1. Customer-Defined Service Standards
Chapter 10
Customer-Defined Service Standards
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.

2. 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.

3. FedEx Service Quality Indicator (SQI)

4. Service Standards Customer-Defined Standards Company-Defined Standards
Standards are based on the most important customer
expectations and reflect the customer’s view of these expectations.
Customer-Defined Standards
SOURCES
Customer Expectations
Customer Process Blueprint
Customer Experience Observations
SOURCES
Productivity Implications
Cost Implications
Company Process Blueprint
Company View of Quality
Company-Defined Standards

5. Customer Service Report Card for Puget Sound Energy

6. Counting…
“Not everything that counts can be counted...and not everything that can be counted, counts.”
Albert Einstein

7. Standards… HARD STANDARDS AND MEASURES SOFT 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)

8. Examples of Hard Customer-Defined Standards

9. Examples of Soft Customer-Defined Standards

10. 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

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

12. What Customers Expect: Getting to Actionable Steps

13. Process for Setting Customer-Defined Standards

14. Importance/Performance Matrix

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

16. 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.

17. 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.

18. 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.

19. 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.

20. 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
Samurai warrior
“waiting position”

21. 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 

22. 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

23. Standards at Four Seasons
Seven Service Culture Standards
Core Worldwide Service Operating Standards
Smile
Eye
Recognition
Voice
Informed
Clean
Everyone
Reservations
Hotel Arrival
Messages and Paging
Guest Room Evening Service
Breakfast
Room
Exceptions are permitted if
they make local sense

24. 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
6. Inoperable Guestroom Equipment
7. Unready Guestroom
8. Inappropriate Hotel Appearance
9. Meeting Event Difficulties
10. Inadequate Food/Beverage
11. Missing/Damaged Guest Property/Accidents
12. Invoice Adjustment 3