ARE YOU FUTURE-READY? - ise.smu.edu.sg · statistically significant increase in customer satisfaction from 2015 to 2016 statistically significant decrease in customer satisfaction

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SERVICE EXCELLENCESINGAPORE MANAGEMENT UNIVERSITY

ARE YOU FUTURE-READY?

ISES INDUSTRY FORUM CSISG 2016 Q1 RESULTS ANNOUNCEMENT

INSTITUTE OF


CSISG 2016 Q1 RESULTS

RETAIL AND INFO-COMMUNICATIONS RESULTS

• CSISG Methodology

• Results and Highlights of Retail Sector

• Results and Highlights of Info-Communications Sector

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Presentation Outline

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CSISG Methodology

Customer Satisfaction

CSISG (Scale of 0-100)

1. Overall Satisfaction 2. Ability to Meet Expectations

3. Similarity to Ideal

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The CSISG Score

CSISG Structural Model (Retail & Infocomm)

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Qn. Repurchase Intention Qn. Price Tolerance

Qn. Complaint Behaviour

Qn. Perceived Product Quality Qn. Perceived Product Customisation Qn. Perceived Product Reliability

Qn. Perceived Service Quality Qn. Perceived Service Customisation Qn. Perceived Service Reliability

Perceived Service Quality

Perceived Product Quality

Customer Expectations

Perceived Overall Quality

Perceived Value


Customer Complaints

Customer Loyalty

Qn. Price / Quality Qn. Quality / Price

Qn. Expected Overall Quality Qn. Expected Customisation Qn. Expected Reliability

Qn. Overall Satisfaction Qn. Ability to Meet Expectations Qn. Similarity to Ideal

Overview of the CSISG Main FieldworkSingapore citizens and PRs are interviewed at their homes.

Homes are selected from a random listing of 40,000 household addresses that match housing profile of Singapore resident population.

Departing tourists are interviewed at Changi Airport.

Typically 50-200 respondents per company would have answered the CSISG questionnaire.

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Each respondent answers up to 17 CSISG questions and about 24 touchpoint questions about a company they had recent experiences with.

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CSISG 2016 Q1 Sub-sectors

Retail Sector Info-Communications Sector

• Department Stores

• Supermarkets

• Fashion Apparels

• Furniture & Electronics

• Jewellery

• e-Commerce

• Petrol Service Stations

• Motor Vehicles

• Mobile Telecom

• Broadband

• PayTV

• Wireless@SG

NEW

NEW

Sectors CoveredRetail Info-Communications

Survey Period Jan to Apr 2016

Total Questionnaires Completed 9,489

Face-to-Face (Locals) 8,584

Tourist at Changi Airport 905

Distinct entities measured 323

Entities with published scores 49

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CSISG 2016 Q1 Quick Facts

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CSISG 2016 Q1 RESULTS

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CSISG 2016 Q1 Results Overview

* Refers to companies/sub-sectors significantly above their sub-sector/sector scores

2016 Q1 SCORES RETAIL AND INFO-COMMUNICATIONS

This chart summarises the results of the CSISG 2016 satisfaction scores in the Retail and Info-Communications sectors at the sector, sub-sector and company levels.

Each sector score (in gold) represents a weighted average of their respective sub-sector scores (in blue). Satisfaction scores for sub-sectors with individual company scores are weighted averages of these individual company scores.

All scores displayed are accurate to one-decimal place. Entities are presented in decreasing levels of satisfaction.

* Companies indicated with an asterisk(*) are companies that have performed significantly above their sub-sector average.

* Sub-sectors indicated with an asterisk(*) are sub-sectorsthat have performed significantly above their sector average.

The sparklines indicate the satisfaction score of their respective sectors, sub-sectors and companies over the past few years.

statistically significant increase in customer satisfaction from 2015 to 2016

statistically significant decrease in customer satisfaction from 2015 to 2016

no significant year-on-year change in customer satisfaction score

71.7 Retail

73.1 Motor Vehicles*

72.3 Jewellery

71.9 Fashion Apparels 74.8 Bossini 74.5 Uniqlo 74.0 Hang Ten 73.1 G2000 72.5 H&M 71.5 Giordano 71.2 Mango 70.5 Topshop 69.9 Cotton On 69.6 Zara 71.4 Other fashion apparels

71.5 Furniture & Electronics 73.0 Challenger 72.4 Gain City 72.1 Courts 71.8 Harvey Norman 67.9 IKEA 72.5 Other furniture & electronics

71.5 Petrol Service Stations 72.4 Esso 71.6 SPC 71.5 Shell 69.1 Caltex

69.6 Wireless@SG

69.2 Mobile Telecom 72.0 Singtel* 67.5 StarHub 65.0 M1

67.0 Broadband 67.5 M1 67.0 StarHub 66.9 Singtel

66.6 PayTV 67.7 StarHub 65.8 Singtel

71.5 Supermarkets 72.5 Cold Storage 71.9 Sheng Siong 71.7 NTUC Fairprice 71.1 Giant 67.6 Other supermarkets

71.1 e-Commerce 73.2 Zalora* 72.0 Taobao/Tmall 72.0 Groupon 71.9 Lazada 71.6 Ebay 71.1 Deals.com/Ensogo 70.6 Carousell 70.3 Qoo10 69.3 Amazon

70.2 Department Stores 73.2 DFS* 71.7 Takashimaya 71.5 John Little 71.2 Robinsons 71.0 Isetan 70.8 BHG 69.1 Metro 68.6 Tangs 67.5 Other department stores

68.5 Info-Communications

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Retail Sector Results

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Retail Sector CSISG Trends70

78

Retail Sector

62

70

78

Supermarkets Department Stores

Furniture & Electronics

Motor Vehicles

e-Commerce

Fashion Apparels

62

70

78Jewellery

Petrol Service Stations

2007 2016

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Retail: Year-on-Year Changes In Company Scores

Tangs 67.3

DFS 71.6

Isetan 70.8

Metro 67.0

Other department stores 65.8

Robinsons 69.4

Takashimaya 70.9

73.2 DFS

71.0 Isetan

69.1 Metro 68.6 Tangs

67.5 Other department stores

71.2 Robinsons

71.7 Takashimaya

70.8 BHG

71.5 John Little

CSISG2015

CSISG2016

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Department Stores Sub-sector Scores Increased

60

70

80

2007 2016

Department Stores Trend

70.2

Retail Sector

New companies measured in 2016: John Little and BHG

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Sheng Siong Score Increased in 2016

NTUC FairPrice 70.7

Cold Storage 71.6

Sheng Siong 69.4

Other supermarkets 67.3

71.7 NTUC FairPrice

72.5 Cold Storage 71.9 Sheng Siong

71.1 Giant

67.6 Other supermarkets

CSISG2015

CSISG2016

60

70

80

2007 2016

Supermarkets Trend71.5

Retail Sector

New company measured in 2016: Giant

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No Change in Petrol Service Stations

Caltex 67.5

Esso 71.5

Shell 70.1

SPC 71.7

69.1 Caltex

72.4 Esso

71.5 Shell 71.6 SPC

CSISG2015

CSISG2016

60

70

80

2007 2016

Petrol Service Stations Trend71.5

Retail Sector

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Satisfaction Drivers: Locals vs TouristsS

core

0 t

o 1

00

60

70

80

Expectations Quality Value Expectations Quality Value Expectations Quality Value

Local Tourist

Department Store Fashion Apparels Jewellery

Locals Tourists

Satisfaction 68.9 72.7

Locals Tourists

Satisfaction 72.0 72.1Locals Tourists

Satisfaction 73.2 70.9

- Denotes increase / drop compared to 2015

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Top 3 Attributes with Impact on Satisfaction

Department Stores

Fashion Apparels

JewelleryFurniture & Electronics

Supermarkets e-CommercePetrol

Service Stations

Motor Vehicles

Ambience Availability of products

Courtesy and helpfulness

of staff

Variety of products

Ease of making payment

Product delivered in a timely manner

Layout and ambience

Purchase: Courtesy and helpfulness

of staff

Availability of products

Products/promotions information:

Ads

Types of promotions

offered


Instore


Has fair returns and exchange policies

Courtesy and helpfulness

of staff

Purchase: Product

knowledge of staff

Brand image complements personality



Ease to check out items and

pay

Conveniently located

Service: Competence of workshop

staff

Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively impacts Satisfaction:

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Top 3 Attributes with Impact on Satisfaction

Department Stores

Fashion Apparels Jewellery Furniture &

Electronics Supermarkets e-Commerce

AmbienceAvailability of

products

Courtesy and helpfulness of

staff

Variety of products




Products/promotions

information: Ads

Types of promotions

offered


Instore


Has fair returns and exchange

policies




Ease to check out items and pay

Note: Petrol Service Stations and Motor Vehicles Excluded For Comparability


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In General: Availability of Products Matters In Retail

Department Stores




products


staff

Variety of products




Products/promotions

information: Ads

Types of promotions

offered


Instore



policies






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Jewellery: Service Staff Matters More

Department Stores




products


staff

Variety of products




Products/promotions

information: Ads

Types of promotions

offered


Instore



policies






23

Furniture & Electronics: Variety and Promotions Matter

Department Stores




products


staff

Variety of products




Products/promotions

information: Ads

Types of promotions

offered


Instore



policies






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Supermarkets: Ease of Making Payment

Department Stores




products


staff

Variety of products




Products/promotions

information: Ads

Types of promotions

offered


Instore



policies






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Supermarkets: Preference of Checkout Methods

% S

uper

mar

ket

Res

pond

ents

0%

50%

100%

Use cashier more Use self-checkout counters more

16%

85%

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Supermarkets: Preference of Checkout Methods

CSISG Score 71.4 71.9

Loyalty Score 73.3 74.6

Visits in the past 3 months 10.0 12.9

Average Spend (per visit) $82.44 $73.41

Average Spend (past 3 months) $604.19 $615.57

% S

uper

mar

ket

Res

pond

ents

0%

50%

100%


16%

85%

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Scores Not Impacted by Self-Checkout Preferences

% S

uper

mar

ket

Res

pond

ents

0%

50%

100%


16%

85%

CSISG Score 71.4 71.9

Loyalty Score 73.3 74.6

Visits in the past 3 months 10.0 12.9

Average Spend (per visit) $82.44 $73.41

Average Spend (past 3 months) $604.19 $615.57No

sign

ific

ant

diff

eren

ce

acro

ss a

ll m

etri

cs

No differences in satisfaction or loyalty

for those who self-checkout more often

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Tail-end of Customer Journey Matters More For e-Commerce

Department Stores


ElectronicsSupermarkets e-Commerce


products


staff

Variety of products




Products/promotions

information: Ads

Types of promotions

offered


Instore



policies




Ease to check out items and

pay

Pre-transaction Portion of Customer Journey Tail-end of Customer Journey

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e-Commerce Vs. Traditional Retailers




Perceived Value

Scale of 0 to 100

65 70 75

e-CommerceFashion ApparelsDepartment Store

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e-Commerce Vs. Traditional Retailers




Perceived Value

Scale of 0 to 100

65 70 75

e-CommerceFashion ApparelsDepartment Store

e-Commerce underperforms

Fashion Apparel in terms of Perceived

Quality & Value Performance.

Pro

port

ion

of R

espo

nden

ts (

%)

0%

50%

100%

Once Twice Three times or more

Fashion Apparels Department Stores e-Commerce

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More Repeat Visits for e-Commerce

No. of Times Visited In Last 3 Months

Ave

rage

Spe

nd in

Las

t 3

M

onth

s($

)

0

100

200

300

CSISG Below 50 CSISG 50-75 CSISG 75-100

e-Commerce Department Stores Fashion Apparels

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Higher Spending In 3 months for e-Commerce

CSISG Score Breaks

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CSISG 2016 Q1 RESULTS Info-communications

200755

65

75

55

65

75

Mobile

55

65

75Broadband

PayTV Wireless@SG

2016

Info-Comms Sector

Info-Comms Sector CSISG Trends

34

Infocomm Sub-sectors


Perceived Overall Quality Perceived Value

Mobile Telecom 70.7 ◼ 70.6 71.6

Broadband 69.9 ◼ 69.9 ◼ 70.1 ◼

PayTV 67.0 ◼ 68.5 68.6 ◼

Wireless@SG 71.1 ▲ 69.2 -

Rise In Perceived Quality

GREEN scores performed better than 2015 with statistical significance.RED scores performed worse than 2015 with statistical significance.

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Infocomm: Year-on-Year Changes In Company Scores

Singtel Mobile 69.4

StarHub Mobile 69.0

M1 Mobile 64.0

72.0 Singtel Mobile

67.5 StarHub Mobile

65.0 M1 Mobile

CSISG

2015

CSISG

2016

37

Widening Gap Between Singtel and Competitors

60

70

80

2007 2016

Mobile Telecom Trend

69.2

Info-Communications Sector

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Broadband Sub-sector Scores Increased

M1 Broadband 66.2

Singtel Broadband 64.1

StarHub Broadband 66.9

67.5 M1 Broadband

66.9 Singtel Broadband 67.0 StarHub Broadband

CSISG

2015

CSISG

2016

60

70

80

2007 2016

Broadband Trend

67.0Info-Communications Sector

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PayTV Scores Remains Stable

Singtel TV 64.3

StarHub TV 66.6

65.8 Singtel TV

67.7 StarHub TV

CSISG

2015

CSISG

2016

60

70

80

2007 2016

PayTV Trend

66.6Info-Communications Sector

2014 to 2015 2016

≈

40

Interactions with Service ProvidersIn

tera

cted

Wit

h To

uch-

poin

t (%

)

0%

20%

40%

60%

80%

Contact Centre Shop or Service Centre Website Mobile App

Not Measured 2014 to 2015

Increasing Interactions

Decreasing Interactions

41

Top 3 Attributes with Impact on Satisfaction & Loyalty

Mobile Telecom Broadband PayTV

Satisfaction Loyalty Satisfaction Loyalty Satisfaction Loyalty

Network reliability

Range of subscription plan

to meet needs


to meet needs

Loyalty & Rewards program

Variety of channels that interest me


Mobile data speed

Network reliability



to meet needs


to meet needsNetwork coverage Internet data

speedTransmission

quality

Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that positively affects the following:

42

Common Satisfaction and Loyalty Attributes



Network reliability


to meet needs


to meet needs




Mobile data speed

Network reliability



to meet needs



speedTransmission

quality

Beyond the general CSISG drivers (Customer Expectations, Perceived Overall Quality, and Perceived Value), these are the attributes that affects the following:

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Satisfied Customer vs Loyal CustomerAttributes That Keep Customers Satisfied May Not Be As Important In Retaining Them



Network reliability


to meet needs


to meet needs




Mobile data speed

Network reliability



to meet needs



speedTransmission

quality

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New Customers Generally Less Satisfied & Loyal

CSISG Score Loyalty Score

Sco

re (

0 t

o 1

00

)

50

55

60

65

70

75

Less than 2 yrs 2 to 4yrs 4yrs or more

Mobile Broadband PayTV

Less than 2 yrs 2 to 4yrs 4yrs or more

• Retail and Infocomm saw significant rise in satisfaction.

• Generally, the pre-transaction portion of customers’ journey matter more for retailers while the tail-end of customers’ journey matter more for e-commerce.

• Self-checkout counters targeted at raising productivity in supermarkets appear to be complementing the traditional cashiers.

• Keeping Infocomm customer satisfied and retaining them may require different approaches.

• New Infocomm customers tend to be less satisfied and less loyal than customers with longer tenure with the provider.

45

Summary

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ARE YOU FUTURE-READY? - ise.smu.edu.sg · statistically significant increase in customer satisfaction from 2015 to 2016 statistically significant decrease in customer satisfaction