Customer-Defined Service
Standards
Customer-Defined Service
Standards
● Factors Necessary for Appropriate Service Standards
● Types of Customer-Defined Service Standards
● Development of Customer-Defined Service Standards
Objectives for Chapter 9:
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.
FedEx Service Quality Indicator – SQI
(Chapter Opening)
Factors Necessary for Appropriate Service
Standards
● Standardization of service behaviors and actions
○ Standardization usually implies a nonvarying sequential
process similar to the production of goods
○ Customization usually refers to some level of adaptation
or tailoring of the process to the individual customer
● Formal service targets and goals
○ Setting specific targets for individual behaviors and
actions; for example, the customer service standards set
by Puget Sound Energy and shown in Figure 9.1.
Customer, Not Company-, Defined
Standards
● Company-defined standards are not typically
successful in driving behaviors that close provider
gap 2.
● A company must set customer-defined standards:
operational standards based on pivotal customer
requirements identified by customers. These
standards are deliberately chosen to match
customer expectations and to be calibrated the way
the customer views and expresses them.
Customer Service Report Card for
Puget Sound Energy (Figure 9.1)
Source: Puget Sound
Energy 2015 Service
Quality Report Card.
Standards….
“Not everything that counts can be
counted, and not everything that
can be counted, counts”
~ Albert Einstein
Types of Customer-Defined Service
Standards
● Hard standards and measures: things that can be counted, timed, or observed
through audits.
● Soft standards and measures: opinion-based measures that be directly
observed. They must be collected by talking to customers, employees, or others.
Types of Customer-Defined Service
Standards
● One-time fixes are technology, policy, or procedure changes that, when
instituted, address customer requirements.
○ Company standards that can be met by an outlet making a one-time change that does not involve
employees and therefore does not require motivation and monitoring to ensure compliance.
○ Example: Hertz Express Service
Process for Setting Customer-Defined
Standards (Figure 9.2)
What Customers Expect: Getting to
Actionable Steps (Figure 9.3)
Linkage between Soft Measures and Hard
Measures: Complaint Handling (Figure 9.4)
Responsiveness Standards at Zappos.com
● Respond to 80 percent of all incoming calls within 20 seconds
● Respond to all e-mail messages in less than four hours
● Respond to live (online) chats in less than 10 seconds.
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
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
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
