Customer satisfaction Indicator: Customer Satisfaction Index scores

Transcription

1 Customers Customer satisfaction Indicator: Customer Satisfaction Index scores Background Modern-day consumers have more choice than ever before, with faster access to higher-quality, good-value products and services. But in December 211, amid continued economic uncertainty, the confidence of UK consumers reached its lowest point in three years 1. To achieve sustainable commercial success, it is vital to nurture customer loyalty and support through excellent customer care, service and offering. Materiality and strategy The Co-operative Food has approximately 14.5 million customers each week and the Banking Group has approximately Targets 211 Progress Targets 212 Achieve a Customer Satisfaction Index score of 78.3% for The Co-operative Food Maintain a minimum Customer Satisfaction Index score of 9% for Maintain a Funeralcare Excellence Score of 9 Maintain a customer advocacy score for The Co-operative Banking Group that is at least 8.5% 2 ahead of our peer group Customer satisfaction is tracked across The Co-operative Food, Pharmacy, Funeralcare, Legal Services and The Co-operative Life Planning, using the Customer Satisfaction Index (CSI) as our key measure of satisfaction. Introduced at the beginning of 21, the CSI assesses how we are doing best what matters most We achieved a Customer Satisfaction Index score of 79.1% for The Co-operative Food We achieved a Customer Satisfaction Index score of 91.7% for We achieved a Funeralcare Excellence Score of 92.4 The Co-operative Banking Group averaged 1.3% above the top five peer group across the year to customers 3. Between 5 and 6 customers are surveyed every month 4 and are asked to register satisfaction on a ten-point scale. Due to the sensitive nature of their business, The Co-operative Legal Services and Funeralcare use postal surveys to track customer satisfaction 5. eight million in total. Customers are key stakeholders and customer satisfaction is a strategic priority. One of the six aims underpinning the business vision is to meet the needs of our customers and the communities we serve. We measure customer satisfaction through customer surveys, and performance is linked to the remuneration of the Executive team. In addition to using customer surveys, we are increasingly using a range of other engagement channels such as social media, consumer panels and online communities to ensure that our products and services meet and exceed the needs of our customers. Achieve a Customer Satisfaction Index score of 8.6% for The Co-operative Food Maintain a minimum Customer Satisfaction Index score of 9% for Maintain a Funeralcare Excellence Score of 9 Maintain a customer advocacy score for The Co-operative Banking Group that is at least 8.5% ahead of our peer group Satisfaction scores vary across our businesses, reflecting the different market sectors and the methods of measurement used. 1 The Co-operative Group Sustainability Report 211

2 The Co-operative Food A CSI of 79.1% (21: 77.2%) exceeded our 211 target of 78.3%. Areas identified for improvement within the survey include value for money, product availability and range, and queuing times. Exceeding our 211 target of 9%, we achieved a CSI of 91.7% (21: 91.3%). Priorities identified by customers for improvement in 212 include privacy within pharmacy branches, availability of prescriptions and length of waiting time. The Co-operative Funeralcare Satisfaction results remained extremely high with 98.48% of customers reporting they were either very satisfied or fairly satisfied with their overall experience. Customer service questionnaires are used to calculate a Funeralcare Excellence Score (FES), based on the quality of customer service. The 211 FES was 92.4 (91.5 in 21), exceeding our target of 9. Priorities for improvement were identified within the surveys as: fully explaining to all clients exactly what will happen on the day of the funeral and ensuring continued contact between the time of arranging the funeral and the day of the funeral. The Co-operative Funeralcare 97.77% 97.97% 98.17% 98.48% The Co-operative Legal Services Customer satisfaction remains relatively stable with 72% of respondents rating their satisfaction with the overall experience as a nine or a ten out of ten. Priorities for improvement, identified by customers, include speed of answering calls, duration of appointments/claims and regularity of updates. The Co-operative Legal Services 72% 74% 75% 72% The Co-operative Bank The Banking Group focuses on customer advocacy 6 to monitor satisfaction, using the GFK NOP Financial Research Survey a financial sector survey to effectively measure advocacy and benchmark performance against a peer group 7. This better understanding of performance in critical areas can drive higher levels of advocacy among our customers 8 and lead to business growth. Reputation and brand Indicator: Brand awareness and performance recognition Complete the rebrand of The Co-operative outlets 11 Performance benchmark 1% more customers would recommend The Co-operative Banking Group than the average of our top five peer group 1. We have completed the rebrand process for all Group sites that are within scope of The Co-operative rebrand The Banking Group exceeded its 211 target to perform at least 8.5% above its top five peer group average for customer advocacy, averaging 1.3% above the group across the year. The Banking Group also carries out satisfaction surveys among corporate and business customers, weighting survey results according to the stated importance of attributes 9. We achieved a Satisfaction Index of over 86% among our corporate banking customers (business customers with turnover exceeding 1m), who told us that the accuracy of banking transactions and keeping our promises and commitments are what matter to them most. Corporate banking customers 83.7% 84.% 84.9% r 86.2% Business banking customers 84.2% 82.7% 8.3% 84.4% Delivering value Democratic control Supporting co-operatives Economic impact Employees Customers Public policy The Co-operative Group has historically measured its reputation among UK consumers via the Corporate Reputation Index (CRI). However, as a result of a number of changes within the organisation this study was not repeated in 211. Evaluation metrics for the organisation, including the measurement of reputation and customer satisfaction, are being reviewed to ensure that they are in line with our strategy (ie, they measure the things that we expect to be impacting) and enable us to take action as a result. It is also important that any measurement framework can be applied across the whole of the Group including the bank. Work is currently underway to develop an appropriate brand health/reputation measurement, which is likely to be introduced during 212. The Co-operative Group Sustainability Report 211 2

3 Reputation and brand continued Rebranding programme During 211, The Co-operative rebranding programme continued to unify our different businesses and other co-operative societies under one identity. Brand standards are designed to improve customer experience and achieve a higher level of customer satisfaction. By December 211, 5,4 outlets were rebranded (21: 4,9), completing the rebrand for all Group sites included within The Co-operative rebrand project. A programme of store interior refits is ongoing (page 51). Customer relations Indicator: Customer complaints Maintain complaints received by The Co-operative Banking Group to less than two per 1, accounts, policies and portfolios 12 The Customer Relations department is the first point of contact for customers who wish to comment on our products, policies and operations, or to find out about the source of own-brand products. It generates information that helps us to understand and respond to emerging consumer issues. In 211, the Customer Relations department took 21,24 calls from customers; of all correspondence received, 19,23 instances related to product complaints (21: 31,437). The Co-operative Banking Group and Pharmacy each operate their own customer contact centres to handle customer queries and complaints. In 211, the Pharmacy business continued to target areas for improvement in response to customer feedback, resulting in almost 2% fewer customer complaints, including stock availability, privacy, customer experience and reduction in waiting times. A rebranded Co-operative Food store. In the first half of 211 we received 1.84 complaints per 1, accounts, policies and portfolios. However, due to the increased volume arising from Payment Protection Insurance (PPI) enquiries, complaints in the second half were slightly higher at 2.9 per 1, accounts, policies and portfolios Complaints received Maintain complaints received by The Co-operative Banking Group to less than two per 1, accounts, policies and portfolios in each half year 13 Customer relations 14 (largely food related) n/a n/a 31,437 29, ,552 1,21 97 The Co-operative Banking Group 5,151 42,588 47,883 58,714 The Co-operative Banking Group received less than two (1.84) regulated complaints 15 per thousand live accounts, products or portfolios in the first half of 211, rising to 2.9 in the second half of the year (21 H1: 1.91, H2: 1.83). An increase in the second half of 211 was due to complaints relating to Payment Protection Insurance (PPI), where cases were put on hold pending the outcome of a judicial review in April 211. In 211, 17,521 complaints related to PPI. Further data on bank complaints are reported in accordance with FSA requirements and are available on the FSA website 16. Performance recognition Named Sustainable Retailer of the Year at the Retail Industry Awards 211. Which? rated us the Number 1 high street bank for customer services. Our current account was rated the best current account in the Moneywise Customer Service Awards 211. Global market research company JD Power rated us the top high street bank for customer satisfaction. Performance benchmark At The Co-operative Bank and Insurance, 91% and 95% of customer complaints respectively were resolved within eight weeks, compared to an average of 86% across the financial services industry The Co-operative Group Sustainability Report 211

4 Customer engagement Seek to use new technology to help consumers make ethical choices Customer satisfaction surveys are just one of the ways that we engage with our customers. We use a number of other customer communication and feedback channels such as social media to improve our engagement and insight. Social media and campaigns In 211, we set out to substantially increase our engagement with customers on consumer and ethical issues. In March 211, we launched Join the Revolution, our largest ever marketing campaign on ethics. The national TV, press and online campaign told the story behind The Co-operative revolution the creation of a business based on democratic principles, owned by its customers and reinvesting in the community. The campaign also focused on the people whose personal revolutions have been supported, from communityowned wind turbines to urban beekeeping. We will progress our use of technology to influence consumer ethical decision-making during 212/13 year (21: 24,); we will continue to utilise social media to drive customer engagement. A Social Goals update continued in 211, with subscriptions doubling to more than 3, customers and members (21: 15,). Other communication channels included pointof-sale promotions in stores, campaign inserts in bank statements and coverage in customer magazines. Chip and pin feedback: InSight Our Food business uses chip and pin terminals to gather customer feedback on pertinent customer service, sustainability and business issues. InSight was designed and developed in-house and is, we believe, unique to The Co-operative. We received an average 45,5 responses every week 28in 211 (21: 365,), providing an instant picture of customer opinion InSight 211 customer feedback September 2114, chip and pin 8, 11, terminal survey of The Co-operative Food customers Question: Were we friendly and helpful? (Total responses: 485,876) Yes No 6% 2% 4% 6% 8% 94% 1% Seek to use new technology to help consumers make ethical choices Consumer panels and online communities Delivering value Democratic control Supporting co-operatives Economic impact Employees Customers Public policy The Co-operative Food: The Taste Team The Taste Team is our consumer panel made up of over 2,5 employeecustomers, who sample every new product and provide feedback. In 211, 312 Number of sites and workers registere products were assessed Sedex, by The which Taste supply to The Co-operati Team (21: 343). Of the five largest food retailers in the UK, we are the only one Sites to test food products in the home the Developed countries 1,23 2 method considered to be Developing the most countries realistic SITES Up for Discussion consumer community WORKERS Up for Discussion, an online community, was created in December 21 to improve our understanding of consumer attitudes and behaviours across The Co-operative family of businesses. Approximately 1,55 registered participants are invited to offer views on a different consumer or lifestyle topic each week, with a total of 7,616 contributions received in , Talking Shop Food 21 consumer community 211 Talking Shop is our private online community, set up in 21 to engage with consumers and provide daily insight into 21 issues relating to the Food business. In , membership increased to 1,8 participants (21: 1,3). 1,5 1, 2, 3, The campaign laid the groundwork to expand our social network to engage customers and members. As of December 211, more than 11, people liked or followed one or more of our social media pages, a four-fold increase on the previous The Co-operative Group Sustainability Report 211 4

5 Accompanying notes Customers 1 GfK NOP (211) Consumer Confidence Index. 2 Advocacy calculations have been rebased to be more reflective of market share at a product level, resulting in an increase in our position versus our peer group. In reaction to this, our 211 target of 6% reported in 21 was adjusted to reflect this increase, resulting in a 211 target of 8.5%. 3 We assessed how important different aspects of customer experience are to our businesses and used the results to develop our questionnaires that focus specifically on the highest priority requirements. The results from these prioritised questionnaires form an index result that provides greater insight into the steps needed to improve performance. The index result is weighted towards attributes ranked most highly by customers and expressed as an overall percentage. 4 Data presented is an average of quarterly satisfaction scores. For Food, we carry out 217 telephone interviews per month, for Pharmacy, we conduct exit interviews outside 25 branches per month. feedback We value your feedback. 5 A self-completion postal survey is issued by The Co-operative Legal Services (CLS) and Funeralcare. In the case of CLS, satisfied customers are those who rate their satisfaction with The Co-operative as nine or ten out of ten. Approximately 1,3 surveys are returned to CLS each quarter. In Funeralcare, satisfied customers are those who report they are very satisfied or fairly satisfied on a four-point scale. 6 Advocacy measures willingness to recommend a company, product or service to a friend or family member. 7 The peer group varies according to product types. 8 Measurement is based on the percentage of customers rating their likelihood to recommend as eight, nine or ten out of ten. Results are then weighted to reflect the number of customers who take up each product featured in the survey, to generate an overall score. 9 Telephone interviews with 547 Corporate Banking customers were undertaken in Q3 211 and with 2 Business Banking customers in Q2 and Q Each survey measures satisfaction with those elements of service considered to be most important to customers. 1 GfK Customer Advocacy Score, April Excludes the private name funeral homes and Britannia branches, which did not participate in the rebrand. 12 Reported in accordance with FSA requirements based on half-yearly figures. 13 Ibid. 14 Historical data for product complaints 28 and 29 have not been included, as they do not include former Somerfield, and therefore are not comparable with 21 and 211 data. 15 A regulated complaint refers to a complaint that has not been resolved by close of business the day after it has been received firm_spec 17 Based on data for the first half of 211. FSA (211) Aggregate complaints data 211 H1 pages/library/other_publications/commentary/aggregate_ com/prev_agg_com 5 The Co-operative Group Sustainability Report 211