Is Service Performance Benchmarking Important? (1 of 4)
by Service 800, Inc.

Most companies today measure customer satisfaction in some way or another. Many are just realizing the importance of measuring customer satisfaction for service events. The most astute companies are going a step beyond just measuring satisfaction by participating in industry benchmarks.

The four-week series includes the following articles:

• Why is Service Performance Benchmarking Important?
  
• What Makes a Good Benchmark?
  
• What are the Facts and Fallacies of Benchmarking?
  
• Is it Possible to Successfully Benchmark with Non-Competitors?

Why is Service Performance Benchmarking Important?

The answer to this question is simple -- benchmarks offer comparisons. Industry benchmarks allow companies to compare their service performance to other service providers. You can tout satisfaction numbers to your customers all day, but the data has little value to them if there isn’t a baseline for comparison.

For example, Really Cool Software, Inc. is a mid-size developer that measures service satisfaction using the same provider and follow up questionnaire as does their massive competitor, Global Software Developers, Inc.

The service director at Really Cool Software is pleased with the results, especially for response times. They consistently achieve a 4 on a 5-point scale.

On the other hand, Global Software analyzes their results to determine the customers’ perceptions of their service performance compared to the competition. If the industry average or benchmark for response time is 4.5 on a 5-point scale, Global monitors their response time performance to ensure that it meets or exceeds the benchmark.

Unfortunately, the director at Really Cool Software believes that their service performance is outstanding, when it’s actually below the industry average. This might be negatively affecting the sales of Really Cool Software and they don’t even realize it.

Take a moment to consider the customer satisfaction measurement and benchmarking programs that your company uses and ask yourself some basic questions.

• Do we measure customer satisfaction for the services we provide?
  
• Do the results of the performance characteristics we measure create actionable items for our organization?
  
• What do we compare our satisfaction data against?
  
• If we don’t compare satisfaction data against others, how do we know if our services are comparable to our competitors?
  
• If we do compare satisfaction data against others, how do we understand and use that data to improve performance where it’s most needed?

These are also crucial questions to ask when choosing a satisfaction measurement provider. Again, measuring customer satisfaction is one thing, but comparing your service performance to other providers is the true test of your service capabilities.

Next Week - What Makes a Good Benchmark?

To Contact Us — To discuss this topic, any other Benchmark Benefits article, or to provide topic suggestions, please contact Jan DeMatteo at jan@service800.com.

For More Information — For additional information about the SSPA SoftwareMetric Customer Satisfaction Benchmark, SERVICE 800, or other benchmark programs, visit www.service800.com/benchmarkprograms.asp.

About SERVICE 800
Founded in 1989, SERVICE 800 designs and administrators real-time customer satisfaction measurement programs, helping service organizations follow up with their customers within hours or days of service events. The company utilizes a distinctive follow up telephone interview process along with e-mail, web, and other survey techniques to measure customer satisfaction. With offices in Minneapolis and London, SERVICE 800 has been measuring customer satisfaction for corporations throughout the world for over a decade.