Chapter 9

Soft Customer-Defined Standards

-"understanding and knowing the customer" - must be documented using perceptual data. -they are opinion-based measures and cannot be directly observed. -provide direction, guidance, and feedback to employees in ways to achieve customer satisfaction and can be examined by measuring customer perceptions and beliefs. -person2person interactions -measured via surveys and other means that capture customer perceptions of how the firm is doing on the standards.

Step 4: Develop Measurements for Standards

-Hard measurements typically involve mechanical counts or technology-enabled measurement of time or errors -Soft measurements are based on customer perceptions that often cannot be directly observed.(relationships surveys and posttransaction)

Step 2: Translate Customer Expectations into Specific Behaviors and Actions

-abstract customer requirements and expectations must be translated into concrete,Page 270 specific behaviors and actions associated with each service encounter. -In general, customer-contact personnel often find such data are not diagnostic but rather too broad and general

One-Time Fixes

-are technology, policy, or procedure changes that, when instituted, address customer requirements. -as company standards that can be met by an outlet (e.g., a franchisee) making a one-time change that does not involve employees and therefore does not require motivation and monitoring to ensure compliance. - are often accomplished by technology. Technology can simplify and improve customer service, particularly when it frees company personnel by handling routine, repetitious tasks and transactions

Step 1: Identify Existing or Desired Service Encounter Sequence

-the first step in establishing customer-defined standards is to delineate the service encounter sequence. Identifying the sequence can be done by listing the sequential steps and activities that the customer experiences in receiving the service -Vertical lines from customer activities into the lower levels of the blueprint signal the points at which service encounters take place.

Hard Customer-Defined Standards

-things that can be counted, timed, or observed through audits -customer expectations of reliability—fulfillment of service promises—are high -"right the first time," -responsiveness -In addition to setting standards that specify levels of response, companies must have well-staffed customer service departments.

formal standards to guide employees in providing service

1. involves specific targets for individual behaviors or actions. 2. the overall department or company target, most frequently expressed as a percentage, across all executions of the behavior or action 3.have very specific, quantified, measurable service goals

Step 7: Provide Feedback about Performance to Employees

Once companies have determined appropriate standards, developed specific measures that best capture customer requirements, and set appropriate target levels for the standards, they must develop mechanisms to provide feedback on employee actions and behaviors. One example of such feedback is employee monitoring—in firms with customer service departments, this involves the practice of supervisors listening in on employee telephone interactions with customers.

Step 8: Periodically Update Target Levels and Measures

The final step involves revising the target levels, measures, and even customer requirements regularly enough to keep up with customer expectations

Step 5: Establish Target Levels for the Standards

The next step requires that companies establish target levels for the standards. Without this step the company lacks a way to quantify whether the standards are being met

Step 3: Determine Appropriate Standards

The standards are based on behaviors and actions that are very important to customers. The standards cover performance that needs to be improved or maintained. The standards cover behaviors and actions employees have control over and can improve. The standards are understood and accepted by employees. Page 273The standards are predictive rather than reactive—based on current and future customer expectations rather than past complaints. The standards are challenging but realistic.

service performance index.

are comprehensive composites of the most critical performance standards.

The goal of customization

for the service firm is to develop a service that meets each customer's individual needs

The goal of standardization

is for the service firm to produce a consistent service product from one transaction to the next.

customer-defined standards

operational standards based on pivotal customer requirements identified by customers.

Standardization

similar to the mass production of goods—in which each step is laid out in order and all outcomes are uniform -many tasks are rountine, (employees) it frees them to use their ingenuity in the more personal and individual aspects of their jobs. -in fact, allow for and be compatible with employee empowerment

customization

usually refers to some level of adaptation or tailoring of the process to the individual customer.