Chapter
9
Customer-Defined
Service Standards
• Factors Necessary For Appropriate Service
Standards
• Customer-Defined Service Standards
• Process for Developing Customer-defined
Standards
• Service Performance Indexes
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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.
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Table 9.1
Examples of Hard
Customer-Defined Standards
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Table 9.2
Examples of Soft
Customer-Defined Standards
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Figure 9.2
AT&T’s Process Map for Measurements
Business Process
Internal Metric
Customer Need
30% Product
Reliability
Easy To Use
Features / Functions
(40%)
(20%)
(40%)
% Repair Call
% Calls for Help
Functional Performance Test
30% Sales
Knowledge
Responsive
(30%)
(25%)
Follow-Up
(10%)
Supervisor Observations
% Proposal Made on Time
% Follow Up Made
Total
Quality 10% Installation
15% Repair
15% Billing
Delivery Interval Meets Needs (30%)
Does Not Break
(25%)
Installed When Promised
(10%)
Average Order Interval
% Repair Reports
% Installed On Due Date
No Repeat Trouble
Fixed Fast
Kept Informed
(30%)
(25%)
(10%)
% Repeat Reports
Average Speed Of Repair
Accuracy, No Surprise
Resolve On First Call
Easy To Understand
(45%)
(35%)
(10%)
% Billing Inquiries
% Resolved First Call
% Billing Inquiries
% Customers Informed
Source: AT&T General Business Systems
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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
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Customer-Driven Standards and
Measurements Exercise
Service Encounter
Customer Requirements
Measurements
Service
Quality
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Figure 9.3
Getting to Actionable Steps
Requirements: Diagnosticity:
Abstract
Low
Satisfaction Value
Relationship
Solution Provider
Dig
Deeper
Reliability
Assurance
Responsiveness
Dig
Deeper
Dig
Deeper
General
Concepts
Empathy
Tangibles
Price
Dimensions
Delivers on Time
Returns Calls Quickly
Knows My Industry
Delivers by Weds 11/4
Returns Calls in 2 Hrs
Knows Strengths of
My Competitors
Attributes
Behaviors
and Actions
Concrete
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High
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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
Hard
5. Develop Feedback
Mechanisms
Soft
Measure by
TransactionBased Surveys
6. Establish Measures and Target Levels
7. Track Measures Against Standards
8. Update Target Levels and Measures
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Figure 9.5
Importance/Performance Matrix
HIGH
10.0
Improve
Maintain
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

Gets price we originally agreed upon (9.21, 8.64)
correctly, on time (9.29, 7.68)
 

Tells
me cost ahead of time (9.06, 8.46)
9.0
 

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
8.0
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Performance
9.0
10.0
HIGH
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Figure 9.6
Linkage between Soft Measures and Hard
Measures for Speed of Complaint Handling
10
SATISFACTION
9
8
Large Customers
7
6
Small Customers
5
4
3
2
1
0
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2
4
6
8
12
WORKING
16
20
24
HOURS
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