Chapter10-1

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.
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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.
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FedEx Service Quality Indicator (SQI)

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Service Standards
Standards are based on the most important customer
expectations and reflect the customer’s view of these expectations.

Customer- SOURCES
Customer Expectations
Defined Customer Process Blueprint
Standards Customer Experience
Observations

SOURCES
Company- Productivity Implications
Cost Implications
Defined Company Process Blueprint
Standards Company View of Quality
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Customer Service Report Card for

Puget Sound Energy
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Counting…

“Not everything that

counts can be
counted...and not
everything that can be
counted, counts.”
Albert Einstein
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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)
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Examples of Hard Customer-Defined

Standards
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Examples of Soft Customer-Defined

Standards
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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
lowest-performed behaviors and actions
 Be prepared to present your findings to the class
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Customer-Driven Standards and

Measurements Exercise
Service Encounter Customer Requirements Measurements

Service
Quality
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What Customers Expect: Getting to

Actionable Steps
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Process for Setting Customer-Defined
Standards
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Importance/Performance Matrix
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Linkage between Soft Measures and Hard

Measures for Speed of Complaint Handling
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Example of Customer-Defined
Service Standards at Circuit City
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.
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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.
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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.
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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.
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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
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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
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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
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Standards at Four Seasons

 Seven Service Culture  Core Worldwide Service

Standards Operating Standards
1. Smile  Reservations
2. Eye  Hotel Arrival
3. Recognition  Messages and Paging
4. Voice  Guest Room Evening
5. Informed Service
6. Clean  Breakfast
7. Everyone  Room
Exceptions are permitted if
they make local sense
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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