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INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
ARE YOU FUTURE-READY?
ISES INDUSTRY FORUM CSISG 2016 Q1 RESULTS ANNOUNCEMENT
INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
CSISG 2016 Q1 RESULTS
RETAIL AND INFO-COMMUNICATIONS RESULTS
• CSISG Methodology
• Results and Highlights of Retail Sector
• Results and Highlights of Info-Communications Sector
3
Presentation Outline
INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
CSISG Methodology
Customer Satisfaction
CSISG (Scale of 0-100)
1. Overall Satisfaction 2. Ability to Meet Expectations
3. Similarity to Ideal
5
The CSISG Score
CSISG Structural Model (Retail & Infocomm)
6
Qn. Repurchase Intention Qn. Price Tolerance
Qn. Complaint Behaviour
Qn. Perceived Product Quality Qn. Perceived Product Customisation Qn. Perceived Product Reliability
Qn. Perceived Service Quality Qn. Perceived Service Customisation Qn. Perceived Service Reliability
Perceived Service Quality
Perceived Product Quality
Customer Expectations
Perceived Overall Quality
Perceived Value
Customer Satisfaction
Customer Complaints
Customer Loyalty
Qn. Price / Quality Qn. Quality / Price
Qn. Expected Overall Quality Qn. Expected Customisation Qn. Expected Reliability
Qn. Overall Satisfaction Qn. Ability to Meet Expectations Qn. Similarity to Ideal
Overview of the CSISG Main FieldworkSingapore citizens and PRs are interviewed at their homes.
Homes are selected from a random listing of 40,000 household addresses that match housing profile of Singapore resident population.
Departing tourists are interviewed at Changi Airport.
Typically 50-200 respondents per company would have answered the CSISG questionnaire.
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Each respondent answers up to 17 CSISG questions and about 24 touchpoint questions about a company they had recent experiences with.
8
CSISG 2016 Q1 Sub-sectors
Retail Sector Info-Communications Sector
• Department Stores
• Supermarkets
• Fashion Apparels
• Furniture & Electronics
• Jewellery
• e-Commerce
• Petrol Service Stations
• Motor Vehicles
• Mobile Telecom
• Broadband
• PayTV
• Wireless@SG
NEW
NEW
Sectors CoveredRetail Info-Communications
Survey Period Jan to Apr 2016
Total Questionnaires Completed 9,489
Face-to-Face (Locals) 8,584
Tourist at Changi Airport 905
Distinct entities measured 323
Entities with published scores 49
9
CSISG 2016 Q1 Quick Facts
INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
CSISG 2016 Q1 RESULTS
11
CSISG 2016 Q1 Results Overview
* Refers to companies/sub-sectors significantly above their sub-sector/sector scores
2016 Q1 SCORES RETAIL AND INFO-COMMUNICATIONS
This chart summarises the results of the CSISG 2016 satisfaction scores in the Retail and Info-Communications sectors at the sector, sub-sector and company levels.
Each sector score (in gold) represents a weighted average of their respective sub-sector scores (in blue). Satisfaction scores for sub-sectors with individual company scores are weighted averages of these individual company scores.
All scores displayed are accurate to one-decimal place. Entities are presented in decreasing levels of satisfaction.
* Companies indicated with an asterisk(*) are companies that have performed significantly above their sub-sector average.
* Sub-sectors indicated with an asterisk(*) are sub-sectorsthat have performed significantly above their sector average.
The sparklines indicate the satisfaction score of their respective sectors, sub-sectors and companies over the past few years.
statistically significant increase in customer satisfaction from 2015 to 2016
statistically significant decrease in customer satisfaction from 2015 to 2016
no significant year-on-year change in customer satisfaction score
71.7 Retail
73.1 Motor Vehicles*
72.3 Jewellery
71.9 Fashion Apparels 74.8 Bossini 74.5 Uniqlo 74.0 Hang Ten 73.1 G2000 72.5 H&M 71.5 Giordano 71.2 Mango 70.5 Topshop 69.9 Cotton On 69.6 Zara 71.4 Other fashion apparels
71.5 Furniture & Electronics 73.0 Challenger 72.4 Gain City 72.1 Courts 71.8 Harvey Norman 67.9 IKEA 72.5 Other furniture & electronics
71.5 Petrol Service Stations 72.4 Esso 71.6 SPC 71.5 Shell 69.1 Caltex
69.6 Wireless@SG
69.2 Mobile Telecom 72.0 Singtel* 67.5 StarHub 65.0 M1
67.0 Broadband 67.5 M1 67.0 StarHub 66.9 Singtel
66.6 PayTV 67.7 StarHub 65.8 Singtel
71.5 Supermarkets 72.5 Cold Storage 71.9 Sheng Siong 71.7 NTUC Fairprice 71.1 Giant 67.6 Other supermarkets
71.1 e-Commerce 73.2 Zalora* 72.0 Taobao/Tmall 72.0 Groupon 71.9 Lazada 71.6 Ebay 71.1 Deals.com/Ensogo 70.6 Carousell 70.3 Qoo10 69.3 Amazon
70.2 Department Stores 73.2 DFS* 71.7 Takashimaya 71.5 John Little 71.2 Robinsons 71.0 Isetan 70.8 BHG 69.1 Metro 68.6 Tangs 67.5 Other department stores
68.5 Info-Communications
INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
Retail Sector Results
13
Retail Sector CSISG Trends70
78
Retail Sector
62
70
78
Supermarkets Department Stores
Furniture & Electronics
Motor Vehicles
e-Commerce
Fashion Apparels
62
70
78Jewellery
Petrol Service Stations
2007 2016
INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
Retail: Year-on-Year Changes In Company Scores
Tangs 67.3
DFS 71.6
Isetan 70.8
Metro 67.0
Other department stores 65.8
Robinsons 69.4
Takashimaya 70.9
73.2 DFS
71.0 Isetan
69.1 Metro 68.6 Tangs
67.5 Other department stores
71.2 Robinsons
71.7 Takashimaya
70.8 BHG
71.5 John Little
CSISG2015
CSISG2016
15
Department Stores Sub-sector Scores Increased
60
70
80
2007 2016
Department Stores Trend
70.2
Retail Sector
New companies measured in 2016: John Little and BHG
16
Sheng Siong Score Increased in 2016
NTUC FairPrice 70.7
Cold Storage 71.6
Sheng Siong 69.4
Other supermarkets 67.3
71.7 NTUC FairPrice
72.5 Cold Storage 71.9 Sheng Siong
71.1 Giant
67.6 Other supermarkets
CSISG2015
CSISG2016
60
70
80
2007 2016
Supermarkets Trend71.5
Retail Sector
New company measured in 2016: Giant
17
No Change in Petrol Service Stations
Caltex 67.5
Esso 71.5
Shell 70.1
SPC 71.7
69.1 Caltex
72.4 Esso
71.5 Shell 71.6 SPC
CSISG2015
CSISG2016
60
70
80
2007 2016
Petrol Service Stations Trend71.5
Retail Sector
18
Satisfaction Drivers: Locals vs TouristsS
core
0 t
o 1
00
60
70
80
Expectations Quality Value Expectations Quality Value Expectations Quality Value
Local Tourist
Department Store Fashion Apparels Jewellery
Locals Tourists
Satisfaction 68.9 72.7
Locals Tourists
Satisfaction 72.0 72.1Locals Tourists
Satisfaction 73.2 70.9
- Denotes increase / drop compared to 2015
19
Top 3 Attributes with Impact on Satisfaction
Department Stores
Fashion Apparels
JewelleryFurniture & Electronics
Supermarkets e-CommercePetrol
Service Stations
Motor Vehicles
Ambience Availability of products
Courtesy and helpfulness
of staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Layout and ambience
Purchase: Courtesy and helpfulness
of staff
Availability of products
Products/promotions information:
Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange policies
Courtesy and helpfulness
of staff
Purchase: Product
knowledge of staff
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and
pay
Conveniently located
Service: Competence of workshop
staff
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:
20
Top 3 Attributes with Impact on Satisfaction
Department Stores
Fashion Apparels Jewellery Furniture &
Electronics Supermarkets e-Commerce
AmbienceAvailability of
products
Courtesy and helpfulness of
staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Availability of products
Products/promotions
information: Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange
policies
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and pay
Note: Petrol Service Stations and Motor Vehicles Excluded For Comparability
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:
21
In General: Availability of Products Matters In Retail
Department Stores
Fashion Apparels Jewellery Furniture &
Electronics Supermarkets e-Commerce
AmbienceAvailability of
products
Courtesy and helpfulness of
staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Availability of products
Products/promotions
information: Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange
policies
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and pay
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:
22
Jewellery: Service Staff Matters More
Department Stores
Fashion Apparels Jewellery Furniture &
Electronics Supermarkets e-Commerce
AmbienceAvailability of
products
Courtesy and helpfulness of
staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Availability of products
Products/promotions
information: Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange
policies
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and pay
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:
23
Furniture & Electronics: Variety and Promotions Matter
Department Stores
Fashion Apparels Jewellery Furniture &
Electronics Supermarkets e-Commerce
AmbienceAvailability of
products
Courtesy and helpfulness of
staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Availability of products
Products/promotions
information: Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange
policies
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and pay
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:
24
Supermarkets: Ease of Making Payment
Department Stores
Fashion Apparels Jewellery Furniture &
Electronics Supermarkets e-Commerce
AmbienceAvailability of
products
Courtesy and helpfulness of
staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Availability of products
Products/promotions
information: Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange
policies
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and pay
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:
25
Supermarkets: Preference of Checkout Methods
% S
uper
mar
ket
Res
pond
ents
0%
50%
100%
Use cashier more Use self-checkout counters more
16%
85%
26
Supermarkets: Preference of Checkout Methods
CSISG Score 71.4 71.9
Loyalty Score 73.3 74.6
Visits in the past 3 months 10.0 12.9
Average Spend (per visit) $82.44 $73.41
Average Spend (past 3 months) $604.19 $615.57
% S
uper
mar
ket
Res
pond
ents
0%
50%
100%
Use cashier more Use self-checkout counters more
16%
85%
27
Scores Not Impacted by Self-Checkout Preferences
% S
uper
mar
ket
Res
pond
ents
0%
50%
100%
Use cashier more Use self-checkout counters more
16%
85%
CSISG Score 71.4 71.9
Loyalty Score 73.3 74.6
Visits in the past 3 months 10.0 12.9
Average Spend (per visit) $82.44 $73.41
Average Spend (past 3 months) $604.19 $615.57No
sign
ific
ant
diff
eren
ce
acro
ss a
ll m
etri
cs
No differences in satisfaction or loyalty
for those who self-checkout more often
28
Tail-end of Customer Journey Matters More For e-Commerce
Department Stores
Fashion Apparels Jewellery Furniture &
ElectronicsSupermarkets e-Commerce
AmbienceAvailability of
products
Courtesy and helpfulness of
staff
Variety of products
Ease of making payment
Product delivered in a timely manner
Availability of products
Products/promotions
information: Ads
Types of promotions
offered
Products/promotions information:
Instore
Availability of products
Has fair returns and exchange
policies
Brand image complements personality
Availability of products
Brand image complements personality
Ease to check out items and
pay
Pre-transaction Portion of Customer Journey Tail-end of Customer Journey
29
e-Commerce Vs. Traditional Retailers
Customer Satisfaction
Customer Expectations
Perceived Overall Quality
Perceived Value
Scale of 0 to 100
65 70 75
e-CommerceFashion ApparelsDepartment Store
30
e-Commerce Vs. Traditional Retailers
Customer Satisfaction
Customer Expectations
Perceived Overall Quality
Perceived Value
Scale of 0 to 100
65 70 75
e-CommerceFashion ApparelsDepartment Store
e-Commerce underperforms
Fashion Apparel in terms of Perceived
Quality & Value Performance.
Pro
port
ion
of R
espo
nden
ts (
%)
0%
50%
100%
Once Twice Three times or more
Fashion Apparels Department Stores e-Commerce
31
More Repeat Visits for e-Commerce
No. of Times Visited In Last 3 Months
Ave
rage
Spe
nd in
Las
t 3
M
onth
s($
)
0
100
200
300
CSISG Below 50 CSISG 50-75 CSISG 75-100
e-Commerce Department Stores Fashion Apparels
32
Higher Spending In 3 months for e-Commerce
CSISG Score Breaks
INSTITUTE OF
SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY
CSISG 2016 Q1 RESULTS Info-communications
200755
65
75
55
65
75
Mobile
55
65
75Broadband
PayTV Wireless@SG
2016
Info-Comms Sector
Info-Comms Sector CSISG Trends
34
Infocomm Sub-sectors
Customer Expectations
Perceived Overall Quality Perceived Value
Mobile Telecom 70.7 ◼ 70.6 71.6
Broadband 69.9 ◼ 69.9 ◼ 70.1 ◼
PayTV 67.0 ◼ 68.5 68.6 ◼
Wireless@SG 71.1 ▲ 69.2 -
Rise In Perceived Quality
GREEN scores performed better than 2015 with statistical significance.RED scores performed worse than 2015 with statistical significance.
INSTITUTE OF
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Infocomm: Year-on-Year Changes In Company Scores
Singtel Mobile 69.4
StarHub Mobile 69.0
M1 Mobile 64.0
72.0 Singtel Mobile
67.5 StarHub Mobile
65.0 M1 Mobile
CSISG
2015
CSISG
2016
37
Widening Gap Between Singtel and Competitors
60
70
80
2007 2016
Mobile Telecom Trend
69.2
Info-Communications Sector
38
Broadband Sub-sector Scores Increased
M1 Broadband 66.2
Singtel Broadband 64.1
StarHub Broadband 66.9
67.5 M1 Broadband
66.9 Singtel Broadband 67.0 StarHub Broadband
CSISG
2015
CSISG
2016
60
70
80
2007 2016
Broadband Trend
67.0Info-Communications Sector
39
PayTV Scores Remains Stable
Singtel TV 64.3
StarHub TV 66.6
65.8 Singtel TV
67.7 StarHub TV
CSISG
2015
CSISG
2016
60
70
80
2007 2016
PayTV Trend
66.6Info-Communications Sector
2014 to 2015 2016
≈
40
Interactions with Service ProvidersIn
tera
cted
Wit
h To
uch-
poin
t (%
)
0%
20%
40%
60%
80%
Contact Centre Shop or Service Centre Website Mobile App
Not Measured 2014 to 2015
Increasing Interactions
Decreasing Interactions
41
Top 3 Attributes with Impact on Satisfaction & Loyalty
Mobile Telecom Broadband PayTV
Satisfaction Loyalty Satisfaction Loyalty Satisfaction Loyalty
Network reliability
Range of subscription plan
to meet needs
Range of subscription plan
to meet needs
Loyalty & Rewards program
Variety of channels that interest me
Loyalty & Rewards program
Mobile data speed
Network reliability
Loyalty & Rewards program
Range of subscription plan
to meet needs
Range of subscription plan
to meet needsNetwork coverage Internet data
speedTransmission
quality
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively affects the following:
42
Common Satisfaction and Loyalty Attributes
Mobile Telecom Broadband PayTV
Satisfaction Loyalty Satisfaction Loyalty Satisfaction Loyalty
Network reliability
Range of subscription plan
to meet needs
Range of subscription plan
to meet needs
Loyalty & Rewards program
Variety of channels that interest me
Loyalty & Rewards program
Mobile data speed
Network reliability
Loyalty & Rewards program
Range of subscription plan
to meet needs
Range of subscription plan
to meet needsNetwork coverage Internet data
speedTransmission
quality
Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that affects the following:
43
Satisfied Customer vs Loyal CustomerAttributes That Keep Customers Satisfied May Not Be As Important In Retaining Them
Mobile Telecom Broadband PayTV
Satisfaction Loyalty Satisfaction Loyalty Satisfaction Loyalty
Network reliability
Range of subscription plan
to meet needs
Range of subscription plan
to meet needs
Loyalty & Rewards program
Variety of channels that interest me
Loyalty & Rewards program
Mobile data speed
Network reliability
Loyalty & Rewards program
Range of subscription plan
to meet needs
Range of subscription plan
to meet needsNetwork coverage Internet data
speedTransmission
quality
44
New Customers Generally Less Satisfied & Loyal
CSISG Score Loyalty Score
Sco
re (
0 t
o 1
00
)
50
55
60
65
70
75
Less than 2 yrs 2 to 4yrs 4yrs or more
Mobile Broadband PayTV
Less than 2 yrs 2 to 4yrs 4yrs or more
• Retail and Infocomm saw significant rise in satisfaction.
• Generally, the pre-transaction portion of customers’ journey matter more for retailers while the tail-end of customers’ journey matter more for e-commerce.
• Self-checkout counters targeted at raising productivity in supermarkets appear to be complementing the traditional cashiers.
• Keeping Infocomm customer satisfied and retaining them may require different approaches.
• New Infocomm customers tend to be less satisfied and less loyal than customers with longer tenure with the provider.
45
Summary