1. 9 Customer-Defined Service Standards Chapter
Factors Necessary For Appropriate Service Standards
Customer-Defined Service Standards
Process for Developing Customer-defined Standards
Service Performance Indexes

2. Objectives for Chapter 9: Customer-defined Service Standards
Differentiate between company-defined and customer-defined service standards.
Distinguish among one-time service fixes and “hard” and “soft” customer-defined standards.
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.

3. Table 9.1 Examples of Hard Customer-Defined Standards

4. Table 9.2 Examples of Soft Customer-Defined Standards

5. Figure 9.2 AT&T’s Process Map for Measurements
Business Process
Customer Need
Internal Metric
30% Product
30% Sales
10% Installation
15% Repair
15% Billing
Reliability (40%)
Easy To Use (20%)
Features / Functions (40%)
Knowledge (30%)
Responsive (25%)
Follow-Up (10%)
Delivery Interval Meets Needs (30%)
Does Not Break (25%)
Installed When Promised (10%)
No Repeat Trouble (30%)
Fixed Fast (25%)
Kept Informed (10%)
Accuracy, No Surprise (45%)
Resolve On First Call (35%)
Easy To Understand (10%)
% 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
Total
Quality
Source: AT&T General Business Systems

6. 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

7. Customer-Driven Standards and Measurements Exercise
Service Encounter
Customer Requirements
Measurements
Service
Quality

8. Figure 9.3 Getting to Actionable Steps
Requirements:
Abstract
Diagnosticity:
Low
Satisfaction Value
Relationship
Solution Provider
General Concepts
Dig
Deeper
Reliability Empathy
Assurance Tangibles
Responsiveness Price
Dimensions
Dig
Deeper
Delivers on Time
Returns Calls Quickly
Knows My Industry
Attributes
Dig
Deeper
Delivers by Weds 11/4
Returns Calls in 2 Hrs
Knows Strengths of
My Competitors
Behaviors
and Actions
Concrete
High

9. Figure 9.4 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
Measure by
Audits or
Operating Data
Measure by
Transaction-
Based Surveys
Hard
5. Develop Feedback
Mechanisms
Soft
6. Establish Measures and Target Levels
7. Track Measures Against Standards
8. Update Target Levels and Measures

10. Figure 9.5 Importance/Performance Matrix
HIGH
10.0
Maintain
Improve
Does whatever it takes to
correct problems (9.26, 7.96) 
Delivers on promises specified in proposal/contract (9.49, 8.51)  
Gets project within budget, on time (9.31, 7.84) 
Completes projects
correctly, on time (9.29, 7.68)   
Gets price we originally agreed upon (9.21, 8.64)
9.0   
Tells me cost ahead of time (9.06, 8.46)
Provides equipment that operates as vendor said it would (9.24, 8.14)
Gets back to me when
promised (9.04, 7.63)
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
HIGH
8.0
9.0
10.0
Performance

11. Figure 9.6 Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling10 9 8 7 6 5 4 3 2 1
Large Customers
SATISFACTION
Small Customers
W O R K I N G H O U R S