trends in customer satisfaction
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ACSIAmerican Customer Satisfaction Index TM
Trends In Customer Satisfaction with the U.S. Federal Government –
Findings of the ACSIDavid VanAmburg and Forrest Morgeson
ACSI, National Quality Research Center
Ross School of Business, University of Michigan
Washington, D.C., December 15, 2006
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Snapshot of ACSI
• Established in 1994, the only standardized measure of customer satisfaction in the U.S. economy, covering 200 companies in 43 industries - roughly one-third of the total U.S. economy.
• A quarterly measure of the national economy’s health; complementary to measures such as GDP, PCE, CPI, productivity and unemployment.
• More than 100 segments of departments/agencies of the U.S. Federal Government measured on an annual basis.
• Results from all surveys are published quarterly in various media and on the ACSI website at www.theacsi.org
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ACSI National, Sector, and Industry Scores:Q4 2005 – Q3 2006
75 Hotels77 Limited-
ServiceRestaurants
63 Newspapers73 Motion Pictures69 Broadcasting
TV News74 Software70 Fixed Line
Telephone Service
66 Wireless TelephoneService
63 Cable & Satellite TV
72 EnergyUtilities
74 Supermarkets69 Gasoline
Stations75 Department &
Discount Stores
74 Specialty Retail Stores
76 Health & Personal Care Stores
75 Banks75 Life Insurance68 Health
Insurance78 Property & Casualty Insurance
65 Airlines71 U.S.
Postal Service
83 ExpressDelivery
62.7 Local Government
72.3 Federal Government
Accommodation &Food Services
75.8
Information68.6
Utilities72.4
Finance &Insurance
73.9
Transportation &Warehousing
72.3
PublicAdministration/
Government65.8
81 Retail78 Auctions76 Brokerage77 Travel
E-Commerce79.6
74 Hospitals
Health Care & Social Assistance
74.1
ACSI74.4
Manufacturing/Durable Goods
80.1
E-Business76.5
77 Personal Computers
80 Electronics(TV/VCR/DVD)
81 Major Appliances
81 Automobiles& Light
Vehicles70 Cellular Telephones
73 News &Information
76 Portals79 Search Engines
Manufacturing/Nondurable Goods
82.3
83 Food Manufacturing
83 Pet Food84 Soft Drinks82 Breweries78 Cigarettes80 Apparel76 Athletic Shoes84 Personal Care
& CleaningProducts
Retail Trade72.4
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Why Measure Satisfactionwith Government?
• Raise citizen trust in government • Hold agencies accountable for results • Improve program operating
performance• Balanced measures for Senior
Executives
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Citizen-Centered Government – History
• Government Performance & Results Act (GPRA) (1993)
• Executive Order 12862, “Setting Customer Service Standards” (1993)
• President’s Management Agenda, “Getting to Green” (2001)
• E-Government Act (2002)
Has more than a decade of performance-based initiatives focusing, in part, on greater accountability of government to its customer base – U.S. citizens – made a difference?
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ACSI METHODOLOGY
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ACSI Methodology
• Customer satisfaction (ACSI) is embedded in a system of cause and effect relationships
• Measures are general enough to be comparable across agencies, companies
• ACSI is measured using multiple indicators• Objective: Explain desired outcomes
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The Basic ACSI Model for Government
CustomerComplaints
CustomerComplaints
Citizen TrustCitizen Trust
Customer Satisfaction
(ACSI)
Customer Satisfaction
(ACSI)
PerceivedQuality
PerceivedQuality
Customer Expectations
Customer Expectations
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CustomerComplaints
CustomerComplaints
Citizen TrustCitizen Trust
Customer Satisfaction
(ACSI)
Customer Satisfaction
(ACSI)
PerceivedQuality
PerceivedQuality
Customer Expectations
Customer Expectations
Enhanced ACSI Model for Government (Typical)
CustomerService
CustomerService
InformationInformation
ProcessProcess
• Confidence
• Recommend
• Courtesy
• Professionalism
• Clarity
• Usefulness
• Ease/Accessibility
• Timeliness
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CustomerComplaints
CustomerComplaints
Citizen TrustCitizen Trust
Customer Satisfaction
(ACSI)
Customer Satisfaction
(ACSI)
PerceivedQuality
PerceivedQuality
Customer Expectations
Customer Expectations
What Agencies Receive(Hypothetical Example)
CustomerService
CustomerService
InformationInformation
ProcessProcess
• Confidence
• Recommend
• Courtesy
• Professionalism
• Clarity
• Usefulness
• Ease/Accessibility
• Timeliness
72
73
80
70
78
72
76
15%
80
80
75
70
78
65
74
77Scores on 0-100 scale – How is the agency performing?
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CustomerComplaints
CustomerComplaints
Citizen TrustCitizen Trust
Customer Satisfaction
(ACSI)
Customer Satisfaction
(ACSI)
PerceivedQuality
PerceivedQuality
Customer Expectations
Customer Expectations
What Agencies Receive(Hypothetical Example)
CustomerService
CustomerService
InformationInformation
ProcessProcess
• Confidence
• Recommend
• Courtesy
• Professionalism
• Clarity
• Usefulness
• Ease/Accessibility
• Timeliness
72
73
80
70
78
72
76
15%
2.1
0.5
1.3
0.4
3.5
0.1
-2.1
4.0
0.6
80
80
75
70
78
65
74
77Scores on 0-100 scale – How is the agency performing?
Impacts assume 5 point change – What are the best leverage points?
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How Agencies Utilize ACSI Data
• Test results against current assumptions• Reexamine improvement plans and
strategy• Report results to Congress, employees,
and customers• Design and conduct more detailed drill-
down surveys on low-performing areas• Identify strategic benchmarking
partners; identify/adopt “best practices”
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2006 DETAILED ACSI RESULTSFOR THE
U.S. FEDERAL GOVERNMENT
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Government Satisfaction ReachesAll-Time ACSI High
68.6 68.6
71.3
70.2
70.9
72.1
71.3
72.3
65
70
75
1999 2000 2001 2002 2003 2004 2005 2006
Aggregate Customer Satisfaction withFederal Government, 1999-2006*
*0-100 Scale
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Government Still Lags Private Sectorbut Keeping Pace with Its Improvement
72.1
72.9
72.0
73.1
73.874.3
73.2
74.4
68.6 68.6
71.3
70.2
70.9
72.1
71.3
72.3
65
70
75
1999 2000 2001 2002 2003 2004 2005 2006
National ACSI
Federal Government
+5.4% from 1999
+3.2% from 1999
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Government Compared with Private Sector –Nearly Equal to Private Services
65
70
75
80
85
National Manufacturing Private SectorServices
FederalGovernment
2002
2003
2004
2005
2006
74.4
81.1
72.7 72.3
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2006 Ranges of Scores forDifferent Agency Types
45 50 55 60 65 70 75 80 85 90 95 100
Private Sector
IRS/Regulatory
Information
E-Gov
Financial Services
Benefits Providers 73
52
68
58
57
82
88
70
75
85
55 87
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Social Security and Medicare – Trending Down
82
84
82
83
81 81 81
80
71
74
79
76
77
76
75
73
70
75
80
85
1999 2000 2001 2002 2003 2004 2005 2006
Social Security
Medicare
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VA Hospital Experience Improving, LeadsPrivate Sector by Wide Margin
7978
79 79
83
80
82
8281 81
8483
84
6970
68
70
73
76
71
74
80
65
70
75
80
85
1999 2000 2001 2002 2003 2004 2005 2006
Hospital Industry
VHA Inpatient
VHA Outpatient
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IRS Finding: e-Filers Vastly More Satisfied
•fewer errors, quicker problem resolution•earlier refunds, easy status tracking
51
76
5052535352
4844
77787778777574
40
50
60
70
80
90
1999 2000 2001 2002 2003 2004 2005 2006
Paper Filers e-Filers
25 points30 points
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20%
55%
0%
10%
20%
30%
40%
50%
60%
70%
1998 2006
Number of e-filers nearly triples in 8 years
“We realize we have more work to do, but the survey is just one more indication that the IRS reorganization and its emphasis on customer service are paying off. The satisfaction with IRS e-file won´t surprise any taxpayer who has used it. When they try it, they like it. It is fast, accurate and dependable.” - Charles O. Rossotti, IRS commissioner, December 17, 2001
IRS: More e-Filers
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IRS: Improved Individual Tax Filing Experience
IRS hears the voice of the customer… • Commitment to customer service• Increased awareness and usage of e-filing
Customer Satisfaction Up 14 Points51
56
60
6263
64 6465
50
55
60
65
70
1999 2000 2001 2002 2003 2004 2005 2006
All Individual Tax Filers
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Customers Expect Less of GovernmentThan of Private Sector
77.478.5
84.486.1
76.077.1
70.0
77.4
65
70
75
80
85
90
National Manufacturing Services FederalGovernment
Customer Expectations
Perceived Quality
2006 Comparison of Expectations and Quality
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Customer Service Statistically Flat
75
80
85
90
Courtesy Professionalism
2002
2003
2004
2005
2006
8685
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Government Efficiency Improves
65
70
75
80
85
Ease/Accessibility Timeliness
2002
2003
2004
2005
2006
78
75
Access to Services, Timeliness of Delivery Hit All-Time Highs
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Next Steps: 2007 and Beyond
• Re-measure 2006 participants
• Expansion with new agencies/segments signing up for measurement in early 2007
• Continue to grow e-Gov measurement
• For more information see:
www.theacsi.orgwww.fcg.gov