We currently only measure training satisfaction using an electronic survey form with 9 questions, focused on 3 areas; instructor, class & materials. We automatically deliver the survey via email for on-line classes, and then an instructor can generate a link that they can use out in the field for individual classes.

We send weekly reports to all instructors, with their detailed feedback and then aggregate it for them quarterly as well. We do not currently tie compensation to those metrics, the biggest reason why being that we don’t have dedicated trainers.

I, like you, really want to extend that satisfaction tracking to the other services we deliver so am looking forward to hearing what others have to say on the topic!

Hello Parag,

My experience with any metrics is that they must be fairly simple and easy to roll up, or they won’t be sustainable and the team being measured has to feel they are in control of the metric outcome or they won’t relate to them. This most definitely applies to a set of PS metrics as well. To be most effective, the metrics should drive a ‘Risk/Reward’ incentive for the people being measured.

In the team I managed, each person had a target bonus amount assigned to them that would be prorated and paid via the metrics package, during the business year. The metrics/bonus can be monitored and paid monthly or quarterly, based on the how the company wants to implement. Below is a set of balanced metrics that I have used in the past, that were both fairly easy to roll up, and drove the appropriate team behavior. Note; as the manager, I had the same metrics/bonus incentive assigned to me as well.

PS Metrics:

1) Actual period PS revenue recognized, vs. the PS revenue budget (50% of bonus)

2) Actual period Customer Satisfaction scores (remaining 50% of bonus)

The revenue numbers were provided by Finance for each period and each completed customer project was sent a simple 5 question Customer Satisfaction survey rated 1-10 to complete. I used a web based outsourced company for survey administration to keep it unbiased. Implementation would be exemplified as: If the average Customer Sat score for the period was a ‘9’ then each team member would get - 90% of the Customer Sat 50% of the total bonus target. Plus, if the actual revenue recognized was 75%, then they would also get 75% of the remaining 50% associated with the revenue achievement metric. Over 100% revenue achievement would drive their period bonus above the planned target amount, fyi. I found this model very effective, and also very suitable for trending over time.

Cheers,

Jay

Parag,
As part of any delivery process, it is wise to initiate a survey after every go live.  Include the following topics and request the client rate the experience on a 1 to 10 satisfaction level.  You can use Zoomerang or SurveyMonkey to easily implement this type of survey.

Debbie S.

Good points Debbie - but I would go farther.
I would have a meeting with key client executives and discuss expectations before the engagement even starts - and commit to review with Client execs at specified meetings during the engagement to obtain scorecard during the engagement.

No suprises.

Regards,

Bill M.

I agree with you, Bill, but I would even take that a step further and review the interim scorecard results with the project team during the engagement to be sure that everyone understands any needed course corrections.  (Of course, if you hear compliments, you have to pass those along, too!)

Take care,

Christine L.

Christine,

Very good point. implied but not stated - and necessary.
Regards,

Bill

Jay,

From my perspective it is a quality dimension that begins BEFORE the sale. and your definition is part of it.
I have found that when a delivery team works with the prospect at the latter stages of the sale, that agreeing expectation- in fact linking delivery to what is being sold, linking Customer’s defitions of ‘done’ before the project enables the PS team to have all those metrics in front of them - not in a post mortem trying to learn from mistakes.

It also sets the bar for reference accounts and Customer Sat surveys after the production ops begin

Hi Parag,

Customer satisfaction surveys cannot replace a strong client relationship. If you strive for customer intimacy, you’ll know where you stand at all times. However, it’s also critical that you track a standard measure of customer satisfaction. At Five9, we utilize the Net Promoter Score (NPS) for our customer satisfaction metric.

The NPS is a single question rated on a scale of 1 to 10. The question is: “How likely is it that you would recommend Company X to a friend or colleague?”

NPS is the brainchild of Fred Reichheld. He’s written a great book, “The Ultimate Question: Driving Good Profits and True Growth,” which explains the approach and why it works.

There are two things that I like about this approach:

(1) The single question format helps to achieve a much higher return rate because it is simple and quick to respond to, and
(2) The straightforward question makes it clear whether or not you are successful in your mission.

The NPS process can be a bit humbling as it is very difficult to achieve a high score--some industries such as the airlines actually achieve negative NPS scores. However, the score should be viewed as relative--to both the industry you are in and your own previous scores.

Although NPS is a single question, you can always go back and ask follow-up questions of those clients that gave you a lower score. The follow-up conversation gives you an opportunity to correct the problem, which very well could end up salvaging a client relationship.

Jay,

A comment on the comp tied to this.  I’m not sure I’d be comfortable with a Customer Sat bonus that only had downside.  I would think it would be more motivating, and fair, if there were a target of say “8” on the 1 - 10 scale with upside over that and the obvious downside you guys used as well.  It doesn’t have to be linear either, ie, you can have 5% tacked on for each point (or fraction) over 8, and subtract 10% for going under, or vice versa.  But I wouldn’t recommend using an approach of “you’ve got nowhere to go but down”, particularly when so many things could color a customer’s satisfaction outside of the efforts of the implementation team (poor product support, go-live slippage due to outside influences (hw delivered late), “we weren’t told we needed 2 boxes during the sales cycle!, etc.").  I know, I know, you’d think that respondents would strictly stick to the metrics we provide on the survey sheets but customers have a way of expressing themselves outside of our desired structure sometimes.

Don

Don,

Good points, I agree. By implementing a model with your suggestion to set a more realistic CSAT target goal of something less than 100% there’s both upside achievement in the current year and room for year over year improvement goals to be set in the future. Unfortunately, the company I worked for at the time wasn’t ready for that approach, so we didn’t implement it as you outlined. Thanks for bringing this up.

Jay

The issue of capitalized cost, amortization over the period is one way for public companies complying with GAAP and a different one for non-GAAP accounts. FASB and SOP is a complex application of accounting treatment.
Thanks,

Dilshad K.