Case Study - RAC - Customer Satisfaction Is King

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Case Study No.

8 – RAC – Customer Satisfaction is king

[Area: Customer Expectations and Satisfaction]

Nigel Paget, the RAC’s operations director, explains the importance of measuring customer
satisfaction:

Customer satisfaction is absolutely the king here. Each patrol hands out a customer satisfaction
card at the end of every breakdown and every month the patrols get their customer satisfaction
index (CSI) for the customers they have dealt with. We not only measure the patrols’ satisfaction
rating but we also measure their personal response rate as a means of ensuring that they hand
out the forms. We also measure all the other things that are important to our customers, such as
technical ability, their fix rate and also if they solved the problem.

For example, if they can’t actually fix the fault, did they solve the problem for the customer, such
as take the car to the dealer up the road? We want the patrol to take responsibility and go the
extra distance to sort out the problem. Again it is all benchmarked and they receive a bonus for
excellent performance. Around 40,000 customer satisfaction cards are returned a month – that’s
about 400–500 per person. We know exactly what the customers the patrols served in the
previous month actually thought of them. We compare this to their previous performance and to
an aggregate score for everyone. We reward people as a result, and so if you are average you
get your salary. If you perform above average, you get rewarded on top of that. So the incentive
is to be better. Around 15–20 per cent will get the top bonus, which equates to about 10 per cent
of salary, but it’s on a sliding scale.

Despite the central importance of customer satisfaction and the pressure on an individual’s
performance, the measurement of satisfaction is seen as a positive that is valued by staff.
Managers recognise that sometimes there are customers who do not necessarily answer the
questions with integrity, and that sometimes not every interaction with a customer is going to be
perfect because someone is a trainee or is just having a bad day. So an individual’s measures are
compared not only with their previous performance but also with the average performance for
everyone else. Nigel added:

They understand that one bad customer report out of 400 in a month is not going to have a
disproportionate affect, but 30 or 40 out of 400 will. I find it hugely encouraging that when I sit
down with people they will just ask me if I have any ideas as to how they might improve their CSI
because they simply want to do better.

Question

1. Assess the advantages and disadvantages of the RAC’s collection and use of satisfaction
data.

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