indian customer satisfaction index-general deck
TRANSCRIPT
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Banking Sector in India : benchmarking on customer satisfaction & improvement of
Banking Sector’s operations, to radically enhance end customer satisfaction
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covered in the deck
1. Indian Customer Satisfaction Index(ICSI)
• Overview
• Overview of ACSI and global adoption/validation
• Benchmarking methodology
• Benchmarking of Banks using ACSI methodology in various countries
• ICSI - diagnostics for improvement of customer Satisfaction
2. Indian Customer Satisfaction Index (ICSI) - Solutions for customer satisfaction(Overview)
3. ICSI Advantage
4. Indian customer Satisfaction Index for Indian Banking industry(sectors chosen)
5. Hexagon Consulting (overview)
6. Overall summary
www.icsi.org.in 2
1. Indian Customer Satisfaction Index(ICSI) - overview
www.icsi.org.in
www.icsi.org.in 3
new customer satisfaction based benchmarking of organizations across sectors in India.
customer satisfaction based indexed ranking of organisations by ACSI, based in Michigan, US
Is being used in many mature & some emerging economies e.g. US, UK, Singapore, Malaysia etc.
in some countries given its objectivity and respect, it is even backed by government, actively used to
drive/improve customer service and satisfaction levels of various sectors e.g. Sweden and Singapore.
Hexagon Analyst and Consulting Services Private Ltd (Hexagon Consulting) a Gurgaon based management
consultancy which focusses on enhancing customer satisfaction of organisations, is introducing ICSI in
collaboration and partnership with the globally respected American Customer Satisfaction Index (ACSI)
OVERVIEW
4 www.icsi.org.in
• The Indian Customer Satisfaction Index measures and ranks organizations on the basis of customer
satisfaction feedback.
• The Customer Satisfaction feedback is analyzed through analysis using American Customer
Satisfaction Index(ACSI) science based proprietary methodology developed & validated over
decades of research and use across several countries.
• Indian Customer Satisfaction Index(ICSI) enable organisations and companies in India to benchmark
all aspects of customer experience with industry peers, do cross sector benchmarking as well as
cross national benchmarking
• ICSI has started with benchmarking the Indian banking sector and we plan to cover more
industries/sectors in India soon.
OVERVIEW...continued.
www.icsi.org.in 5
overview and global adoption of ACSI in various countries
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• Established in 1994, ACSI is the only standardized measure of customer satisfaction in the U.S.
economy, covering more than 235 companies in 45 industries and 10 economic sectors.
• The ACSI methodology, model, and core technology were developed at the University of Michigan’s
Stephen M. Ross School of Business by the National Quality Research Centre (NQRC),USA
• ACSI represents a quarterly measure of the US national economy’s health, complementary to
measures such as inflation, productivity, and unemployment.
• 100+ departments, agencies, programs and websites of the U.S. Federal government measured on
an annual basis
• Also used widely in the private sector – most B2C sectors covered across countries – both developed
and emerging
www.icsi.org.in 7
ACSI Sectors and Industries
Hotels
Limited-Service
Restaurants
Full-Service
Restaurants
Newspapers
Motion Pictures
Broadcasting
TV News
Software
Fixed Line
Telephone
Service
Wireless
Telephone
Service
Cable &
Satellite TV
Energy
Utilities
Supermarkets
Gasoline
Stations
Department &
Discount Stores
Specialty Retail
Stores
Health &
Personal Care
Stores
Banks
Life Insurance
Health
Insurance
Property &
Casualty
Insurance
Airlines
U.S.
Postal
Service
Express
Delivery
Local
Government
Federal
Government
Accommodation &
Food Services
Information Utilities Finance &
Insurance
Transportation &
Warehousing
Public
Administration/
Government
Retail
Brokerage
Travel
E-Commerce
Hospitals
Health Care &
Social Assistance
National
ACSI
Manufacturing/
Durable Goods
E-Business
Personal
Computers
Electronics
(TV/VCR/DVD)
Major
Appliances
Automobiles
& Light
Vehicles
Cellular Telephones
News &
Information
Portals/
Search
Engines
Social Networking
Manufacturing/
Nondurable Goods
Food
Manufacturing
Pet Food
Soft Drinks
Breweries
Cigarettes
Apparel
Athletic Shoes
Personal Care
& Cleaning
Products
Retail Trade
www.icsi.org.in
Selection of Sectors, Industries,
Companies
• Must be representative of the economy
• Sectors/Industries with high incidence in households/consumers (e.g.
no Mining, Agriculture, Consulting, etc.)
• Measurement of household consumers only (no B2B)
• Companies represent top X% of market share/revenues in an industry
• New companies added/deleted from time to time due to:
– Mergers and Acquisitions
– Rapid growth/decline in market share
– Emerging consumer industries
Banking sector:
“Commercial” is already
being covered by ACSI in
many countries
www.icsi.org.in
• Banking scores are published annually in US and other countries.
They are published in the aggregate as “Commercial Banking”, although
individual bank level data & diagnostics for driving improvement, is
available for subscribers
• ACSI is measuring satisfaction with the US Federal government and various
other private sectors since the project’s inception in 1994
• ACSI data is proven to be strongly related to a number of essential indicators of
micro and macroeconomic performance across geographies.
10 www.icsi.org.in
Heavy 1990s
Bank Merger Activity in Late
ACSI Commercial Banks 1994 to 2010 80
75
70
65 1994 1996 1998 2000 2002 2004 2006 2008 2010
Some ACSI banking data- How Satisfaction is changing
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The ACSI A Major Voice in the Media
“The American Customer Satisfaction Index, the definitive benchmark of how buyers feel about what business is selling them . . . . .”
- New York Times, August 8, 2004
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ACSI - Global Presence
13 www.icsi.org.in
ACSI Methodology Adopted Internationally
United States
Mexico
Colombia
Puerto Rico
Barbados
Brazil South Africa
Indonesia
Singapore
Malaysia
Turkey Sweden
United Kingdom
Portugal
South Korea
Kuwait
Serbia
India
Saudi Arabia
ACSI methodology Adopted Internationally
14 www.icsi.org.in
ACSI Methodology Adopted Internationally
T M M E Türkiye Müşteri Memnuniyeti Endeksi
Turkish CSI Korean CSI
Mexican CSI Colombian CSI Swedish CSI
UK CSI Singapore CSI
Indonesia CSI
Lets understand what is the ACSI – methodology for customer satisfaction surveys
and benchmarking of organizations‘ in India as well
(adopted by Indian Customer Satisfaction Index)
www.icsi.org.in 16
ACSI methodology -The ACSI Standard Model adopted by ICSI
Customer Expectations
• Satisfaction • Comparison w/ Ideal • Confirm/Disconfirm Expectations
Perceived Overall Quality
Perceived Value
Customer Complaints
Customer Loyalty
• Repurchase Likelihood • Price Tolerance (Reservation Price)
• Overall • Customization • Reliability
• Overall • Customization • Reliability
• Price Given Quality • Quality Given Price
• Complaint Behavior Customer Satisfaction (ACSI)
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2013 Federal Government ACSI Model
70
Process 69 Ease
70 Timeliness
1.9
71 Information
72
71
Clarity 1.4
12%
Customer
Complaints
72 Perceived
Quality
Accessibility
80 Customer Service
1.4 4.1 80
80
Courtesy 66
Customer
Satisfaction
(ACSI)
-1.7 Professional
2.5 -0.1 0.6 72
Website Ease 70
75
4.7 70
Customer
Expectations
67
Agency Trust
Usefulness 0.4
68
67
Confidence
Recommend N = 1403; 90% Confidence Interval = 1.2
an Example of ACSI model used for US Federal Government citizen
satisfaction measurement ( Model is customized for various sectors)
www.icsi.org.in 18
Cross National Benchmarking and
aggregated Benchmarking data for Banking using ACSI methodology for various countries
( use of ACSI methodology by ICSI, will enable India scores to be correlated/compared
with other developed and emerging economies)
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• In 2008, 48% of the revenues of S&P 500 companies came from
abroad; share of international profits as a percentage of total profits
has risen from 5% during the 1960s to over 25% in 2008
• As firms globalize their operations, market research
examining consumer attitudes and behaviors cross- nationally
has become very common
• cross-national satisfaction measurement is driven by the belief that
improving satisfaction will result in increased customer loyalty and the
financial benefits associated with more loyal customers in all
markets of operation
Why measure Cross-National Satisfaction
• This can be utilized as the basis for performance incentives,
operational decision-making, and process improvement
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Countries Satisfaction Scores
(Benchmarking Data -2014 by ACSI)
U.S 76
South Korea 74
Brazil 66
Turkey 72
Puerto Rico 75
UK 76
Singapore 72.2
Portugal 71.7
South Africa 76
Colombia 80
Summary ACSI benchmarking data for banks
(*) aggregated data/scores – specific Bank level scores & analytics – diagnostics , are
provided to subscribers www.icsi.org.in 21
our Model not only measures the customer satisfaction levels of different
organizations but also provides diagnostic’s to organizations' for
optimizing/improving end customer satisfaction
www.icsi.org.in 22
DATA-DRIVEN INSIGHTS TO IMPROVE SATISFACTION
CUSTOMER LOYALTY AND PROFITABILITY
How is an organization doing
compared to the competition?
What drives your
customer’s
satisfaction?
Where should an
organization
prioritize its efforts?
• Identify strengths
efforts
IMPROVE
ANALYZE
BENCHMARK
Benchmarking with
competitors
Tracking metrics
overtime
Obtain key
performance indicators
Benchmarking with
best in class
companies
Proven
Independent
Predictive
Actionable
Strength and
weakness
identification
Prioritization of
improvement
efforts
Creation of data
driven action
plans
Allocation of
resources to
maximize loyalty
Customer
www.icsi.org.in 23
2. Indian Customer Satisfaction Index (ICSI) - Solutions for customer
satisfaction(Overview)
24 www.icsi.org.in
ACSI Solutions
• ICSI Benchmark & ICSI Diagnostic
Standard Programs
• Use of the ICSI questions in client’s own surveys
ICSI Monitor
• Use the ICSI in customized surveys
Customized Data Solutions
ICSI Solutions
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Detailed Scores for: Client, Industry
Competitors and Industry Averages
Historical Scores for Time-Series
Analysis
Demographics Data
ICSI Simulator (using the online
ACSI portal access)
Customer Asset Management
Calculator
Other Special Analysis as Required
ICSI Client Industry
Competitors
Outcomes
Customer Satisfaction
Drivers
Outcomes
Customer Satisfaction
Drivers
ICSI Benchmark
26 www.icsi.org.in
Reports, Charts and Analysis ICSI – Reports , Charts and Analysis (Data Visualization and easy
interpretation)
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ACSI Dashboard Access ICSI ( ACSI) dashboard Access – Online
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ACSI Dashboard Features
•Review scores for both your company and your competition with built-in charts and tables
•Easily downloadable into Excel format for report inclusion
Tables and Charts
•Place a Rupee/dollar value on your customer relationships •Quantify the financial implications of improvements in
customer satisfaction
Customer Asset Calculator
•Leverage the predictive capabilities of ICSI •Learn how the drivers of satisfaction effect loyalty
outcomes Simulator
•Bilateral cuts of the data provide insight into key demographics
•Gender, Income, Education Level & Age
Demographic Data
ICSI (ACSI) Dashboard features
29 www.icsi.org.in
Why Measure Satisfaction with Government?
Will raise trust in Organizations
Will help to Identify areas for
focusing
customer service quality
improvements
Will enhance government and banking
organizations transparency and
accountability
Will set baseline for citizen
satisfaction for organizations
,measure progress, and
benchmark performance
Will help to develop new citizen-
Organization “feedback loop”
ICSI for Bank
Will monitor and motivate
employees
Will help in more efficient
budgetary
and resource allocation Will provide critical
information for annual
performance reporting
3. ICSI –Advantage for Banks
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4. Indian customer Satisfaction Index(ICSI) has already started the customer satisfaction
benchmarking research work for Indian Banking industry
(the first sector chosen to start with; RBI has expressed interest in ICSI)
www.icsi.org.in 31
Finance Sector – Banking industry ( The largest banks from Private, Public and Foreign category)
Companies covered (*)
HDFC Bank
Private
State Bank of India Public
ICICI Bank
Private
Axis Bank Private
Kotak Mahindra Bank Private
Bank of Baroda Public
Punjab National Bank Public
Canara Bank Public
Bank of India Public
CITI bank
Foreign
HSBC Bank Foreign
Standard Chartered Bank Foreign
* Banks chosen on the basis of their Annual revenue primarily and market Capitalization.
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5. Hexagon Consulting - Overview Management consultancy & professional services
www.icsi.org.in 33
Hexagon Consulting
Hexagon Consulting
Quadrangle Consulting
Integrity
Professionalism
Objectivity
Client centricity
Neutrality
Quality Value Space India
Consultants & Services
Hexagon Analysts and Consulting Services Private Ltd, a management consultancy professional services firm focused on meeting the management and business improvement needs of organizations across various industries –sectors in both developed and developing markets. (www.hexagonconsulting.co)
Quadrangle Consulting Services Private Ltd , a 14 year old all women HR consulting organization, that specializes in HR Consultancy and uses customized psychometric assessment tests for supporting its clients across industries and social sectors. (www.quadrangleconsulting.org)
Value Space India Consultants & Service Private Limited, a 15 year old company,
focused on the education sector. (ww.schooloflife.org.in) (www.sixthelement.net)
Hexagon Consulting & group : management consultancy , training & education
15 year old group of 3
companies & a not for profit
trust
34 www.icsi.org.in
• ICSI is a unique partnership for India between Hexagon Consulting & ACSI to benchmark and improve
customer satisfaction levels of organizations' in India.
• Indian Customer Satisfaction Index(ICSI) aims to enhance the customer satisfaction through a proven
and adopted methodology starting with banking organizations in India & eventually most other key
sectors.
• With the intent to support Banking Organisations serving citizens of India, we believe ICSI will
significantly contribute to help organizations in improvement & specific diagnostics for serving its
customers.
Summary
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Thank You
Hexagon Analysts and Consulting Services Pvt LTD
P-81 South City – I,
Gurgaon(Delhi NCR Region) - 122001, India
Phone:- +91 124 4100779-80
www.hexagonconsulting.co
follow us at @ICSIforIndia on Facebook, Twitter and Linked-in
www.icsi.org.in