Measuring and Improving Customer Satisfaction

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Measuring and Improving Customer Satisfaction

• Ron Muns
• HDI Founder CEO
• March 21, 2006
• LINK

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Agenda

• Customer Satisfaction The Value Proposition
• CS DefinedIndices Defined
• HDIs Balanced Score Card Service Model
• How to Improve Survey principles
• The new HDI-CSI Service

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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!

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Customer Satisfaction Affects the Bottom Line
The gulf between satisfied customers and
completely satisfied customers can swallow a
business. - Harvard Business Review
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Impact on the IT Organization

• Credibility
• Budget approvals
• Business alignment
• Attitudes towards outsourcing
• Attitudes towards IT leadership
• Improve support for new initiatives

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So just what is Customer Satisfaction?

• Customer Satisfaction is the customers
  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

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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

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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

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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)

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Survey Principles

1. Statistically sample events when they complete
2. Telephone and e-support
3. EXTREMELY SHORT SURVEYS
4. Dont 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)

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Questions to AskTelephone 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

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Questions to ask Web Support

1. Ease of use
2. Was your problem solved
3. Neither, just browsing

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• What is HDI CSI? (hintno 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

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• 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

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Reports to Your Desktop (or raw data) Link

• Trends against Goals
• Compared to Industry Peers
• Your raw data for your own customized reporting

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In Closing

• What gets measured, gets done, so, getr 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 HDI-CSI_at_ThinkHDI.com