MKT 5207
Service Marketing
Afjal Hossain
Assistant Professor
Department of Marketing
Chapter 10
Customer-Defined Service
Standards
FedEx Service Quality Indicator (SQI)
Indicator
Weight
Lost packages
50
Damaged packages
30
Wrong day/late delivery
10
Complaints reopened
10
Invoice adjustments requested
3
Late pick-up stops
3
Traces not resolved
3
Right day/late delivery
1
Missing proofs of delivery
1
Service Standards
Standards are based on the most important customer
expectations and reflect the customer’s view of these expectations.
CustomerDefined
Standards
SOURCES
Customer Expectations
Customer Process Blueprint
Customer Experience
Observations
CompanyDefined
Standards
SOURCES
Productivity Implications
Cost Implications
Company Process Blueprint
Company View of Quality
Counting…
“Not everything that counts can be
counted...and not everything that can
be counted, counts.”
Albert Einstein
Standards…
HARD STANDARDS AND MEASURES
Things that can be counted, timed,
or observed through audits (time,
numbers of events)
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
Exhibit 10.1
Examples of Soft Customer-Defined Standards
Exhibit 10.2
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 lowestperformed behaviors and actions
• Be prepared to present your findings to the class
Customer-Driven Standards and Measurements
Exercise
Service Encounter
Service
Quality
Customer Requirements
Measurements
What Customers Expect: Getting to Actionable
Steps
Requirements: Diagnosticity:
Abstract
Low
Satisfaction
Value
Relationship
Solution Provider
General
concepts
Reliability
Assurance
Responsiveness
Empathy
Tangibles
Dig
deeper
Dimensions
Delivers on time
Returns calls quickly
Knows my industry
Dig
deeper
Dig
deeper
Attributes
Delivers by Wednesday
Returns calls in two hours
Knows strengths of my
competitors
Behaviors
and actions
Concrete
Figure 10.3
High
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
Hard
standards
5. Develop feedback mechanisms
Measure by
audits or
operating data
Measure by
transactionbased surveys
6. Establish measures and target levels
7. Track measures against standards
8. Provide feedback about performance to employees
9. Update target levels and measures
Figure 10.4
Soft
standards
Importance/Performance Matrix
Figure 10.5
Linkage between Soft Measures and Hard Measures for
Speed of Complaint Handling
10
9
SATISFACTION
8
Large Customers
7
6
Small Customers
5
4
3
2
1
0
2
4
6
8
12
WORKING HOURS
Figure 10.6
16
20
24
Soft Standards at Toyota in Japan
• 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 closed-mouth
smile intended to put customers at ease
More Soft Standards at Toyota in Japan
• 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
Hard and Soft Service Standards at Ford
• 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
Standards at Four Seasons
• Seven Service Culture
Standards
1.
2.
3.
4.
5.
6.
7.
Smile
Eye
Recognition
Voice
Informed
Clean
Everyone
• 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