As consumers have become more demanding, product quality standards have evolved. However, service is also a crucial aspect of the supplier/customer relationship. In some businesses, service is the sole offering. Service standards are important for customers, potential customers, employees, and management as they establish expectations and remind management and employees of their responsibilities.
Defining service standards involves considering factors like timeliness, accuracy, and appropriateness. Phrases such as "Delivery in three days" or "calls answered in 20 seconds" capture the essence of a service standard with a time element. Precise definition is necessary to truly establish these as service standards though. Questions about when the clock starts, whether 100% success is expected within the timeframe, whether measurement is based on working or calendar days, and if these standards apply universally across all
...locations and times arise.
To address these concerns, one possible initial definition could be "Answer the phone within three rings", which can then be implemented as follows: "Between [specific working hours], 95% of calls will be answered by a human within 15 seconds and 100% within 40 seconds." Similarly, the first definition of 'delivery within two days' can be transformed into 'For addresses in the AU mainland, parcels will be delivered two working days after the order is received'.
Accuracy is crucial since customers expect precise information and deliveries. Anything less than 100% accuracy is considered unacceptable. Instead of responses like 'We got most of your order right', service standards that reflect accuracy include examples such as 'the information provided in a phone conversation is 100% accurate' or 'the customer's parcel contains all the goods they ordered'.
Appropriateness focuses on meeting customers' expectations, especially during
inquiries. It should not resemble politicians avoiding answering questions during TV interviews. For instance, if a customer sends an organization a three-part inquiry and receives a response that arrives on time and is completely accurate but fails to address one of the three topics in the original inquiry, this response would not meet the appropriateness standard.In order to establish a standard for customer service, it is crucial to gather information from various sources such as management, employees, existing customers, potential customers, lost or former customers, mediators, and regulatory authorities. While input from different levels of management is recommended, prioritizing existing customers can yield better insights. Employees should also be considered as they possess valuable knowledge and interact with customers regularly. Focus groups with existing customers can provide valuable information about their expectations. Understanding why lost or former customers did not return is important. Insights from potential customers who choose alternative suppliers are also invaluable. Competitive information gathered through mystery shopping and monitoring competitors' web sites and literature can offer useful input. For businesses regulated by authorities, adherence to the service standards set by regulators is crucial. Planning and implementation involve determining how to measure performance against the defined standards since the standard's value lies in its measurability.Using technology is a common practice for monitoring performance in meeting time-related standards, particularly for incoming phone calls. It is also possible to utilize correspondence management systems to track timely responses to written communications. Employing technology in this process allows for performance results to be based on all transactions rather than just a sample. Feedback forms or follow-up calls/questionnaires can be employed to collect customer feedback. When determining sampling
methods, it is important to consult with experts. It is crucial to eliminate any ambiguity from the wording of the standards so that everyone within the organization comprehends how performance is evaluated.
Consider a draft standard like "95% of calls should be answered within three rings." This raises questions about what happens to the remaining 5% of calls and whether waiting time is taken into consideration. Clarifications should be provided regarding whether the calls should be answered by an automated voice or a human being, as well as if the standard applies at all times. Developing the final wording of the standard and establishing the data gathering process may require multiple iterations. Some compromises might be necessary to balance the cost of data collection with defining ideal service.
Monitoring accuracy and responsiveness standards presents challenges.
Obtaining reliable results can be achieved by listening to calls, speaking to customers, and independently assessing written/email communications against the original enquiry on a sample basis. It is recommended to seek guidance from statisticians regarding sample sizes and data gathering techniques.
The implementation of Service Standards requires ownership, visibility, and commitment. Chief executives and top management teams play a crucial role as sponsors and champions, setting an example for others. They must take responsibility for the communication process and ensure continuous focus on standards through employee briefings. Each service standard should have a management owner who is accountable for its delivery. Performance against the standard will typically be evaluated during annual reviews. The management owner also has the authority to make process and other changes to improve operational performance. However, all individuals should feel encouraged to suggest ideas for performance improvement as there
are no restrictions on copyright.
Visibility is essential in order to prevent employees from needing to ask about their performance level. Communicating customer service standards and their current performance should reach all employees promptly via notice boards, memos, email, team briefings, newsletters, and the organization's intranet. Employees greatly appreciate having opportunities for discussion.Special consideration should be given to employees who work remotely, as they are often overlooked. The commitment to customer service should be rooted in the organization's mission or values. It is essential for the CEO, management at all levels, and all employees to be dedicated to fulfilling the promise to customers despite any external or internal factors. While it may be challenging, it is important to remember that providing good service is key in attracting customers.
When implementing an effective program for monitoring customer service, it is necessary to allow colleagues sufficient time to fully embrace the concept of service standards and understand their benefits. Once these standards have become ingrained, it is advisable to expand their scope as needed rather than optional. It is crucial only to have service standards that can be accurately monitored with a reasonable amount of effort.
The primary purpose of service standards is to serve as a tool for management in verifying that customers are receiving what has been promised. Sales and marketing colleagues can help transform operational standards into an effective sales pitch for the organization. While enthusiasm is commendable, it is wise not to adopt this approach until consistent and sustained performance has been achieved.
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