Singapore, 31 October 2011 (Monday) – The Institute of Service Excellence at the Singapore Management University (ISES) ( 卓越服务研究所 ) announced the third quarter release of the Customer Satisfaction Index of Singapore (CSISG) 2011 for the Food and Beverage, and Tourism sectors.
Both sectors made consecutive year-on-year improvements to their CSISG score. The Food & Beverage sector scored 67.5-points (on a 0 to 100 scale) while satisfaction in the Tourism sector rose to 73.5-points. These are significant 3.7 and 6 per cent improvements, respectively, over 2010.
The Food & Beverage sector made significant improvements through all of its associated sub-sectors, with Fast Food Restaurants making the largest improvement of 5.2-points (+8.3%) to score 67.6-points, year-on-year. Notably, the Restaurants sub-sector outperformed the Sector score, improving 1.9-points to score 68.4-points.
Within the sub-sectors, there were a few outstanding companies. Coffee Bean outperformed the Cafés sub-sector. It made a significant 8.8-point (+14.5%) improvement to score 69.7-points. RE&S and Tung Lok Group also outperformed their Restaurant sub-sector, making impressive 11.2% and 8.4% year-on-year gains, to score 70.6 and 70.7-points, respectively.
Leading the improvements in the Fast Food Restaurants sub-sector is Burger King; it posted an impressive 8.3-point (+13.4%) increase to score 70.3-points.
In the F&B Restaurants sub-sector, RE&S made the largest satisfaction improvements. This strong showing is reflected in their touchpoint results, where the company outscored its peers in several aspects such as reservations and seating.
The Tourism sector saw some changes to its measured companies. Wildlife Reserves is split into its three constituent attractions: Singapore Zoo, Night Safari, and Jurong Bird Park. Universal Studios Singapore (USS) is now a constituent company in the Attractions sub-sector while the Underwater World attraction was subsumed into Sentosa as another attraction on the island.
Within the Tourism sector, the Travel Agencies sub-sector experienced the largest year-on-year movement, improving 6.7-points (+10.3%) to score 71.5-points. The Attractions sub-sector follows closely behind with a 5.0-point (+7.1%) improvement to score 75.3-points. However, the Hotels sub-sector did not register a significant change at 74.5-points.
The improvement in the Attractions sub-sector is notable in that this is the first time their CSISG score is on par with that of the Hotels sub-sector.
The Hotels sub-sector, while not making a significant change in their CSISG score this year, should be highlighted for the impressive satisfaction scores the measured companies garner. Topping the hotels sub-sector, and the 2011 CSISG so far, is The Ritz-Carlton, scoring 81.3-points; its peers in the sub-sector – Shangri-La, Grand Hyatt, Mandarin Orchard, and Swissotel Stamford, are not far behind.
Tourists experienced larger year-on-year increase than the Locals. Overall, Tourists were 6.5% more satisfied year-on-year, compared to Locals' 5.1% improvement.
Within the Attractions sub-sector, USS consistently outscored its peers on most touchpoints. As touchpoints drive quality, which is in turn a major driver of satisfaction, USS' strong debut on this year's index can be partially attributed to these touchpoints' performance, such as navigating around the theme park and its staff knowledge.
Predictive analysis of the measured companies and sub-sectors in the F&B and Tourism sectors suggests that it is generally recommended to improve quality and expectations in tandem.
Assistant Professor of Marketing (Practice) Marcus Lee (李德 发), Academic Director (学 术总监), ISES said, “Empirical analysis shows that using value, like price discounts, is becoming a less effective customer retention tool. This is particularly pronounced in the F&B sector.”
He adds: “Past price promotions have conditioned consumers to be more sensitive to future price hikes. Instead, a more sustainable approach to raising customer loyalty, like quality improvements, should be used”.
Ms Caroline Lim ( 林 晓 玲), Director ( 总监), ISES said, “The CSISG survey results on the F&B and Tourism sectors show that using value alone is not an effective driver of Customer Satisfaction.”
“Successful companies raise satisfaction by incorporating an extensive and holistic approach. This may include aligning its brand promise to customer offerings, and designing and implementing mutually reinforcing customer and employee management systems”.
The CSISG 3rd quarter survey was conducted in July and August 2011.
Please refer to Annex A for a background on the CSISG and the 2011 Q3 Study, and Annex B for the detailed scores.
About the Customer Satisfaction Index of Singapore (CSISG)
The CSISG is an annual benchmark of customer satisfaction, covering nine key economic sectors in Singapore. The index has a quarterly measure-and-release cycle, covering up to three industry sectors each time. The CSISG serves as an objective barometer of service competiveness across countries, industry sectors, sub-sectors and companies. Companies can tap on the detailed CSISG reports and its unique cross-industry comparison capability to make strategic business decisions.
About the Institute of Service Excellence at SMU