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1
Repairs and Maintenance Conference
22 May 2013
Jan Kitshoff
Customer Insight and tailoring your repairs service
Content
• Definitions
• Private sector
• Housing Sector
• Latest Insight Research from BQF & CMLG 2012
• Case Studies
– Housing Sector, Private Sector
• New thinking!
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Smit
h, B
rian
, W
ilso
n, H
ugh
an
d C
lark
, Mo
ira
(20
06
)
Customer Insight
Macro-environmental
Data
Customer
satisfaction
survey results/
focus groups/
mystery
shopping Customer
complaints/
compliments
Competitors offer
data
Customer
visits data
SLA contract
performance
review data
Operational
visit/call
reports data
Contract
won/loss
analysis
Customer
targeting data
Information from
suppliers/ industry
press/ regulators etc
©KitshoffGleaves 2010 – inspired by Woodruff (1997) “Customer Value, The Next Source for Competitive Advantage”, JAMS
Customer Insight
EXTERNAL
INTERNAL
Social Media
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Private Sector : Use of Insight
• Two key drivers
– Retention and Repurchasing and Advocacy (Loyalty and WOM)
– Segmentation (New products and or services)
• Tailoring of services is typically done to increase retention or increase income or decrease service costs (increasing income)
• Delivering a great Customer Experience
The Service Profit Chain
Internal Service Quality
Employee Satisfaction
External Service Value
Customer Satisfaction
Customer Loyalty
Employee Retention
Revenue Growth
Employee Productivity
Profitability Retention Repeat Business Referral
Heskett, Jones, Loveman, Earl Sasser & Schlesinger
Harvard Business Review, March-April 1994
Operating Strategy and Service Delivery System Service Concept
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Customer experience improvements can be worth £ millions
Realistically attainable improvements in customer experience can increase annual revenue by £40m (retailer) to £1.7bn (wireless carriers).
Source: Forrester/Megan Burns Report, 2011
Am I pregnant?
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Housing Sector
• “understanding our tenants needs to tailor our services”, “communication channels”
• Track record (Aids and adaptations, Supported housing , Energy advice and guidance, Benefits advice, ASB, Local offers etc)
• Diversity segmentation
• Examples Repairs & Maintenance
– MOT for high service users
– Vulnerability spotting
External Data : Segmentation
• http://guides.business-strategies.co.uk/mosaicpublicsector2009/html/visualisation.htm?011121
External Data : Social Trends
• http://www.ons.gov.uk/ons/rel/social-trends-rd/social-trends/social-trends-41/index.html
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Latest Research!
• Thought Leadership Project : BQF
– Customer management
• Customer Management Leadership Group (CMLG) at MBS
– Research Project 2012 : Use of Customer Insight
Customer Insight
Insight Tools and Techniques
• Customer Satisfaction Measurement
• Net Promoter Score (NPS)
• Customer Effort Score (CES)
• Customer Experience (CEx)
• Evolving Practice (Social Media)
• Compliments and Complaints
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Qualitative
Un-reliable
Reliable
Quantitative
CMLG Research 2012
Insight!
Net Promoter Score (NPS)
On a scale of 0-10, how likely is it that you would recommend us to a friend or colleague?
Not at all likely
Very likely
0 1 2 3 4 5 6 7 8 9 10
Detractors Neutrals Promoters
% of Promoters (score>8)
% of Detractors (score <7)
Net Promoter Score = minus % %
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Pre
dic
tive
Po
we
r F
or
Re
pu
rch
asin
g
Predictive Power For Increased Spending
High
High Low
CSAT
NPS
CES
The Customer Effort Score out performs the Net Promoter Score and customer satisfaction measures in predicting behaviour.
CUSTOMER EXPERIENCE MAPPING
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Research findings
• Most common model used still CSAT...but large variations in implementation
• NPS (Five users) – Only one organisation driven by overall NPS
– Benchmarking critical for brand
– Insight Value from verbatim comments as opposed to actual score
• CES – Two early adopters
– Others investigated
CMLG
member
Organisation
Use of
Quantitative
Measures
Use of
Qualitative
measures
A 3 5
B 5 2
C 5 5
D 4 6
E 6 4
F 5 7
G 4 6
H 5 6
I 5 2
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Kirkby, Wecksell, Janowski and Berg, Gartner, (2003) “The Value of Customer Experience Management”, Strategic Analysis Report, R-19-4070, March 2003.
Case Study : Analysis of Comments
• Housing Sector
• Gas Service (outsourced)
• Monthly CSAT Survey (outsourced)
• Overall reported CSAT 98%
• Ask open question : Any comments?
• What does the verbatim comments suggest?
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Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Total
Total Comments 81 76 71 77 56 55 65 33 75 67 656
Compliments 2 1 1 5 11 0 20
Suggestions 3 7 2 3 5 2 8 2 32
0
10
20
30
40
50
60
70
80
90
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09
Total Comments
Compliments
Suggestions
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Model of service quality
Management
Perceptions
Service Quality
Specifications
Service
Delivery
Perceived
Service
Expected
Service
Past Experience
Personal
Needs
Word-of-mouth
Communications
External Communication
to customers
CUSTOMER
PROVIDER
Gap 5
Gap 1
Gap 2
Gap 3
Gap 4
Source: Parasuraman & Berry (1990)
Dimensions of Service Quality
1 TANGIBLES
2 RELIABILITY
3 RESPONSIVENESS
4 COMPETENCE
5 COURTESY
6 CREDIBILITY
7 SECURITY
8 ACCESS
9 COMMUNICATION
10 UNDERSTANDING/ KNOWING THE CUSTOMER
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Dimension Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Total
4 COMPETENCE 24 11 21 18 15 16 19 12 8 24 168
8 ACCESS 23 27 18 16 19 14 10 3 4 7 141
3 RESPONSIVENESS 8 16 19 13 7 5 10 4 24 20 126
9 COMMUNICATION 15 11 9 12 3 6 12 1 15 4 88
2 RELIABILITY 5 1 2 4 4 2 3 1 2 1 25
1 TANGIBLES 2 3 0 1 1 3 2 4 3 19
10
UNDERSTANDING/
KNOWING THE
CUSTOMER 1 3 1 2 2 0 0 0 1 4 14
5 COURTESY 0 2 1 1 1 3 2 0 0 1 11
7 SECURITY 3 1 0 1 2 1 1 0 1 1 11
6 CREDIBILITY 0 0 0 0 0 1 0 0 1 0 2
0
5
10
15
20
25
30
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09
COMPETENCE
ACCESS
RESPONSIVENESS
COMMUNICATION
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Mismatch
Perceived Performance
Customer expectations
Model of service quality
Management
Perceptions
Service Quality
Specifications
Service
Delivery
Perceived
Service
Expected
Service
Past Experience
Personal
Needs
Word-of-mouth
Communications
External Communication
to customers
CUSTOMER
PROVIDER
Gap 5
Gap 1
Gap 2
Gap 3
Gap 4
Source: Parasuraman & Berry (1990)
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Gap 1
Customer Expectations
Management perceptions of Customer Expectations
“Market Information/ Customer Insight Gap” Possible issues: • Insufficient market research • Inadequate use of market research in planning • Lack of interaction between management and customers • Low 2-way communication between managers and customer contact staff • Management not involved in complaint resolution
Gap 2
Service Quality Specifications
Management perceptions of Customer Expectations
“Service Standards Gap” Possible issues: • Inadequate management commitment to quality • Absence of formal process for setting service quality goals • Inadequate standardisation of tasks • Perception of infeasibility – customer expectations cannot be met • Lack of imagination as to what can be achieved
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Gap 3
Service Delivery
“Service Performance Gap” Possible issues: • Lack of or poor teamwork • Poor employee-job fit • Poor technology-job fit • Lack of perceived control – customer-facing staff • Inappropriate evaluation/ reward system • Role conflict among contact employees • Role ambiguity • Culture of poor service
Service Quality Specifications
Gap 4
External communication to customers
“(Internal) Communications Gap” Possible issues: • Low interaction sales and operations • Poor communications advertising/PR and operations • Different policies and procedures locally • “Promise the earth” desperation selling • Inadequate sales incentives – revenue not profit • Poor key account management
Service Delivery
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Challenges
• Flat lining of measures?
• Sources of insight?
• Internal or outsourced services?
• Stock data (basic)?
• Demand for repairs ? (Saturdays and Sundays)
• Impact of technology and the digital world?
The Best Service is No Service!
5. Make it really easy to contact your company
6. Own the actions
across the company
7. Listen and act
8. Deliver great service
experiences
1. Challenge demand for service
2. Eliminate dumb contacts
3. Create engaging self-
service
4. Be proactive
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My tips!
• Don’t complicate your approach • Brilliant basics!
– Profiling – Use your tenant touch/contact points more effectively
• Basic techniques! – SERVQUAL, Gap Analysis, RCA
• Don’t over invest! • Despite cost pressures, keep open ended
questions in surveys • More frequent surveys if outsourced
Any Questions?
07732 114776
www.kitshoffgleaves.com