Many organizations focus their strategy on providing high-quality customer servi

Question

Many organizations focus their strategy on providing high-quality customer service and consequently place metric concerning customer relationship management on their balanced scorecards. Consider Sam's Pita Pit and the Classic Steakhouse, two restaurants with different target markets and different strategies. Sam's Pita Pit is located near a college campus and serves mainly students looking for a healthy meal, quick service, and low prices. While there are several tables in the restaurant where customers can dine in, most of Sam's business is on a take-out basis. Classic Steak House, on the other hand, is an upscale restaurant targeting business lunches and special occasion dinners. Customers value good-quality food and service and spend on average $150 per table. Both restaurants are considering implementing balanced scorecards.

Required:
What kind of measures might Sam's Pita Pit and the Classic Steakhouse include in the customer category of their new balances scorecards? Create a table with one column for each set of measures. Which measures would be similar and which would be different across scorecards and why?

Explanation / Answer

Balance Scorecard is a performance measurement tool for measuring the performance pertaining to four perspectives:

Measures taken by Sam's Pita Pit and Classic Steakhouse in the customer category of Balance Scorecard

Sam's Pita Pit Classic Steak House Similarity or Difference Customer's Rating Index Customer's Rating Index Similar Quality of food Quality of Food Similar Level of Service Level of Service Similar Quick Service Upscale Service Different Price is Low Value added price Different

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