Customer Satisfaction

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The Customer Experience Through The Customer's Eyes Customer Satisfaction is our latest title in the field of satisfaction measurement and the customer's experience. It's been written by Nigel Hill and co-authors Greg Roche and Rachel Allen who are all experts in customer satisfaction measurement at The Leadership Factor Limited.

Text of Customer Satisfaction

  • CustomerSatisfactionNigel Hill, Greg Roche and Rachel Allen

    The customer experience through the customers eyes

  • Customer Satisfaction

    Nigel Hill, Greg Roche and Rachel Allen

    Cogent

    THE CUSTOMER EXPERIENCE THROUGH THE CUSTOMERS EYES

    contents Sat 5/7/07 09:48 Page i

  • Published by Cogent Publishing in 2007

    Cogent Publishing Ltd26 York StreetLondonW1U 6PZ

    Tel: 0870 240 7885Web: www.cogentpublishing.co.ukEmail: info@cogentpublishing.co.uk

    Registered in England no 3980246

    Copyright Nigel Hill, Greg Roche and Rachel Allen, 2007

    All rights reserved. This book must not be circulated in any form of binding or cover other thanthat in which it is published and without similar condition of this being imposed on thesubsequent purchaser. No part of this publication may be reproduced, stored on a retrievalsystem or transmitted in any form, or by any other means, electronic, mechanical, photocopying,recording or otherwise, without either prior permission in writing from the publisher or a licencepermitting restricted copying. In the United Kingdom Licences are issues by the CopyrightLicensing Agency, 90 Tottenham Court Road, London, W1P 9HE. The right of Nigel Hill, GregRoche and Rachel Allen to be identified as authors of this work has been asserted in accordancewith Copyright Designs and Patents Acts 1988.

    A British Library Cataloguing in Publication record is available for this publication.

    ISBN 978-0-9554161-1-8

    Printed and bound in Great Britain by The Charlesworth Group, Wakefield, West Yorkshire.

    Available from all good bookshops. In case of difficulty contact Cogent Publishing on

    (+44) 870 2407885.

    Cogent

    contents Sat 5/7/07 09:48 Page ii

  • About the authors

    Nigel HillNigel founder of The Leadership Factor, a company that specialisesin helping organisations to measure, monitor and improve theircustomers experience. With offices in the USA, Australia, Russia,Spain, Portugal and France as well as the UK, The Leadership Factorprovides research services, advice and training worldwide. Nigel haswritten three previous books and many articles about customersand speaks at conferences and events around the world. He hashelped organisations such as Manchester United FC, Chelsea FC,the BBC, ASDA, and Land Securities amongst many others.

    Greg RocheClient Director at The Leadership Factor. Greg is one of the UKsleading experts in helping organisations to use data fromcustomer satisfaction surveys to improve their customerexperience. He has worked with many different organisationsacross all sectors of the economy including Royal Bank ofScotland, Visa, Tarmac, Irish Life, Allied Irish Bank, Churchill,Privilege, Jurys Doyle Hotels, Sainsburys Convenience and TheBank of New York.

    Rachel AllenRachel is Client Manager at The Leadership Factor. She is anexpert on customer satisfaction research and complaint handling.Rachel has written many articles and speaks widely on thesesubjects at conferences, seminars and other events. She works withmany different organisations on surveys and complaint handlingincluding Direct Line, Tesco, Royal Borough of Kensington andChelsea, HBOS, Forensic Science Service and Royal Bank ofScotland International.

    If you would like to contact any of the authors go towww.customersatisfactionbook.com and follow the contact instructions.

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  • iv ACKNOWLEDGMENTS

    Acknowledgements

    Many people have helped in the preparation of this book. Particular thanks to RobertCrawford, Director of the Institute of Customer Service for writing the Preface and forbeing a continual source of honest advice, stimulating views and professional support.Thanks also to the many clients and contacts from companies and organisations acrossall sectors of the economy who have helped to develop our ideas and understandingwhilst grappling with their real work of improving customer satisfaction. Amongstthese, very special thanks to those who reviewed this book, including Tim Oakes fromthe RBS, Mark Adams from Virgin Mobile, Scott Davidson from Tesco Personal Financeand Quintin Hunte from Fiat. All made many useful suggestions for amendments oradditions. Needless to say any opinions, omissions or mistakes in the book are theresponsibility of the authors.

    There is much more to publishing a book than writing the words. Ask Rob Ward who notonly did the typesetting and produced the diagrams but also had to amend it all, manytimes, as the authors had second, third, fourth thoughts and more. Thanks also to RuthColleton who cross-checked every single reference on the internet and, along with JanetHill, corrected the proofs. Thanks to Rob Ward and Rob Egan for the cover design and toCharlotte and Lucy at Cogent Publishing for organising the never ending list of tasks thatturn a manuscript into a printed book that you can buy in shops or on the internet!

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  • CONTENTS v

    Acknowledgements Introduction

    CHAPTER ONE DISPELLING THE MYTHSCHAPTER TWO THE BENEFITS OF CUSTOMER SATISFACTIONCHAPTER THREE METHODOLOGY ESSENTIALSCHAPTER FOUR ASKING THE RIGHT QUESTIONSCHAPTER FIVE EXPLORATORY RESEARCHCHAPTER SIX SAMPLINGCHAPTER SEVEN COLLECTING THE DATACHAPTER EIGHT KEEPING THE SCORECHAPTER NINE THE QUESTIONNAIRECHAPTER TEN BASIC ANALYSISCHAPTER ELEVEN MONITORING PERFORMANCE OVER TIMECHAPTER TWELVE ACTIONABLE OUTCOMESCHAPTER THIRTEEN COMPARISONS WITH COMPETITORSCHAPTER FOURTEEN ADVANCED ANALYSIS: UNDERSTANDING THE CAUSES

    AND CONSEQUENCES OF CUSTOMER SATISFACTIONCHAPTER FIFTEEN USING SURVEYS TO DRIVE IMPROVEMENTCHAPTER SIXTEEN INVOLVING EMPLOYEESCHAPTER SEVENTEEN INVOLVING CUSTOMERSCHAPTER EIGHTEEN CONCLUSIONS

    GlossaryIndex

    ivvi

    1182943576981

    110125150166185201226

    250268282289

    295307

    Contents

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  • vi Introduction

    Introduction

    This book is about building successful businesses through doing best what matters mostto customers. In one volume we explain why this is so important, how it is achieved andhow to measure and monitor the organisations success in doing so. Our ambition is toinspire you to take action, make your customers more satisfied and loyal and yourcompany more successful.

    The book is organised in a clear report style format, familiar to most managers anddesigned to make it easy to read and navigate. All chapters are fully referenced for thosewanting more detailed information.

    If you are still hungry for more knowledge, have unanswered questions or want todebate an issue, the books website, www.customersatisfactionbook.com is the place foryou. You can use it to email the authors, find relevant customer satisfaction links, checkout the blog or simply to keep up with the latest events and ideas in the customersatisfaction world.

    We look forward to hearing from you.

    Nigel HillGreg RocheRachel Allen

    August 2007

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  • CHAPTER ONE

    Dispelling the Myths

    This book is based on the premise that organisations succeed by doing best whatmatters most to customers. Human beings seek pleasurable experiences and avoidpainful ones, so tend to return to companies that meet or exceed their requirementswhilst shunning organisations that fail to meet them. These self-evident truths aremost easily described by the phrase customer satisfaction and loyalty. Customerswhose needs are met or exceeded by an organisation form favourable attitudes aboutit. Since peoples attitudes drive their future behaviours, highly satisfied customersusually display loyal behaviours such as staying with the company longer, buyingmore and recommending it all of which are highly profitable to the companyconcerned. This book is about how organisations can accurately monitor customersattitudes (satisfaction) in order to make decisions that will drive favourable customerbehaviours (loyalty), thus making them more profitable a concept that is simple aswell as sensible. In recent years, however, there have been many attempts tocomplicate this process leading to confusion, doubt and many myths aboutorganisations relationship with their customers; an unfortunate state of affairs thatwe intend to address in this first chapter.

    At a glanceIn this chapter we will examine the 6 main myths about measuring customer satisfaction:

    a)Customer satisfaction is old hat. Its all about wowing the customer.

    b)Only loyalty matters.

    c)Improving customer satisfaction and loyalty is difficult.

    d)Surveys dont work.

    e)Consulting customers isnt the only way of monitoring customer satisfaction.

    f)Surveys reduce customer satisfaction and loyalty.

    1.1 Customer satisfaction is a limited concept This book is about how organisations succeed by putting customers at the top oftheir agenda. From the 1980s in America and by the 1990s in most other countries,customer satisfaction was rarely challenged as a key organisational goal. In morerecent years however, a growing industry has developed around modifications or

    Dispelling the Myths 1

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  • enhancements to the concept of customer satisfaction spawning a multitude of wordsand phrases to describe it. The list is endless, but amongst the most common arecustomer loyalty, the customer relationship, the customer experience, customerfocus, customer delight, wowing the customer, the loyalty effect, customerretention, the advocacy ladder, emotional attachment, service quality, servicerecovery, zero defections, customer win-back and the list goes on. Needless to say,people get very passionate about defending their own little set of words, but theyreall just semantics. Theyre ju