1. Jim Alexander - Director

2. Agenda Why does satisfaction matter? How is it measured? What are the benefits of being customer driven?

3. The Leadership Factor Specialists in satisfaction and loyalty measurement since 1996 –Customers in consumer and business markets, employees, members, stakeholders Based in Huddersfield, Halifax, Rochester (USA), Sydney and Paris we carry out surveys on a global basis 200 employees Over 500 satisfaction studies and half a million customers per annum surveyed (by telephone, paper, web etc) Partner with the Institute of Customer Services for www.ukcsi.comwww.ukcsi.com Authors of leading books on the subject, publisher of focused magazine ‘Customer Insight’ Some of the organisations we help are on the next slide

4. B2B Clients

5. Research Objectives Create business success by listening Increase loyalty By increasing satisfaction By increasing internal satisfaction Resulting in –Retention – selling once makes a loss –Related sales – e.g. Apple (PC, Ipod, Iphone, Ipad) –Referrals – PWOM vs NWOM All of which increase profitability This is the Service Profit Chain

6. We believe in Service Profit Chain principles Drives Research is essential and anyone can do it

7. How to measure satisfaction. Select a random sample of your contacts Ask them how good you are at what you do Pinpoint the low scoring aspects Tell those responsible to improve How NOT to measure satisfaction. So what’s the best approach?

8. The right approach to CSM Ask the right questions - Whose perspective? Ask the right people – Represent the mix Get the right answers – in the right time –Survey method –Response rates –Questionnaire design Produce the right data Draw the right conclusions –How good are we? –How do we improve? What else is there to do? Communicate!

9. What to focus on? Are we good enough to generate loyalty? Do we need to –Beat the competition? (be the best of a bad bunch?) –Satisfy customers or delight them? –Meet expectations or exceed them? Complaints are just the tip of the iceberg

10. Customers make the judgments Ask them about priorities Ask the right questions What matters to customers? Use the voice of the customer to design your voice of the customer survey

11. Whose perspective? products people processes outcomes results benefits Lens of the organisation Lens of the customer

13. Survey mechanics Sample size and structure Survey methods Response rates Survey length Question design Answer format Survey frequency Too much detail, lets look at a case study

14. Appropriate answer format? Agree/disagree Meeting expectations Scores 1-5 1-10 NPS single question Satisfied/dissatisfied Excellent/Good/Fair/Poor Best for many reasons

15. What can the results tell us?

17. Doing best what matters most Priorities for Improvement –Step 1

18. Spread of scores Yes – people do score 10s Averages can hide vital data

19. Satisfaction Driver Analysis MaintainersEnhancers

20. Competitor Comparison How does ABC compare against other suppliers? What are the best doing?

21. Comments put meat on the bones “Currently I would say that they are our second best supplier. However in recent times they have started to close the gap with XYZ. This is because of the increased strength of the working relationship between the various management teams as well as the enhanced understanding that they now have of our requirements.”

22. Loyalty indicator Given a fresh start, would you choose ABC again? (Or recommend others etc.) 18% at risk!

23. Loyalty segmentation

26. Impact of problem handling on satisfaction Put good people in customer facing roles, empower them and reward them

27. Business benefit The company in the study – –Learned a great deal –Established focus –Motivated staff –Restructured the organisation –Have been extremely active The foundation is in place but it takes time for customers to note changes and react They are keeping customers aware of changes The company is very confident about the direction taken

28. The value of loyalty Customer satisfaction is the best predictor of financial performance in most markets (Harvard and Michigan) Highly Satisfied customers –Buy more –Pay more (9% on average) –Stay longer –Recommend more –Cost less to service –Increase staff satisfaction and loyalty –Are more profitable A robust survey creates the focus for strategic success

29. Employee satisfaction Customer satisfaction Growth Better ROI Retention Related sales Referrals Better external service quality Internal service satisfaction Higher retention Increased capability Improvement in employee selection, development, recognition, reward Increased customer lifetime value Lower costs Higher productivity Action Measure 1Measure 2Measure 3Result Use customer centred survey results to identify the focus needed to improve performance perceptions The customer satisfaction profit chain

30. Management by measurement is good. But just measuring won’t change it. It’s focused action that makes the difference?

31. We provide - Surveys of –Customers –Employees –Internal service delivery Advice Books Customer Insight Magazine YourSayPays panel We add value through – Expertise – research and business Independence Experience in all markets Resources – global Interpretative actionable reporting Benchmarking of results for context An ongoing relationship Value for money If your company could use our help just call me jimalexander@leadershipfactor.com 01484 467025