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Customer-Defined Service

 Factors Necessary for Appropriate Service
 Types of Customer-Defined Service
 Development of Customer-Defined Service



Translating Expectations into Delivery The Standards Gap The difference between what we do and how customers looks at it. Factors Influencing this Gap Standardized versus Routinized Service McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies. All rights reserved. Inc. .

All rights reserved. Costs Customer DefinedRequirements that are visible and assessed by consumers. Efficiency.Productivity. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies.Company versus Customer Defined Standards Company DefinedInternal. . Inc.

timed. Inc.things that cannot be counted. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies. or observed through audits. All rights reserved. Soft Standards. Opinion-based measures. timed. .Types of Customer Defined Standards Hard Standards. or observed through audits.things that can be counted.

.Exhibit 10. Inc.1 Fedex McGraw-Hill/Irwin Customer-defined Standards # packages on right day # of packages on wrong day # of missed pickups © 2006 The McGraw-Hill Companies.1 Examples of Hard Customer-Defined Standards From Ex 10. All rights reserved.

2 Examples of Soft Customer-Defined Standards General Electric Phone operators McGraw-Hill/Irwin Taking ownership of call Following thru on promises Being Courteous Being Knowledgeable © 2006 The McGraw-Hill Companies. All rights reserved.Exhibit 10. . Inc.

No Surprise (45%) Resolve On First Call Easy To Understand (35%) (10%) % Billing Inquiries % Resolved First Call % Billing Inquiries © 2006 The McGraw-Hill Companies. .2 AT&T’s Process Map for Measurements Business Process 30% Product Reliability (40%) % Repair Call Easy To Use Features / Functions (20%) (40%) % Calls for Help Functional Performance Test 30% Sales Knowledge (30%) Supervisor Observations Responsive (25%) Follow-Up (10%) % Proposal Made on Time % Follow Up Made Total Quality 10% Installation 15% Repair 15% Billing Source: AT&T General Business Systems McGraw-Hill/Irwin Internal Metric Customer Need Delivery Interval Meets Needs (30%) Does Not Break (25%) Average Order Interval % Repair Reports Installed When Promised (10%) % Installed On Due Date No Repeat Trouble Fixed Fast (30%) (25%) % Repeat Reports Average Speed Of Repair Kept Informed (10%) % Customers Informed Accuracy. Inc. All rights reserved.Figure 10.

All rights reserved. Inc.Figure 10. .3 What Customers Expect: Getting to Actionable Steps Satisfaction Relationship Dig deeper Requirements: Diagnosticity: Abstract Low General concepts Value Solution Provider Reliability Assurance Responsiveness Empathy Tangibles Price Dimensions Delivers on time Returns calls quickly Knows my industry Dig deeper Dig deeper Attributes Delivers by Wednesday Returns calls in two hours Knows strengths of my competitors Behaviors and actions Concrete McGraw-Hill/Irwin High © 2006 The McGraw-Hill Companies.

All rights reserved. Provide Provide feedback feedback about about performance performance to to employees employees 9. . 7. Develop Develop feedback feedback mechanisms mechanisms Soft Measure by transactionbased surveys 6. Select Select behaviors/actions behaviors/actions for for standards standards 4. 5. Update Update target target levels levels and and measures measures McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies. 9. Inc. Establish Establish measures measures and and target target levels levels 7. 6. Set hard or soft standards Measure by audits or operating data Hard 5. Track Track measures measures against against standards standards 8. 8. 3. 2. Translate Translate customer customer expectations expectations into into behaviors/actions behaviors/actions 3.4 Process for Setting Customer-Defined Standards 1.Figure 10. Identify existing or desired service encounter sequence 2.

Inc.Exercise for Creating Customer-Defined Service Standards  Form a group  Use your school’s Financial Aid Program  Complete the customer-driven service standards importance chart  Establish standards for the most important and lowestperformed behaviors and actions  Be prepared to present your findings to the class McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies. . All rights reserved.

All rights reserved. Inc. .Customer-Driven Standards and Measurements Exercise Service Encounter Customer Requirements Measurements Service Quality McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies.

Inc.Figure 10.5 Importance/Performance Matrix McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies. . All rights reserved.