MEASURING COMPANY

PERFORMANCE
AND
CUSTOMER SATISFACTION
GROUP 8
Learning Outcomes
• Many tools to measure service company
performance, service quality and customer
satisfaction exist.
• Measuring customer satisfaction and
marketing
• Customer satisfaction and service quality are
complex multi-dimensional constructs.
13.1.1 Capacity Planning and Yield Management

Services are traditionally considered to be labour

intensive and this restricts the ability of frms to
produce and deliver a certain amount of services
at a given time.
13.1.2 Queue and Waiting
Measures
and Management
There is a continuum of service
businesses. On
the one side, are capital-intensive
businesses that
apply technological solutions to cope
with balancing supply and demand.
13.1.3 Balanced
Scorecards

One of the most important

generic instruments
that has been used to measure
company performance over the
last decades has been the
balanced
scorecard approach (Kaplan and
Norton 1996).
 13.2 Measuring Quality,
Marketing Performance
and Customer Satisfaction
Customer satisfaction and sales
performance are
connected to the concept of service
quality.
Consequently, their measurement is
often conceptualized as measures of
service quality.
 13.2.1 Dimensions in Measuring
Service Quality and Customer
Satisfaction

Before measurement, service

quality must be
defned operationally or, in other
words, a framework must be
developed enabling a company to
measure quality quantitatively.
 13.2.2 Mapping
Service Quality
and Customer
Satisfaction
Many methods and tools for
measuring service
quality and customer satisfaction
exist (see also
Forsyth 1999; Bourne and Neely 2003;
Franceschini et al. 2009). Solving
Note: Index values = [y1 × (∑a1 − a4)] +
[y2 × (∑b1 − b8)] + [y3 × (∑c1 − c4)]
Total Service Quality Indexes

Different indexes that combine

service quality
dimensions can be constructed.
 The Service Journey

This is an instrument to systematically assess how

a typical customer experiences service delivery
with all the touch points that they might have with
a service frm.
 Surveys
Service firms often use standardized surveys to
ask customers about service quality. We all have
experienced several such surveys.
 Web-Based Satisfaction Scoring
Platforms
There exist many Web-based review platforms
where people can evaluate service quality and
service experiences, both quantitatively via
standard questions based on categories and
qualitatively by providing comments
and for digitalisation tendencies in services.
 Focus Groups
A focus group is a qualitative
method intended to
obtain information about
customers’ impressions
of a service frm’s service quality.
 Benchmarking
Often a service frm, or a department within a
service frm (e.g. a bank branch), is measured
and benchmarked against other similar
service
frms or departments.
 Critical Incidents and Service Quality
Critical incidents are events or
occurrences where
a service delivery fails in some
way or some
problem is avoided.
 SERVQUAL
A much-used benchmarking measure of relative
service quality, or the service quality of a service
frm in relation to its competitors, is the
SERVQUAL scale.
13.3 Innovation Capability Measures

Service innovation is important

for the development of service
firms, and also for manufacturing
companies.
 Input Factors
These are investments in either money or time
and time can be converted into an indicator of
cost or a measure of fnancial value.
• Working hours within the frm (at all levels and
including all activities, such as interacting
with customers in co-creation activities, converted
into a measure of fnancial value).

• External advice and knowledge procurement

(both of which can be expensive, e.g. consultancy or
paid research).
• Expenditure on technology and other materials
• Public support (income, e.g. public grants or
free advice provided).
• Network benefts (e.g. competitors who are
also collaborators, representatives from the
value chain and others from networks; inputs
from network activities are normally free;
however, the frm’s time used in network
activities should be deducted).
Outcome Factors

Four types of outcome factors were

identifed as
important:
1. Income and growth

(a) Turnover (more sales—increased turnover).

(b) Proft (either positive or negative).

2. Employee factors

(a) More employees (an indicator of growth—

may be a power factor for departmental
managers).

(b) Productivity increase.

(c) Employee motivation and competence

(more satisfed and effcient employees).

(d) Employee entrepreneurship (employees

3. Customer/market factors

(a) Increased service quality and customer

satisfaction.

(b) Branding and PR (the frm becomes better known by the market
because of the
innovation).

(c) Penetration into new markets (a new service product launched in a

new market
can result in frms being able to sell other
services in that market).
4. Strategic/business model factors

(a) Organizational learning (the frm learns

how to innovate more effectively and
effciently).

(b) Changed strategy (the frm may change to

a more appropriate strategy because of the
innovation).

(c) New networks (if the innovation required

relationships to be formed with new external actors, then these can be
a future innovation resource).
The conclusion is that not many instruments
have been developed to measure service
companies’ innovation capabilities and it is
diffcult to
construct a simple measure. Nevertheless, a
multi-dimensional measurement framework can
be developed.
 Thank you
so much for listening! And may
God bless us all!