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Measuring and Improving Cust Sat

This document discusses the importance of measuring and improving customer satisfaction. It defines customer satisfaction as a customer's perception of the actual service received compared to their expectations. The document recommends that organizations use a balanced scorecard approach to simultaneously improve customer satisfaction, costs, employee satisfaction, and organizational maturity. It also provides principles for effective customer satisfaction surveys and describes HDI's new Customer Satisfaction Index service for benchmarking satisfaction scores against organizational goals and industry peers.

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Neueth Neethu
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56 views21 pages

Measuring and Improving Cust Sat

This document discusses the importance of measuring and improving customer satisfaction. It defines customer satisfaction as a customer's perception of the actual service received compared to their expectations. The document recommends that organizations use a balanced scorecard approach to simultaneously improve customer satisfaction, costs, employee satisfaction, and organizational maturity. It also provides principles for effective customer satisfaction surveys and describes HDI's new Customer Satisfaction Index service for benchmarking satisfaction scores against organizational goals and industry peers.

Uploaded by

Neueth Neethu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Measuring and Improving Customer

Satisfaction

Ron Muns
HDI Founder & CEO
March 21, 2006
LINK
Agenda

• Customer Satisfaction – The Value


Proposition
• CS Defined…Indices Defined
• HDI’s Balanced Score Card Service Model
• How to Improve & Survey principles
• The new HDI-CSI Service
Statistics that matter
• 4% of customers with problems complain
• Customers with a problem tell 9 to 20 others
• Satisfied customers tell 2 to 4
• Cost of getting a new customer is 5-7 times
greater than retaining the ones you have
• A 5% increase in customer retention can
increase profit by 25% to 95%
Implication:
Customer Satisfaction Matters!
Customer Satisfaction Affects
the Bottom Line

“The gulf between satisfied


customers and completely satisfied
customers can swallow a business.”
- Harvard Business Review
Impact on the IT Organization

• Credibility
• Budget approvals
• Business alignment
• Attitudes towards outsourcing
• Attitudes towards IT leadership
• Improve support for new initiatives
So just what is
Customer Satisfaction?
• Customer Satisfaction is the customer’s
perception of the actual service received
as compared to the service they expected.

Customer Satisfaction lives at the


intersection of reality and expectations
Ron Muns, 2006
Indices Defined

1. Indices are statistical measures of change in…


2. HDI defines Customer Satisfaction Indices as
trends in scores over time compared to goals
and industry averages
Remember to stay “Balanced”

• HDI believes very strongly in the


Balanced Score Card Service Model
• You must simultaneously improve:
– Customer Satisfaction
– Cost/value Metrics
– Employee Satisfaction
– Organizational Maturity
Balanced Scorecard Service Model

Customer Satisfaction Goals Employee Satisfaction Goals


 Customer Satisfaction  Employee Satisfaction
 Average Speed to Answer  # of Technical Staff Turnovers
 Loyalty factor  Time to Employee Proficiency
 Performance against SLA  Knowledge contributions

Cost/Productivity Goals Organizational Maturity Goals


 Average Cost/Incident  Time to Fill Knowledge Gaps
 Average Cost/Customer  Time to New Product Proficiency (Days)
 Average Customer/FTE  Support Center Certification
 Utilization rate  Process formalization
How to Impact
Customer Satisfaction Scores

1. Improve performance in the dimensions


that matter to the customer via
improvements in tools, process, culture,
people, etc.
2. Lower expectations (to reflect reality and
for periods of extreme change)
Survey Principles
1. Statistically sample events when they complete
2. Telephone and e-support
3. EXTREMELY SHORT SURVEYS
4. Don’t over survey anyone
5. Graph changes over time
6. Set goals
7. Compare to others in your industry
8. Work on customer perceptions (and needs)
Questions to Ask
Telephone Support
1. Courtesy of the Analyst
2. Skills and Knowledge of the Analyst
3. Quality of the Resolution
4. Timeliness of the Resolution
5. Overall Experience
Questions to ask
Web Support

1. Ease of use
2. Was your problem solved
3. Neither, just browsing
What is HDI – CSI? (hint…no crime scene involved)

•Service built by and for the HDI Community


•Secure Information Transfer
•Benchmarks to goals
•Benchmarks compared to your Industry
•Provides “Alerts” Dashboard
•Statistical sampling at 95% confidence level
•Easy to use - 30-60 Minute Setup
What HDI – CSI is Not
• A survey building tool
• Customizable (except for reporting)
• Competitor for periodic survey
instruments
• Complicated or Complex
• Hard to implement
• Expensive
Reports to Your Desktop
(or raw data) Link

• Trends against Goals


• Compared to Industry Peers
• Your raw data for your own customized
reporting
In Closing
• What gets measured, gets done, so, get’r done
• Only your industry association can deliver this
service
• It is an order of magnitude cheaper than any
other alternative and they cannot give you peer
comparisons
• Get on board, be a part of the momentum

Questions: [email protected]

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