How (not) to measure customer satisfaction as an internal IT service provider

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How (not) to measure customer satisfaction as an internal IT service provider Martina Holubcova Manager of Service Management Office M.Holubcova@mmu.ac.uk Twitter @holubcovka

My fascination with Customer Satisfaction started here A real-life Hospital experience The NHS Friends and Family Test Accident & Emergency Customer Satisfaction Survey Based on the Net Promoter Score Methodology How likely are you to recommend our service to friends and family if they needed similar care or treatment? Is this appropriate? Inappropriate for time-critical services Inappropriate for location-specific services What other options do I have? And the results? How do they use them? Can they lead to service improvement?

My fascination with Customer Satisfaction started here So how do we measure Customer Satisfaction? Looking around Organisations publicise satisfaction scores Use complex ways of presenting But No standardised way of measuring Data not easily comparable Many reports talk about profit and loyalty but what about internal IT? Where to go for guidance? ITIL has no answer

And so the research began The Work: 600 Hours 5 Months Interviewed 8 University IT Departments 100s of books, journals, research papers The Aim: Challenge the popularity of the Net Promoter Score This presentation explains what I learned

Internal service providers with internal customers How does the Internal IT Department affect the organisation? There is a clear link Internal Customer Satisfaction Internal Effectiveness External Customer Satisfaction Resulting Profit

Internal service providers with internal customers How does the Internal IT Department affect the organisation? There is a clear link And as a result It can be a reinforcing cycle Happy customers will make happier employees Therefore Internal IT Service Providers must drive Internal Customer Satisfaction for the benefit of the entire organisation Internal Customer Satisfaction External Customer Satisfaction Internal Effectiveness

The Power of Feedback What is the role of feedback in improving Customer Satisfaction? Gap 5: The Service Gap Ultimate source of dissatisfaction Feedback helps us understand and close the gap Need qualitative feedback Of little benefit: Exceeding customer expectations Investing in the wow factor Delighting customers Big Benefit: Focus on meeting expectations Simply closing Gap 5 Importance of Feedback: Beware Self-rating bias Customer Feedback breaks this bias Internal Customer Internal Provider 1 Expectation 5 Perception Delivery 3 Design 2 4 Communications 4 Understanding The 5 Gap Model of Service Quality

Customer Satisfaction Feedback What types of Customer Satisfaction surveys are there? Survey Types: Service encounter survey continuous Overall service survey periodic One-off event-driven or project-related survey Research Focus: Service encounter satisfaction measurement Most relevant to Service Desks Each ticket is a service encounter Every ticket an opportunity for good customer service experience Methodologies examined in depth: 1. Net Promoter Score 2. Customer Effort Score 3. Customer Satisfaction Index Each is different Very different questions Variety of channels Range of formats

Net Promoter Score (NPS) How does it work? Ask only one killer question! Question: How likely is it that you would recommend us to a friend or colleague? Divide all responses into three groups Respondents mark on a 0 to 10 Scale Highly Unlikely to Highly Likely Net Promoter Score = %Promoters %Detractors = +8% Detractors 0 1 2 3 4 5 6 7 8 9 10 Passives Detractors Passives Promoters Promoters

Net Promoter Score Benefits: Simple to run and analyse Scale starts with 0 an internationally understood negative It is used widely in many industries so comparable across organisations Watch out for: Impossible to classify human beings into three categories Cannot be used for improvement without further qualitative questions Useful KPI if you are Apple or Uber but in single-supplier situations, recommend to whom? If you are the internal IT Provider what other options do customers have?

Customer Effort Score (CES) How does it work? Ask only one question: To what extent do you agree with the following statement: The [company] made it easy for me to handle my issue. Respondents mark on a seven point scale Strongly Disagree to Strongly Agree Customer Effort Score = Average of all scores Strongly Disagree 1 Disagree 2 Somewhat Disagree 3 Neutral 4 Somewhat Agree 5 Agree 6 Strongly Agree 7

Customer Effort Score Increasing customer productivity by reducing: Duplication of effort Complexity No need to impress me, Number of follow-up calls just help me do Escalations my job Pre-empting future issues Benefits: Make service delivery easier Reduce cost for the whole organisation Suitable for internal IT departments Simple number that can be monitored for trends Watch-out for: Need follow-up qualitative questions to be useful Research is still largely based on loyalty There is no single-question silver bullet different types of feedback are still necessary

Customer Satisfaction Index (CSAT) Importance to Customer High Focus improvement effort Existing strength and best practice How does it work? Ask two questions about each service element: How Important is this to you? How satisfied are you with it? Plot Performance against Importance Apply effort according to identified quadrant Low Make small improvements Low Perceived Performance Potential waste of effort High Watch out for: More suitable for one-off or periodic surveys Identify most critical elements Weights the result

Examples of Benchmarking TechQual+: IT Departments in universities around the world now have a shared measurement of service quality, based on SERVQUAL Based on 13 identical questions and a few individual questions Calculates the difference between: Minimum service expectations Desired expectations Actual service received Opens opportunity for: Cross-sector collaboration Discussion on improvements Knowledge-sharing Customer Satisfaction Index: UK, Europe, and US now publicise sector-wide reports on customer satisfaction performance and feedback

Techniques for Gathering Feedback Combine all three customer satisfaction surveys Ticket based, overall, project based Customer journey mapping using new employees Focus groups with customer stakeholders detailed qualitative feedback Smiley face kiosks Follow-up on customer complaints After a cool-down period How happy are you with how we ve handled your complaint? Invite customers who complained to improvement workshops Listen to frontline staff

Survey Fatigue We live in an age of Survey overload. Survey Fatigue is an issue Significantly reduces response rate Some organisations banning internal surveys Work with other departments and business units Ensure you are not over-surveying the same customers Make your surveys fun, simple and quick Incentivise responses Do not make them mandatory

Continuous Improvement The underlying need for customer satisfaction Measuring customer satisfaction isn t the goal... It s the start of a continuous improvement journey Don t just measure it Improve it Particularly important for internal service providers Because you can improve productivity and efficiency of the whole organisation It s not just about Wow moments, or Delight for customers Then publicise what you improved E.g. set-up You Said, We Did pages

Don t forget to look at the bigger picture Management commitment is essential But obsession is detrimental It leads to ridiculous situations E.g. hospitals asking people with serious trauma if they would recommend the hospital to friends and family Or this train company in Manchester Hitting their very low targets

Don t forget to look at the bigger picture Customer Satisfaction KPI is important to track progress but it is not the end goal Customer satisfaction cannot be reduced to a single number It s a complex, psychological, subjective, human measure Look at the bigger picture Look out for qualitative feedback E.g. 6 hour downtime on our core systems

Further information The Higher Education TechQual+ Project https://www.techqual.org/ Customer satisfaction reports (UK and Europe) https://www.instituteofcustomerservice.com/rese arch-insight/research-library Want to chat about customer satisfaction? Get in touch! Email: M.Holubcova@mmu.ac.uk Twitter: @holubcovka