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- Measuring Customer
Satisfaction
Nancy Levin
Director – Quality Assurance
- Customer Satisfaction: Critical Findings
• 100 satisfied customers generate 25 new customers.
• For every 1 customer complaint received, 20 other
dissatisfied customers do not bother to complain.
• Cost of acquiring 1 new customer is 5 times as great as
the cost of retaining a satisfied customer.
• Customer satisfaction is integral to TQM by establishing
Expectations
Standards
Performance requirements
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- Customer Satisfaction: Measurement Objectives
• Determine which customers to survey
• Determine critical performance attributes that result in
customer satisfaction
• Assess company performance
• Establish corrective action
• Monitor continuous improvement
3
- Surveying – Who Are Your Customers?
• External customers
Buying Influence
Supervisors
“Bill To” Contact
• Internal customers
HQ/Field management
Staff
Inter/Intra departmental teams
4
- Determining Critical Performance Attributes
• What attributes generate satisfied and dissatisfied
customers? ASK
• Determined through:
Qualitative research techniques
• Discussion groups/in-depth interviewing
• Conduct research
• Use customer vocabulary/terminology when developing
preliminary performance attributes
Quantitative research techniques
• Use information from qualitative research
• Develop survey tool
• Conduct research
• Establish critical performance attributes
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- Universal Performance Attributes
• Related to the product
Value/price relationship
Quality
Features
Product design
Range of products & services
Reliability and consistency
• Related to service
Warranty
Delivery
Complaint resolution
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- Universal Performance Attributes
• Related to purchase
Communication
Courtesy
Convenience
Reputation
Competence
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- Voice of Experience - Determining Critical
Performance Attributes
• What do customer’s want from a supplemental staffing
company?
Speed of response
Accuracy of the match
Invoice accuracy
Innovativeness
Ability to resolve problems
React with a sense of urgency
• What do temporary employees want?
To be consistently working
Receive accurate paychecks
Pay reflects performance
Receive performance feedback
Be treated with respect
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- Type of Survey: Mail – Electronic - Telephone
• Telephone
Requires maintenance of accurate telephone numbers
Customer skepticism/reluctance to respond
Higher response rate than mailed survey
Cost in time/labor
• Mail
Requires maintenance of accurate addresses
Highest cost in labor and materials
Lowest response rate
• Electronic
Requires maintenance of accurate e-mail addresses
Most cost effective
Highest response rate
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- Type of Survey - Voice of Experience
• Local
Electronic surveys
Direct Time (automated time submittal/approval)
Mail
• National third-party studies
Customer – Telephone survey
Employee – Mailed survey
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- Design the Survey
• Formulate the attributes
Wording questions is an art
Must be accurate and relevant
Cannot lead to incorrect interpretation
• Enhance the survey
Incorporate open-ended questions
• “Please comment on how well we consistently meet your
order requirements.”
Incorporate closed-ended questions
• “On a scale of 1 (poor) to 5 (excellent), please rate us on our
ability to consistently meet your order requirements. If rating a
1 or 2 please comment.”
• “Do we consistently meet your order requirements? Yes/No
If No, please comment.”
ALWAYS include overall satisfaction and loyalty questions
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- Design the Survey
• Critical: Question placement
General questions precede specific questions
Respondents: Less thoughtful answers to questions placed at the
end of a long list.
• Finalize the survey
Develop an effective introduction that includes:
• Why the survey is being conducted
• How the customer was selected
• Why the customer should participate
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- Design the Survey – Sample Intro
• “Your satisfaction is very important to _____. We are dedicated to
continuing to improve our service and to better meet your
requirements. Please take a few minutes to give us feedback on how
we are doing now and how we can improve in the future.”
• “The enclosed survey was mailed to a random sample of our
customers. Your participation is important because your reply will
represent one of two hundred businesses. We will use the your
perspective to develop strategies to improve our products and
services. Please complete and return this brief questionnaire by
October 15th.”
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- Design the Survey
• Balance open and closed-ended questions
• Ensure PRECISE wording and measurement scales exist
• Record comments verbatim to eliminate bias
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- Conduct the Survey
• Frequency
Dependent on reaction to previous survey results
Quarterly or semi-annually
• Sample size
Consider total number of customers
Determine criteria for selection
• Sales level
• Spend over specific period of time
• Market specific
• Customer status: Active/inactive
Based upon frequency: Have enough numbers to ensure minimal
customer contact within one year
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- Conduct the Survey – Voice of Experience
• Frequency
National evaluation
• Semi-annual employee & customer
Local branch evaluation
• Customer: 3 X per year
• Employee: 2 X per year
• Sample size
National
• 3, 000 customers
• 15,000 employees
Local branch
• Customers with active orders
• Assigned employees
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- Analyze Results
• Develop simple, yet concise reports
• Loyalty index
• Trend analysis
• Key drivers of overall satisfaction
• Overall satisfaction
• Problem resolution
• Verbatim reports
• Just say no to “Analysis Paralysis”!
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- Analyze Results – Sample Reporting
Loyalty Index – Likely To Continue Measure
1-2 6%
3 9%
4-5 85%
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- Analyze Results
• Determine weakest attributes
• Trend analysis
• Gap analysis
• Develop recommendations for improvement
• Determine if a continuous improvement project is needed
Root cause analysis of a consistently weak rated attribute
Utilize a standard CI model
• Define the issue
• Establish results
• Identify alternative actions
• Select breakthrough actions
• Develop/implement the schedule
• Review progress
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- Report the Results
• Report recipients: Who should receive the report?
• Report elements
Enhancements made since last report
Restate objective to be met
Overall satisfaction measure
Key drivers of overall satisfaction
Highest rated attributes
Lowest rated attributes
Correlate results to complaint, etc.
Stack rank when applicable
Recommendations for improvement
State next survey date
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