2019-12-03 CC Agenda Packet - ITEM #D7 - PRESENTATION - Survey Report - BusinessIII
Customer Satisfaction Survey Report
For
City of El Segundo — Businesses
Reporting Period: November 2019
CITY OF
ELSEGUNDO
Business Satisfaction Survey 2019 Quality Solutions, Inc.® Page 1
City of El Segundo
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Executive Summary (cont.)
Key Findin}s
Methodology
Quality Solutions, Inc.0
Building Foundations for Excellence
Web surveys were conducted with businesses within the City of El Segundo. Respondents were
selected from the master survey list supplied by City of El Segundo. A final sample of customers
was obtained. We sent 3,828 invitations, 79 were undeliverable, 52 opted out for a total of 3,697
sent out. We had a 9.5% response rate or 351 total responses. This is a slightly higher response rate
than 2018.
Results
As we have discussed in the past, Net Promoter Score is a tool to measure customer loyalty and the
predictive indicators for customer defection. In case study after case study, companies with higher
NPS scores are generally more profitable than their competition.
The City of El Segundo's NPS score is 54%, which is 7% higher than last year. This is an excellent
score given the fact that secondary research indicates scores are typically lower for public
institutions. When compared with the private sector, the score is slightly lower than the best
companies who range between 60 and 75%.
More importantly the NPS score rose from 32% in 2017 to 54% this year!!
Targeted action plans should also be developed for select companies who make up the Detractor
businesses.
The detailed responses will be provided as part of this report in a separate file. City Managers are
encouraged to examine this raw feedback in more detail.
Business Satisfaction Survey 2019 Quality Solutions, Inc.® Page 2
City of El Segundo
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Executive Summary (cont.)
Key Findings
Quality Solutions, Inc.0
Building Foundations for Excellence
The following areas are viewed as modest strengths by the majority of businesses: (4.00 to 4.33)
• Business Development and Attraction policies
• Business License Renewal Process
• Availability & Responsiveness of Police Department
• Responsiveness, knowledge and competency of Fire Department & Field Inspection
services
Ideally, we would like these scores to rise to above 4.33, which would most likely occur if some
of the NPS issues with individual businesses were addressed.
There are two areas which represent Issues & Opportunities due to their mean scores are below
4.00)
• City Zoning Policies
• Responsiveness, knowledge and competency of working with the Planning and Building
Safety Department for plan checks, permits or inspection services
The primary issues among Detractors are Staff Responsiveness and Business Friendliness. These
two issues made up only 6 out of 350 responses. The real opportunity for the city is to get to the
root causes of each individual concern among the Detractors and to a lesser extent the Passives.
Business Satisfaction Survey 2019 Quality Solutions, Inc.® Page 3
City of El Segundo
Measuring your Net Promoter Score""
SII Quality Solutions, Inc
Building Foundations for Excellence
Promoters are your customers who are so enthusiastic about your company or brand that they buy more
than the average customer and delight in referring your business to their friends, peers, and colleagues_
These customers give you a rating of 9 or 10_
Customers who give you a rating of 7 or 8 are Passive customers_ They may become Promoters if you
improve your product, service Or overall customer experience, but for now they do not factor into the Net
Promoter Score_
Detractors feel mistreated, abused, and hurt_ Their experience is going to drive them to cut back what
they purchase from you and switch to your competition_ They are also not shy about sharing with others
their plight and warning current and potential customers to stay away from your company_ Detractors
are customers who give ratings of 6 or lower_
Your Net Promoter Score is calculated by subtracting the percentage of Detractors from Promoters to get an overall NPS as number as shown below=
% of Promoters - % of Detractors = Net Promoter Score (NPS)
Example:
Promoters = 56% Detractors Promoters
Passives = 36% 0 1 2 3 4 5 6 9 10
Detractors = 8% Not at all Neutral Extremely
Net Promoter Score= 56% - 8% = 48% likely likely
NPS Methodology
We begin with the ultimate question_ "How likely would you be to recommend this company to a friend or colleague?" Respondents are asked to respond
using a 0 to 10 scale where 5 is neutral_ An effective Net Promoter process is not simply based on asking customers a single question and ending the survey_ It
is important to understand why each respondent gave you the score they did_ Understanding what needs to be improved (or specific actions taken) to raise your
score to a 9 or 10 gives you actionable information which can be targeted for corrective action or process improvement Understanding why a customer gave you
a 9 or 10 helps you to better understand your core competencies_ Our qualitative analysis of follow-up comments from Promoter, Passives, and Detractors is the
key to increasing customer loyalty and profitable growth_
Business Satisfaction Survey 2019 Quality Solutions, Inc.' Page 4
City of El Segundo
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City of E1 Segundo - Businesses
Business Satisfaction Survey 2019
Quality Solutions, Inc.0
Building Foundarions for Excellence
City of El Segundo - Business
Net Promoter Score
Promoters 67% - 13% Detractors = NPS of 54%
A Net Promoter Score of 54% is an excellent score given that
secondary research suggests that cities using NPS will score in the
range of 23 to 28%. The NPS score of 54% represents a 7%
increase in one year!
The City of El Segundo needs to develop plans to address some
Promoters of the concerns of the Business Detractors (Those giving scores
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Passives of 6 or less).
Detractors This process of gaining more Promoters is not an academic
�R—NPS exercise, it directly correlates to customer's purchase/repurchase
intentions. Loyal customers/businesses are more likely to
purchase other products and services from you. This will relate to
greater business activity and development within the community.
Lastly, their referrals are not simply to colleagues outside of their
business it can be from within. This leads to the transfer of
businesses to El Segundo.
There are 20 comments among the detractors. Each comment
should be reviewed independently. NPS is a customer centric
process; meaning that action plans address individual customer
concerns. It is important that each of these businesses are
contacted for follow-up and attempts made to address their
concerns.
Quality Solutions, Inc.®
Page 5
City of El Segundo
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Business Satisfaction Survey 2019
20%
2017 2018 2019
�II Quality Solutions, Inc.0
Building Foundations for Excellence
City of El Segundo - Business
Net Promoter Score
Promoters yearly Comparison
Passives NPS Trends
Detractors 2017:32%
2018: 47%
�Ye arly N PS
2019:54%
Quality Solutions, Inca
Page 6
City of El Segundo
Detractor Comments
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ITII Quality Solutions, Inc.0
Building Foundations for Excellence
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These areas represent significant opportunities for improvement among Detractors.
Individual comments follow for Passive and Detractors.
Business Satisfaction Survey 2019 Quality Solutions, Inc." Page 7
Comparisons
2018
No. of participants 202 325
Net Promoter Score 32% 47%
Primary Issue Among More Business Staff Responsiveness
Detractors Friendly 30% 23%
Quality Solutions, Inc
Building Foundations for Excellence
351 8% Improvement
over 2018
54% 7% improvement
over last year!!!
Staff responsiveness/Not More Business
business friendly 30% Friendly cut in half
to 15%!!
Responsiveness,
Attribute with Highest Availability & knowledge and Business License renewal
Responsiveness of competency of fire dept
Score process 4.35
Police Dept 4.24 & field inspection
services 4.24
Attribute with lowest City Zoning City Zoning Policies
score Policies 3.49 3.52
Responsiveness,
Knowledge and
Competency of working
with Planning and
Building Safety Dept
3.64