chrs & kevin cust satisfaction final copy

Customer Satisfaction

ByChris Brzenchek &

Kevin Drakes

Introduction

Business problem Collection of Data Description of data Interpretation of data Conclusions & Recommendations

Product serviced

Business Problem

Service business has remained constant as compared to 2008 .

The aerial device repair industry has not realized increased growth as compared to similar markets from contributing factors.

Copy strategies that have been successful in the automotive repair business.

(AutoZone Q1 2009 sales increase 8% ,1.45B – Reuters)

Business Problem

Customer behaviors have shifted and positively effected the automotive repair market for service providers.

Repair business for aerial devices should also mirror the increases in automotive market but have not.

Contributing Factors

Market conditions – layoffs, cost cutting measures by power companies, municipalities and independent contractors all have a trickle down effect on the service business.

Customers may be putting off annual services recommended by the manufacturer and only performing repairs needed to keep equipment in working order.

Do it yourself or fleet mechanics – customers may be opting to have repairs done themselves or in house to reduce costs and to keep employees working.

Contributing Factors

Competitors – undercutting of service rates have customers opting to have repairs made by non-OEM (original equipment manufacturer) service providers.

Customer satisfaction – the shop centers normally conduct larger scale repairs that cost more money and have a longer throughput ,effecting repeat business.

The only factor we can effectively impact is customer satisfaction ,this is the focus of our study.

Exploration

What is the present satisfaction with the servicing of the equipment?

Do the service department personnel provide adequate customer service?

What are the areas with the greatest room for improvement and the greatest impact on overall satisfaction?

Data Collection & Preparation

Survey & distribution

-Utilized Likert Scale format for question responses.

-One open ended short answer question.

-Ranked responses -#5 Very satisfied (highest) through #1 Very Unsatisfied (lowest)

-Collected survey data through personal & telephone interviews and emails.

Data Collection & Preparation

Survey & distribution-cont’d

- 250 surveys distributed ,184 returned ,150 utilized in research

-Stratified sampling - divided customer base into groups.

- Random selection -first 30 drawn in order to meet quota per group.

Customer Demographic Types

17%

20%

24%

21%

18%

Municipal Gov't Contractors Rural ElectricPhone/ Cable TV Inv Owned Elec Utilities

Quota Response

Contractors 30 38Municipal Gov't 30 32Rural Electric 30 44Phone/Cable TV 30 39Inv Owned Elec Utilities 30 31

184

Customer Satisfaction Survey

As a recent user of shop service department, please help us better understand your experience and feedback. Your input is greatlyappreciated. Please complete this form and fax to 570-822-3104 Attn: Customer Service

1) Were satisfied with the speed in completing your repair?

(Circle one) Very Unsatisfied, Unsatisfied, Neutral, Very Satisfied, Satisfied, Not Applicable

2) Were you satisfied with the communication process during your repair?


3) Were your service repairs completed when promised?


4) Were you satisfied with the service department’s responsiveness to your needs?


5) Was your estimate of repairs provided in a timely manner?


6) Was your estimate provided accurately the first time?


7) Were you satisfied with the product knowledge of the service department?


8) Were you satisfied with the phone demeanor of service personnel?


9) Were you greeted courteously by service personnel?


10) Were you satisfied with the overall value provided by the service department?


Please select the business classification that best describes you:(Circle one) Contractor, Municipal Gov’t, Rural Elec., Phone/CableTV, Investor Owned Utilities

Other Comments? Please provide us any other thoughts or feedback on your experience with us.

Data Described

Customers Repair speed Communication Commitment Response Timely est. Accurate est. Tech. Ability Attitude Phone courtesy Overall Value Inv Ul. Cust.1 3 2 1 3 1 2 4 3 3 3 Cust.2 4 2 3 3 2 2 5 3 2 3 Cust.3 2 3 3 3 3 3 3 2 3 2 Cust.4 3 2 3 4 4 4 3 4 2 2 Cust.5 3 3 3 3 3 3 3 3 3 3 Cust.6 4 2 3 3 3 3 2 2 2 3 Cust.7 2 2 2 2 2 2 2 2 2 2 Cust.8 1 4 1 3 2 2 2 2 2 2 Cust.9 2 4 1 1 1 1 1 1 1 1 Cust.10 5 5 5 5 5 5 5 5 5 5 Cust.11 3 3 3 3 3 3 3 3 3 4 Cust.12 2 3 2 3 3 3 3 3 3 3 Cust.13 2 4 3 3 3 3 3 3 3 2 Cust.14 3 4 4 4 4 4 4 4 4 4 Cust.15 1 1 1 1 1 1 1 1 1 1 Cust.16 2 2 2 3 2 3 4 4 3 3 Cust.17 3 2 4 1 2 2 2 4 4 3 Cust.18 4 5 4 4 4 4 5 5 4 2 Cust.19 4 4 4 4 4 4 4 4 4 4 Cust.20 2 4 3 2 1 1 2 2 3 2 Cust.21 3 3 3 3 3 3 3 3 3 3 Cust.22 1 3 2 3 3 4 4 3 4 3 Cust.23 2 2 2 2 2 2 2 2 2 2 Cust.24 3 2 3 2 3 2 3 2 3 3 Cust.25 3 2 3 3 3 3 3 3 3 3 Cust.26 3 3 3 3 3 4 3 4 3 3 Cust.27 4 3 2 4 5 5 4 3 3 4 Cust.28 3 1 1 1 1 1 1 1 1 1 Cust.29 3 1 2 1 2 1 2 1 1 2 Cust.30 2 2 3 3 3 2 3 3 3 3

Customers Repair speed Communication Commitment Response Timely est. Accurate est. Tech. Ability Attitude Phone courtesy Professionalism 2.733333333 2.766666667 2.633333333 2.766667 2.7 2.733333333 2.966666667 2.833333 2.75862069 2.7 Scale

Very Satisfied 5 Satisfied 4 Neutral, 3 Satisfied 2 Very Unsatisfied 1

Not Applicable 0

Hypothesis Statement

Customers regardless of business sector are satisfied overall with customer service .

Probability 300 chances (satisfied or very satisfied) in total of 1500 questions = 20%

Question #1

Is overall average repair speed score too low?

Two-Sample Test (low vs. High)

HYPOTHESIS TESTSNULL : average repair speed score is not greater than the average of the employee atittude.

ALTERNATIVE: average repair speed score is greater than the average of employee atittude.

sample means stdev sample size

test statistic (obs) (2.681) sample 1 2.626667 0.916271 150

critical measure 1.960 sample 2 2.933333 1.059737 150

std error0.1143852

|obs| > critical? Accept null

# of tails? 2p-value 0.00734025

-level 0.050

p-value < a-level?

Question # 2

Is phone courtesy important to customer satisfaction?

RegressionSUMMARY OUTPUT

Regression Statistics

Multiple R 0.57209166high positive correlation coefficient

R Square 0.327288868sum of squared error

Adjusted R Square 0.322743522variability in score as related to x factors

Standard Error 0.734446254how many errors will occur when predicting scores

Observations 150

ANOVA

df SS MS F Significance F

Regression 1 38.84046088 38.84046088 72.00527845 2.05194E-14ftest good in relation to p values

Residual 148 79.83287245 0.5394113

Total 149 118.6733333

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

slope Intercept 1.261666091 0.181280198 6.959756809 1.02872E-10 0.90343422 1.619897961 0.90343422 1.619897961

Phone courtesy 0.50172831 0.059127081 8.485592404 2.05194E-14 0.384885957 0.618570663 0.384885957 0.618570663

X= overall satisfaction Y= phone courtesy

Question #3

Does good Attitude, and commitment result in happy customers?

Correlation Coefficients

overall attitude commitment

overall 1

attitude 0.57574678 1

commitment 0.571230743 0.568946986 1

Multiple regressionSUMMARY OUTPUT

Regression Statistics

Multiple R 0.750898267

R Square 0.563848207

Adjusted R Square 0.535809877

Standard Error 0.608038927

Observations 150

ANOVA

df SS MS F Significance F

Regression 9 66.91374619 7.434860688 20.10990724 2.29374E-21

Residual 140 51.75958714 0.369711337

Total 149 118.6733333

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

Intercept 0.475689706 0.197891743 2.403787535 0.017535008 0.084447105 0.866932307 0.084447105 0.866932307

Repair speed 0.217420683 0.064344676 3.379000334 0.000942602 0.090207803 0.344633562 0.090207803 0.344633562

Communication -0.07956735 0.062217553 -1.27885696 0.203063207 -0.202574792 0.043440092 -0.202574792 0.043440092

Commitment 0.130131423 0.073484989 1.77085721 0.078760592 -0.015152346 0.275415193 -0.015152346 0.275415193

Response 0.162296705 0.076082429 2.13316935 0.0346548 0.011877659 0.312715752 0.011877659 0.312715752

Timely est. 0.139276258 0.085021795 1.638124177 0.103641382 -0.028816396 0.307368911 -0.028816396 0.307368911

Accurate est. -0.05890626 0.070241558 -0.838623987 0.403109932 -0.197777586 0.079965076 -0.197777586 0.079965076

Tech. Ability 0.139216715 0.083439401 1.668476921 0.097456072 -0.025747461 0.304180891 -0.025747461 0.304180891

Attitude 0.032391038 0.072850247 0.444624967 0.657277399 -0.11163781 0.176419887 -0.11163781 0.176419887

Phone courtesy 0.136335204 0.071984654 1.893948189 0.060294805 -0.005982321 0.278652729 -0.005982321 0.278652729

Question #4

What factors will be the most significant to customers?

ValuesRow Labels Average of Tech. Ability Average of Phone courtesy Average of Repair speedcontractors 2.9 2.7 2.333333333investor 2.733333333 2.833333333 2.733333333municipal 2.733333333 2.833333333 2.733333333phone TV 2.933333333 3.1 2.8REC 2.733333333 3 2.533333333Grand Total 2.806666667 2.893333333 2.626666667

What are additional comments regarding the Repair Shop?

The leading criticism offered was that the cost of repair and replacement parts was too high. Get the price down. I shouldn’t have to pay $10,000 for a repair on a

truck. The price that they charge to send the MST is too

high . . .$800! When we order a $2 part, we pay $25 or $40

freight charge to get it there. That is way too high.

What are additional comments regarding the Repair Shop?

Another criticism heard offered was that parts and service personnel on the phone seem inexperienced and lacking in knowledge. Sometimes when I call in for parts, they don’t

know what part goes on the equipment. Service personnel sometimes are inexperienced in

the industry and have difficulty finding the right part.

Phone personnel needs to be more knowledgeable about the parts on the truck.

Conclusions

The factors that had the most impact for all demographics were - telephone communications, time repair took to complete ,and technical ability.

With all five demographic groups customer satisfaction was slightly below 3 ( neutral) - all customers were dissatisfied overall with shop service .

Recommendations

Communication skills training necessary for all employees making direct contact with customers.

Investigate the issue of repair turnaround time . What are the drivers ( adequate staffing,technical abilities,parts, management)?

Follow up with a improved survey in future to include pricing questions and eliminate a neutral scale response (39% of data collected was neutral).

Questions?