[2020 Korean Customer Satisfaction Index (KCSI)] Customer Satisfaction in the Untact Era
As a leading indicator to assess the qualitative growth of the domestic industry and gauge future growth, the “Korean Industry Customer Satisfaction Index (KCSI)”, which has been driving the increase in the customer satisfaction culture and the level of customer satisfaction, marks its 29th this year. KCSI is the most credible indicator that measures customer satisfaction in the domestic industry, and is used as basic data to improve the competitiveness of companies. Through the results of this year's KCSI survey, let's explore the direction of customer satisfaction in the untact era.
On October 14th, a press conference was held by Professor Kim Nan-do of Seoul National University's Department of Consumer Studies, introducing the book “Trend Korea 2021,” which compiled 10 keywords that will penetrate the consumption trend of the upcoming New Year. However, this year was different from previous years. The annual event held at the Seoul Press Center was held this time through the online video conferencing platform Zoom. It was a chance to glimpse the changes in the era of “untact” that came with Corona 19. Not surprisingly, one of the ten keywords for consumption next year suggested by Professor Nan-do Kim was also related to Untact. It is 'Ontact, Untact with a Human Touch'. According to the introduction of the book, Human Touch is a trend that ponders' how can I instill people's breath and emotion as much as possible in many aspects of organizational management and management'. In the era of untact, the “human factor” is becoming more important in overall corporate activities ranging from customer management, product development, marketing, service and sales. Therefore, it is said that at this point in the transition from digital selling to social selling, human touch will be the most powerful means of creating a “moment of truth”.
Companies with high customer satisfaction are also high in performance
Even if the world's standards change and new normals are established, the value that companies should continue to pursue is people, that is, customers. The importance of customers, which is also the reason for the existence of a company, is not boring to stress. Looking at the trend, many companies that have set customer-centered management as an essential survival strategy and have improved customer satisfaction have shown high growth rates despite the crisis of a global economic slowdown and shrinking consumer sentiment. In fact, a number of empirical research results have also been published on the relationship between customer satisfaction and management performance. A study on customer satisfaction and corporate value for general companies in Sweden shows that raising the customer satisfaction score by 1 point for 5 years increases the present value of about 7.5 million dollars. According to the analysis of the 1000 companies selected by Business Week, it was found that an increase of 1 point in annual customer satisfaction increased the profit of $94 million or the return on investment of 11.4%. In addition, according to a study by Reichhelt, famous for its Net Promoter Score (NPS), an increase in customer loyalty of 5% results in an increase in revenue from 25% to 85% by industry. In Korea, the' Korean Customer Satisfaction Index (KCSI)' survey, first conducted in 1992, about 30 years ago, evaluated the customer satisfaction level of each industry in Korea and sought strategies for future growth of companies. It is being used as a leading indicator for Research has also confirmed that the top KCSI companies have higher average sales than those that do not. In the consumer goods, durable goods, and service sectors that make up the KCSI survey target industries, KCSI's top-ranked companies have the highest average sales, proving that KCSI's excellent companies are also excellent financially.
KCSI, which led the qualitative growth of domestic industries
As the correlation between customer satisfaction and corporate performance and the effectiveness of KCSI were revealed, the number of industries subject to KCSI research has steadily increased. In the first year of 1992, it started with 12 industries and expanded to around 100 by the 2000s, and this year, the 29th year, a total of 110 industries and 344 companies were surveyed. KCSI, a Korean-style customer satisfaction measurement model developed in consideration of the characteristics of the Korean industry, is not only used as basic data for each company to secure competitiveness, but also has meaning in that it induces qualitative growth of the Korean industry. In fact, if you look at the entire KCSI index, it was only 41.9 points out of 100 in the first survey in 1992, but this year, it recorded 79.3 points, a whopping 37.4 points, and nearly doubled (89%). Considering that this year's KCSI survey was conducted in an industry that accounts for 74% of gross domestic product (GDP), these survey results prove that the nation's overall customer satisfaction level is now on a significant track. In other words, it is not an exaggeration to say that KCSI, which conducts a wide range of surveys not only for specific industries, but also across industries, has contributed to establishing customer satisfaction management throughout the industry. From the early 1990s, when the concept of customer satisfaction was absent, as KCSI was investigated and announced annually, each company gradually became interested in customer satisfaction management, and based on this, the customer satisfaction culture spread throughout the Korean industry. It has spread to the public sector, and now all public institutions are evaluated based on customer satisfaction. In the end, as companies recognize the level of satisfaction of products and services from the perspective of customers through KCSI, and based on this, they begin to establish strategies to continuously increase customer satisfaction, and KCSI has established itself as the most reliable indicator for measuring customer satisfaction in domestic industries Not only that, but it is also a driving force for qualitative growth of companies.
Untact, VOC, and customer loyalty
Then, how can companies achieve a virtuous cycle of sustainable growth by improving customer satisfaction in a situation where it has been confirmed that the company's efforts for customer satisfaction are not just expenditures, but the basis for qualitative growth of the company? First, we need to prepare a new service suitable for the untact era. While many parts of corporate services are converted to non-face-to-face, each company must consider various issues from the perspective of customers, business, and employees in order to alleviate customer discomfort and provide various experiences. In the areas of marketing, sales, logistics, and services based on careful consideration of how to reduce customer discomfort and provide convenience, whether it does not negatively affect our business, and how employees, work processes and systems should change. Each activity will have to be developed. In particular, for smooth interaction with customers, it is necessary to analyze various channels through which our services reach customers and the experiences of customers. Here, targeting the main channels for improvement, diagnosing the actual situation, and deriving a non-face-to-face service strategy from the perspectives of customers, business, and employees, we will be able to strengthen the responsiveness of the untouch era. Second, it is necessary to establish a management system based on Voice of Customer (VOC) to understand customers in a new era. In particular, big data, which has become more important in the digital transformation period, should be judged from a VOC perspective. It is necessary to increase utilization by actively collecting and analyzing even customer's buzz expressed in various channels in the VOC range. Companies must quickly and effectively reflect customer needs in their business activities to provide a positive customer experience. In this respect, VOC is the basis of the basics that should not be neglected no matter what activities a company does. This is because VOC is a series of information that is fed back to the company about satisfaction and dissatisfaction that occurs in the process of customers purchasing or experiencing a company's products or services. In the untact era, it is necessary to expand the scope of VOC beyond the existing customer complaint handling improvement or insight presentation. It will be necessary to predict future customer behavior through extensive data collection, analysis, and management measures related to direct and indirect customer activities expressed in various forms. Third, it is necessary to discover discriminatory factors that can increase customer loyalty. Customer loyalty refers to the degree of commitment of a customer to consistently repurchase and repeat purchases of their products or services despite any potential factors that may lead them to purchase products or services from other companies. Furthermore, this leads to active customer recommendation. In other words, securing customer loyalty guarantees a long-term increase in profits and sales and creation of new customers. In fact, the KCSI survey results also confirmed the importance of such customer loyalty. Looking at the results of the recent three-year survey of the three dimensions of the KCSI model, 'Comprehensive Element Satisfaction', 'Overall Satisfaction', and 'Repurchase Intention', the gap between the No. 1 and non-No. 1 groups tended to increase. , Overall satisfaction, and repurchase intention. In other words, it can be seen that the more excellent companies, the higher the customer loyalty, widening the gap and solidifying the leading position. On the one hand, it was also confirmed that the gap between the first and non-first-ranked groups was decreasing as the years went by. This can be interpreted as the recent efforts to improve customer loyalty by non-top-ranked groups, so even the top-ranking companies cannot be relieved. Differentiation is urgent in order not to lose the leading position. In particular, the service industry is shrinking with a smaller gap than other sectors, making competition the most intense. In order to successfully manage customer loyalty, it is necessary to focus on the delivery of emotional values such as communication of contact employees rather than functional values of products and services. In addition, since behavioral factors rather than cognitive factors act more strongly on repurchase/reuse intentions, it is necessary to examine the entire scope of the purchase and use process from the perspective of customer experience management (CEM), and explore at what stage the actual improvement and management should be performed.
※Box. Korea's Representative Customer Satisfaction Survey KCSI
30 years after the term “customer satisfaction management” was introduced in Korea, KCSI, the representative customer satisfaction survey system in Korea, which has continued to grow along the same path, marks its 29th year this year. In this year's KCSI survey, which measured satisfaction with more than 11,000 customers in a one-on-one interview for about 5 months, meaningful results were drawn for each industry and company. First of all, as a result of an analysis of the number of times the number one company ranked first by industry, the manufacturing industry was 34 and the service industry was 30 out of 64 industries that produced the number one company more than 10 times. This is world-class
from Blogger http://ifoundmiraculousitem.blogspot.com/2020/11/2020-korean-customer-satisfaction-index.html
