Flashcards in Chapter 9 - Customer-Defined Service Standards Deck (40):
Once managers of service businesses accurately understand what customers expect, that is the second critical challenge?
using that knowledge to set service quality standard nd goals for the organization
What is functional integration?
Integrating the work of the marketing function and operations function
Functional integration is not always that common among service firms, what does this change of thinking require?
1. changing the very process by which work is accomplished
2. new equipment or tech possibly
3. Aligning execs to understand collectively the view of service quality from customers perspecive
4. requires willingness to be open to different way of structuring, calibrating, and monitoring the way the service is provided
What are the 3 factors necessary for appropriate service standards?
1. Standardization of Service Behaviours and Action
2. Formal Service Targets and Goals
3. Customer -, Not Company-, Defined Standards
Compare standardization and customization?
So standardizing is when there is non varying sequential process, whereas customization refers to level of adaption or tailoring of process to individual customers
What is the goal of standardization and customization?
Customization: Fit to customers needs
What are the three forms standardization can come in?
1. Substitution of technology for personal contact and human effort
2. Improvement in work methods
3. Combinations of these two methods
There are some anxieties about standardization, what is reality?
Really, many aspects of services can be made routine, and specific rules and standards can be fairly easily established. Employees may even welcome knowing how to do their jobs efficiently, leaving them more free time to use their ingenuity in more personal and individual aspects of their jobs such as with Supernova
With service calls, what is customer driven service design like?
What does this highlight about standardization vs customization
So if the company makes customer driven designs, they aren't going to set a time limit/standard for call and support encounters such as at LLBean and Zappos.
It's situations like these when standardization is not always better than customization aspects
Why are formal service targets and goals important?
Establishing formal standers to guiding employees give companies metrics for optimizing, and specific goal setting
How do service standard provide a means for formal goal setting?
Well things such as gust perceptions of service quality with audits, and opinion surveys, and other metrics that lets management know about service and employees know about goals
Why is it important to have customer instead of company defined standards?
Because company defined standards don't really close gap 2, because your whole service quality depends on customer perceptions, not behind the scenes stuff.
So thinking back to Caterpillar case, having things such as quick repair time, low turnover and etc are fine, but if the customer doesn't give a shit about that and they aren't catering to what customer cares about they're not gonna have a good service
What are three types of customer-defined service standards?
1. Hard Customer-defined Standards
2. Soft Customer-defined Standards
Those two are main ones, and there is also...
3. One-time fixes
Define what Hard customer-defined standards are
Things that can be counted, timed, or observed through audits
Give at least 5 examples of Hard customer-defined standards
1. On-time delivery (standards: # packages late)
2. Computer works (Standard: Initial field incident rate)
3. Telephone access (Standard: 95% calls served within 5min)
4. Reliability air travel (standard: On-time arrival)
5. ecommerce responsiveness (standard: % respond to chats in less than 10s)
Define what soft customer-defined standards are
Must be documented using perceptual data, because they are opinion-based measures and cannot be directly observed. Collected by talking to customers, employees, or others
What are 4 examples of soft customer-defined standards?
1. GE interpersonal skills (take ownership of call)
2. Ritz-Carlton being treated with respect (Use proper phone etiquette)
3. AMEX problem resolution (Resolve problem at first contact, which I think could also be hard)
4. AMEX treatment (Do everything possible to help)
Define One-time fixes
Technology, policy, or procedure changes that address customer requirements. Could be onetime change that does not involve employees, and so doesn't require motivation and monitoring to ensure compliance.
An example is when Hampton put a whole bunch of standards in place, and many were one-time fixes such as planters to hide garbage cans, red carpet, new paintings in lobby, etc
What are the 8 steps for setting customer defined service standards?
1. Identify existing or desired service encounter sequence
2. Translate customer expectations into behaviour/actions
3. Determine appropriate standards
4. Develop measurements for standards
5. Establish target levels for standards
6. Track measures against standards
7. Provides feedback about performance to employees
8. Update target levels and measures
How do you identify existing or desired service encounter sequence?
Things such as service blueprints, where you know the sequence the customer takes along service encounters. Ideally the firm would find out how customers want to move through sequences themselves.
So the Ritz knows that first and last service encounters are super important, so they really stress them
How do you Translate customer expectations into behaviour/actions?
Abstract customer requirements and expectations must be translated into concrete, specific behaviours and actions associated with each service encounter. Info should come from objective sources such as research firm or inside department with no stake in ultimate decisions
How do you Determine appropriate standards?
Don't rush to pick hard standards, could be even better to choose soft ones and make hard ones from info gathered from soft ones.
How do you Develop measurements for standards?
with hard its mostly counting and data collection, also can be through service guarantees. Important to track soft to link with hard, such as with trailer calls or relationship surveys (or SERVQUAL)
how do you Establish target levels for standards?
Many techniques such as tracking then making judjement, also good to track both actual and perceived things, so you can see the sensitivity
How do you Track measures against standards?
You have to do it by tracking things such as complaints and all your other methods
How do you Provides feedback about performance to employees?
Things like Fedex SQI that employees know weekly how its performing, and monitoring systems that employee can see with standards that are set like how adequately you handled call, instead of how quickly you turned it around
how do you Update target levels and measures?
So reevaluating and going "oh wow, customers care about this standard a lot more than that, we should change the weighting, or even just changing and adding new standards to fit with your results
Describe the 4 levels of going from abstract requirements with low diagnosticity to concrete requirements with high diagnosticity
So we need to bring abstract requirements with low diagnosticity to concrete requirements with high diagnosticity in these 4 steps:
1. General concepts (satisfaction, value, etc)
2. Dimensions (reliability, assurance, tangibles etc.)
3. Attributes (Delivers on time, returns calls quickly etc)
4. Behaviours and actions (delivers by Wednesday, calls returned in 2 hours or less)
What are the 6 most important criteria for creation of appropriate service standards?
1. Based on behaviours and actions that are important to customers
2. Cover performance that needs to be improved or maintained
3. Cover behaviours and actions employees have control over and can improve
4. Understood and accepted by employees
5. Predictive, rather than reactive based on current and future expectations rather than complaints
6. Standards are challenging but realistic
What are Service Performance Indexes?
Comprehensive composites of the most critical performance standards
How do you develop a service performance index?
Identifying the set of customer-defined standards that the company uses to drive behaviour, and only ones that contain customers defined standards. Can also use these indexes for feedback, rewards, etc
Is creating customer-defined service standards a common practice in US firms?
What is the most comprehensive, customer-defined index of service standards and measures in the world?
FEDEX Service Quality Indicator
Founded in customer feedback
What is a hierarchy of horrors listing of complaints?
This is who FEDEX SQi works, and weigh service failure indicators
What are service standards based on?
Standards are based on the most important customer expectations and reflect the customers view of these expectations
What are sources of customer defined standards?
1. Customer expectations
2. Customer process blueprint
3. Customer experiences
Should company defined standards be used as service standards?
Well they are things that should be tracked, but not set as drivers for service standards! Instead it should be customer defined standards!
How are hard feedback mechanisms measured?
Audits or operating data
How are soft feedback mechanisms measured?