Inter-Continental Best at Keeping Clients Happy
Korea Productivity Center’s Survey Tells Government to Improve Services
By Kim Hyun-cheol
Staff Reporter
The ongoing economic slowdown, which is troubling most industries across the world, has influenced customer satisfaction, according to a recent survey.
In the poll, conducted in collaboration with the University of Michigan and which interviewed over 60,000 customers regarding 239 companies, colleges and public offices, the National Customer Satisfaction Index (NCIS) stood at 71.5 points in 2008, down 0.4 point from the previous year, the Korea Productivity Center (KPC) said.
The frozen economy had a direct impact, according to the KPC.
Customer satisfaction is determined by the quality of goods for which they pay and, as companies start to cut back budgets for marketing and customer retention, they feel they are paying more for the same goods, the organization explained. Also, most prices have actually gone up in the wake of the soaring oil prices in the first half of the year, placing a larger burden on customers.
Only six of the 56 industries rose in the 2008 survey, while 35 of them lost points from 2007.
Industries that struggled were those hit by "external effects" during the year, according to the organization. Securities firms suffered from the U.S.-triggered global financial crisis, while fast food and bakery franchises were affected by fears over the safety of food products.
Most public service sectors tumbled, triggering greater government scrutiny in a bid to weather the situation, which could impede the stabilization of citizen livelihood.
Customers reported that they were satisfied with tobacco firms, bookstore chains, discount stores, local airline carriers, courier services and hotels. These industries succeeded in grasping what customers need and offer adequate services accordingly, the KPC said.
Inter-Continental Hotel was highest with 84 points, trailed by Yeungjin College and Samsung Construction & Trade Corporation. Eight out of the top ten slots on the list were hotels, colleges and builders, which shows customer service is becoming a huge part of the industries, the organization said.
About 62 percent of this year's survey subjects posted an index score above 70 points, which is regarded as 'stable' by the KPC.
NCIS is a quantifiable indicator of the degree of satisfaction about goods and services, which is evaluated by customers who have experience of using them.
Its model is composed of seven factors ― customer expectations, quality of goods (and services), value of goods, satisfaction, complaints, brand loyalty and customer retention. The index makes it possible to analyze causality between each factor, with more reliability in comparison with other models. Its indexes by industry also offer a useful tool for feedback on a country's quality competitiveness.
Korea's NCSI in 2008 stood at 71.5 points, 3.6 points lower than that of the United States. But it also shows the country has been making huge improvements over a decade. The gap between the two countries was 13.8 points in 1998, when the survey was first conducted, but that has narrowed over the years. The margin was at its smallest in 2007 with 3.3 points.
Service Matters
Headed by overall No.1 Inter-Continental, a number of hotels made it onto the list, making the sector a leading service industry. They also made the biggest strides in most ranks, as Seoul Plaza Hotel jumped 10 places to reach fifth, with Grand Hyatt Seoul surging from 57th to 11th and Westin Chosun from 94th to 12th.
Elaborated and detailed services were the keywords of the year, Inter-Continental said. Concierge staff have undergone more intense education, with the aim of giving guests detailed information on Seoul.
But some other cases show service is not the only priority in the hotel business. Samsung Construction & Trade Corporation, for example, has carried on with service-based activities, including an annual exhibition of construction technology and trends and various cultural programs for residents of Raemian, its apartment brand. As a consequence, the company has held an impeccable in customer satisfaction within the industry.
In an interesting case, the Busan Transportation Corporation made a huge leap, from 119th in 2007 to 7th. As the sole public office to make it into the top 10, it offered services aimed at meeting the various needs of subway users in Busan.
It introduced a real-time SMS service in an effort to build an integral service program, built several new stations under several themes and even rearranged stops for local microbuses nearer to subway stations for the convenience of bus-to-subway commuters.
Other subjects of remarkable improvement in the 2008 survey showed the common ground of "service-focused management."
Chungang University posted an index score of 60 points, up 17.6 percent, or nine points, from 2007. Doosan Group's takeover of the university helped improve its overall image with an investment plan of 120 billion won, combined with the offering of a more business-friendly curriculum, the KPC said.
Bookstore chain Bandi & Luni's saw its index rating increase from 62 to 71 points. The franchise, which introduced a "more than just selling books" concept, offered various unique services to customers, including cultural events and American-style book display arrangements.
