20/05/2013

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?

jan@kitshoffgleaves.com

07732 114776

www.kitshoffgleaves.com