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Customer Defined Service Standards

Customer defined service standards are more important than company defined standards. There are two types of customer defined standards: "hard" standards that can be measured objectively and "soft" standards that rely on customer opinions. Companies should develop standards through identifying the key customer service encounters, translating customer expectations into specific behaviors, selecting important behaviors to measure, setting measurable hard and soft standards, developing feedback mechanisms, tracking performance, and providing feedback to employees. This ensures services meet customer requirements for a quality experience.
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89% found this document useful (9 votes)
16K views18 pages

Customer Defined Service Standards

Customer defined service standards are more important than company defined standards. There are two types of customer defined standards: "hard" standards that can be measured objectively and "soft" standards that rely on customer opinions. Companies should develop standards through identifying the key customer service encounters, translating customer expectations into specific behaviors, selecting important behaviors to measure, setting measurable hard and soft standards, developing feedback mechanisms, tracking performance, and providing feedback to employees. This ensures services meet customer requirements for a quality experience.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Customer defined service

standards.

-Srinivas R Khode.
MBA. VTU.
Objectives
• Differentiate between Company-defined &
customer-defined service standards.
• Distinguish between “hard” and “soft”
customer-defined standards.
• One time service fixes.
• Service encounter sequence.
• Process of developing customer-defined
service standards.
Gap 2.
It is the gap between company
perceptions of consumer expectations
& customer driven service standards
and designs.
•Not having the right service quality
design & standards.
FEDEX- Setting standards
through SQI.
• The company drives its operations
with the aid of a comprehensive,
customer defined index of service
standards called as service quality
indicator(SQI).
• Designed to deliver 100% customer
satisfaction on every package
handled.
Factors necessary for
appropriate service standards.
-Standardizationof service
behaviors and actions.
•Expert services cannot be
standardized viz; Accounting,
consulting, engineering, dentistry, etc.
•Recurring tasks can be Standardised
viz; checking in patients, weighing,
billing, collecting payment, etc.
-Formal service targets and
goals.

-Customer- Not Company-


Defines standards.
Company versus Customer Defined
service standards
Company Defined-
Internal- Productivity, Efficiency, Costs or
technical quality.

Customer Defined-
Requirements that are visible and assessed/
measured by consumers.
“Hard” customer defined standards.
Things that can be counted, timed, or observed
through audits (time, numbers of events)

“Soft” customer defined standards.

Opinion-based measures that cannot


be observed and must be collected by
talking to customers (perceptions, beliefs)
Hard and Soft Service Standards at Ford

1.Appointment available within one day of customer’s


requested service day
2. Write-up begins within four minutes
3. Service needs are courteously identified, accurately
recorded on repair order and verified with customer
4. Service status provided within one minute of
inquiry
5. Vehicle serviced right on first visit
6. Vehicle ready at agreed-upon time
7. Thorough explanation given of work done,
coverage and charges
Hard standards: The standards 1,2,4,5&6 can
be measured & audited.

Soft standards: The standards 3&7 require


customer opinion.
One time fixes.
One time fixes are technology, policy
or procedure changes that when
instituted/ implemented address/
deliver to customer requirements.
Eg. McDonalds single waiting line.
Building blocks- The service
encounter sequence.

A customers overall evaluation is the


accumulation of evaluations of multiple service
experiences, service encounters, therefore, are
the building blocks for service quality.

Eg. -AT&T- sales-installation-repair-billing.


- Marriott hotels.
Process for developing customer
defined standards.
1- Identify Existing or Desired Service Encounter
Sequence: Similar to AT&T’s example.
2- Translate Customer Expectations Into
behaviors/actions: Abstract customer expectations
are translated into concrete specific
behaviors/actions associated with each encounter.
3- Select behaviors/actions for standards:
- Standards are based on behaviors and actions that
are very important for the customers.
-standards cover performance that need to be
improved or maintained.
- Standards are accepted by employees.
- Standards are predictivre rather than reactive.
- Standards are challenging but realistic.
4- Set Hard or Soft Standards:
-companies are biased towards hard standard.
-First establish a soft standard.
5- Develop Feedback Mechanisms:
- Hard standards involve mechanical counts or
technology enabled measurements.
- Soft standards- employee monitoring through
customer feedback.
6- Establish measures and target levels:
-companies can relate levels of customer satisfaction
with actual performance of a behavior.
Eg: Airline waiting line.
7- Track measure against standards:
-Figuring out what goes wrong and prevent it from
happening again.
8- Provide feedback about performance to
employees:
- Communication of performance on its service
quality to its employees to identify and correct
problems.
Thank you

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