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Delta Satisfaction
How To Avoid Unintended Bias
When You Research Customer
Satisfaction
Beyond Philosophy


Steven Walden, Senior Head of Research and Consulting
Qaalfa Dibeehi, Chief Operating and Consulting Officer




                www.beyondphilosophy.com
The Beyond Philosophy Perspective




             Customer Experience                      Thought leadership is           New fourth book
                 is all we do!                          our differentiator            Is now available




                  Offices in London,
                Atlanta with partners in
                                                        Links with academia     Focus on the emotional side of
                    Europe & Asia
                                                                                    Customer Experience
Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com                                    2
We are Proud to Have Helped Some Great Organizations…




Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   3
Delta Value Learning Objectives
                      Discover how
                      dissatisfaction is hidden or
                      being under-estimated

                      Understand Anchoring bias
                      and its implications

                      Learn how Delta Value
                      gives a more complete
                      measurement of
                      Satisfaction/Dissatisfaction,
                      Trust/Distrust, Willingness
                      to Recommend/Reputation
                      Destroyer

                      Explore actual case studies
                      with information you can
                      use
Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com
                                                                                4
The Revolution
                                    On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
                                    satisfied) tell us how satisfied you are with your train service.

     CSAT                       Very                                 Neither satisfied                          Very
                                Dissatisfied                         Nor Dissatisfied                           Satisfied


                                     1                  2                   3                4                       5




                                     On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
                                     satisfied) tell us how satisfied you are with your train service.

                                 Very                                 Neither satisfied                          Very
                                 Dissatisfied                         Nor Dissatisfied                           Satisfied


                                      1                  2                    3               4                       5


      ∆SAT                            On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means very
                                      dissatisfied) tell us how dissatisfied you are with your train service.

                                  Not at all                                                                      Very
                                  Dissatisfied                                                                    Dissatisfied


                                         1                  2                   3                4                       5



Beyond Philosophy © All rights reserved. 2001-2011     www.beyondphilosophy.com                                              5
DELTA VALUE
             WHY BOTHER?


Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   6
Why Satisfaction? the baseline KPI




                                                                    Source: Wikipedia




                  Turel, Ofir; Alexander Serenko (2006). "Satisfaction with mobile
                  services in Canada: An empirical investigation



Beyond Philosophy © All rights reserved. 2001-2011     www.beyondphilosophy.com         3
Why Satisfaction: the baseline for emotion (Kano)




Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   8
Four Problems with Satisfaction

               • It overestimates actual
                 satisfaction
               • It ever so slightly biases
                 towards positive answers
               • It does not take account of the
                 fact that we customers can be
                 happy and unhappy about
                 aspects of a product/ service at
                 the same time
               • It plateaus at the high end




Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   9
What makes for a good measure?


                     One that is psychologically valid i.e., covers the concept
                      in the mind of the consumer correctly not one that sounds
                      correct on paper or as a mathematical interpretation
                     One that covers the dimension in question adequately


                     Current measures are mathematically valid, not
                      psychologically valid




Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com      10
Looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied          Very
       Dissatisfied                                          Nor Dissatisfied           Satisfied


             1                                       2              3               4       5




Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                   11
Looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied          Very
       Dissatisfied                                          Nor Dissatisfied           Satisfied


             1                                       2              3               4       5




             Conceptually it is accepted that Customer Satisfaction has to be
             measured on a continuum that runs from very dissatisfied to very
             satisfied



Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                   12
Looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied             Very
       Dissatisfied                                          Nor Dissatisfied    3.5       Satisfied


             1                                       2              3                  4       5




Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                      13
Looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied             Very
       Dissatisfied                                          Nor Dissatisfied    3.5       Satisfied


             1                                       2              3                  4       5




            What is the psychological interpretation of this score? Does it
            adequately enable consideration of dissatisfaction, in the minds of
            the consumer! Does it enable consideration that things can be both
            at the same time? If not then it lacks validity, even though it maybe
            mathematically valid.


Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                      14
Delta Value: looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied             Very
       Dissatisfied                                          Nor Dissatisfied    3.5       Satisfied


             1                                       2              3                  4       5




Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                      15
Delta Value: looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                   Neither satisfied                           Very
       Dissatisfied                                           Nor Dissatisfied    3.5                     Satisfied


             1                                       2                3                 4                     5


                                                         Anchoring and adjustment is a psychological heuristic that
                                                         influences the way people intuitively assess probabilities.
                                                         According to this heuristic, people start with an implicitly
                                                         suggested reference point (the "anchor") and make
                                                         adjustments to it to reach their estimate.
                                                         The anchoring and adjustment heuristic was first theorized
                                                         by Amos Tversky and Daniel Kahneman. In one of their first
                                                         studies, the two showed that when asked to guess the
                                                         percentage of African nations which are members of the
                                                         United Nations, people who were first asked "Was it more or
                                                         less than 10%?" guessed lower values (25% on average)
                                                         than those who had been asked if it was more or less than
                                                         65% (45% on average).

Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                                     16
Delta Value: looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied                                Very
       Dissatisfied                                          Nor Dissatisfied    3.5                          Satisfied


             1                                       2              3                   4                         5




                                                                Okish



                            Platform                                                          Interior
                                                                                       Construal is a social psychological
                                                                                       term used to describe how a person
                                                             Memory                    perceives, comprehends, and
                                                             Construal                 interprets the world around him or
                                                                                       her,

Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                                         17
Delta Value: looking at Customer Satisfaction
            On a scale from 1-5, (where 1 means very dissatisfied and 5 means very
            satisfied) tell us how satisfied you are with your train service.

       Very                                                  Neither Satisfied                        Very
       Dissatisfied                                          Nor Dissatisfied    3.5                  Satisfied


             1                                       2              3                  4                  5




                                                                Okish



                            Platform                                                       Interior


               „I do not pull out dissatisfaction moments, but bland moments; the
               scale is a mathematical solution, not a psychological one.


Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                                 18
Delta Value: Unipolar solution
            On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means
            very dissatisfied) tell us how dissatisfied you are with your train service.

       Not at all                                                                       Very
       Dissatisfied                                                                     Dissatisfied


             1                                       2            3                 4       5




Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                      19
Delta Value
            On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means
            very dissatisfied) tell us how dissatisfied you are with your train service.

       Not at all                                                                                    Very
       Dissatisfied                                                                                  Dissatisfied


             1                                       2            3                 4                    5




                                                                      Poor



                             Very crowded                                           Rude inspector

                                                                 Memory
                                                                 Construal
                                                                 Changes
Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                                   20
Delta Value
            On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means
            very dissatisfied) tell us how dissatisfied you are with your train service.

       Not at all
       Dissatisfied
                                                     1.8                                               Very
                                                                                                       Dissatisfied


             1                                       2              3                 4                    5




                                                                        Poor



                             Very crowded                                             Rude inspector

                                                                   Memory
                                                                   Construal
                                                                   Changes
Beyond Philosophy © All rights reserved. 2001-2011         www.beyondphilosophy.com                                   21
Prospect Theory




         Losses speak louder than gains. Satisfaction is most sensitive to
         negative construals; ironically, a bi-polar scale mutes its effectiveness
         as a measure by failing to emphasis where losses occur.



Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com        22
Delta Value
            On a scale from 1-5, (where 1 means not at all Satisfied and 5 means
            very Satisfied) tell us how satisfied you are with your train service.

       Not at all
       Satisfied
                                                                             3.6                   Very
                                                                                                   Satisfied


             1                                       2            3                 4                  5




                                                                      OK



                              Slightly late                                             Interior


                                                                 Memory
                                                                 Construal

Beyond Philosophy © All rights reserved. 2001-2011       www.beyondphilosophy.com                              23
∆SAT vs. Traditional CSAT

                                                                    Which is a valid representation?

                     ∆SAT                            1.8



                     CSAT                            3.5




                           Delta values are applicable to all indicators
                           and change the resource allocation drivers.

Beyond Philosophy © All rights reserved. 2001-2011         www.beyondphilosophy.com                24
What if we just ask opinion?
               Not how satisfied but what do you think?



                                            Lazarus tells us how people can have a positive
                                            and negative response at the same time.




                                       “We argue that customers are simultaneously satisfied and
                                       dissatisfied and more over the relation of satisfaction and
                                       dissatisfaction forms a system of meaning upon with they
                                       draw and make behavioural decisions.”

                                       Paaige K. Turner, Robert L. Krizek
                                       Management Communication Quarterly, Volume 20, Number 2 (November 2006)




Beyond Philosophy © All rights reserved. 2001-2011     www.beyondphilosophy.com                                  25
Airport Screen



                                                                 Unhappy: can hardly see it

                                                                 Happy: flight is on time


                                                                 Now rate the Airport Screen Experience!

                                                                 Unhappy ___________Happy


               There is a problem of Phenomenology inherent in quantitative
               questioning i.e., it is always an artifice in may or may not capture
               the full conceptual representation of an object.



Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com                         26
The meanings


            X drives satisfaction                                A driver to satisfaction
            X does not drive dissatisfaction
            X drives satisfaction                                Example: parts of the call centre cause
            X drives dissatisfaction                             satisfaction, parts cause dissatisfaction
            X drives satisfaction                                A mega driver to satisfaction
            X reduces dissatisfaction
            X does not drive satisfaction                        No impact
            X does not drive dissatisfaction
            X does not drive satisfaction                        A driver to dissatisfaction
            X drives dissatisfaction
            X does not drive satisfaction                        A hygienic action
            X reduces dissatisfaction
            X reduces satisfaction                               Partioned experience: parts + and parts -
            X reduces dissatisfaction
            X reduces satisfaction                               A mega dissatisfier
            X drives dissatisfaction
            X reduces satisfaction                               A blandiser
            X does not drive dissatisfaction


Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com                                27
DELTA VALUE
             THE EVIDENCE


Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   28
Example: Fortune 500 Financial Services Company
                                                                                                       Statement
                                              Satisfaction      Dissatisfaction   Delta Satisfaction
             Experience                                                                                strongly drives
                                                PE= 49.2%          PE= 62.9%          PE= 51.2%        dissatisfaction -
                                                                                                       a destroyer of
                Usage                                0.29           -0.12               0.31           satisfaction not
                                                                                                       picked up
                                                                                                       normally
            Marketing                                0.09             ---                ---
                                                                                                       Marketing has
            Statement                                 ---            0.52               -0.28          no value

   Call Centre Experience                            -0.07            ---               -0.04          Usage and
                                                                                                       Complaints are
                                                                                                       even more
   Complaints experience                             0.36           -0.19               0.51
                                                                                                       important as
                                                                                                       active reducers
     Overseas call center                            -0.02            ---                ---           of dissatisfaction


Beyond Philosophy © All rights reserved. 2001-2011           www.beyondphilosophy.com                                       29
Example: Global Telecommunications Company
                                                                 Delta       Traditional      Delta     Variance under
      Factor Label          CSAT        Dissatisfaction                                                 Less investment   in
                                                              Satisfaction   Allocation    Allocation        Delta
                                                                                                        Customer Care,
                                                                             1             1
            Customer




                                                                                                        In-store and
              care




                              0.74             -0.33              1.07           44%           27%           -17%
                                                                                                        Network
               Joining




                               ---               ---               ---           0%            0%           0%
                                                                                                        Network both
                                                                                                        drives CSAT and
                                                                             2             2            Dissatisfaction
               In-store




                              -0.5              0.27              -0.77          30%           22%          -8%




                                                                                                        High investment in
                                                                                           3
            Advertising/
              Brand




                              0.09             -0.16              0.25           5%            13%      Product
                                                                                                            8%
                                                                                                        Experience
               Network




                              0.35              0.12              0.23       3   21%           10%
                                                                                                        Delta Satisfaction
                                                                                                            -11%
                                                                                                        actually predicts
                                                                                                        there will be 28%
                                                                             x             1
               Product




                               ---             -0.33              -0.33          0%            27%      less 27%
                                                                                                             return on
                                                                                                        Experience (RoX)

                                                               VARIANCE
                                CSAT          DELTA
Beyond Philosophy © All rights reserved. 2001-2011    CSAT   www.beyondphilosophy.com
                                                              UNDER DELTA                                              30
         TOTAL BY
To accurately allocate resources take proper account of the
              customer experience




Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   31
A valid picture is only achieved by understanding its
               opposite




                                                Customer Satisfaction
                                                Customer Dissatisfaction        ∆SAT

                                                Positive Word of Mouth
                                                                                ∆WOM
                                                Negative Word of Mouth

                                                Trust
                                                                                ∆Trust
                                                Distrust

Beyond Philosophy © All rights reserved. 2001-2011         www.beyondphilosophy.com      32
Managerial Implications


                Keep with your current Satisfaction,
                 Recommendation measures – you have
                 great longitudinal data

                Complement these with a clear
                 understanding of Satisfaction and
                 Dissatisfaction (or positive and negative
                 sides of your measures)

                Model in these Delta Values when making
                 resource decisions

                Analyse negative information (i.e., what
                 drives dissatisfaction) as an active
                 measure


Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   33
Don‟t just look at one side of the equation




Beyond Philosophy © All rights reserved. 2001-2011   www.beyondphilosophy.com   34
Thank You
Delta Value
Beyond Philosophy

Qaalfa.Dibeehi@beyondphilosophy.com
Chief Operating and Consulting Officer

Steven.Walden@beyondphilosophy.com
Senior Head of Research and Consulting

              www.beyondphilosophy.com

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Delta satisfaction how to avoid unintended bias when you research customer satisfaction

  • 1. Delta Satisfaction How To Avoid Unintended Bias When You Research Customer Satisfaction Beyond Philosophy Steven Walden, Senior Head of Research and Consulting Qaalfa Dibeehi, Chief Operating and Consulting Officer www.beyondphilosophy.com
  • 2. The Beyond Philosophy Perspective Customer Experience Thought leadership is New fourth book is all we do! our differentiator Is now available Offices in London, Atlanta with partners in Links with academia Focus on the emotional side of Europe & Asia Customer Experience Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 2
  • 3. We are Proud to Have Helped Some Great Organizations… Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 3
  • 4. Delta Value Learning Objectives Discover how dissatisfaction is hidden or being under-estimated Understand Anchoring bias and its implications Learn how Delta Value gives a more complete measurement of Satisfaction/Dissatisfaction, Trust/Distrust, Willingness to Recommend/Reputation Destroyer Explore actual case studies with information you can use Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 4
  • 5. The Revolution On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. CSAT Very Neither satisfied Very Dissatisfied Nor Dissatisfied Satisfied 1 2 3 4 5 On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither satisfied Very Dissatisfied Nor Dissatisfied Satisfied 1 2 3 4 5 ∆SAT On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means very dissatisfied) tell us how dissatisfied you are with your train service. Not at all Very Dissatisfied Dissatisfied 1 2 3 4 5 Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 5
  • 6. DELTA VALUE WHY BOTHER? Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 6
  • 7. Why Satisfaction? the baseline KPI Source: Wikipedia Turel, Ofir; Alexander Serenko (2006). "Satisfaction with mobile services in Canada: An empirical investigation Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 3
  • 8. Why Satisfaction: the baseline for emotion (Kano) Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 8
  • 9. Four Problems with Satisfaction • It overestimates actual satisfaction • It ever so slightly biases towards positive answers • It does not take account of the fact that we customers can be happy and unhappy about aspects of a product/ service at the same time • It plateaus at the high end Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 9
  • 10. What makes for a good measure?  One that is psychologically valid i.e., covers the concept in the mind of the consumer correctly not one that sounds correct on paper or as a mathematical interpretation  One that covers the dimension in question adequately  Current measures are mathematically valid, not psychologically valid Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 10
  • 11. Looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied Satisfied 1 2 3 4 5 Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 11
  • 12. Looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied Satisfied 1 2 3 4 5 Conceptually it is accepted that Customer Satisfaction has to be measured on a continuum that runs from very dissatisfied to very satisfied Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 12
  • 13. Looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied 3.5 Satisfied 1 2 3 4 5 Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 13
  • 14. Looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied 3.5 Satisfied 1 2 3 4 5 What is the psychological interpretation of this score? Does it adequately enable consideration of dissatisfaction, in the minds of the consumer! Does it enable consideration that things can be both at the same time? If not then it lacks validity, even though it maybe mathematically valid. Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 14
  • 15. Delta Value: looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied 3.5 Satisfied 1 2 3 4 5 Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 15
  • 16. Delta Value: looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither satisfied Very Dissatisfied Nor Dissatisfied 3.5 Satisfied 1 2 3 4 5 Anchoring and adjustment is a psychological heuristic that influences the way people intuitively assess probabilities. According to this heuristic, people start with an implicitly suggested reference point (the "anchor") and make adjustments to it to reach their estimate. The anchoring and adjustment heuristic was first theorized by Amos Tversky and Daniel Kahneman. In one of their first studies, the two showed that when asked to guess the percentage of African nations which are members of the United Nations, people who were first asked "Was it more or less than 10%?" guessed lower values (25% on average) than those who had been asked if it was more or less than 65% (45% on average). Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 16
  • 17. Delta Value: looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied 3.5 Satisfied 1 2 3 4 5 Okish Platform Interior Construal is a social psychological term used to describe how a person Memory perceives, comprehends, and Construal interprets the world around him or her, Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 17
  • 18. Delta Value: looking at Customer Satisfaction On a scale from 1-5, (where 1 means very dissatisfied and 5 means very satisfied) tell us how satisfied you are with your train service. Very Neither Satisfied Very Dissatisfied Nor Dissatisfied 3.5 Satisfied 1 2 3 4 5 Okish Platform Interior „I do not pull out dissatisfaction moments, but bland moments; the scale is a mathematical solution, not a psychological one. Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 18
  • 19. Delta Value: Unipolar solution On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means very dissatisfied) tell us how dissatisfied you are with your train service. Not at all Very Dissatisfied Dissatisfied 1 2 3 4 5 Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 19
  • 20. Delta Value On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means very dissatisfied) tell us how dissatisfied you are with your train service. Not at all Very Dissatisfied Dissatisfied 1 2 3 4 5 Poor Very crowded Rude inspector Memory Construal Changes Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 20
  • 21. Delta Value On a scale from 1-5, (where 1 means not at all dissatisfied and 5 means very dissatisfied) tell us how dissatisfied you are with your train service. Not at all Dissatisfied 1.8 Very Dissatisfied 1 2 3 4 5 Poor Very crowded Rude inspector Memory Construal Changes Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 21
  • 22. Prospect Theory Losses speak louder than gains. Satisfaction is most sensitive to negative construals; ironically, a bi-polar scale mutes its effectiveness as a measure by failing to emphasis where losses occur. Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 22
  • 23. Delta Value On a scale from 1-5, (where 1 means not at all Satisfied and 5 means very Satisfied) tell us how satisfied you are with your train service. Not at all Satisfied 3.6 Very Satisfied 1 2 3 4 5 OK Slightly late Interior Memory Construal Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 23
  • 24. ∆SAT vs. Traditional CSAT Which is a valid representation? ∆SAT 1.8 CSAT 3.5 Delta values are applicable to all indicators and change the resource allocation drivers. Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 24
  • 25. What if we just ask opinion? Not how satisfied but what do you think? Lazarus tells us how people can have a positive and negative response at the same time. “We argue that customers are simultaneously satisfied and dissatisfied and more over the relation of satisfaction and dissatisfaction forms a system of meaning upon with they draw and make behavioural decisions.” Paaige K. Turner, Robert L. Krizek Management Communication Quarterly, Volume 20, Number 2 (November 2006) Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 25
  • 26. Airport Screen Unhappy: can hardly see it Happy: flight is on time Now rate the Airport Screen Experience! Unhappy ___________Happy There is a problem of Phenomenology inherent in quantitative questioning i.e., it is always an artifice in may or may not capture the full conceptual representation of an object. Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 26
  • 27. The meanings X drives satisfaction A driver to satisfaction X does not drive dissatisfaction X drives satisfaction Example: parts of the call centre cause X drives dissatisfaction satisfaction, parts cause dissatisfaction X drives satisfaction A mega driver to satisfaction X reduces dissatisfaction X does not drive satisfaction No impact X does not drive dissatisfaction X does not drive satisfaction A driver to dissatisfaction X drives dissatisfaction X does not drive satisfaction A hygienic action X reduces dissatisfaction X reduces satisfaction Partioned experience: parts + and parts - X reduces dissatisfaction X reduces satisfaction A mega dissatisfier X drives dissatisfaction X reduces satisfaction A blandiser X does not drive dissatisfaction Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 27
  • 28. DELTA VALUE THE EVIDENCE Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 28
  • 29. Example: Fortune 500 Financial Services Company Statement Satisfaction Dissatisfaction Delta Satisfaction Experience strongly drives PE= 49.2% PE= 62.9% PE= 51.2% dissatisfaction - a destroyer of Usage 0.29 -0.12 0.31 satisfaction not picked up normally Marketing 0.09 --- --- Marketing has Statement --- 0.52 -0.28 no value Call Centre Experience -0.07 --- -0.04 Usage and Complaints are even more Complaints experience 0.36 -0.19 0.51 important as active reducers Overseas call center -0.02 --- --- of dissatisfaction Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 29
  • 30. Example: Global Telecommunications Company Delta Traditional Delta Variance under Factor Label CSAT Dissatisfaction Less investment in Satisfaction Allocation Allocation Delta Customer Care, 1 1 Customer In-store and care 0.74 -0.33 1.07 44% 27% -17% Network Joining --- --- --- 0% 0% 0% Network both drives CSAT and 2 2 Dissatisfaction In-store -0.5 0.27 -0.77 30% 22% -8% High investment in 3 Advertising/ Brand 0.09 -0.16 0.25 5% 13% Product 8% Experience Network 0.35 0.12 0.23 3 21% 10% Delta Satisfaction -11% actually predicts there will be 28% x 1 Product --- -0.33 -0.33 0% 27% less 27% return on Experience (RoX) VARIANCE CSAT DELTA Beyond Philosophy © All rights reserved. 2001-2011 CSAT www.beyondphilosophy.com UNDER DELTA 30 TOTAL BY
  • 31. To accurately allocate resources take proper account of the customer experience Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 31
  • 32. A valid picture is only achieved by understanding its opposite Customer Satisfaction Customer Dissatisfaction ∆SAT Positive Word of Mouth ∆WOM Negative Word of Mouth Trust ∆Trust Distrust Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 32
  • 33. Managerial Implications  Keep with your current Satisfaction, Recommendation measures – you have great longitudinal data  Complement these with a clear understanding of Satisfaction and Dissatisfaction (or positive and negative sides of your measures)  Model in these Delta Values when making resource decisions  Analyse negative information (i.e., what drives dissatisfaction) as an active measure Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 33
  • 34. Don‟t just look at one side of the equation Beyond Philosophy © All rights reserved. 2001-2011 www.beyondphilosophy.com 34
  • 35. Thank You Delta Value Beyond Philosophy Qaalfa.Dibeehi@beyondphilosophy.com Chief Operating and Consulting Officer Steven.Walden@beyondphilosophy.com Senior Head of Research and Consulting www.beyondphilosophy.com