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Customer-Defined Service Standards

Chapter. 10. Customer-Defined Service Standards. Factors Necessary for Appropriate Service Standards Types of Customer-Defined Service Standards Development of Customer-Defined Service Standards. Exhibit 10.1 Examples of Hard Customer-Defined Standards.

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Customer-Defined Service Standards

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

  2. Exhibit 10.1Examples of Hard Customer-Defined Standards

  3. Exhibit 10.2Examples of Soft Customer-Defined Standards

  4. Customer Defined Standards • Standardization vs Customization • Formal Targets • Specific Behaviors • Individual • Departments • Customer Defined Standards • Hard Standards • Soft Standards • One-Time Fixes

  5. Figure 10.2 AT&T’s Process Map for Measurements Source: R. E. Kordupleski, R. T. Rust, and A. J. Zaharik, “Why Improving Quality Doesn’t Improve Quality (or Whatever Happened to Marketing?),” California Management Review 35, no. 3 (Spring 1993).

  6. Figure 10.6Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling 10 9 8 7 6 5 4 3 2 1 0 Large Customers SATISFACTION Small Customers 2 4 6 8 12 16 20 24 WORKING HOURS

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

  8. Figure 10.3What Customers Expect:Getting to Actionable Steps Diagnosticity: Low Requirements: Abstract Satisfaction Relationship Value 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 Wednesday Returns calls in two hours Knows strengths of my competitors Dig deeper Behaviors and actions Concrete High

  9. 1. Identify existing or desired service encounter sequence 4. Set hard or soft standards Figure 10.4Process for Setting Customer-Defined Standards 2. Translate customer expectations into behaviors/actions 3. Select behaviors/actions for standards Measure by audits or operating data Measure by transaction- based surveys 5. Develop feedback mechanisms Hard Soft 6. Establish measures and target levels 7. Track measures against standards 8. Provide feedback about performance to employees 9. Update target levels and measures

  10. 2. Translate customer expectations into behaviors/actions • Actions/behaviors that are relevant to customer • Actions/behaviors that need improvements • Actions/behaviors that are improveable • Employee buy-in • Future based • Realistic

  11. Figure 10.4Process for Setting Customer-Defined Standards 1. Identify existing or desired service encounter sequence 4. Set hard or soft standards 2. Translate customer expectations into behaviors/actions 3. Select behaviors/actions for standards Measure by audits or operating data Measure by transaction- based surveys 5. Develop feedback mechanisms Hard Soft 6. Establish measures and target levels 7. Track measures against standards 8. Provide feedback about performance to employees 9. Update target levels and measures

  12. Figure 10.5Importance/Performance Matrix

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