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CONTRACT 5381A Amendment CLOSED Agreement No. 5381 A Agreement No. 53 81 A FIRST AMENDMENT TO SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND QUALITY SOLUTIONS,INC. This First Amendment is entered into this 21St day of May,2018,by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and QUALITY SOLUTIONS, INC., an Ohio Corporation("CONSULTANT"). The parties agree as follows: I. This amendment is to add services as described in Exhibit"C," which is incorporated into the Agreement by this reference, and increase the total amount of the Agreement by.$47,000. 2. This Amendment may be executed in any number or counterparts, each of which will be an original, but all of which together constitutes one instrument executed on the same date. 3. Except as modified by this Amendment, all other terms and conditions of Agreement No. 5381 remain the same. [Signatures on next page] -I- Agreement No. 5381 A Agreement No. 5 3 8 1 A IN WITNESS WHEREOF the parties hereto have executed this Amendment the day and year first hereinabove written. CITY OF EL SEGUNDO QUALITY SOLUTIONS, INC. ...................................... Greg C peiit" , John Dickey City ' , flager President I t ATTEST: Taxpayer ID No. 34-1659092 Traty 68,er (,'4y Clerk' APPROVED AS TO FORM: ...................... Mark D. Hensley, City Attorney -2- -30 _1 i C I _V mu ipm-eml D - (D (D 3 (D Dn un - - — Z O Ci _ - tjW __ 3 �- _�_ W ©2018 Quality Solutions,Inc.The contents of this presentation are under the copyright of Quality Solutions,Inc. INTRODUCTION O �uality Solutions, NET PROMOTER SCORE _ Net Promoter Score When you select Quality Solutions to assist you in your Net Promoter Score process you will have the assurance of knowing you are working with a Certified Net Promoter Consulting Firm. Our consultants are certified in Net Promoter implementation, design, analysis and follow-up services. Many of our clients utilize our ability to obtain competitive and industry NPS scores in support of their NPS benchmarking efforts. How much more valuable is a loyal customer than a satisfied customer? Answer: It can easily be as high as 2.5 to 2.6 x over four to five years The reasons are fairly obvious: • Cross sell products • Upsell existing products and services • Referral business • Source for product development ideas Companies with higher Net Promoter Scores are generally more profitable than their peers. A company's Net Promoter Score, or NPS®, is based on customers' likelihood to recommend the company's product or service. For example your customers would be asked: .=g� "What is the likelihood you would recommend to a friend or business colleague?" - s .; D Your NPS is calculated as the percentage of customers who are Promoters, rating the company 9 or 10 on a zero-to-10 point scale, minus m the percentage who are Detractors, rating 6 or lower. Net Promoter is much more than a metric. It represents a process or a discipline for m using customer feedback which engages everyone to attain higher levels of customer loyalty and profitable business growth. Z3 Z O Linking your NPS with other business metrics helps you understand how customer loyalty is driving the fundamentals of your business. cri NPS can also be linked with key operational metrics such as number of days to deliver a product or call center hold times. These links can 00 then be applied within the technology to understand the impact of customer loyalty on business performance without requiring further D analysis in a spreadsheet. EM Quality Soi-Litions, _ _ _.° Why should you implement a Net Promoter process? huiEding t� C<ar EscLllk:iicL Utilized to support a Customer Centric Business Model a A common metric to drive process improvement A common metric to drive customer loyalty 4 Increase organic sales growth Develop new business Cross sell products and services Enhance profitability through customer loyalty, retention, and growth g Understanding that each score represents an opportunity to increase profitability The ROI on the effective use of the Net Promoter System can be astonishing Calculating Your Net Promoter Score A company's Net Promoter Score, or NPS®, is based on customers' likelihood to recommend the company's product or service. "What is the likelihood you would recommend to a friend or business colleague?" Your Net Promoter Score is calculated by subtracting the percentage of Detractors from Promoters to get an overall NPS as shown below: 0 e 2 3 4 5 6 7 8 % of Promoters - % of L o - (D (D Example: Z Promoters ® 56% ° Passives = 36% w Detractors D The Close Loop - '75 ual lug10 --xvia £ - - - - is Real-Time Escalation Alerts Individuals in your business will be notified automatically, in real time, when customer follow-up is required. We will help you develop protocols or business rules to ensure that the reason for re-contact is clear and the right person is notified. There is a direct correlation between the effectiveness of your closed-loop process and your Net Promoter Score. If you want to improve customer loyalty your best avenue for improvement is through the closed-loop process Examining the underlying reason behind the score and developing effective customer-centric solutions can convert the Passive customer into a Promoter and minimize the number Detractors. Process owner triages the Customer provides Survey responses Based on feedback, escalation event,and conducts feedback vie NPS --P-are stored,analyzed -- Escalation process is call with customer to better — understand the problem and Lessons Learned are Survey and reported engaged potentially immediately i shared with front line resolve the issue management for coaching/training l 1)Preliminary Investigation _1)Corrective Action or 2) Root Cause Analysis ?potentially further escalate 3)Document the Case 2)Document the Case I i r - D Investigation,Root Cause Analysis and Resolution — become part of a Lessons (gyp Learned database 3 As a pprop:nate (U Z3 driver analysis is = Unresolved issues compared with Key are reported to Z Performance management G Indicators{KPIs) Close Loop with Customerl (A) Thank them for their 00 assistance and outline the resolution D El ' uality Sol-Lit' ns, Inc. The City of El Segundo would like to implement a customer satisfaction / feedback system based on the Net Promoter Score Methodology. The system should provide actionable intelligence for city management. There are about 17,000 residents in the city. Currently the city has approximately 1,000 email addresses. 7500 businesses rely on the city's services. (Note: the number of emails will have grown by the time the surveys are deployed.) There are at least five or six departments who could quickly benefit from the implementation of a customer feedback system. These include: Finance Fire Planning Parks and Recreation Economic Development Public Works We will also introduce a Transaction Survey for walk up customers of the Planning, Public Works, and > Water department city services. Many of the Planning department customers will not participate in the m annual residential or business surveys due to the nature of their business. We will also set u a transaction survey for the Libra Like all surveys this will be customized for the city. � p Y Library. Y Y Z 0 We also must appreciate the fact that everyone is very busy in their own personal lives and answering W > lengthy surveys is not somethingmost people are interested in doing. � QualitySolutions, . - Background M Quality Solutions, Inc."-'nc." Quality Solutions, Inc. provides state of the art methods to assess the effectiveness of customer relationship management for companies throughout the world. Our team of seasoned professionals provides you and your customers with market research methods that respect the needs and demands of time, cost, and results. Our services are designed to address the critical business issues of customer loyalty, retention, and growth. Each of our services are further customized to meet the unique needs of our clients. In 2015, Quality Solutions, Inc. celebrated 25 years of internationally recognized service excellence. Quality Solutions, Inc. has the ability to design, host, administer, and analyze online surveys using our On Line Survey Solutions Tm tools and professional analysts. Quality Solutions is a Certified NPS Consulting Firm. Our unique capability and resources ensure your Net Promoter journey is successful from the very start. > m m Among our primary objectives is to help build the internal capacity within your organization to assure long term success. This includes developing of tools such as Escalation Notices and Case Management Z Tools to help you address the needs of individual customers who are classified as Detractors. Cn W D ualitv Solutions, Inc. .. There are two ways of obtaining customer feedback in terms of timing. 1. T r ns .et$on l Su--r v ys: Conducted shortly after the service is provided u Advantages: Immediate feedback Typically higher response rates Disadvantages: ■ Can be more costly over time High volume of transactions needed to make the results meaningful a l t ons- i-p Sin ey : Conducted on a periodic basis (annually, semi annually or quarterly) ■ Advantages: • Ability to lump more feedback (but not too much) into the survey process i.e. one question each about Parks and Recreation, Public Works, Building Permits etc. > ■ Slightly lower cost over time vs transactional 3 ■ Disadvantages: • Somewhat limited ability to focus on individual departments o * Lower response rates W D PROPOSED RESEARCH Quality Solutions, Inc.` Annual Residential Survey: id::,:. We have established a baseline in 2017. We will utilize that survey as a means of comparison. Annual Business Survey: We will utilize the survey developed in 2017 since we have a baseline established. The results will be compared year over year. Transactional Department Surveys for Planning, Water Public Works and Library departments: One survey may be part of a department like Planning / Permitting which serves both residents and businesses. For this survey we will need to set up a kiosk / laptop in the department to collect the feedback. The opening question will ask if the respondent which services they were seeking. This will allow Quality Solutions to segment results by Planning, Water and Public Works departments. Since this is a kiosk survey we will not be able to trace the results to the actual person taking the survey. We may want to can ask a few optional questions at the end of the survey; name, address, email and phone number. The Library survey may need its own separate kiosk. The survey will be limited to four questions. Two scaled questions, one yes / no question, and one open ended conditional question. D Escalation Reports: All surveys will be supported by escalation reports. Whenever a low NPS score or Overall satisfaction score 3 falls below 6 and Escalation report will be triggered and sent to the appropriate point of contact within city Z government. 0 Cn Participation Rates: 00, We will work with representatives of the city to develop processes / tools to increase participation rates. D Fees: Annual Resident's Survey $7,500 plus $250 for every 100 paper surveys needing processed Planning Department Kiosk surveys $1000 set up, $ 7,200 billed every six months. (June & December) Estimated $14,400 annually. Reports custom prepared quarterly. Water, Public Works, and Library Transactional Surveys $No cost, $7,800 billed semi annually or $15,600 annually Custom Quarterly reporting Annual Business Survey $7,500 Note: we are providing quarterly reporting in a effort to reduce the costs. The results will show the trends over the quarter and the raw data will be provided in excel tables. The results will be presented to the city council quarterly by John Dickey via webinar or on site. Payment Schedule: June 1, 2018 - $1000 set up for surveys; Planning, Water, Public Works & Library survey admin. $15,000 D for July through Dec. 2018 survey work m m September 1, 2018 — $15,000 Annual & Residential Survey fees ( paper survey costs to be billed once known) m December 1, 2018-Planning, Water, Public Works, Library survey admin. $15,000 for Jan through June 2019 survey work o v, W 00,D rr E £r _ - Qualitv Solutions, Inc.v AW The experience to design a system that works best for you Our size doesn't get in the way of serving our clients . . .we put our clients first Certified NPS Consultants We are willing to go the extra mile to help you successfully implement your NPS process Value. . . we know how much many of the other companies charge for their services . . . we have a simple question. . .for 0 what? 3 0 Z 0 criCIO 00 1D NE _J n at Solutions, Inc. Teamwork- We have built a team of highly skilled professionals ready to serve your needs. �g UMNIF� Best ® Our processes have been - benchmarked by companies all over the world. s - We are committed to bring "state of the art" customized solutions which support attainment - -- of your bottom line goals. Systems-Integrated We are interested in building internal capacity within our clients to measure the predictors of customer satisfaction through Key Performance Indicators. We Quality know that combining internal process metrics Result _ nth It � mss' with the voice of the customer brings a We believe we are uniquely qualified to become powerful set of tools to the board room. D your partner by helping you succeed and exceed Responsiveness- Time is money. Information your goals and objectives. and answers to pressing questions are more valuable when they are provided in a timely Z manner. We take pride in our ability to exceedCn our clients' expectations in terms of quality 00, and responsiveness. D