Return on Information | Consumer Product and Service Industry

Vol. 3, No. 2
June 2003


Contents

A Word from the Editors

CASRO and CMOR

Effective Communication Improves Customer Service

Customer Satisfaction and Quality

About M. Davis and Company

What's New...

Morris R. Davis, CASRO Board Member and CMOR Task Force Co-Chair
Full Story

In This Issue...

Effective Communication Improves Customer Service
Good communication is the core of effective performance management and is key to achieving customer satisfaction.
Full Story

Customer Satisfaction and Quality
Full Story

About M. Davis and Company, Inc.
M. Davis and Company, Inc., is a market research and consulting firm that provides complete services from project conception through implementation. We aim to ensure that our clients receive a high return on information (ROInfo™) by employing our unique perspective and market insights.
Full Story

A Word from the Editors

Today's environment requires both public and private sector executives to make significant decisions in a timely manner, using the best market research information available. Decision makers must have high returns on the information provided. It is our aim at M. Davis and Company, Inc. to provide government agency executives a product — high return on information (ROInfo™) — that most effectively identifies challenges facing their organizations and best solutions to those challenges.

ROInfo™, through the use of a range of research methods and techniques, program designs and monitoring tools, provides clients with critical information in real time. This timely presentation of critical performance information improves executive decision making and organizational performance.

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CASRO and CMOR

CONGRATULATIONS to Morris R. Davis, President and Founder of M. Davis and Company, Inc. He was recently elected as a Board Member and Officer of (1) The Council of American Survey Research Organizations (CASRO), as well as co-chairing and playing a lead role in (2) The Council for Marketing and Opinion Research (CMOR) Task Force.

Officers of the 2003 CASRO Board of Directors
2002 Secretary Morris R. Davis (M. Davis and Company, Inc.), 2003 Board Chair Paul A. Talmey (Talmey-Drake Research & Strategy, Inc.), CASRO President Diane K. Bowers, 2003 Treasurer Dale S. Lersch (PERT Survey Research), and 2003 Chair-Elect Simon Chadwick (NOP World).

(1) The Council of American Survey Research Organizations (CASRO) is the trade association of survey research businesses, representing nearly 200 companies and research operations in the United States, Canada, and Mexico.

CASRO works to fully serve its members, the industry and the public. Our volunteer committees are: Annual Conference, Benchmarking Best Practices, CASRO University, Financial/Compensation/Internet Research Survey, Global Liaison, Government and Legal Affairs, Guidelines and Practices, Marketing and Communications, Membership Services, Past Chairs Council, Publications, Standards, and Technology. We have sets of guidelines that address business practices in general as well as specific aspects of the survey research process, such as data collection, data processing, and reporting survey results. For most of our history, we have served as the watchdog for any proposed changes in government regulations or legislation that could affect the research industry. And, importantly, we are now working with other industry associations to coordinate industry supported initiatives in the areas of government affairs, respondent cooperation, assessing client needs from research, education and training, and professional and industry identity.

One major common ground for all CASRO members is the belief in the value and necessity of survey research in today's world. Whether it is research standards, business ethics and practices or research processes, CASRO mandates its members to respect the public's rights to confidentiality and privacy as well as encourage its members to offer their clients the highest quality of service, and to grow their employees' skills and proficiencies. To find out more about CASRO, please visit their website at: www.casro.org.

(2) CMOR was established as The Council for Marketing & Opinion Research in 1992 by four major marketing and market & opinion research trade associations:

American Marketing Association (AMA)
Advertising Research Foundation (ARF)
Council of American Survey Research Organizations (CASRO)
Marketing Research Association (MRA)

These associations have been joined by more than 150 corporations and organizations that conduct and/or use marketing and opinion research. Together, under the CMOR umbrella and leadership, we work to further the acceptance of marketing and opinion research by the public and the government, through education, lobbying, and providing legislative support to prevent abuses of the research process.

CMOR also designs and implements programs that help ensure improved access to consumers, so that respondent awareness of the value of research increases and respondent cooperation rates improve. To find out more about CMOR, please visit their website at: www.cmor.org.

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Effective Communication Improves Customer Service

Good communication is the core of effective performance management and is key to achieving customer satisfaction. Examples of good customer-focused communication practices include:

  • obtaining feedback from customers on their needs and assessing their satisfaction with organizational performance;
  • informing employees and customers of organizational goals; and
  • providing feedback on organizational performance to employees and customers.

The National Partnership Council recognized several organizations for achieving organizational goals through partnerships and through using effective communication methods.

Overton Brooks Veterans Affairs (VA) Medical Center
Defense Contract Management Command (DCMC)

In particular, these organizations:

  • established and communicated results-oriented, customer-focused measures; and
  • collected, analyzed, published, and used customer feedback.

Overton Brooks Veterans Affairs (VA) Medical Center
The VA Center annually surveys its customers to track their satisfaction with its medical services. The Center also communicates its objectives and achievements with both internal and external customers via newsletters, internal forums, and community outreach programs. The Center uses partnership teams to plan and coordinate these activities. As a result of these and other efforts, the Center almost doubled the number of patients seen daily per provider, reduced the number of bed days of care by 50 percent, and increased follow-up care of mental health patients by 40 percent.

Defense Contract Management Command (DCMC)
DCMC welcomes frequent and informal feedback from customers and electronically posts its progress on performance objectives each month for both internal and external customers to view. Using a “post card trailer” to assess customer satisfaction, DCMC focused on becoming a “whatever it takes” organization. As a consequence, DCMC increased productivity, saved over $864,000, and improved its customer satisfaction rating to 5.8 on a 6.0 scale. Their Labor Management Council supports these efforts to become a “world class” customer service organization even while facing a 20 percent reduction in manpower and a 100 percent increase in workload.

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Customer Satisfaction and Quality

What is Quality?
The primary dimensions of product quality include:

  • Performance
  • Features
  • Reliability
  • Conformance
  • Durability
  • Serviceability
  • Aesthetics
  • Perceived Quality

Increasingly, however, service quality is attracting equal or more attention.

  • Responsiveness
  • Reliability
  • Accuracy
  • Knowledge of Employees
  • Courtesy
  • Consistency
  • Speed

These listed dimensions of product and service quality are, in a broad sense, generic to most situations. However, every business is unique, and if customer satisfaction measurements are to be meaningful, expectations should be phrased in the language of customers for each distinct market segment.

Also, some needs are more critical than others and it is wise to determine the relative importance of each need. After measuring satisfaction levels, emphasis can then be placed on improving performance in areas important to the customer, but where the organization may be lacking in comparison to the quality delivered by competitors.

Achieving Continuous Quality Improvement
Continuous quality improvement begins by identifying customer expectations for all key “moments of truth” — the critical interactions customers have with the organization. This can include contact with, for example, internal support groups, collection individuals, sales representatives, management, or direct service providers.

The best way to understand customer expectations is to listen to customers using qualitative research techniques. This usually requires skillful probing by someone practiced in customer satisfaction measurement.

After identifying expectations, customer satisfaction can readily be measured.

However, this requires the customer to answer specific questions about how he or she feels about the company’s performance. This is why it is so important to capture their interest and build the credibility needed to gain their cooperation. The task is made considerably easier by speaking the customer’s language and presenting only issues that are truly significant.

Why Quality Must Be Measured
More and more, quality is being measured. Companies are coming to the conclusion that if they can measure it, they can manage it and, consequently, can improve it.

The best performing organizations are allowing customer expectations to drive their quality initiative. They recognize customers define quality by judging them in relation to competitors.

Organizations that constantly measure themselves in relation to competitors (Benchmarking) are able to quickly capitalize on their emerging strengths and address weaknesses before they become problems.

Why Include Customers of Competitors
The rationale for including non-customer (customers of competitors) benchmarking is that without the non-customer data customer satisfaction levels are arbitrary. Both sets of data allow an organization to exploit its strengths, and put initiatives in place to narrow and eliminate any gaps between expectations and performance.

In fact, the best performing organizations benchmark themselves against:

  • Their best competitor
  • The industry average
  • A world class supplier in a similar industry

Feature measurements permit the organization to objectively assess how well the initiatives are working.

How Exit Interviews Can Translate into Huge Profit Increases
By measuring only customer satisfaction levels, organizations miss former customers who have left-because they no longer had the need for, or were unhappy with the products or services being offered. Measuring customer retention, on the other hand, relates directly to the bottom line. Long term customers spend more, refer new clients and are less costly to do business with.

Ironically, part customers present every company with an opportunity. They can tell the organization exactly what parts of the business to fix in order to reduce the number of customers at risk. This improves customer retention and, subsequently, profitability.

An average organization loses about 15% of its customers every year. But if this can be reduced to 10%, bottom line profits improve 35% to 85%.

Finding out why customers leave can often be difficult since the majority of unhappy customers don’t complain, they simply quit. Exit interviews solve this problem.

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ABOUT M. DAVIS AND COMPANY

M. Davis and Company, Inc., is a market research and consulting firm that provides complete services from project conception through implementation. We aim to ensure that our clients receive a high return on information (ROInfo™) by employing our unique perspective and market insights. We help clients make the most of their opportunities and implement solutions based on the information we provide.

M. Davis and Company, Inc. was recently re-awarded a contract by the U.S. Department of Transportation to continue administering the Omnibus Household Survey. This multi-year engagement involves the bi-monthly administration of over 1,000 telephone surveys to randomly selected households to gather information regarding commuting habits and awareness of various Federal safety initiatives. M. Davis and Company has been successful in raising the Omnibus Household Survey participation rate from less than 40% prior to July 2001 to over 50% for December 2002.

In addition to the U.S. Department of Transportation, other recent engagements include:

  • U.S. Department of Housing and Urban Development
    • We are currently conducting a research study to identify predictors of length of stay in HUD supported permanent housing for homeless people with disabilities and post-departure residential histories of those leaving permanent housing. Study methodology consisted of both telephone and in-person interviews.
  • Exxon-Mobil
    • M. Davis and Company, Inc. developed a tracking study to assess Exxon-Mobil’s marketing success among African-Americans. The survey monitors awareness, usage, attitudinal changes and customer satisfaction among African-Americans in selected markets nationwide. Study findings incorporated into revised strategic market plan.
  • Denny’s Inc.
    • M. Davis and Company, Inc. developed a tracking study to assess Denny’s marketing success among African-Americans. The ongoing survey monitors awareness, usage, attitudinal changes and customer satisfaction among African-Americans in 49 pre-selected markets nationwide.

      The survey is conducted using Computer Assisted Telephone Interviewing (CATI) equipment.

  • U.S. Army Reserve
    • Administered a telephone survey to over 800 individuals to gain an understanding of the profile, lifestyle and attitudes of men and women who currently serve in U. S. Army reserve units.
  • M. Davis and Company has also been administering multi-year “tracking” studies to measure advertising campaign effectiveness for clients in the fuel services and hospitality industries.

We believe our clients are buying solutions, not volumes of data. To achieve success, our clients need "added value" and we supply it. We forge a close relationship with our clients, becoming their trusted partner, instead of a supplier. With better understanding of our clients, we narrow the gap between their objectives and operations by providing information tailored to their needs and designed to help them achieve: "high margin" information. Our clients can then employ strategies and tactics that produce success.

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To learn more about the services and capabilities of M. Davis and Company, Inc., visit our web site at www.mdavisco.com or call 215-790-8900 to speak with one of our market research professionals.

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