Satisfaction for Motor Vehicles sub-sector drops; nationwide survey in Q1 shows Singaporeans are getting more vocal
Singapore, 22 May 2012 (Tuesday) – The Institute of Service Excellence at the Singapore Management University (ISES) ( 卓越服 务 研究所 ) today released the 2012 first quarter (Q1) Customer Satisfaction Index of Singapore (CSISG) results for the Info-Communications and Retail sectors.
Between 2011 and 2012, customer satisfaction for the Info-Communications sector rose by 1.6-points to 65.9-points (on a 0 to 100 scale). This significant 2.5% improvement reverses the downward trend the sector experienced since tracking began in 2007.
The Retail sector saw its satisfaction score dip 1.5-points (-2.1%) to 69.1-points, negating some of the strong gains it made in the two previous years. This fall was solely due to the performance of the Motor Vehicles sub-sector, which saw a significant 4.2-point (-5.7%) decrease to 69.0-points.
The only other Retail sub-sector with a statistically significant change came from the Petrol Service Stations sub-sector, improving 1.7-points (+2.4%) to 68.7-points. Apart from notable variations in the Petrol Service Stations and Motor Vehicles sub-sectors, collectively the rest of the sub-sectors within the Retail sector saw no significant change in customer satisfaction. The sub-sectors of Retail sector include, Clocks & Watches, Departmental Stores, Fashion Apparels, Furniture, Jewellery, and Supermarkets.
Within the Info-Communications sector, the individual improvements experienced by the three telcos collectively contributed to a significant improvement in satisfaction from 2011.
The Telecommunications sub-sector led these improvements, gaining 1.8-points (+2.8%) year-on-year to 66.3-points. In particular, M1's customers were the most satisfied of the three, improving by 2.7-points (+4.1%) to 68.0-points. This helped push Singapore's smallest telco's CSISG score to top the Telecommunications sub-sector.
Ms Caroline Lim ( 林 晓 玲 ), Director ( 总监 ), ISES said, “The strong satisfaction improvements we are witnessing in Info-communications is very promising as this bucks the sector's downward scoring trend since tracking began in 2007.”
The nationwide CSISG study also revealed that respondents surveyed in Q1 from the Info-Communications and Retail sectors were becoming increasingly vocal. The Retail sector's Complaint Rate rose from 1.3% in 2010, to 1.5% in 2011 and 2.7% in the CSISG 2012 survey. The Info-Communications sector saw an even higher surge in complaints, from 6.2% in 2010, to 9.1% in 2011 and 16.3% in 2012.
Assistant Professor of Marketing (Practice) Marcus Lee ( 李德 发 ), Academic Director ( 学 术总监 ), ISES said, “Customer complaints can be an invaluable source of business intelligence for companies that react positively to them. Not only do these complaints allow a company to close the feedback loop, they also save otherwise-disgruntled customers from defecting to its competitor, and provide an opportunity for the company to review processes that have not been delivered as planned.”
Other CSISG complaint metrics, specifically customers that had something to complain about but did not complain because they did not see a point or the perception that it was too difficult, also saw significant increases in both sectors measured in Q1. The average consumer in these sectors was also significantly more likely to complain to their family and friends in 2012 as compared to 2011.
“While it is always a challenge to address customer complaints not directed through a company's traditional feedback channels, it does not mean it should not be dealt with. Although the advent of social media and the Web has made individual complaints louder, the Internet cuts both ways and companies can harness online communication platforms as effective customer relationship channels,” said Assistant Professor Lee.
Ms Caroline Lim added, “Our CSISG data has consistently shown that addressing customer complaints well will always result in customers who are as satisfied as, if not more satisfied than, those who did not have any complaints. Hence, companies should remove any negativity that surrounds high levels of complaints and instead encourage a culture of welcoming feedback and putting the focus on handling such feedback well”.
The CSISG 2012 Q1 survey was conducted between January and March 2012. This door-to-door survey consisted of 8,184 questionnaires about customer experiences in the Info-Communications and Retail sectors.
Please refer to Annex A for a background on the CSISG and the 2012 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
The Institute of Service Excellence at the Singapore Management University (ISES) is the cornerstone of an initiative to raise Singapore's service standards and promote a culture of service excellence. Working in close collaboration with government agencies and business leaders, ISES champions service excellence through an integrated approach that encompasses benchmarking and analysis, research and thought leadership, and industry engagement.