Trends In Customer Satisfaction

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1 ACSI American Customer Satisfaction Index TM Trends In Customer Satisfaction with the U.S. Federal Government Findings of the ACSI David VanAmburg and Forrest Morgeson ACSI, National Quality Research Center Ross School of Business, University of Michigan Washington, D.C., December 15, 2006

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Transcript of Trends In Customer Satisfaction

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ACSIAmerican Customer Satisfaction Index TM

Trends In Customer Satisfaction with the U.S. Federal Government –

Findings of the ACSIDavid VanAmburg and Forrest Morgeson

ACSI, National Quality Research Center

Ross School of Business, University of Michigan

Washington, D.C., December 15, 2006

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Snapshot of ACSI

• Established in 1994, the only standardized measure of customer satisfaction in the U.S. economy, covering 200 companies in 43 industries - roughly one-third of the total U.S. economy.

• A quarterly measure of the national economy’s health; complementary to measures such as GDP, PCE, CPI, productivity and unemployment.

• More than 100 segments of departments/agencies of the U.S. Federal Government measured on an annual basis.

• Results from all surveys are published quarterly in various media and on the ACSI website at www.theacsi.org

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ACSI National, Sector, and Industry Scores:Q4 2005 – Q3 2006

75 Hotels77 Limited-

ServiceRestaurants

63 Newspapers73 Motion Pictures69 Broadcasting

TV News74 Software70 Fixed Line

Telephone Service

66 Wireless TelephoneService

63 Cable & Satellite TV

72 EnergyUtilities

74 Supermarkets69 Gasoline

Stations75 Department &

Discount Stores

74 Specialty Retail Stores

76 Health & Personal Care Stores

75 Banks75 Life Insurance68 Health

Insurance78 Property & Casualty Insurance

65 Airlines71 U.S.

Postal Service

83 ExpressDelivery

62.7 Local Government

72.3 Federal Government

Accommodation &Food Services

75.8

Information68.6

Utilities72.4

Finance &Insurance

73.9

Transportation &Warehousing

72.3

PublicAdministration/

Government65.8

81 Retail78 Auctions76 Brokerage77 Travel

E-Commerce79.6

74 Hospitals

Health Care & Social Assistance

74.1

ACSI74.4

Manufacturing/Durable Goods

80.1

E-Business76.5

77 Personal Computers

80 Electronics(TV/VCR/DVD)

81 Major Appliances

81 Automobiles& Light

Vehicles70 Cellular Telephones

73 News &Information

76 Portals79 Search Engines

Manufacturing/Nondurable Goods

82.3

83 Food Manufacturing

83 Pet Food84 Soft Drinks82 Breweries78 Cigarettes80 Apparel76 Athletic Shoes84 Personal Care

& CleaningProducts

Retail Trade72.4

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Why Measure Satisfactionwith Government?

• Raise citizen trust in government • Hold agencies accountable for results • Improve program operating

performance• Balanced measures for Senior

Executives

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Citizen-Centered Government – History

• Government Performance & Results Act (GPRA) (1993)

• Executive Order 12862, “Setting Customer Service Standards” (1993)

• President’s Management Agenda, “Getting to Green” (2001)

• E-Government Act (2002)

Has more than a decade of performance-based initiatives focusing, in part, on greater accountability of government to its customer base – U.S. citizens – made a difference?

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ACSI METHODOLOGY

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ACSI Methodology

• Customer satisfaction (ACSI) is embedded in a system of cause and effect relationships

• Measures are general enough to be comparable across agencies, companies

• ACSI is measured using multiple indicators• Objective: Explain desired outcomes

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The Basic ACSI Model for Government

CustomerComplaints

CustomerComplaints

Citizen TrustCitizen Trust

Customer Satisfaction

(ACSI)

Customer Satisfaction

(ACSI)

PerceivedQuality

PerceivedQuality

Customer Expectations

Customer Expectations

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CustomerComplaints

CustomerComplaints

Citizen TrustCitizen Trust

Customer Satisfaction

(ACSI)

Customer Satisfaction

(ACSI)

PerceivedQuality

PerceivedQuality

Customer Expectations

Customer Expectations

Enhanced ACSI Model for Government (Typical)

CustomerService

CustomerService

InformationInformation

ProcessProcess

• Confidence

• Recommend

• Courtesy

• Professionalism

• Clarity

• Usefulness

• Ease/Accessibility

• Timeliness

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CustomerComplaints

CustomerComplaints

Citizen TrustCitizen Trust

Customer Satisfaction

(ACSI)

Customer Satisfaction

(ACSI)

PerceivedQuality

PerceivedQuality

Customer Expectations

Customer Expectations

What Agencies Receive(Hypothetical Example)

CustomerService

CustomerService

InformationInformation

ProcessProcess

• Confidence

• Recommend

• Courtesy

• Professionalism

• Clarity

• Usefulness

• Ease/Accessibility

• Timeliness

72

73

80

70

78

72

76

15%

80

80

75

70

78

65

74

77Scores on 0-100 scale – How is the agency performing?

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CustomerComplaints

CustomerComplaints

Citizen TrustCitizen Trust

Customer Satisfaction

(ACSI)

Customer Satisfaction

(ACSI)

PerceivedQuality

PerceivedQuality

Customer Expectations

Customer Expectations

What Agencies Receive(Hypothetical Example)

CustomerService

CustomerService

InformationInformation

ProcessProcess

• Confidence

• Recommend

• Courtesy

• Professionalism

• Clarity

• Usefulness

• Ease/Accessibility

• Timeliness

72

73

80

70

78

72

76

15%

2.1

0.5

1.3

0.4

3.5

0.1

-2.1

4.0

0.6

80

80

75

70

78

65

74

77Scores on 0-100 scale – How is the agency performing?

Impacts assume 5 point change – What are the best leverage points?

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How Agencies Utilize ACSI Data

• Test results against current assumptions• Reexamine improvement plans and

strategy• Report results to Congress, employees,

and customers• Design and conduct more detailed drill-

down surveys on low-performing areas• Identify strategic benchmarking

partners; identify/adopt “best practices”

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2006 DETAILED ACSI RESULTSFOR THE

U.S. FEDERAL GOVERNMENT

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Government Satisfaction ReachesAll-Time ACSI High

68.6 68.6

71.3

70.2

70.9

72.1

71.3

72.3

65

70

75

1999 2000 2001 2002 2003 2004 2005 2006

Aggregate Customer Satisfaction withFederal Government, 1999-2006*

*0-100 Scale

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Government Still Lags Private Sectorbut Keeping Pace with Its Improvement

72.1

72.9

72.0

73.1

73.874.3

73.2

74.4

68.6 68.6

71.3

70.2

70.9

72.1

71.3

72.3

65

70

75

1999 2000 2001 2002 2003 2004 2005 2006

National ACSI

Federal Government

+5.4% from 1999

+3.2% from 1999

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Government Compared with Private Sector –Nearly Equal to Private Services

65

70

75

80

85

National Manufacturing Private SectorServices

FederalGovernment

2002

2003

2004

2005

2006

74.4

81.1

72.7 72.3

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2006 Ranges of Scores forDifferent Agency Types

45 50 55 60 65 70 75 80 85 90 95 100

Private Sector

IRS/Regulatory

Information

E-Gov

Financial Services

Benefits Providers 73

52

68

58

57

82

88

70

75

85

55 87

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Social Security and Medicare – Trending Down

82

84

82

83

81 81 81

80

71

74

79

76

77

76

75

73

70

75

80

85

1999 2000 2001 2002 2003 2004 2005 2006

Social Security

Medicare

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VA Hospital Experience Improving, LeadsPrivate Sector by Wide Margin

7978

79 79

83

80

82

8281 81

8483

84

6970

68

70

73

76

71

74

80

65

70

75

80

85

1999 2000 2001 2002 2003 2004 2005 2006

Hospital Industry

VHA Inpatient

VHA Outpatient

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IRS Finding: e-Filers Vastly More Satisfied

•fewer errors, quicker problem resolution•earlier refunds, easy status tracking

51

76

5052535352

4844

77787778777574

40

50

60

70

80

90

1999 2000 2001 2002 2003 2004 2005 2006

Paper Filers e-Filers

25 points30 points

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20%

55%

0%

10%

20%

30%

40%

50%

60%

70%

1998 2006

Number of e-filers nearly triples in 8 years

“We realize we have more work to do, but the survey is just one more indication that the IRS reorganization and its emphasis on customer service are paying off. The satisfaction with IRS e-file won´t surprise any taxpayer who has used it. When they try it, they like it. It is fast, accurate and dependable.” - Charles O. Rossotti, IRS commissioner, December 17, 2001

IRS: More e-Filers

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IRS: Improved Individual Tax Filing Experience

IRS hears the voice of the customer… • Commitment to customer service• Increased awareness and usage of e-filing

Customer Satisfaction Up 14 Points51

56

60

6263

64 6465

50

55

60

65

70

1999 2000 2001 2002 2003 2004 2005 2006

All Individual Tax Filers

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Customers Expect Less of GovernmentThan of Private Sector

77.478.5

84.486.1

76.077.1

70.0

77.4

65

70

75

80

85

90

National Manufacturing Services FederalGovernment

Customer Expectations

Perceived Quality

2006 Comparison of Expectations and Quality

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Customer Service Statistically Flat

75

80

85

90

Courtesy Professionalism

2002

2003

2004

2005

2006

8685

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Government Efficiency Improves

65

70

75

80

85

Ease/Accessibility Timeliness

2002

2003

2004

2005

2006

78

75

Access to Services, Timeliness of Delivery Hit All-Time Highs

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Next Steps: 2007 and Beyond

• Re-measure 2006 participants

• Expansion with new agencies/segments signing up for measurement in early 2007

• Continue to grow e-Gov measurement

• For more information see:

www.theacsi.orgwww.fcg.gov