Putting South Africa’s competitive customer
satisfaction market on the global map
through SAcsi
Reshmi
Maharaj
Global Customer Satisfaction
Online survey with random sample of consumers aged 18+
USA Canada Mexico France Germany Italy UK Netherlands Australia Ind...
Evolution…
TQM SERVQU
AL
CEMCR
M1950s 1984 1995 2003
Customer Satisfaction
Is Customer Experience
the new Customer
Satisfaction?
Q:
“The literature in marketing, retailing and
service management historically has NOT
considered customer experience as a
se...
Where Brand gives the promise, CEM is the
physical delivery of that promise and is vital in
an economy where a brand is in...
Customer Experience in Perspective
Brand
Customer
Experience
Management
Making
Promises
Enabling
Promises
Keeping
Promises
The Myth of Customer Loyalty
Customer Satisfaction is “worthless”, but
Loyalty is “priceless”
Customer Loyalty without Satisfaction is a
contradiction of the basic mechanics of the
free market system, and violates th...
Satisfaction vs. Loyalty
The South African Reality
The South African Customer Satisfaction Index is a
national economic indicator of customer evaluations
of the quality of p...
Source: FCI Group., 2007b. The American Customer Satisfaction Index (ACSI) Technology: A
Methodological Primer. pp.1–37.
P...
Some ACSI findings over the past 16 years
CS is a leading indicator of financial performance
Changes in CS affect the gene...
Satisfaction drives Value
Average Market Value Added (MVA): High and Low ACSI Frims
Source: FCI Group., 2007b. The America...
Creating a National Index with the Global
Leader
Mexico
Columbia
United Kingdom Sweden
Turkey
Korea
Malaysia
Singapore
Dom...
What will SAcsi do for YOU?
Economic
Returns
Economic
Stability
Economic
Link Economic
Welfare
Economic
Output
SAcsi Model – a trusted science
• Satisfaction
• Comparison w/ Ideal
• Confirm/Disconfirm
Expectations
• Repurchase Likeli...
SAcsi Governance
Founding Sponsors
Board of Advisors
Academic Support
Data collection
Global Partnership
License
CCRM
Prof...
SAcsi has taken off…
2014
The entire South
African economy
with all its 48
Industries
The Future
Q1 2013
Petroleum Service...
A snapshot of some results
Net Promoter Score
Industry Growth Inclination
4%
2% 2% 2%
3%
8%
5% 7%
12% 10%
45%
-10%
0%
10%
20%
30%
40%
50%
0 1 2 3 4 5 6 7 8 9 10
Likelih...
Satisfaction relative to growth
0%
10%
20%
30%
40%
50%
0 1 2 3 4 5 6 7 8 9 10
Score Given on a 0 - 10 Point Scale
Likeliho...
CENTIMent index
Great
Good
OK
Fair
Bad
The CENTIMent index is based on an open ended
verbatim question, simply asking resp...
Contextualising CENTIMent Index
-1.35
-1.51
-1.3
-0.27
-0.11
0.27
0.5
1.02
1.89 1.9
2.12
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5...
“MTN, FNB claim top
spots in customer
satisfaction index”
“Making the world a less irritable
and more profitable place, th...
We’re now on the map!
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ICEW 2013 Reshmi Maharaj - Putting SAs competitive customer satisfaction market on the global scorecard

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The rapidly developing economy of South Africa has many lessons to offer the rest of the world, especially in the field of customer experience. Now, with the establishment of the South African Customer Satisfaction Index (SAcsi), South African companies are able to showcase their customer satisfaction abilities to the world.

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  • What is the Csat world now?
  • Long-term customer relationships are characterized by efficiency, low risk and predictable income. Sellers compete for buyers’ preference and satisfaction. Winners are rewarded by lower cost and lower risk by returning customers
  • Satisfaction has a STRONGER effect on financial performance than Loyalty. Reason: the increased revenue generated by improved loyalty is not offset by the higher costs of the Loyalty programs (unless generated by customer satisfaction) – e.g. Frequent flyers being members at all frequent flyer loyalty programsP(Repeat business by Satisfied customer) > P(Repeat business by Dissatisfied customer)Loyalty is different – it is a behaviour and thus a consequence of satisfactionSellers can manage causes NOT consequencesLoyalty is a consequence of:Customer SatisfactionSwitching barriers from one supplier to anotherPrice
  • The realities of our current economy present challenges forpolicymakers, businesses, and consumers alike, as markets reachbeyond borders and across cultures. The South African CustomerSatisfaction Index (SAcsi) has emerged in response to the need for aNational Customer Satisfaction Index in the South African economy.
  • SAcsiistheonlyorganisationinSouthAfricawhichholdsalicencefromAmericanCustomerSatisfactionIndex(ACSI).SAcsisupplementstraditionalmeasuresofeconomicoutputwithadefinitiveandscientificallyprovenmeasureofcustomersatisfaction.
  • Satisfaction has a STRONGER effect on financial performance than Loyalty. Reason: the increased revenue generated by improved loyalty is not offset by the higher costs of the Loyalty programs (unless generated by customer satisfaction) – e.g. Frequent flyers being members at all frequent flyer loyalty programsP(Repeat business by Satisfied customer) > P(Repeat business by Dissatisfied customer)Loyalty is different – it is a behaviour and thus a consequence of satisfactionSellers can manage causes NOT consequencesLoyalty is a consequence of:Customer SatisfactionSwitching barriers from one supplier to anotherPrice
  • Economic returns: Possible to link customer satisfaction to economic returns via correlation with financial performance indices.Economic stability: Help determine what percentage of price increases represent quality improvement and what are caused by inflation.Economic link: Link between the quality of economic output and productivity measuresEconomic welfare: An indication of economic well being.Economic output: Quantifies the value that customers place on products and services & driving quality improvement.
  • Satisfaction has a STRONGER effect on financial performance than Loyalty. Reason: the increased revenue generated by improved loyalty is not offset by the higher costs of the Loyalty programs (unless generated by customer satisfaction) – e.g. Frequent flyers being members at all frequent flyer loyalty programsP(Repeat business by Satisfied customer) > P(Repeat business by Dissatisfied customer)Loyalty is different – it is a behaviour and thus a consequence of satisfactionSellers can manage causes NOT consequencesLoyalty is a consequence of:Customer SatisfactionSwitching barriers from one supplier to anotherPrice
  • Centre fro Communication and Reputation Management
  • ICEW 2013 Reshmi Maharaj - Putting SAs competitive customer satisfaction market on the global scorecard

    1. 1. Putting South Africa’s competitive customer satisfaction market on the global map through SAcsi Reshmi Maharaj
    2. 2. Global Customer Satisfaction
    3. 3. Online survey with random sample of consumers aged 18+ USA Canada Mexico France Germany Italy UK Netherlands Australia India 1018 1060 1002 1001 1000 1000 1016 1007 1021 1002 2011 Global Customer Service Barometer - Amex
    4. 4. Evolution… TQM SERVQU AL CEMCR M1950s 1984 1995 2003 Customer Satisfaction
    5. 5. Is Customer Experience the new Customer Satisfaction? Q:
    6. 6. “The literature in marketing, retailing and service management historically has NOT considered customer experience as a separate construct. Instead researchers have focused on measuring customer satisfaction and service quality.” Source: Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros and Leonard A. Schlesinger (2009), “Customer Experience Creation: Determinants, Dynamics and Management Strategies,” Journal of Retailing, 85 (1), 31–41 A:
    7. 7. Where Brand gives the promise, CEM is the physical delivery of that promise and is vital in an economy where a brand is increasingly built on value delivered rather than product features Customer Experience in Perspective
    8. 8. Customer Experience in Perspective Brand Customer Experience Management Making Promises Enabling Promises Keeping Promises
    9. 9. The Myth of Customer Loyalty Customer Satisfaction is “worthless”, but Loyalty is “priceless”
    10. 10. Customer Loyalty without Satisfaction is a contradiction of the basic mechanics of the free market system, and violates the cause- and-effect relationship between satisfaction and loyalty The Myth of Customer Loyalty
    11. 11. Satisfaction vs. Loyalty
    12. 12. The South African Reality
    13. 13. The South African Customer Satisfaction Index is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in South Africa
    14. 14. Source: FCI Group., 2007b. The American Customer Satisfaction Index (ACSI) Technology: A Methodological Primer. pp.1–37. Perceived Overall Quality Customer Expectations Perceived Value Customer Satisfaction (ACSI) Customer Complaints Customer Loyalty Created the National Index with the Global Leader
    15. 15. Some ACSI findings over the past 16 years CS is a leading indicator of financial performance Changes in CS affect the general willingness to buy Changes in CS correlate with changes in GDP growth Quality plays a more important role than price
    16. 16. Satisfaction drives Value Average Market Value Added (MVA): High and Low ACSI Frims Source: FCI Group., 2007b. The American Customer Satisfaction Index (ACSI) Technology: A Methodological Primer. pp.1–37.
    17. 17. Creating a National Index with the Global Leader Mexico Columbia United Kingdom Sweden Turkey Korea Malaysia Singapore Dominican Republic
    18. 18. What will SAcsi do for YOU? Economic Returns Economic Stability Economic Link Economic Welfare Economic Output
    19. 19. SAcsi Model – a trusted science • Satisfaction • Comparison w/ Ideal • Confirm/Disconfirm Expectations • Repurchase Likelihood • Price Tolerance (Reservation Price) • Overall • Customization • Reliability • Overall • Customization • Reliability • Price Given Quality • Quality Given Price • Complaint Behavior Perceived Overall Quality Customer Expectations Perceived Value Customer Satisfaction (SAcsi) Customer Complaints Customer Loyalty
    20. 20. SAcsi Governance Founding Sponsors Board of Advisors Academic Support Data collection Global Partnership License CCRM Prof. Y Jordaan Prof. A. Schreuder Subscribers Non-subscribers
    21. 21. SAcsi has taken off… 2014 The entire South African economy with all its 48 Industries The Future Q1 2013 Petroleum Service Stations Airlines Fast Food Outlets Health Insurance Mobile Handsets Supermarkets In Process Q4 2012 Mobile Telecoms Networks Mobile Telecoms Stores Banking Gaming Life Insurance Short-term insurance Done
    22. 22. A snapshot of some results
    23. 23. Net Promoter Score
    24. 24. Industry Growth Inclination 4% 2% 2% 2% 3% 8% 5% 7% 12% 10% 45% -10% 0% 10% 20% 30% 40% 50% 0 1 2 3 4 5 6 7 8 9 10 Likelihood to purchase additional products and/or services Growth inclination is an indictor of customers’ apatite for more products and/or services from the specific company under evaluation. The measure is based on the following question, and rated on a 0 – 10 point scale: “How likely is it that you would use / purchase additional products and services from (brand/company)?” From the figures, we can surmise that there is a relatively large apatite for more offerings.
    25. 25. Satisfaction relative to growth 0% 10% 20% 30% 40% 50% 0 1 2 3 4 5 6 7 8 9 10 Score Given on a 0 - 10 Point Scale Likelihood to purchase additional products and/or services Overall Satisfaction Score Whilst there is little differentiation on a SAcsi level (Satisfaction Index) between the 3 companies measured, the above trend clearly illustrates the importance of keeping one's customers satisfied. The trend illustrates that the more satisfied a customer is, the greater their apatite for additional products and services. Furthermore, the overall industry trend shown above is in line with the individual company trends.
    26. 26. CENTIMent index Great Good OK Fair Bad The CENTIMent index is based on an open ended verbatim question, simply asking respondents to relay the experiences that they have had with a company. The question is kept as open and non-specific as possible in order to solicit a wide variety of responses The index is powered by the Clarabridge Sentiment Scoring engine, which automatically understands negation, conditional sentiment, and other linguistic nuances to provide an accurate context. It uses advanced linguistic algorithms to determine and index evidence of sentiment and tone in customer comments. The sentiment score is indexed on a normalized minus five (-5) to plus five (+5) scale. The higher the score, the greater positive sentiment.
    27. 27. Contextualising CENTIMent Index -1.35 -1.51 -1.3 -0.27 -0.11 0.27 0.5 1.02 1.89 1.9 2.12 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 0% 10% 20% 30% 40% 0 1 2 3 4 5 6 7 8 9 10 Overall Satisfaction Score Given Overall Satisfaction Score Sentiment Score Poly. (Overall Satisfaction Score) *A similar trend is observed across all the companies measured
    28. 28. “MTN, FNB claim top spots in customer satisfaction index” “Making the world a less irritable and more profitable place, the SAcsi has arrived with key insights into our mobile and banking industries”
    29. 29. We’re now on the map!

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