WHAT CUSTOMERS WANT

AND HOW TO PROVIDE IT

by Keith Malo, Research Manager and

Mark Marone, Ph.D., Senior Research Manager

Since the 1980s and 90s American consumers have ing customer loyalty and customer value, as well
been inundated with customer-focused slogans as selling outcomes or solutions as opposed to
The Customer is King, The Customer Comes selling products or services. In the end, the key to
First, 100% Satisfaction Guaranteedall the customer loyalty is the behaviors and attitudes of
result of corporate America's promotion of newly the people who deliver those solutions. Without
defined service-oriented cultures. As part of this successful interactions between peoplethe
movement, many corporations renamed their producers and the consumersthere are no loyalty
customer service centers guest services or programs, no funds for growth and expansion,
customer care and soon after their traditional and certainly no profits.
customer service agents became guest relations
The concepts behind good customer service are
or
customer
care
not new or groundbreakspecialists.
ing. Time and again,
POOR CUSTOMER SERVICE...
consumers report that they
BY THE NUMBERS
The body of literature is
like providers who listen to
prolific as it relates to
On average, 50% of customers will
them, exhibit pleasant
customer satisfaction and
complain about a problem to a front
demeanors, are knowledgeperformance
improveline person.
able, and deliver reliable
ment. There are countless
products and services that
On average, it costs a company
case studies and best
meet their needs. They
five times as much to win a new
practices: Nordstroms,
want access to what they
customer than to keep one.
Wal-Mart, The Ritzare after, and they want it
Carlton Hotel Company,
On average, twice as many people
in a timely mannerwithout
and Stew Leonards, to
are told of a bad experience than a
hassle.
name but a few. The body
good experience.
of literature is also rich
Countless research studies
Source: TARP
with models on developover the past few decades

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

have painstakingly quantified the costs to business for losing a customer due to a poor service
experience. All findings suggest that the costs
incurred to obtain a new customer far outweigh
the cost of retaining an existing client.
So if the expectations of customers are well
known and the costs to incur new customers so
great, what is the disconnect?
The challenge lies in human nature and,
specifically, in the ability of people to develop
attitudes and supporting behaviors that allow
them to regularly deliver service performance
that continues to dazzle consumers and develop
their loyalty.
Success requires an ability to listen to and understand a customers need and offer a solution that
will meet or exceed their expectation, making the
difference between a routine encounter and a
stellar service experienceall while simultaneously developing value and a long-term commitment and loyalty to the organization. Naturally,
loyal patrons contribute more significantly to
organizational profit.
It is all about managing the moment and making
the customers feel as though they are intelligent
and important. It is treating others as you would
like to be treated yourself. Take James Cash
Penney for example. He opened his first store,
called the Golden Rule, in 1902, thereby differentiating it from other stores, not only in name,
but also by championing the belief Do unto
others as you would have others do unto you.
It is about being able to successfully assess a
customers service expectations and respond
accordingly and to be able to switch gears
quickly when customers with other pre-dispositions walk through the door or come through the
telephone center. Some customers like small,
simplistic chitchat while others prefer business
transactions with limited human elements intertwined. Transparently finding and striking the
balance is not easy, but it is essential for survival.

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

THE STAR QUALITIES

Independent of the industry, the product, or type

of service sought, consumers consistently report
that they value four qualities in the service they
receive. After many years of customer service
research, AchieveGlobal has grouped the qualities into four categories. The four categories are
seamless, trustworthy, attentive, and resourceful
(STAR). The premise is that each personeverydayis responsible for delivering stellar service
experiences. Each time you are interacting with a
customer, internal or external, the customer is
shaping their feelings and views of you and the
greater organization. By integrating the four
qualities into attitudes and behaviors, one will
provide meaningful and memorable experiences
that should build and strengthen customer
loyalty.

THE

STAR

QUALITIES

Customers want service that is

Seamless

The ability to manage

service factors that are
invisible to the customer
(e.g., behind the scenes)

Trustworthy

The ability to provide

what was promised,
dependably and
accurately

Attentive

The ability to provide

caring and individual
attention to customers

Resourceful

The ability to provide

prompt service and
creative solutions

Seamless service is based on the understanding

that customers want to take full advantage of the
complete range of services offered by an organization. However, they dont want to be exposed
to the details of back-house operations, and they
dont like dealing with several different individuals on the same issue. They expect the frontline to
coordinate events on their behalf.
Trustworthy service is based on the sense that
customers want to feel as though they are in
capable hands and that promises and commitments will be kept. They want and expect things
to be correct and accurate the first time, and
should something go amiss, they expect a quick
and thorough recovery.
Attentive service derives from the desire of
customers to be recognized quickly and politely
and with respect. They want to know that you
want to serve them and that their interaction will
be handled accordingly on both the human and
business levels.

via the telephone, the Web (including e-mail), or

by U.S. Mailand to rate their satisfaction with
that specific encounter. Each factor presented to
respondents represented a STAR quality. The
research team then produced correlations on the
importance and satisfaction ratings for selected
industries to determine which economic segments
were performing well and where they were
performing well.
Of the factors rated, the top three most important
service components were attentive aspects
courteous service, complaint acknowledgement
and respect, and being treated as an intelligent
person.
When viewed by age and gender, overall there
was little difference in which factors of the
service experience each group placed greater
importance. What is notable is the fact that
statistically females consistently placed greater
degrees of importance on all factors of the service
experience than males. In many instances, female
mean scores were higher by a quarter of a
percentage point or more than males.

Resourceful service is synonymous with the

general predisposition of customers to like a fast,
flexible approach to the
service interaction. If needed,
MOST IMPORTANT FACTORS OF
they expect prompt and
A CUSTOMER SERVICE EXPERIENCE
creative problem solving in the
service recovery.
THE CONSUMER SURVEY

AchieveGlobals research team

conducted a survey with 1,500
consumers. The objective of
the study was to better understand which factors of a
customer service interaction
consumers place the greatest
importance. Once identified,
consumers were then asked to
recall their most recent service
experienceeither in person,

Courteous service
My complaint is acknowledged
and respected
Being treated as an intelligent
person
Employees do what they say
they will
Company/agency follows up
with me on the resolution to my
problem/complaint

Another notable finding

was that adults aged 55
and over statistically
placed a slightly higher
level of importance on
all aspects of the
customer service interaction. This generational
observation
should not be overlooked.
The implication for
providers is that the
service expectations of
both females and older
Americans appear to be
greater than other
groups as they enter a
customer service situa-

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

WAS THIS MOST RECENT CUSTOMER SERVICE EXPERIENCE?

By e-mail
or the Web

By
telephone

By
U.S. Mail

In person

Banking/Financial Institution

8%

53%

1%

39%

Government Agency

7%

40%

9%

45%

Healthcare Provider

2%

40%

1%

57%

Public Utility

4%

78%

1%

17%

tion. To best manage the interaction, providers

need to be more sensitive of such when interacting with these groups or segments.
But that is not to say that other groups should be
treated differently or with less care. Success still
comes from being able to read individual
consumers, identify their desires, and deliver
around those needs, wants, likes, and dislikes.
Overall, this survey proves that consumers value
some human element in their customer service
interaction.
Contrary to the popular notion that Americans
are information hungry and always need to
have all the information to make a decision,
the two least important aspects of a customer
service interaction/experience were information
related. Specifically, receiving information on the
benefits of the company/agencys products/
service and receiving information about
company/agency policies fared much lower
amongst all groups. While the receipt of general
information by and from the interacting organization rated low in importance, all groups placed
some value, albeit moderate, on receiving information about options available to me.
When asked to recall their most recent customer
service experience, the results were in no way

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

surprisingthe majority of customer service experiences were by telephone. In total, 55 percent of

the respondents had their most recent customer
service experience by telephone, followed by 38
percent in person, five percent over the Web/by
e-mail, and two percent by U.S. Mail.
The Wall Street Journal has reported that U.S.
companies are spending $7.4 billion in 2002 to
enhance their automated customer service
systemsa significant investment and an underscoring of the intense usage of customer service
support by Americans via the telephone.
By industry, most respondents reported that for
banking and financial institutions, their last
customer service experience was by telephone,
followed by in person. For government agencies
and healthcare providers, the last interaction was
largely in person, followed by telephone. And for
public utilities it was by telephone, followed in
great distance by in person.
More than any other industry, e-mail or Web
interactions were more common with banking
and financial institutions and government agencies. Government agency service experiences had
the highest incidence of U.S. Mail interactions.

SATISFACTION BY INDUSTRY

When asked to rate their level of satisfaction with

the STAR aspects of that most recent customer
service experience, respondents reported that
financial institutions and healthcare providers

performed much better than public utilities and

government agencies on the service attributes
important to them. However, there is room for
financial institutions and healthcare providers to
improve.

BANK/FINANCIAL INSTITUTION
% Very Satisfied & Satisfied

% Very Dissatisfied & Dissatisfied

Courteous service

73%

Receiving information about options available to me

38%

My issue solved immediately

63%

Employees do what they say they will

37%

My complaint acknowledged and respected

63%

Receiving information about company/agency policies

36%

If angry or upset, employees make me feel better

56%

Company/agency treats problem as if it were their own

33%

Employees help each other

56%

Employees anticipate needs I did not consider

32%

GOVERNMENT AGENCY
% Very Satisfied & Satisfied

% Very Dissatisfied & Dissatisfied

Courteous service

63%

Feeling confident that I will receive excellent service

34%

My complaint acknowledged and respected

53%

Employees understand my feelings about an issue

31%

My issue solved immediately

52%

Receiving information about options available to me

31%

Company/agency follows up on the resolution

49%

Company/agency treats problem as if it were their own

31%

If angry or upset, employees make me feel better

48%

Employees anticipate needs I did not consider

26%

HEALTHCARE PROVIDER
% Very Satisfied & Satisfied

% Very Dissatisfied & Dissatisfied

Courteous service

76%

My presence is acknowledged immediately

42%

My complaint acknowledged and respected

70%

Receiving information about company/agency policies

38%

My issue solved immediately

65%

Employees anticipate needs I did not consider

33%

Employees help each other

60%

Company/agency treats problem as if it were their own

32%

Being treated as an intelligent person

59%

Employees do what they say they will

32%

PUBLIC UTILITY
% Very Satisfied & Satisfied

% Very Dissatisfied & Dissatisfied

Courteous service

67%

Employees do what they say they will

32%

My issue solved immediately

55%

Employees understand my feelings about an issue

31%

My complaint acknowledged and respected

52%

Company/agency treats problem as if it were their own

29%

If angry or upset, employees make me feel better

51%

Employees anticipate needs I did not consider

29%

Employees help each other

47%

Receiving information about options available to me

26%

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

PRIMARY OPPORTUNITIES BY INDUSTRY

There is value in determining the strength

of the relationship between importance and
satisfaction, which basically measures the intensity of how well an organization is performing
against customer expectations. The exercise
generally identifies factors that are more important than others in retaining the customer

relationship in addition to factors essential for

developing plans of prioritization to that end.
The charts herein identify factors for each industry sampled that respondents said were important
characteristics to the service interaction.
However, these factors in which the industries
are not performing well are hence significant
opportunity areas for organizations within these
industries to capitalize on.

BANK/FINANCIAL INSTITUTION
My issue was solved immediately.
Company/agency followed up with me on the resolution to my problem/complaint.
Company/agency treated problem as if it were their own.
Employees worked hard/used other resources to serve me.

GOVERNMENT AGENCY
I feel confident that I would receive excellent service.
Company/agency followed up with me on the resolution to my problem/complaint.
Company/agency treated problem as if it were their own.
Employees worked hard/used other resources to serve me.

HEALTHCARE PROVIDER
My complaint was acknowledged and respected.
I received information about options available to me.
My issue was solved immediately.
Company/agency followed up with me on the resolution to my problem/complaint.
Company/agency treated problem as if it were their own.
Employees worked hard/used other resources to serve me.

PUBLIC UTILITY
I was treated as a unique customer.
My issue was solved immediately.
Company/agency followed up with me on the resolution to my problem/complaint.
Company/agency treated problem as if it were their own.
Employees worked hard/used other resources to serve me.

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

CONCLUSION

In the end, the consumers who were sampled

validated many of the principles of a stellar
service experience. They told us that they value
providers who listen to and follow up with them,
treat them with respect and a sense of uniqueness, and work earnestly and doggedly to meet
their expectations to deliver reliable products and
services in a timely manner.
As times become increasingly competitive, to
achieve and maintain a leadership position in the
marketplace, it is critical that organizations instill
the attitudes and behaviors associated with superior customer service into their workplace culture
and daily practices. The costs to rebuild customer
bases may be damaging to an organizations
bottom line.
ABOUT THE AUTHORS

Keith Malo is AchieveGlobals Research

Manager. He brings 12 years of supplier-side
research experience to AchieveGlobal. Keiths
research career began with the full-service market
research firm National Research Corporation.
Over the ten years with National Research he
held a number of operations and client service
positions which included the design, management, and execution of various research projectsquantitative and qualitativeutilizing an
assortment of methodologies. His career continued with Sterling Research Group, Inc., a fullservice market research firm, where he served as
a client services manager. With AchieveGlobal,
Keith manages a number of product and market
research projects for the firms core competencies. Keith has a BA from the University of
Nebraska-Lincoln.

Mark Marone, Ph.D., is AchieveGlobals Senior

Research Manager. He has more than 13 years of
academic and private sector experience in
research and consulting on issues such as
economic development, corporate strategy, and
business policy. His career includes being a senior
analyst with Nielsen Media Research, where he
was responsible for analyzing market data for
key national media accounts. In addition, he
spent several years as a management consultant
with KPMG, LLC, and as a client services
manager for Sterling Research Group, Inc. Mark
has written extensively on topics such as high
technology industries, economic development
and corporate strategy in the telecommunications
industry. He earned a Ph.D. from Indiana
University, where he has held several academic
posts. He currently is an adjunct professor of
management at the University of South Florida.
ABOUT ACHIEVEGLOBAL

AchieveGlobal is the world leader in helping

organizations translate business strategies into
business results by developing the skills and
performance of their people. Our learning-based
solutions focus on skills training and consulting
services in sales performance, customer service,
leadership and teamwork.
With offices throughout North America and a
presence on every continent, we serve more than
70 countries, and offer programs and services in
more than 40 languages and dialects. We continually adapt and translate our programs and services to meet the needs of global clients.

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT

2002 AchieveGlobal, Inc. No. M0236 v.2.0 (11/02)

WHAT CUSTOMERS WANT AND HOW TO PROVIDE IT