Uncle Sam at Your Service The 2010 Federal Customer Experience Study

August 31, 2010

Sponsored by:

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Introduction

Whether through Federal student aid, tax processing, disaster relief, or even airport security – U.S. Federal agencies offer services to 307 million Americans every day.*

So, how are these agencies doing?

MeriTalk surveyed 1,000 Americans ages 18 and older to gauge their customer-service expectations and perceptions of Federal agencies’ customer service.

The study compares “typical” and “best” experiences interacting with both private companies and Federal agencies – and importantly, identifies opportunities for Feds to improve government service.

*U.S. Census Bureau, 2009 U.S. population estimate, http://www.factfinder.census.gov/servlet/SAFFPopulation?_sse=on

• Executive Summary 4

• Key Findings 5

• Recommendations 16

• Methodology and Demographics 17

• Appendix: Service Attribute Definitions 19

3

Table of Contents

• Americans want the Federal government to improve customer service, and many are willing to pay for the upgrade:

• 83% say that customer service is something that Federal agencies can improve• 42% of Americans say they would pay an additional $10 in taxes each year for

better government service – $552.3 million more in taxes annually

• Americans value results, responsiveness, and courtesy in customer service:

• Currently, private companies outrank Federal agencies in these categories

• 53% of Americans feel that Federal agencies can reduce the time it takes to respond to requests and resolve issues

• To progress, agencies must expand Web presence and move more services online:

• 63% of Americans who interact with agencies over the Web are satisfied with their experiences

• Still, 85% of Americans want Federal agencies to provide more information and make more services available online

4

Executive Summary

• Americans want Federal agencies to make customer service a priority

5Take Away: Significant Opportunity to Improve

Customers Call for Change

of Americans believe that the Federal government

can improve customer service

“There’s too much complexity with the current system. Real solutions are rarely answers to simple questions, yet the system only seems

to handle simple, specific questions.” – Baby Boomer, Female

83%

• Almost half of Americans say they would be willing to pay additional taxes for better government service

6Take Away: Funding for Change

And, Are Willing to Pay

42% of Americans are willing to pay $10 more in taxes each year for better Federal service

That’s an extra

$552,300,000annually

*42% x 131.5M individual income tax returns filed to the IRS in the 2009** x $10 = $552.3M **http://www.irs.gov/newsroom/article/0,,id=207293,00.html

• In both the public and private sectors, Americans want problems solved quickly, clearly, and with courtesy

7Take Away: Get In, Get Out, Get On With My Life

What Matters Most

Most Valued Customer Service Attributes:*

#1 Issue Resolution (72%)#2 Responsiveness (71%)#3 Clarity (69%)#4 Courtesy and Professionalism (69%)#5 Consistency (67%)#6 Transparency (51%)#7 Self-service (37%)#8 Community (34%)

*Percent of respondents who ranked each attribute an eight to 10 on a scale of one to 10, when one was “not at all important” and 10 was “most important”

Baby Boomers are more likely than Gen Y respondents to value*

responsiveness and courtesy – 76% to 67% and 73% to 63% respectively

See appendix for attribute definitions

• Americans want Feds to improve response times and streamline information

8Take Away: Speed Up and Simplify

Where to Begin?

Current frustrations:*

Takes too long – 53%

No straight answer to my question(s) – 41%

Information received or obtained is not consistent – 34%

Representatives do not care about my problem – 30%

Issue cannot be addressed via my preferred channels – 24%

Information needed is not available – 20%

*Respondents asked to select their top three frustrations

• Americans want Federal agencies to provide more information and make more services available online

9Take Away: Help Me Help Myself

I’ll Take It from Here

85% want access to a broader range of information and responses online for a self-service approach to their inquiries Both Boomers and Gen Y respondents

want the ability to help themselves online

• Agencies offer self-service options via both phone and Web, and Americans use them with equal frequency. Those using the Web, however, are significantly more satisfied

10Take Away: Online Service Delivers

The Web Works

Channel Use and Experience:

*Percent of respondents who rated the quality of their experience a four or five on a scale of one to five, where one was “poor” and five was “excellent”

Both Boomers and Gen Y respondents were most likely to

have a positive service experiences

via the Web

63%

45% 52%46%

33% 30%

93% 92%84%

71%

34% 31%

0%

20%

40%

60%

80%

100%

Web site Phone In person E-mail Social media Texting

Percent who used each channel

Of those who have used the channel, percent who had a positive experience*

• When asked to grade their typical experiences with private companies and government agencies, private companies outrank agencies

11Take Away: Clarify to Close the Gap

Public vs. Private Service

Respondents rated the importance of each service attribute on a scale of 1-10* and then rated the degree to which private companies and Federal agencies typically provide each attribute.**

The perimeter of the Web represents a 9 out of 10, so the closer the plotted line is to the outside of the Web, the higher the attribute rating.

Customer Service: Expectations vs. Reality

Importance of the attribute

Private company – Typical experience

Federal agency – Typical experience

*Average rating on a scale of one to 10, when one was “not at all important” and 10 was “most important” **Average rating on a scale of one to 10, when one was “not at all provided” and 10 was “completely provided”

Key

Respondents rated the degree to which private companies with the best customer service and private companies with typical customer service provide each attribute.*

• Top private-sector companies even exceed customer expectations

12Take Away: Problem-Solving Skills Set Best Companies Apart

Private-Sector Service Gap

Private-Sector Service: Best Experience vs. Typical Experience

Examples of Top Companies

Cited:

AmazonVerizon

Best Buy

Importance of the attribute

Private company – Best experience

Private company – Typical experience

Key

*Average rating on a scale of one to 10, when one was “not at all provided” and 10 was “completely provided”

• While some agencies outshine others, most struggle to meet customer needs

13Take Away: Top Feds Make a Difference with Self-Service Options

Federal Government Service Gap

Federal Agency Service: Best Experience vs. Typical Experience

Examples of Top Agencies Cited:

Internal Revenue Service

State DepartmentSocial Security Administration

Respondents rated the degree to which Federal agencies with the best customer service and Federal agencies with typical customer service provide each attribute.*

Importance of the attribute

Federal agency – Best experience

Federal agency – Typical experience

Key

*Average rating on a scale of one to 10, when one was “not at all provided” and 10 was “completely provided”

• Americans see poor staff training, lack of communication, and lack of coordination as key challenges impeding improvements

14Take Away: Address Internal Issues First

Uphill Climb

Boomers are more likely than Gen Y respondents to see staff training as a primary barrier – 46% to 31%

*Respondents asked to select all that apply

Primary Barriers to Improvement:*

40% Staff training

38% Lack of communication

36% Lack of coordination

29% Culture

26% Hiring and retention practices

24% Old technology

24% Lack of leadership

23% Budget

23% Lack of competition

• Some government agencies are making a difference today

15Take Away: All About the Experience

Success Stories

“Taxes, student loans, passports – everything was available online for me to quickly help myself with.”

– Gen Y, Male

“Social Security in my area is pretty well coordinated. While

there is always a waiting period, they usually have

continuity in helping people.” – Silent Generation, Female

“Anytime I had a question about my Federal student loan, I could either find the answer online or contact a representative. My questions were answered sufficiently, quickly, and

consistently by people who genuinely seemed to care.” – Gen Y, Male

“The tax center has knowledgeable staff answering the phone in clear, concise

language. They are friendly and patient.” – Gen X, Male

“SSA offers quick and accurate 'chat' answers to inquiries

online.” – Baby Boomer, Female

“The Department of Veterans Affairs assisted me with my educational benefits.

The woman who processed my audit was of great assistance and went out of her way to

resolve my issue.” – Gen X, Female

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Provide consistent service across all communication channels by all service representatives

Recommendations

• Americans ask agencies to focus on the basics:

Be compassionate – listen to your customers, and treat each inquiry with care and respect

Focus on issue resolution – ask clear questions to determine the customer’s specific needs, and then provide a solution or map out next steps

Respond to inquiries as quickly as possible – even if you’re just providing an update

• MeriTalk, on behalf of RightNow, conducted the online survey of 1,000 Americans in July 2010. The report has a margin of error of +/- 3.10% at a 95% confidence level

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Methodology and Demographics

Gender49% Male

51% Female

Year Born13% Before 1946 (Silent Generation)

30% 1946-1964 (Baby Boomers)

25% 1965-1976 (Generation X)

32% 1977-1992 (Generation Y)

Employment Status8% Student

6% Unemployed

5% Full-time parent

11% Employed part time

49% Employed full time

14% Retired

7% Other

Thank You

Rebecca Hovey – MeriTalk rhovey@meritalk.com

(401) 737-1753

Melissa Hardt – RightNowmelissa.hardt@rightnow.com

(703) 272-1858

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Service Attribute Definitions

Issue Resolution: I feel that my issues are handled professionally and thoroughly – from my first inquiry through issue resolution

Responsiveness: I receive prompt attention to my inquiries/issues, and I receive timely responses

Courtesy and Professionalism: I feel that my interactions are congenial and that I am treated with courtesy and respect

Clarity: I feel that the organization provides me with clear, easy-to-understand instructions

Consistency: I get the same information from different staff members/offices, regardless of the channel

Transparency: I can track my interactions with the organization

Self-service: I feel empowered to find the information I need to complete my task

Community: I feel that the organization helps me connect with other customers via forums, events, etc.

• Customer service criteria, as defined in the survey: