Managing Customer Satisfaction Week 3 Customer Expectations & Satisfaction.
THE NATIONAL MEASURE OF CUSTOMER SATISFACTION · The latest UK Customer Satisfaction Index (UKCSI),...
Transcript of THE NATIONAL MEASURE OF CUSTOMER SATISFACTION · The latest UK Customer Satisfaction Index (UKCSI),...
THE NATIONALMEASURE OFCUSTOMERSATISFACTION
Wave 6 bi-annual UKCSI
The latest UK Customer Satisfaction Index (UKCSI), which is the National Measure ofCustomer Satisfaction for UK organisations, has risen very slightly from 75.2 to 75.6.Based on a representative sample of 26,000 adults surveyed over the internet, theresearch is conducted by The Leadership Factor on behalf of the Institute of CustomerService. The latest wave is the 6th bi-annual UKCSI survey that has been conducted.
(results available online at www.ukcsi.com)
Latest results
As shown in Chart 1, the Utilities sector, though still at the bottom of the table, has shownthe most improvement since January, improving by 1.7 percentage points to 69.6. Muchcloser to the top of the league table, both retail sectors have also seen good improve-ments, with both food and non-food now achieving 80% along with services.
Robert Crawford
Executive DirectorInstitute of Customer Service
www.instituteofcustomerservice.com
Stephen Hampshire
Client ManagerThe Leadership Factor
If you have any thoughts about thisarticle you can contact Stephen [email protected]
Chart 1: UKCSI results July 2010
Utilities
Public Services (national)
Public Services (local)
Telecommunications
Transport
Finance (banks)
Leisure
Finance (insurance)
Automotive
Tourism
Retail (non-food)
Services
Retail (food)
0 10 20 30 40 50 60 70 80 90 100
75.6
80.2
80.2
80.0
79.3
77.4
77.2
76.7
75.3
72.3
72.2
72.1
70.0
69.6Jan-10Jul-10
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The best places to live
Changes over the last six months are smallfor most sectors as they are for Englandand Scotland but Northern Ireland andWales have both made good improve-ments, Northern Ireland by 3 percentagepoints to 77.7 and Wales by 2.2 to 76.9. Ifwe look at the UKCSI scores for each of thehome nations since the first UKCSI resultsin January 2008, we can see in Chart 2 thatNorthern Ireland and Wales have againimproved by the most – both by a veryimpressive 8.1 percentage points. Initially,the results of all four countries were veryclose, with only 0.9 percentage points sep-arating them, but at 75.2, England is nowlagging well behind leaders NorthernIreland.
Distribution of scores
Of the 153 named organisations scored inthe survey, the median score (i.e. the mid-dle-ranking organisation) is 77, the bestscore is 88 and the worst is 56 (see Chart3). As we would expect, organisations areroughly normally distributed (i.e. most arenear the average). As usual with customersatisfaction data the dissatisfaction tail islonger than the delighted one.
The best companies
This time 38 organisations have achieved aCSI over 80; seven are over 85. Waitrose(88) has continued to expand its lead overMarks & Spencer (85), its key rival as anupmarket food retailer. That excellent scoreputs it neck and neck with John Lewis (alsowith a CSI of 88) in the non-food retail sec-tor, a dominant performance for the brand.
SAGA is another company that deliversexcellent service in more than one sectorwith SAGA Holidays heading the tourismsector and the company just coming sec-ond to BUPA in the insurance sector. The10 highest scoring named organisationsare listed below with the top two in eachsector shown in Chart 4.- John Lewis (88)
- Waitrose (88)
- Lloyds Pharmacy (86)
- SAGA Holidays (86)
- Virgin Holidays (85)
- Marriott (85)
Chart 3: Normal distribution
Chart 4: Top 2 organisations by sector
Severn Trent Water
Scottish and Southern Energy (SSE)
Virgin Atlantic
Eurotunnel
Virgin Holidays
SAGA Holidays
T-Mobile
Your local electrician
Your local hairdresser
Lloyds Pharmacy
John Lewis
Marks & Spencer (food)
Waitrose
Post office
The Identity & Passport Service
GP surgery / health centre
Your local Ambulance Service
Your local fish & chip shop
Your local restaurant
SAGA
BUPA
The co-operative bank
First Direct
Honda
Mazda
50 60 70 80 90 100
Number oforganisations
O2
Utilities
Transport
Tourism
Telecommunications
Services
Retail (non-food)
Retail (food)
Public Services (National)
Public Services (Local)
Leisure
Insurance
Banking
Automotive
16
14
12
10
8
6
4
2
0
60 70 80 90 100
Chart 2: The best places to live
England
Wales
Scotland
Northern Ireland
75.6
77.7
77.2
76.9
75.3
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
- Marks & Spencer (food) (85)
- Boots (84)
- First Direct (84)
- Marks & Spencer (non-food) (84)
Every sector with the exception of Utilitieshas some suppliers who are above theoverall UKCSI average, and most have atleast one very good organisation.
Consistency
Looking at the overall performance of sec-tors can mask differences in the level ofsatisfaction organisations manage toachieve. Some sectors (e.g. Automotive)are consistently good, some are consis-tently poor (e.g. Utilities), and others arevery mixed (e.g. Transport).
Chart 5 shows the gap between the bestand worst organisation scored within eachsector, with the average marked (o).
We have always said that consistency is agood thing in customer satisfaction. Poorperforming organisations are often charac-terised by a wide range of customersatisfaction scores across call centres,branches, outlets or other business unitsbecause there isn’t a company-wide cus-tomer focus or strong managementensuring that customer service standardsare maintained across the organisation.Often, inconsistency in customer servicewill irritate customers just as much as aconsistently poor customer experience.Chart 6 supports this assertion. The pat-tern isn’t perfect, but there is a fairly strongtrend for more consistent sectors to havehigher levels of overall satisfaction.
It is worth drawing attention to some of theorganisations that significantly outperformthe average for their sector:- Eurotunnel in Transport - 11 points over
the sector average- The Identity and Passport Service in
Public services (National) - 9- John Lewis in Retail (non-food) - 8- First Direct in Finance (banks) - 8- Waitrose in Retail (food) - 8
These leaders are significantly better thanaverage for their sector (whether it’s astrong or weak sector) and can expect to
see competitive benefits from their focuson customer service.
Complaint handling
The retail sectors, first and third in the over-all sector league table, dominate thecomplaint handling table (Chart 7) withimproved scores. All those no-quibblerefunds seem to be doing the trick, and theeconomic climate seems to have concen-trated retailers’ minds on the value of everycustomer. Leisure is also performing well inthis area.
The complaints index is derived from howwell organisations handle complaints plusthe extent to which they give customersproblems in the first place. Chart 8 showsthat tourism is the best sector at giving cus-tomers very few problems. Retailers do givecustomers more problems but they are byfar the best at handling complaints.
Complaint handling and customer loyalty
It’s very unfortunate that complaint handlinggenerates by far customers’ lowest satisfac-tion scores in the UKCSI because it makes a
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Chart 5: Consistency by sector
Chart 6: Consistency pays
Public Services (national)
Telecommunications
Finance (banks)
Public Services (local)
Utilities
Transport
Services
Finance (insurance)
Automotive
Tourism
Leisure
Retail (non-food)
Retail (food)
Overall
0 10 20 30 40 50 60 70 80 90 100
69.5
77.3
76.3
75.6
75.1
74.2
70.4
70.3
67.8
67.3
66.4
65.0
63.8
63.3
Transport
Public services (local)
Public services (National)
Services
Retail - non-food
Leisure
Tourism
Finance - insurance
Finance - banks
Telecommunications
Retail - food
Utilities
Automotive
50 60 70 80 90 100
Gap from best to worst
Satisfaction (CSI)
068
70
72
74
76
78
80
82
5 10 15 20 25 30
Retail - foodRetail - non-foodTourism
LeisureServices
Finance - insurance
Finance - banks
Automotive
Telecommunications
Transport
Public services (local)
Public services (National)
Utilities
Jan-10
Jul-10
Chart 7: Complaints index
Customer
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TelecommunicationsPublic Services (national)
Finance (banks)Public Services (local)
UtilitiesTransport
LeisureRetail (food)
Retail (non-food)Automotive
Finance (insurance)ServicesTourism
Overall
0% 20% 40% 60% 80% 100%
88% 9%
94% 5%
92% 6%
92% 7%
92% 6%
92% 7%
90% 8%
90% 7%
89% 7%
87% 11%
84% 11%
83% 14%
82% 13%
81% 17%
ComplainedDidn't complainNo problem
30
40
50
60
70
80
90
100
Loyalty Indexall customers
No problem Complaint dissatisfied Complaint satisfied
81
36
7976
Public Services (national)
Public Services (local)
Finance (banks)
Utilities
Finance (insurance)
Telecommunications
Transport
Services
Automotive
Tourism
Leisure
Retail (food)
Retail (non-food)
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
31%
31%
28%
26%
23%
20%
17%
17%
17%
15%
14%
13%
13%
39%
42%
43%
51%
48%
60%
64%
66%
64%
60%
62%
60%
64%
Utilities
Public Services (local)
Public Services (national)
Transport
Telecommunications
Automotive
Finance (banks)
Finance (insurance)
Leisure
Tourism
Retail (non-food)
Retail (food)
Services 54%
52%
50%
49%
48%
44%
43%
41%
37%
37%
35%
35%
32%
11%
7%
8%
8%
9%
13%
18%
12%
23%
17%
28%
27%
23%
Chart 9: Complaint handling and loyalty
Chart 8: Problems and complaints
Chart 10: Net detractors on complaint handling
Chart 11: Net promoters on ease of doing business
big impact on customer loyalty, especiallycustomer defections. As shown in Chart 9,across all UKCSI companies, the averageloyalty index is 76. This is produced from thescores given by customers to questionsabout Harvard’s 3Rs of customer loyalty –retention, related sales and referrals. Not sur-prisingly, customers who have never had anykind of problem with the organisation aremore loyal (a loyalty index of 79) but the mostloyal are customers who did have a problembut were very satisfied with the way it washandled. Their loyalty index goes up to 81.By contrast, the loyalty index of customerswho had a problem but were dissatisfiedwith the way it was handled plummets downto 36.
As well as being the area where organisa-tions have the most opportunity, and need toimprove, complaint handling is also one ofthe biggest drivers of loyalty. One school ofthought suggests that:- customers who score 9-10 promote that
organisation by deed and word-of-mouth- customers who score 1-5 are detractors- customers who score 6-8 are passive Chart 10 shows the percentage of cus-tomers who score 9-10 (blue) and those whoscore 1-5 (red) for complaint handling. Theobjective should be to have a net blue score.
For complaint handling, no sector has a netblue score. Even the best at complaint han-dling (non-food retailers), make only 31.5%of customers who experience a problemvery satisfied with the way it was handledcompared with 38.6% who were dissatisfied– a net detractor score of 7.1%. With netdetractor scores in excess of 45%, sevensectors are much worse. They are utilities,telecommunications, transport, both financesectors and both public sectors.
Ease of doing business
Another big driver of customer loyalty is easeof doing business. On this, Chart 11 paints amuch better picture. Retail (food) has a verygood net promoter score of 44.7 for ease ofdoing business, with non-food retailers andservices and tourism businesses also over40%, and leisure very close behind. By con-trast, utilities and public services (local andnational) are at the bottom of this leaguetable with net promoter scores below 10%.
Chart 12: Customers’ internet expectations
Chart 13: Social media by age
Chart 14: Social media by sector
Automotive
Finance - insurance
Finance - banking
Leisure
Public Services (local)
Public Services (national)
Retail - food
Retail - non-food
Services
Telecommunications
Tourism
Transport
Utilities
I don't expect any of these Onsite reviews of products/services A Facebook page/group A Twitter account
A Facebookpage/group
Onsite reviews ofproducts/services
18 to 24
25 to 34
35 to 44
45 to 54
55 to 65
65+Twitter Facebook Onsite reviews of products/services I don’t expect any of these
38%
8%
14%
40%
I don’t expect any of these
A Twitter account
Word of mouth in a connected world
This time we asked customers some extraquestions about new media. First of all weasked people which social media tools theyexpected companies to use. Most cus-tomers expected to see some sort of onlinepresence from organisations, but as shownin Chart 12, only a minority felt that engage-ment with the prominent social mediaplatforms is important. Only 6% of cus-tomers said that they would be put offdoing business with a company that did notoffer these channels.
As you might expect, consumers’ attitudesto this are influenced by age, but Chart 13shows that even the youngest categories ofconsumer do not seem heavily engagedwith social media when it comes to theirdealings with companies.
Things vary a little more by sector. Chart 14shows that social media are important forthe automotive sector with leisure andtourism close behind. Customers see inter-net reviews as important for most sectors,with the exception of services, where cus-tomers seem to make least use of theinternet in their dealings with organisationsin the public and private sectors.
Customer
S