CUSTOMER-DEFINED SERVICE STANDARDS

PRESENTED BY ISMAILAYAZRUKNUDDIN
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CUSTOMER DEFINED SERVICE STANDARDS

operations standards set to correspond to customer expectations and priorities rather than to company concerns such as productivity or efficiency
Customer Defined Standards by identifying what the customer values, company can save money by eliminating activities and features that the customer either does not notice or will not pay for

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CUSTOMER-DEFINED STANDARDS

Customer-Defined Standards: things that can be counted, timed, or observed through audits
FedEx: Correct packages delivered; correct packages delivered on time; missed pickup?

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CUSTOMER-DEFINED STANDARDS

Customer-Defined Standards: opinion-based measures that cannot be observed and must be collected by talking to customers, employees, or others
Ritz Carlton: uniforms are to be immaculate; wear name tag; proper grooming; use proper telephone etiquette 4
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ONE-TIME FIXES

technology, policy, or procedure changes that, when instituted, address customer requirements A local Taco Bell extends its operating hours on Friday and Saturday nights to 24hour service to satisfy its college market.
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HARD VERSUS SOFT STANDARDS

Hard --- things that can be counted, timed, or observed through audits Soft ---must be documented using perceptual measures--- but can be measured

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EXAMPLES OF MEASURES (HARD)

Time in Line, Transaction Time Number of Errors (Mistakes) per Transaction Counts of Smiles, Using Customer Name, Using Protocol. Violation of Dress Code Availability of Systems (Phone Lines, Power) Competitive Data Accuracy of Order Back orders Parts Availability Exceptions to Procedures Violations of Regulatory Codes

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EXAMPLES OF MEASURES (SOFT)

Safety Convenience Cleanliness Availability Consistency Hospitality Credibility Waiting Time, Transaction Time Accuracy of Transaction Friendly Personnel Knowledgeable Personnel Helpful Personnel Costs Value Received

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CUSTOMER-DRIVEN STANDARDS AND MEASUREMENTS EXERCISE

Business Process 30% Product Customer Need
Reliability Easy To Use Features / Functions Knowledge Responsive (40%) (20%) (40%) (30%) (25%)

Internal Metric
% Repair Call

% Calls for Help Functional Performance Test

Supervisor Observations % Proposal Made on Time % Follow Up Made Average Order Interval % Repair Reports % Installed On Due Date % Repeat Reports Average Speed Of Repair % Customers Informed % Billing Inquiries % Resolved First Call % Billing Inquiries

30% Sales Total Quality 10% Installation

Follow-Up

(10%)

Delivery Interval Meets Needs (30%) Does Not Break (25%) Installed When Promised (10%) No Repeat Trouble Fixed Fast Kept Informed Accuracy, No Surprise Resolve On First Call Easy To Understand (30%) (25%) (10%) (45%) (35%) (10%)

15% Repair

15% Billing

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GETTING TO ACTIONABLE STEPS

Requirements: Diagnosticity:
Satisfaction Value Relationship Solution Provider
Dig Deeper

Abstract

Low

General Concepts

Reliability Empathy Assurance Tangibles Responsiveness Price

Dimensions

Dig Deeper

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

Dig Deeper

Behaviors and Actions

Concrete High

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PROCESS FOR DEVELOPING 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 Measure by Audits or Operating Data Measure by TransactionBased Surveys

Hard

5. Develop Feedback Mechanisms

Soft

6. Establish Measures and Target Levels 7. Track Measures Against Standards

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8. Update Target Levels and Measures

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1. Identify Existing or Desired Service Encounter Sequence:- blueprint

2. Translate Customer Expectations Into Behaviors/Actions:- research on Customer Expectations 3. Select Behaviors/Actions for Standards:- it is based on two important criteria I. The standards are based on behavior and actions that are very important to customer II. The standards cover performance that need to be improved or maintained.

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IMPORTANCE/PERFORMANCE MATRIX
HIGH 10.0

Improve

Maintain
Delivers on promises specified in proposal/contract (9.49, 8.51)

Completes projects correctly, on time (9.29, 7.68)

9.0

Gets back to me when promised (9.04, 7.63)

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)
Takes responsibility for their mistakes (9.18, 8.01) Delivers or installs on promised date (9.02, 7.84)

Importance
8.0

LOW

7.0 8.0 9.0 10.0

HIGH
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Performance
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4. Set Hard or Soft Standards:- to capture the behavior and action of the customer Measure by Audits or Operating Data Measure by TransactionBased Surveys

5. Develop feedback mechanisms:-hard and soft Standard measurement

6. Establish Measures and Target Levels:technology enable measurement

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Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling

S A 10 T 9 I S F A C T I 8 7 6 Small Customers Large Customers

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4 3 2 2 4 6 8 12 16 20 24 16
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O 1 N 0

WORKING

HOURS

6. Establish Measures and Target Levels:technology and approach

7. Track measures against standard:- P D C A

8. Update target level and measure:Customer requirement and expectation

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Aligning Company Processes with Customer Expectations

Customer Expectations Customer Process Blueprint Report Lost Card Company Process Blueprint 48 Hours

Receive New Card

Company Sequential Processes

H
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Lost Card Reported

40 Days

New Card Mailed