Customer-Defined Service
Standards
10
 Factors Necessary for Appropriate Service
Standards
 Types of Customer-Defined Service
Standards
 Development of Customer-Defined Service
Standards
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

10-2
Objectives for Chapter 10:
Customer-Defined Service Standards
 Distinguish between company-defined and customer-defined service standards.
 Differentiate among “hard” and “soft” customer-defined standards and one-time fixes.
 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.
 Explain the process of developing customer-defined service standards.
 Emphasize the importance of service performance indexes in implementing strategy for service delivery.

10-3

Standards are based on the most important customer expectations and reflect the customer’s view of these expectations.
SOURCES
Customer Expectations
Customer Process Blueprint
Customer Experience
Observations
SOURCES
Productivity Implications
Cost Implications
Company Process Blueprint
Company View of Quality
10-4

Customer Service Report Card for
Puget Sound Energy
10-5

“Not everything that counts can be counted...and not everything that can be counted, counts .”
Albert Einstein
10-6

HARD STANDARDS AND MEASURES
Things that can be counted, timed, or observed through audits (time, numbers of events)
10-7
SOFT STANDARDS AND MEASURES
Opinion-based measures that cannot be observed and must be collected by talking to customers (perceptions, beliefs)

Examples of Hard Customer-Defined
Standards
10-8

Examples of Soft Customer-Defined
Standards
10-9

Exercise for Creating Customer-Defined
Service Standards
10-10
 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

Customer-Driven Standards and
Measurements Exercise
Service Encounter Customer Requirements Measurements
10-11
Service
Quality

What Customers Expect: Getting to
Actionable Steps
10-12

Process for Setting Customer-Defined
Standards
10-13

10-14

Linkage between Soft Measures and Hard
Measures for Speed of Complaint Handling
10-15

10-16
Initial Sales Contact with Circuit City in Store
 act in a professional and courteous manner
 ask customer what he or she is looking for
 offer to be available when needed if customer not ready
 ask customer several questions about specific needs or wants
 educate the customer about products in category
 explain the differences between products (such as TVs) that customer is considering
 be honest about options and price
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

10-17
Example of Customer-Defined Service
Standards at Circuit City
Checkout at Circuit City in Store
 act in a professional and courteous manner
 probe customer to assure that product meets needs and reduce any anxiety and uncertainty that the customer might feel
 explain the warranty service that accompanies the product
 using what is known about the customer, explain the
Circuit City customer service agreements that extend the warranty
 explain the differences between CSA options, being sure to relate them to what the customer needs
 encourage purchase, and fully explain how to implement
CSA
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

10-18
Example of Customer-Defined Service
Standards at Circuit City
Post-sale Follow Up
 telephone customer within next 7 days to ask how TV is operating
 ask if client is ready to schedule first service
 if client is ready, establish date for first service
 send out postcard one week in advance of first service call to remind customer and explain what needs to be done
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

10-19
Example of Customer-Defined Service
Standards at Circuit City
Annual Follow Up
 send customers reminder cards that they have either used the service or are due for a service call
 two weeks after mailing card, call customers who have used service and assure that they are satisfied both with product and service
 call each customer who has not used the service and schedule a “maintenance check-up” where service provider goes to home and checks and tunes television
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

 Standards for salespeople patterned after samurai behaviors:
 assume the samurai warrior’s “waiting position” by leaning five to ten degrees forward when a customer is looking at a car
 stand with left hand over right, fingers together and thumbs interlocked, as the samurais did to show they were not about to draw their swords
 display the “Lexus Face,” a closedmouth smile intended to put customers at ease
10-20

 Standards for salespeople patterned after samurai behaviors:
 when serving coffee or tea, kneel on the floor with both feet together and both knees on the ground
 bow more deeply to a customer who has purchased a car than a casual window shopper
 stand about two arms’ lengths from customers when they are looking at a car and come in closer when closing a deal
 point with all five fingers to a car door’s handle, right hand followed by left, then gracefully open the door with both hands
10-21

Hard and Soft Service Standards at Ford
10-22
 Appointment available within one day of customer’s requested service day
 Write-up begins within four minutes
 Service needs are courteously identified, accurately recorded on repair order and verified with customer
 Service status provided within one minute of inquiry
 Vehicle serviced right on first visit
 Vehicle ready at agreed-upon time
 Thorough explanation given of work done, coverage and charges

10-23
 Seven Service Culture
Standards
1.
S mile
2.
E ye
3.
R ecognition
4.
V oice
5.
I nformed
6.
C lean
7.
E veryone
 Core Worldwide Service
Operating Standards
 Reservations
 Hotel Arrival
 Messages and Paging
 Guest Room Evening
Service
 Breakfast
 Room
Exceptions are permitted if they make local sense

SQI Defects
1. Missing Guest Preferences
2. Unresolved Difficulties
3. Inadequate Guestroom Housekeeping
4. Abandoned Reservation Calls
5. Guestroom Changes
6. Inoperable Guestroom Equipment
7. Unready Guestroom
8. Inappropriate Hotel Appearance
9. Meeting Event Difficulties
10. Inadequate Food/Beverage
11. Missing/Damaged Guest Property/Accidents
12. Invoice Adjustment
Points
10
50
1
5
10
5
5
5
5
1
50
3
10-24