CORN LL
NOT S
    Student Name
    Bui Anh Huy
    Main Ideas / Key Words
FACTORS NECESSARY FOR
APPROPRIATE SERVICE STANDARDS
    TYPES OF CUSTOMER-DEFINED
    SERVICE STANDARDS
Class: SERVICES MARKETING
Date: 17/01/ 2021
Topic: Chapter 9 Customer-Defined Service
Standards
   
   
Notes    
 Standardization of service behaviors and actions:
 Standardization usually implies a non-varying sequential
process similar to the production of goods.
 Customization usually refers to some level of adaptation or
tailoring of the process to the individual customer.
 Standardization of service can take three forms:
o Substitution of technology for personal contact and
human effort.
o Improvement in work methods.
o Combinations of these two methods.
Example: the opening checking accounts, confirmation emails after
orders, etc.
 Formal service targets and goals:
Setting specific targets for individual behaviors and actions, for
example, the customer service standards set by Puget Sound Energy
(part of its SQI a goal of answering 75 percent of customer calls with
a “live” person within 30 seconds).
 Customer-defined standard:
 To close gap 2, standards set by companies must be based on
customer requirements and expectations rather than just on
internal company goals.
 Standards are based on the most important customer
expectations and reflect the customer’s view of these
expectations.
 Hard Customer-Defined Standards:
 Things that can be counted, timed, or observed through
audits (time, numbers of events).
 To address the need for reliability, companies can institute a
“do it right the first time” and an “honor your promises”    
value system by establishing reliability standards    
 Soft Customer-Defined Standards:
 Opinion-based measures that cannot be observed and must
be collected by talking to customers (perceptions, beliefs).
DEVELOPMENT OF CUSTOMER-
DEFINED STANDARDS

 Step 1: Identify existing or desired service encounter

sequence
 Identifying the sequence can be done by listing the
sequential steps and activities that the customer experiences
in receiving the service.
 Step 2: Translate customer expectations into
behaviors/actions

 Step 3: Determine appropriate standards

 The most important criteria for creation of appropriate
service standards:
1. The standards are based on behaviors and actions that are very
important to customers.
2. The standards cover performance that needs to be improved or
maintained.
3. The standards cover behaviors and actions employees have control
 over and can improve.
4. The standards are understood and accepted by employees.
5. The standards are predictive rather than reactive—based on current
and future customer expectations rather than past complaints.
6. The standards are challenging but realistic.
 Step 4: Develop measurements for standards
 There are two types of measurement:
1. Hard measurement: typically involve mechanical counts or
technology-enabled measurement of time or errors.
2. Soft measurement: based on customer perceptions that often
cannot be directly observed.
 Step 5: Establish Target Levels for the Standards
 Each time a complaint is made to the company, and each
time one is resolved, employees can record the times.
 They can also ask each customer his or her satisfaction with
the performance in resolving the complaint.
 The company can then plot the information from each
complaint to determine how well the company is performing
and where the company would like to be in the future.
 Step 6: Track Measures against Standards
       
       

   
   
             
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