation

15% Repair

15% Billing

% Repair Call% Calls for HelpFunctional Performance Test

Supervisor Observations% Proposal Made on Time% Follow Up Made

Average Order Interval% Repair Reports% Installed On Due Date

% Repeat ReportsAverage Speed Of Repair% Customers Informed

% Billing Inquiries% Resolved First Call% Billing Inquiries

TotalQuality

Source: AT&T General Business Systems

Page 8: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

SatisfactionRelationship

Reliability EmpathyAssurance TangiblesResponsiveness Price

Delivers on timeReturns calls quicklyKnows my industry

Delivers by WednesdayReturns calls in two hoursKnows strengths of my

competitors

Requirements:Abstract

Concrete

Dig deeper

Dig deeper

Dig deeper

Diagnosticity:Low

High

General concepts

Dimensions

Behaviors and actions

Attributes

Figure 10.3

What Customers Expect:Getting to Actionable Steps

ValueSolution Provider

Page 9: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

1. Identify existing or desired service encounter sequence

2. Translate customer expectations into behaviors/actions

4. Set hard or soft standards

5. Develop feedback mechanismsMeasure by

audits oroperating data

Hard SoftMeasure bytransaction-

based surveys

3. Select behaviors/actions for standards

6. Establish measures and target levels

Figure 10.4

Process for Setting Customer-Defined Standards

7. Track measures against standards

8. Provide feedback about performance to employees

9. Update target levels and measures

Page 10: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Exercise for Creating Customer-Defined Service Standards

Form a group Use your school’s Financial Aid Program Complete the customer-driven service standards

importance chart Establish standards for the most important and lowest-

performed behaviors and actions Be prepared to present your findings to the class

Page 11: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Service Encounter Customer Requirements Measurements

ServiceQuality

Customer-Driven Standards and Measurements Exercise

Page 12: Customer-Defined Service Standards

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Figure 10.5

Importance/Performance Matrix