Provider Gap 2
Key Factors Leading to Provider Gap 2
Service Standards
 The type of service standards that close provider gap 2
are customer defined standards.
 Customer defined standards are measures based on
customer requirements that are visible to and
measured by customers rather than on company
concerns such as productivity or efficiency.
 some components of service can be subject to
standards, others are more difficult
 which ones are more likely to be subjected to
standards?
FedEx Service Quality Indicator (SQI)
Factors Necessary for Appropriate Service
Standards
 Standardization of service behaviors and actions
 Standardization usually implies a nonvarying sequential
process similar to the production of goods
 Goal: consistent service product
 Customization usually refers to some level of adaptation or
tailoring of the process to the individual customer
 Goal: service that meets expectations
 Formal service targets and goals
 Setting specific targets for individual behaviors and actions;
for example, the customer service standards set by Puget
Sound Energy and shown in Figure 9.1.
9-5
Customer Service Report Card for
Puget Sound Energy
9-6
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
9-7
Standards…
HARD STANDARDS AND MEASURES
Things that can be counted, timed,
or observed through audits (time,
numbers of events)
often involves automatic data capture
tend to be more functional and objective
customer expects these: on-time, error-free,
responsive, call-backs, lost calls, etc.
hard to argue with these
9-8
Exhibit 9.1: Examples of Hard Customer-Defined
Standards
9-9
Counting…
“Not everything that counts can be
counted...and not everything that can be
counted, counts.”
Albert Einstein
9-10
Standards…
SOFT STANDARDS AND MEASURES
Opinion-based measures that cannot
be observed and must be collected by
talking to customers (perceptions, beliefs)
more difficult to capture data, requires
research; more judgmental, subjective
relates more to the interpersonal and softer
side of service delivery
how we treat the customer
tone of voice, seem to care, knowledgeable,
helpful, courteous, able to contact them, etc.
9-11
Exhibit 9.2: Examples of Soft Customer-Defined
Standards
9-12
TAXI
Remember the movie called
“Taxi” ????
In this movie there is a scene
where a customer asks a cab
driver (Queen Latifah) to get her
to the airport (so he will not miss
his plane) in less than 15
minutes. She proceeds to get
him there in less than 10
minutes, speeding and driving
recklessly along the way.
Taxi
This illustrates how hard-standards (getting the
customer to the airport in 15 minutes or less)
have been accomplished at the expense of softstandards (being delivered to the airport in a
safe and comfortable manner)
What Customers Expect: Getting to Actionable
Steps
9-15
Responsiveness Standards at Zappos.com
 Respond to 80 percent of all incoming calls
within 20 seconds
 Respond to all e-mail messages in less than four
hours
 Respond to live (online) chats in less than 10
seconds.
9-16
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
9-17
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
9-18
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
9-19
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
9-20
Ritz-Carlton’s SQI Index
SQI Defects
Points
1. Missing Guest Preferences
10
2. Unresolved Difficulties
50
3. Inadequate Guestroom Housekeeping
1
4. Abandoned Reservation Calls
5
5. Guestroom Changes
5
6. Inoperable Guestroom Equipment
5
7. Unready Guestroom
10
8. Inappropriate Hotel Appearance
5
9. Meeting Event Difficulties
5
10. Inadequate Food/Beverage
1
11. Missing/Damaged Guest Property/Accidents
50
12. Invoice Adjustment
3