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Customer satisfaction score drops to lowest level since 2007
Posted: 09 February 2011 1530 hrs
SINGAPORE: Singapore's national customer satisfaction index has dropped to its lowest since 2007, when the Singapore Management University's Institute of Service Excellence (ISES) first started measuring it.
The index now stands at 67.2, a drop of 1.5 points compared to the highest score achieved, in 2007.
The score stood at 68 last year.
ISES said this is because Singapore's operating environment has changed, and demand for services has increased with record tourist arrivals and population increase.
Another reason for the decrease is the significant drop in the scores for the finance and insurance sector, which may still be recovering from the financial crisis as they work to regain lost customer trust.
The sector carries more weight in the index as it accounts for 41.9 per cent of the sectors covered in the index due to its higher contribution to GDP.
Job vacancies have also increased, and this has made it more challenging for businesses to meet increasing consumer demands.
Interestingly, despite the drop in the national index, there is an improvement in perceived service quality, which is at its highest at 71.3.
However, ISES's Director Caroline Lim said service quality alone does not lead to customer satisfaction and companies should look into exactly what customers want.
"While service quality does impact customer satisfaction, training the frontline service alone will not raise customer satisfaction and customers can take a more holistic approach looking at improving product quality, improving their branding and positioning, improving perception of perceived value to raise customer satisfaction."
ISES said the retail and tourism sectors showed marked improvements, likely due to the opening of the integrated resorts and refurbishment of Orchard Road.
Healthcare, Food & Beverage, Transport and Logistics sectors' scores did not change significantly, while the Education and Info-Communications sectors declined.
The national customer satisfaction index measures customer satisfaction across eight economic sectors.
- AFP/fa
Posted: 09 February 2011 1530 hrs
SINGAPORE: Singapore's national customer satisfaction index has dropped to its lowest since 2007, when the Singapore Management University's Institute of Service Excellence (ISES) first started measuring it.
The index now stands at 67.2, a drop of 1.5 points compared to the highest score achieved, in 2007.
The score stood at 68 last year.
ISES said this is because Singapore's operating environment has changed, and demand for services has increased with record tourist arrivals and population increase.
Another reason for the decrease is the significant drop in the scores for the finance and insurance sector, which may still be recovering from the financial crisis as they work to regain lost customer trust.
The sector carries more weight in the index as it accounts for 41.9 per cent of the sectors covered in the index due to its higher contribution to GDP.
Job vacancies have also increased, and this has made it more challenging for businesses to meet increasing consumer demands.
Interestingly, despite the drop in the national index, there is an improvement in perceived service quality, which is at its highest at 71.3.
However, ISES's Director Caroline Lim said service quality alone does not lead to customer satisfaction and companies should look into exactly what customers want.
"While service quality does impact customer satisfaction, training the frontline service alone will not raise customer satisfaction and customers can take a more holistic approach looking at improving product quality, improving their branding and positioning, improving perception of perceived value to raise customer satisfaction."
ISES said the retail and tourism sectors showed marked improvements, likely due to the opening of the integrated resorts and refurbishment of Orchard Road.
Healthcare, Food & Beverage, Transport and Logistics sectors' scores did not change significantly, while the Education and Info-Communications sectors declined.
The national customer satisfaction index measures customer satisfaction across eight economic sectors.
- AFP/fa
