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Chapter Nine --- Customer Defined Service Standards

Chapter Nine --- Customer Defined Service Standards. Donna J. Hill, Ph.D Marketing 410 Fall 2000. Functional Integration. Operations and Marketing often operate separately, each serving own internal goals

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Chapter Nine --- Customer Defined Service Standards

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  1. Chapter Nine --- Customer Defined Service Standards Donna J. Hill, Ph.D Marketing 410 Fall 2000

  2. 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 monitoring

  3. 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

  4. 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

  5. Customer --- Not Company • Operational standards based on pivotal customer requirements that are visible to and measured by customers.

  6. Hard versus Soft Standards • Hard --- things that can be counted, timed, or observed through audits • Soft ---must be documented using perceptual measures--- but can be measured

  7. 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)

  8. 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

  9. Examples of Measures (Hard) • Competitive Data • Accuracy of Order • Back orders • Parts Availability • Exceptions to Procedures • Violations of Regulatory Codes

  10. Examples of Measures (Soft) • Safety • Convenience • Cleanliness • Availability • Consistency • Hospitality • Credibility

  11. Examples of Measures (Soft) • Waiting Time, Transaction Time • Accuracy of Transaction • Friendly Personnel • Knowledgeable Personnel • Helpful Personnel • Costs • Value Received

  12. 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

  13. Customer-Driven Standards and Measurements Exercise Measurements Customer Requirements Service Encounter Service Quality

  14. Figure 9-2 Getting to Actionable Steps Requirements: Abstract Diagnosticity: Low Satisfaction Value Relationship Solution Provider General Concepts Dig Deeper Reliability Empathy Assurance Tangibles Responsiveness Price Dimensions Delivers on Time Returns Calls Quickly Knows My Industry Dig Deeper Attributes Delivers by Weds 11/4 Returns Calls in 2 Hrs Knows Strengths of My Competitors Dig Deeper Behaviors and Actions Concrete High

  15. Figure 9-3 Process for Setting Customer-Defined Standards 1. Identify Existing or Desired Service Encounter Sequence 2. Translate Customer Expectations Into Behaviors/Actions 3. Select Behaviors/Actions for Standards 4. Set Hard or Soft Standards Measure by Transaction- Based Surveys Measure by Audits or Operating Data Hard 5. Develop Feedback Mechanisms Soft 6. Establish Measures and Target Levels 7. Track Measures Against Standards 8. Update Target Levels and Measures

  16. Importance/Performance Matrix HIGH 10.0 Maintain Improve Does whatever it takes to correct problems (9.26, 7.96)  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)   Gets price we originally agreed upon (9.21, 8.64)    9.0 Tells me cost ahead of time (9.06, 8.46) Provides equipment that operates as vendor said it would (9.24, 8.14) Gets back to me when promised (9.04, 7.63) Takes responsibility for their mistakes (9.18, 8.01) Importance Delivers or installs on promised date (9.02, 7.84) 8.0 LOW 7.0 HIGH 8.0 9.0 10.0 Performance

  17. Figure 9-6 Aligning Company Processes with Customer Expectations Customer Expectations 48 Hours Customer Process Blueprint Report Lost Card Receive New Card Company Process Blueprint Company Sequential Processes A B C D E F G H Lost Card Reported New Card Mailed 40 Days

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