Measuring Customer Satisfaction

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Presentation Transcript

Slide1: 

March 9,10, 2005 Presented by: Measuring Customer Satisfaction in Today’s Highly Competitive Environment © 2005 J.D. Power and Associates

PURPOSE OF DISCUSSION: 

PURPOSE OF DISCUSSION Provide a brief overview of J.D. Power and Associates Discuss today’s rapidly changing consumer Discuss some of the benefits associated with high levels of Customer Satisfaction in today’s highly competitive environment

PURPOSE OF DISCUSSION: 

PURPOSE OF DISCUSSION Discuss the J.D. Power and Associates syndicated New Home Builder Customer Satisfaction Study Why the Home Building Industry? Who we focus on? What we cover? How we analyze the information Key findings

PURPOSE OF DISCUSSION: 

PURPOSE OF DISCUSSION Share key findings/common characteristics of high-ranking builders Outline how J.D. Power and Associates works with builders to improve satisfaction

J.D. Power and Associates A Worldwide Information Resource: 

J.D. Power and Associates A Worldwide Information Resource Founded in 1968 Worldwide offices staffed by over 650 professionals, including analysts, market researchers, and consultants Offers clients a full range of marketing information tools, including market research, economic forecasting, strategic analysis, and consulting and education services 5

J.D. Power Global Influence Syndicated*/Proprietary Research and Consulting: 

Korea India U.K. Malaysia Mexico Australia Canada Sweden Germany South Africa Israel U.S. Brazil Argentina Colombia Venezuela Chile France Italy Spain Austria Belgium Finland Netherlands Russia Ukraine Belarus Turkey Japan Thailand China Singapore Philippines Taiwan Djibouti Tanzania Nigeria New Zealand Bahrain Brunei Scotland Switzerland Portugal U. Arab Emirates Oman Kuwait Morocco Ethiopia Fiji Islands Zimbabwe Poland Georgia Malta Uganda Kenya Pakistan Qatar Syria Benin Egypt Croatia Guatemala Peru Hong Kong Indonesia *Syndicated Research countries underlined Offices: Westlake Village, CA and Orange, CA Mesa, AZ Troy, MI Norwalk, CT Office in Toronto Office in London Office in Tokyo Office in Singapore Office in Sydney J.D. Power Global Influence Syndicated*/Proprietary Research and Consulting Office in Germany Office in Shanghai

J.D. Power and Associates’ experience spans a variety of industries in both Consumer and Business-to-Business: 

J.D. Power and Associates’ experience spans a variety of industries in both Consumer and Business-to-Business Customer Satisfaction Measurement Experience Airlines Automotive Cable broadcasting Computers Consumer electronics Copiers Durables/appliances Fast food Financial services Fax machines Healthcare Motorcycles Packaged goods Paper processing equipment Real Estate Software Hotels Telecommunications Trucks (medium and heavy-duty) Utilities

Our customer-focused research falls under one of two categories:: 

Our customer-focused research falls under one of two categories: Proprietary Conducted exclusively for a client Questionnaire jointly developed by J.D. Power and Associates and client Sample source and analysis is discretionary Clients owns the information Syndicated Conducted for an industry sector and funded by J.D. Power and Associates Questionnaire derived from discussions with potential clients in industry Companies and sample represent the market and the population J.D. Power and Associates owns the information and solicits subscribers The New Home Builder Satisfaction Study is a syndicated study

Who Are Today’s Customers?: 

Who Are Today’s Customers?

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer As we have seen in many industries, the expectations and behavior by today’s consumer is much different than 20 years ago. Increasingly Time Poor More Savvy More Demanding

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer Increasingly Time Poor: Consumers have less time to shop. But will not trade-off quality service. . . Shop at Home Express Check-in/ Check-out

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer Increasingly Time Poor: Consumers have less time to shop. But will not trade-off quality service. . . Express Auto Service Banking and Trading on Internet

Speed is the New $$ Currency $$ : 

Speed is the New $$ Currency $$

Slide14: 

Speed is the shortening product lifecycles from years to months and sometimes weeks Speed is the worldwide financial network that transfers money at the rate of $41 billion a minute Speed is real-time responsiveness, 24 hours a day, 7 days a week Speed measures competitive advantage The Rapidly Changing Consumer Speed is a new currency:

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer As we have seen in many industries, the expectations and behavior by today’s consumer is much different than 20 years ago. Increasingly Time Poor More Savvy More Demanding

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer The Consumer is More Savvy: Twice as many high school graduates today than 30 years ago. 1960s 1990s High School + 41% 82%

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer The Consumer is More Savvy: Internet Usage Significant increase in those accessing Those accessing are spending more time Significant increase in those going on-line to shop

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer The distant relationship between the naïve buyer and the expert seller...

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer …is going away! Naïve Buyer “Expert” Seller

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer As we have seen in many industries, the expectations and behavior by today’s consumer is much different than 20 years ago. Increasingly Time Poor More Savvy More Demanding

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer The Consumer is More Demanding: Across industries this New Consumer has higher expectations of service

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer This has resulted in Consumers Demanding: What they want Where they want it When they want it

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer Loyalty is declining! Example: The Automotive Industry 2 out of 3 people will buy a different brand than their previous choice 4 out of 5 will buy from a different dealer than their previous choice

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer Reasons for decline More choices resulting in greater freedom Mobile population Limited product lines Decline in negotiations Information is now available to both parties

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer The key to increasing loyalty is to build brand! Brands differentiate competitors Companies have brands whether they want them or not!

The Rapidly Changing Consumer: 

The Rapidly Changing Consumer Question: How closely matched is your company’s desired image versus the perception of your customers?

The Key to Increasing Loyalty is to Build Brand!: 

The Key to Increasing Loyalty is to Build Brand!

Effective Brand Management Leads To High Levels Of Perceived Value!: 

Effective Brand Management Leads To High Levels Of Perceived Value! Increase the perceived value of your homes. Lowering prices does not need to be the first option. Toot your own horn Identify and reveal the untold values of your new homes to your customers (design efficiencies, higher quality products, etc.)

Why is Customer Satisfaction Important?: 

Why is Customer Satisfaction Important?

Slide30: 

% of Total Home Buyers Overall Satisfaction with Home Builder Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study There is room to improve Overall Satisfaction! 80% of homebuyers are less than completely satisfied. Unacceptable Outstanding Average

Superior Customer Satisfaction Affects Bottom Line: 

Superior Customer Satisfaction Affects Bottom Line

Increased Word of Mouth: 

Increased Word of Mouth Intended Word of Mouth % Definitely will Recommend Builder -36% Overall Satisfaction with Home Builder Decline in Word of Mouth Based on Decline in Home Buyer Satisfaction Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study Unacceptable Outstanding Average -70% -91% -97% -98% -100%

As Overall Satisfaction scores increase, so do the number of positive recommendations per homebuyer.: 

At an Index score of 122, the average builder could receive 4.62 positive recommendations per homebuyer. The average builder, at an Index score of 112, receives 3.96 positive recommendations per homebuyer. A 10-point increase in a builder’s Index score can yield .66 extra recommendations per homebuyer. 3.96 4.62 As Overall Satisfaction scores increase, so do the number of positive recommendations per homebuyer. Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Slide34: 

With an increase in positive recommendations, Home Builders have the potential to significantly increase home sales. X 128 = + (.66) Additional Recommendations per Buyer 84 Average Homes per Builder Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Word of Mouth (con’t): 

When asked to share a significant experience related to customer satisfaction (positive or negative): People were about 50% more likely to tell us a story about a bad experience than a good experience. Of the good stories – where customers had such a good experience they may always try to do business with that company… 1/3 began with some type of problem or an upset customer illustrating the importance and opportunity for service recovery. Companies with good stories tend to be in the top half of J.D. Power studies; companies with bad stories tend to be in the bottom half. Customers are like elephants—THEY NEVER FORGET! Many stories 20 – 30 years old. Almost all ended up indicating loyalty to the company (e.g. I’ve bought 5 washing machines since then and because of what they did in 1976 I never even considered buying that brand again.) Word of Mouth (con’t)

Greater Pricing Leverage: 

Price Estimate of Vehicle XYZ Source: Previous J.D. Power and Associates Car Clinic - Proprietary Study Greater Pricing Leverage Respondents who liked vehicle XYZ estimate a higher selling price than those who did not like it. Overall Satisfaction With Vehicle XYZ People Who Liked Vehicle XYZ People Who Did Not Like Vehicle XYZ $16,000 $13,900

Gaining a Sustainable Competitive Advantage: 

Gaining a Sustainable Competitive Advantage Source: 1994 J.D. Power and Associates Computer CSI Study Index Score Differences Between Highest and Lowest Competitor Top 5 Personal Computer Companies Product Issues Difference in Index Score Where “product parity” has been reached, “customer-oriented” issues differentiate the competition. Customer Issues - User Support - Ease of Use - Communication Skills - Technical Fit - Reliability - Set-up 108 49

Slide38: 

Increased Sales Performance Metrics of Three Groups of Nameplates Based on Their Ownership Satisfaction Groupings based to J.D. Power and Associates’ 2003 VDS – mean score for overall ownership experience

The Bottom Line: There is a Strong Relationship Between CS and Sales : 

The Bottom Line: There is a Strong Relationship Between CS and Sales Owner Retention (competitive segment loyalty) 59% 55% 65% Retained Value After 3 yrs 49% 51% 59% % Chose Vehicle because of the Deal 41% 38% 11% % Avoided Vehicle because of bad reputation 22% 17% 6% Sales Growth (1998 to 2003) (4%) 24% 44% Low Mid High The relationship between CS and Sales is stronger than the individual metrics because each individual metric contributes to sales growth (or contraction)

Increased Rate of Sales Volume: 

Change in Dealer’s Sales Satisfaction Index (points) Percentage Change in Dealer’s Sales Volume ’99 to ‘02 Dealers that are able to improve sales satisfaction enjoyed increased sales volume at a faster rate over a three year period. Increased Rate of Sales Volume

Increased Shareholder Value : 

Increased Shareholder Value Median Percentage change in Customer Satisfaction Index 1999 - 2004 Cumulative Return to Shareholders Improved by > 10% No Significant Change Decline by > 10% Source: Previous J.D. Power and Associates Research

Common Myths Associated with Customer Satisfaction Programs: 

Common Myths Associated with Customer Satisfaction Programs

Myth 1: Improving Performance will Improve Customer Satisfaction: 

Myth 1: Improving Performance will Improve Customer Satisfaction Fact 1 - Greater return will be achieved by understanding that satisfaction is highest when Performance exceeds Expectations = -

Myth 2: Customer Satisfaction programs should focus on improving perception among dissatisfied customers.: 

Myth 2: Customer Satisfaction programs should focus on improving perception among dissatisfied customers. Fact 2 - Greater return will be gained by focusing on moving the greatest number of customers to the highest levels of satisfaction. Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study Unacceptable Outstanding Average

Myth 3: The only critical challenge in Customer Satisfaction is to deliver a quality product.: 

Source: J.D. Power and Associates 1998 Customer Satisfaction Index Factors Driving Automobile Satisfaction During First 12 - 14 Months of Ownership Product Quality Dealer Service Fact 3 - The “product” represents only part of the satisfaction equation. 40% 60% Myth 3: The only critical challenge in Customer Satisfaction is to deliver a quality product.

In practice, other factors can offset problems with the “product.”: 

Comparison of Satisfaction Levels Among All Cellular Subscribers by Problem Incidence Source: Previous J.D. Power and Associates Proprietary Research Never experienced a Call Quality problem Call Quality problem NOT resolved by first contact Call Quality problem resolved by first contact % Extremely or Very Satisfied Overall In practice, other factors can offset problems with the “product.”

Myth 4: To improve Customer Satisfaction, concentrate on your weaknesses.: 

Myth 4: To improve Customer Satisfaction, concentrate on your weaknesses. Fact 4 - You improve your Customer Satisfaction by focusing on the areas “that the Customer considers important” -- regardless of whether or not they are weaknesses. Priority 2 (Exploit High Potential Opportunities and Eliminate Less Critical Weaknesses) Priority 1 (Eliminate Critical Weaknesses) Priority 3 (Pursue Areas of Moderate Potential) Priority 4 (Limited Leverage Opportunities) Company Performance Versus Key Competitors Importance to the Customer High Medium Low Below Competitor Average Equal to Competitor Average Above Competitor Average J.D. Power and Associates Apch J.D. Power and Associates Approach Traditional Approach J.D. Power and Associates Approach 47

Myth 5: Customer Satisfaction occurs after the sale has been made.: 

Source: Previous J.D. Power and Associates Research Myth 5: Customer Satisfaction occurs after the sale has been made.

Companies need to understand what is truly important to the customer at the point of sale: 

Companies need to understand what is truly important to the customer at the point of sale Satisfaction Scores in the U.S. Cellular Industry Source: Previous J.D. Power and Associates Proprietary Research Mean Satisfaction Rating (5-Point Scale) Were reasonable expectations set? Was the full range of services explained?

Myth 6: Complaint handling systems provide an adequate measure of customer satisfaction.: 

Myth 6: Complaint handling systems provide an adequate measure of customer satisfaction. Fact 6 - Complaints do not always completely track customer satisfaction. Research indicates that complainers may be an unrepresentative set of your customers; many customers tend to “suffer in silence.” Initial Contact for Problem Resolution Hotel Chain A 40% of Problems are Reported 60% of Problems Go Unreported Source: Previous J.D. Power and Associates Proprietary Research

Myth 6: Complaint Handling Systems (con’t): 

In addition, some companies may discount or ignore complaints/problems that should be investigated because: They may not think they’re responsible (e.g. warranty) The problem may not be clearly communicated There may not be adequate resources (time, money, people) to handle the situation The buyer’s credibility may be in question Myth 6: Complaint Handling Systems (con’t)

Myth 7: High Priced Homes mean a High level of Customer Satisfaction: 

FACT 7 - Our syndicated studies reveal no correlation between the price of the home and level of satisfaction. # 1 Cal. Pacific Homes # 2 Lewis Homes Median Sales Price Per Unit Per Unit Source: J.D. Power and Associates 1997 New Home Builder Customer Satisfaction Study - So. California Market 23 Myth 7: High Priced Homes mean a High level of Customer Satisfaction

Why is J.D. Power and Associates Focusing on the Home Building Industry?: 

Why is J.D. Power and Associates Focusing on the Home Building Industry?

Key Trends Affecting Home Building Industry: 

Key Trends Affecting Home Building Industry Proliferation of master planned communities Consolidation of builders will continue Economic revival in industry Highest per capita ownership ever Growth is expected to continue Informed, customer driven market Mature, highly competitive industry Need for competitive differentiation despite economic forecasts

J.D. Power and Associates Current Status in Home Building: 

J.D. Power and Associates Current Status in Home Building Ongoing proprietary work with national real estate companies beginning 1991 First syndicated homebuilder study released in So. California November 1997 Expansion of syndicated study to Denver and Phoenix markets released June 1998 Second study in Phoenix market released July 1999 Study expanded to six markets in 2000 Ten markets in 2001 Sixteen markets in 2002 Twenty-one markets in 2003 Twenty-five markets in 2004 Thirty markets in 2005 Proprietary business with national and regional home builders Speaking engagements at major industry conferences

The J.D. Power and Associates New Home Builder Customer Satisfaction Study: 

The J.D. Power and Associates New Home Builder Customer Satisfaction Study

Study Objectives: 

Study Objectives Develop a detailed understanding of the determinants of homebuyer satisfaction Obtain buyer feedback on the performance of major single-family detached and attached home builders Provide detailed information to assist home builders’ management in their efforts to improve customer satisfaction and thus their “bottom line.” Establish a benchmark for on-going tracking research Within a market over time Across markets over time

Criteria Used To Select Markets: 

Criteria Used To Select Markets A healthy competition among builders Presence of both regional and national builders Number of builders with a sufficient number of closings over a one year period to be statistically ranked Number of builders that comprise market share Optimistic future is estimated for housing demand Solid economic and employment status -- current and future estimate

Qualifying Markets For 2005 Study 30 of the Top US Home-Building Markets: 

Qualifying Markets For 2005 Study 30 of the Top US Home-Building Markets

Sample and Methodology: 

Sample and Methodology Focus on purchasers of new single family detached and attached homes previous calendar year Sample drawn from public records Qualifying builders in each market must have a minimum of approximately 150 closed homes in the previous calendar year in the records and a minimum of 50 returned questionnaires Four page questionnaires begin mailing in April/May/June to all buyers of qualifying builders $1.00 incentives included with each questionnaire Reminder postcards sent two to three days following mailout Close field end of July Study releases September Reports/presentations to subscribers Quarter Four

Five-Step Approach to Customer Satisfaction: 

Five-Step Approach to Customer Satisfaction

J.D. Power and Associates Index Methodology: 

J.D. Power and Associates Index Methodology Unique to the Power organization Time tested in multiple industries Identifies critical factors of customer satisfaction Ranks builders in the industry by offering more weight to areas important to customers

Step 1: Factor Determination: 

Step 1: Factor Determination * Only one attribute in this factor. The 60 attributes are summarized by 9 factors Nine Factors Sales Staff (10 Attributes) Design Center (5 Attributes) Customer Service (9 Attributes) Price/Value (2 Attributes) Physical Design Elements (12 Attributes) Quality of Workmanship and Materials (16 Attributes) Location* Recreational Facilities * Home Readiness (4 Attributes) Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Slide64: 

Nine Factors Drive Overall Satisfaction With Builder % Contribution to Overall Satisfaction With New Home Builder Step 2 : Regression Analysis Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Overall Satisfaction Index Scores by Market: 

Overall Satisfaction Index Scores by Market *Note: Market not shown in previous study year. Where scores are tied, markets are ranked in alphabetical order. 2003 OSAT Index Scores 116 115 118 113 109 109 * 107 114 111 107 104 105 109 109 109 106 * 106 107 105 * * 100 100 * 2002 OSAT Index Scores 106 * 111 99 * 101 * 101 * 111 100 93 88 103 101 101 99 * 102 96 * * * 96 93 *

Slide66: 

Other Topics Covered In addition, the survey covers other critical issues including: Reasons for purchase Escaped buyers’ reasons for non-purchase Loyalty -- likely to use again -- recommend, and it’s impact on satisfaction The value of a recommendation Problem occurrence and resolution Demographics

Ranking of Denver Builders by Construction Problems Per 100 Homes : 

Ranking of Denver Builders by Construction Problems Per 100 Homes Construction Problem Occurrence 37 Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Ranking of Denver Builders by Construction Problems Per 100 Homes : 

Ranking of Denver Builders by Construction Problems Per 100 Homes Construction Problem Occurrence 37 Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

We continue to see that the occurrence of a problem negatively impacts overall satisfaction.: 

Source: 2003 J.D. Power and Associates New Home Builder Customer Satisfaction Study We continue to see that the occurrence of a problem negatively impacts overall satisfaction. Relationship Between Problem Occurrence And Overall Builder Satisfaction Index Scores (Major Market Average)

Slide70: 

Among homebuyers experiencing significant construction problems that were ultimately resolved, nearly six in ten problems were fixed on the first visit. 69% 5% 36% 65% 21% 14% Number of Visits to Resolve Problems (Base: Resolved Problems) Problems Experienced (Base: Experienced Problems) Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Overall satisfaction declines dramatically when problems require repeated attempts to fix.: 

Overall satisfaction declines dramatically when problems require repeated attempts to fix. Overall Satisfaction Index Overall Satisfaction Vs. Problem Resolution Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Through These Analyses, Builders Receive:: 

Through These Analyses, Builders Receive: An understanding of satisfaction with every facet of the home purchase experience A system for identifying the relationship between satisfaction, loyalty and retention A tool for management to identify areas requiring improvement and to evaluate process improvement activities The ability to measure, on an ongoing basis, the success of programs or action plans put into place to enhance satisfaction

COMMON CHARACTERISTICS OF HIGH RANKING BUILDERS: 

COMMON CHARACTERISTICS OF HIGH RANKING BUILDERS

High-Ranking Builders Drive Satisfaction Efforts From the Top of the Organization: 

High-Ranking Builders Drive Satisfaction Efforts From the Top of the Organization

High-Ranking Builders Manage Both Performance and Expectations: 

High-Ranking Builders Manage Both Performance and Expectations

Greatest return will be achieved by understanding that satisfaction is highest when Performance exceeds Expectations : 

Greatest return will be achieved by understanding that satisfaction is highest when Performance exceeds Expectations = -

High-Ranking Builders Focus on What is Important to the Customer—From the Customer’s Point of View: 

High-Ranking Builders Focus on What is Important to the Customer—From the Customer’s Point of View

Slide78: 

Nine Factors Drive Overall Satisfaction With Builder % Contribution to Overall Satisfaction With New Home Builder Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

High-Ranking Builders Focus Beyond Just the “Truly Dissatisfied” Customers: 

High-Ranking Builders Focus Beyond Just the “Truly Dissatisfied” Customers

The greatest return will be gained by focusing on moving the largest number of customers to the highest levels of satisfaction. : 

The greatest return will be gained by focusing on moving the largest number of customers to the highest levels of satisfaction. Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study Unacceptable Outstanding Average

High-Ranking Builders Demonstrate Consistently High and Above-Average Satisfaction Over Time In The Home: 

High-Ranking Builders Demonstrate Consistently High and Above-Average Satisfaction Over Time In The Home

Satisfaction by Time in Home: 

Satisfaction by Time in Home Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

High-Ranking Builders Tailor Their Strategies Based On Prior Home Ownership History : 

High-Ranking Builders Tailor Their Strategies Based On Prior Home Ownership History

Mean Satisfaction Scores by Prior Home Ownership: 

Mean Satisfaction Scores by Prior Home Ownership Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

High-Ranking Builders Deliver Homes With Fewer Problems: 

High-Ranking Builders Deliver Homes With Fewer Problems

Average Number of Problems per Home Buyer by Satisfaction Rating: 

Average Number of Problems per Home Buyer by Satisfaction Rating Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

Average Number of Problems Experienced per Home Buyer: 

Average Number of Problems Experienced per Home Buyer Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

High-Ranking Builders Resolve a High Percentage of Problems in One Visit: 

High-Ranking Builders Resolve a High Percentage of Problems in One Visit

Satisfaction by Number of Repair Visits: 

Satisfaction by Number of Repair Visits Source: 2004 J.D. Power and Associates New Home Builder Customer Satisfaction Study

High-Ranking Builders Commit to Close Dates Early and Always Meet Deadlines: 

High-Ranking Builders Commit to Close Dates Early and Always Meet Deadlines

High-Ranking Builders are Implementing Even-Flow Production: 

High-Ranking Builders are Implementing Even-Flow Production

High-Ranking Builders Exceed Minimum Requirements and Will Selectively Address Problems Beyond the Warranty Period: 

High-Ranking Builders Exceed Minimum Requirements and Will Selectively Address Problems Beyond the Warranty Period

High-Ranking Builders Are Skilled at Internal, Cross-Functional Communication : 

High-Ranking Builders Are Skilled at Internal, Cross-Functional Communication

High-Ranking Builders Communicate Consistent Policies and Procedures, and Share Best Practices Across the Organization: 

High-Ranking Builders Communicate Consistent Policies and Procedures, and Share Best Practices Across the Organization

High-Ranking Builders Toot Their Own Horn and Ensure That Buyers Recognize All of the “Hidden Value” the Builder Delivers: 

High-Ranking Builders Toot Their Own Horn and Ensure That Buyers Recognize All of the “Hidden Value” the Builder Delivers

High-Ranking Builders Think  and Develop Extraordinary and Creative Ways to Make Customers Feel Special: 

High-Ranking Builders Think  and Develop Extraordinary and Creative Ways to Make Customers Feel Special

Highest ranking builders always do something other builders don’t do! : 

Highest ranking builders always do something other builders don’t do! Examples: At time of sale, send cookies, wine, flowers, etc. Provide homebuyer with custom calendar with timelines and milestones. Providing home buyers with terminology and examples of potential problems to assist in diagnosing problems and fixing them in fewer visits. Providing “sticker dots” for homeowner to use during move-in. Builder returns a month later and fixes anything marked. Schedule an orientation after the move-in once the homeowner has “settled” in. Lend a “body” to the family for move-in day.

High-Ranking Builders Take Action! : 

High-Ranking Builders Take Action! In Summary…

If a builder does what they’ve always done, they will get what they’ve always gotten! Will this be good enough for your firm as you move toward the future?: 

If a builder does what they’ve always done, they will get what they’ve always gotten! Will this be good enough for your firm as you move toward the future?

Implementing The Recommendations: 

Implementing The Recommendations A customer satisfaction program is most useful when the findings can be put to use to: Improve the product and/or service Improve the process by which the product or service is produced and distributed Improve the marketing/sales program Enhance the “bottom line”

Implementing The Recommendations (Continued): 

Implementing The Recommendations (Continued) Companies often take research results and create reactive responses that focus on creating solutions to past problems. The outcome: Short term, quick fix ( “Band-aid” approach) Leaves people feeling disillusioned, overwhelmed, helpless, powerless

Implementation: 

Implementation True implementation requires a disciplined process: Focus on few, specific areas Focus on the most relevant areas “Drill down” to identify root causes Consumer feedback is the tip of the iceberg!

Keys To Successful Organizational Change: 

Keys To Successful Organizational Change Solutions should be proactive rather than reactive Focus on the Future Participation from all levels of management and line staff Without commitment/group synergy, change is fragmented and disorganized Top management must communicate the importance of the initiative - often People must be kept accountable and on track (particularly with senior management)

Keys To Successful Organizational Change (Continued): 

Keys To Successful Organizational Change (Continued) Communicate, communicate, communicate positive and negative outcomes - keeps people going over the long haul! Best practices Newsletters, Meetings, E-mail, etc. Reward and recognize all who make a difference Creates focus and enthusiasm and keeps excitement going Promote the “voice of the customer” whenever possible

What’s New This Year?: 

What’s New This Year? Updated Questionnaire Added Construction Manager/Superintendent Performance New Markets Southern California Breakout: LA/Ventura County, Orange County, Inland Empire Portland Baltimore Albuquerque New Additional Reports Community Reports Prior Ownership Profile Report Homebuyer Purchase and Rejection Study New Studies Consumer Major Appliance Study Emerging Technology Study

Customer Satisfaction must not be viewed as ‘another program’; Rather, an integral part of a Firm’s business process : 

Customer Satisfaction must not be viewed as ‘another program’; Rather, an integral part of a Firm’s business process Customer Satisfaction Customer Excellence Training Process Performance Process Rewards & * Recognition Process Communications Process Product Development Process Strategic Plan Process/Operational Review Process

Satisfaction is Not Only Good For Your Customers ... It Is Good Business!: 

Satisfaction is Not Only Good For Your Customers ... It Is Good Business!

When Are We Done?: 

When Are We Done?

When Are We Done?: 

When Are We Done?

When Are We Done?: 

When Are We Done?

There is No Finish Line in The Customer Satisfaction Race: 

There is No Finish Line in The Customer Satisfaction Race

Customer Satisfaction is a Journey, Not a Destination: 

Customer Satisfaction is a Journey, Not a Destination