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Chapter 9
CUSTOMER-DEFINED
SERVICE STANDARDS
McGraw-Hill
McGraw-Hill
© 2000 The McGraw-Hill Companies
© 2000 The McGraw-Hill Companies
SM
Objectives for Chapter 9:
Customer-defined Service
Standards
• Differentiate between company-defined and
customer-defined service standards
• Distinguish among one-time service fixes and
“hard” and “soft” customer-defined standards
• Explain the critical role of the service encounter
sequence in developing customer-defined
standards
• Illustrate how to translate customer expectations
into behaviors and actions that are definable,
repeatable, and actionable
McGraw-Hill
© 2000 The McGraw-Hill Companies
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Figure 9-1
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AT&T’s Process Map for Measurements
Business Process
30% Product
30% Sales
Total
Quality 10% Installation
15% Repair
15% Billing
Internal Metric
Customer Need
Reliability
Easy To Use
Features / Functions
(40%)
(20%)
(40%)
% Repair Call
% Calls for Help
Knowledge
Responsive
Follow-Up
(30%)
(25%)
(10%)
Supervisor Observations
% Proposal Made on Time
% Follow Up Made
Functional Performance Test
Delivery Interval Meets Needs (30%)
Does Not Break
(25%)
Installed When Promised
(10%)
Average Order Interval
% Repair Reports
% Installed On Due Date
No Repeat Trouble
Fixed Fast
(30%)
(25%)
Kept Informed
(10%)
% Repeat Reports
Average Speed Of Repair
% Customers Informed
Accuracy, No Surprise
Resolve On First Call
Easy To Understand
(45%)
(35%)
(10%)
% Billing Inquiries
% Resolved First Call
% Billing Inquiries
Source: AT&T General Business Systems
McGraw-Hill
© 2000 The McGraw-Hill Companies
SM
Exercise for Creating
Customer-Defined Service
Standards
• Form a group of four people
• Use your school’s undergraduate or graduate
program, or an approved alternative
• 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
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© 2000 The McGraw-Hill Companies
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Customer-Driven Standards and
Measurements Exercise
Service Encounter
Customer Requirements
Measurements
Service
Quality
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© 2000 The McGraw-Hill Companies
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Figure 9-2
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Getting to Actionable Steps
Requirements: Diagnosticity:
Satisfaction Value
Relationship
Solution Provider
Dig
Deeper
Abstract
General Concepts
Reliability
Empathy
Assurance
Tangibles
Responsiveness Price
Dig
Deeper
Dig
Deeper
Dimensions
Delivers on Time
Returns Calls Quickly
Knows My Industry
Delivers by Weds 11/4
Returns Calls in 2 Hrs
Knows Strengths of
My Competitors
Attributes
Behaviors
and Actions
Concrete
McGraw-Hill
Low
High
© 2000 The McGraw-Hill Companies
Figure 9-3
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Process for Setting
Customer-Defined Standards
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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
Audits or
Operating Data
Hard
5. Develop Feedback
Mechanisms
Soft
Measure by
TransactionBased Surveys
6. Establish Measures and Target Levels
7. Track Measures Against Standards
8. Update Target Levels and Measures
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Importance/Performance Matrix
HIGH
10.0
Improve
Maintain
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)


Gets price we originally agreed upon (9.21, 8.64)
 

Tells me cost ahead of time (9.06, 8.46)
 

Provides equipment that operates as vendor said it would (9.24, 8.14)
Completes projects
correctly, on time (9.29, 7.68)
9.0
Gets back to me when
promised (9.04, 7.63)
Importance
Takes responsibility for their mistakes (9.18, 8.01)
Delivers or installs on
promised date (9.02, 7.84)
8.0
LOW
7.0
8.0
McGraw-Hill
Performance
9.0
10.0
HIGH
© 2000 The McGraw-Hill Companies
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Figure 9-5
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Linkage between Soft Measures and
Hard Measures for Speed of
Complaint Handling
S
A 10
T 9
I
8
S
7
F
6
A
5
C
4
T
3
I
2
O 1
N 0
McGraw-Hill
Large Customers
Small Customers
2
4
6
8
WORKING
12
16
20
HOURS
© 2000 The McGraw-Hill Companies
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10
Figure 9-6
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Aligning Company Processes with
Customer Expectations
Customer Expectations
Customer
Process
Blueprint
Company
Process
Blueprint
A
B
Lost Card
Reported
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48 Hours
Report Lost
Card
Receive New
Card
Company Sequential Processes
C
D
E
40 Days
F
G
H
New Card
Mailed
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