ThE EffECTIvENESS Of CuSTOMER SATISfACTION MEASuREMENTS A Ford oF Mexico cAse study Leopold Zuñiga Hernandez Angela Momney Jorge Cherbosque fORD Of MEXICO DEALER NETWORK CuLTuRE AND C
Trang 1ThE EffECTIvENESS Of
CuSTOMER SATISfACTION
MEASuREMENTS
A Ford oF Mexico cAse study
Leopold Zuñiga Hernandez
Angela Momney
Jorge Cherbosque
fORD Of MEXICO DEALER NETWORK CuLTuRE
AND CuSTOMER SATISfACTION
As one of the most highly competitive manufacturers
in the automotive industry, Ford has long understood
the importance of measuring customer satisfaction
customer satisfaction with purchase, product,
and service experience is ultimately critical to any
industry it is especially important to the automotive
industry, a service-based business to customers
High satisfaction directly translates into increased
customer loyalty the customers’ loyalty then in
turn helps dictate the financial state of Ford at both
a dealership level and company level Furthermore,
loyalty leads to the most important aspect of any
industry, return of investment (roi) satisfaction
research reinforces the premise that repeat
customers showed higher satisfaction and dealership
recommendation ratings compared to non-repeat
customers this supports the continuous cycle of
customer satisfaction and loyalty
customer satisfaction is imperative to Ford’s growth
However, together with maintaining high satisfaction,
Ford of Mexico has also understood the importance
of creating a community in which each dealership
feels a place in Ford’s culture there is a sense of
partnership for each dealership in this partnership
they can identify challenges and opportunities
empowerment to become active participants is continuously encouraged to all dealerships
ThE EvOLuTION Of fORD Of MEXICO’S CuSTOMER SATISfACTION PROGRAM
1 The Background: ford’s Path to Customer Satisfaction Measurement
Ford Motor company has a vast dealer network
in Mexico which includes over 40 dealerships nationwide each dealership handles vehicle sales/ leases and service Ford Motor company has been measuring and tracking customer satisfaction since the early 990s the evolution of Ford’s satisfaction program can be summarized into three distinct phases each phase/program had its own theory and methodological approach based upon the key objectives of the market
the first program was the customer satisfaction index (csi) this program was designed in 990 and was conducted to 995 Although this program provided monthly feedback, dealers could not obtain specific information on how to improve their performance too often, dealers used the program
as a report card results were used to either reward
or penalize their employees rather than making any improvements in either the sales or service processes in 995, the Ford of Mexico research department, Ford Gci, in joint partnership with its
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global customer satisfaction supplier, rdA Group,
set out to develop a customer satisfaction program
that would help measure and increase overall
satisfaction they formed the next program called
Quality commitment Program (QcP) While there
were great improvements in regards to satisfaction,
QcP provided the dealerships with a large amount of
diagnostic information However, this vast amount of
information was overwhelming; it was very complex
and difficult for the different levels of the dealer
network to understand
At the time QcP was implemented, there was a
company effort called “sales 2000”.) sales 2000
was a set of standardized procedures and customer
service needs to simplify the whole process,
Ford Gci and rdA Group designed the customer
Viewpoint Program (cVP) the program’s primary
structure was based off the us customer Viewpoint
program the main focus of the program is to
continuously measure the true voice of the customer
(Voc) for increased roi this initiative made a
significant shift in overall sales satisfaction
in contrast to the first two customer satisfaction
programs, cVP has been designed to provide a
user-friendly tool to both management and the
dealer network customer Viewpoint is based
on fulfilling specific “customer expectations.”
the expectations were developed as a result of
qualitative research conducted in all major cities
of Mexico An in-depth moderation guide was
developed to probe into the customers’ needs and
wants when they purchase or service a vehicle the
results were developed into a standard set of sales
and service customer expectations
in essence, the customer expectations illustrate,
for all dealerships, what their customers expect
from them they represent the specific functions
in the sales and service processes that are most
important to customer satisfaction and loyalty the
most important element of the expectations is they
are written from the customer’s point of view they
represent the true voice of the customer
Metrics that were included in the past such as
“Greet within two minutes” were excluded from the measurement because it is not necessarily important to the consumers it was found from the research that the customers need and want prompt acknowledgement therefore the metric was revised
to “Promptly acknowledge me when i arrive at your dealership”
customer expectations provide the foundation for evaluating the sales and service processes at all dealerships the expectations were summarized into questions and formatted into the structure
of a telephone questionnaire the questionnaire was piloted and the ongoing tracking study was implemented in 998 each dealership received monthly feedback of their customer’s evaluation
on the key customer’s expectations for sales and service
2 ford de Mexico’s current program CvP - A Continuous Cycle
As figure illustrates, customer Viewpoint is based
on a continuing cycle of improvement
• it starts with Customer Expectations they identify
what customers want in their sales and service experience with dealerships Ford of Mexico dealers surpassing these expectations find customers will want to return to the dealership for service and
to purchase their next vehicle “totally satisfied” customers will be the customers who are most likely to recommend the services of the dealership to family members and friends
• Customer Viewpoint Surveys obtain valuable
feedback from customers on their satisfaction with their sales and service experience the key elements
of a customer’s expectations are measured
• Customer Viewpoint Reports summarize customer
feedback to each dealership Based on the reports, both process issues and areas for improvement within the dealership are identified
Trang 3• Based on this information, Process Improvements
can be made it’s a continuing cycle of improvement
When customer Viewpoint information is utilized,
process improvements will continually be made
dealerships will have more satisfied customers who
will continue to return to the dealership for service
and to purchase their next vehicle these customers
also become the strongest advocates for the
dealership and its products
fIGuRE 1
overall, customer Viewpoint is a customer
satisfaction process that puts a management tool in
the hands of the dealers, enabling them to improve
their customers’ satisfaction with key sales and
service processes the net result of customer
satisfaction improvement will be increases in repeat
purchase and referral business … adding to the
dealers’ overall growth and profitability
the Ford customer Viewpoint process has been
successfully launched in varied markets as the united
states, canada, Mexico, europe, Venezuela, ecuador,
colombia, thailand, Philippines and india in each
market, customer Viewpoint has been customized to
the needs of the local market prior to its launch
3 Disjoint of the Research Results to the End users
From the start of cVP in 998, it began delivering
positive performance results dealerships were
very anxious to receive their reports and view their
monthly performance small dealerships received three-month rolling feedback, while the larger dealerships received both one-month and three-month rolling feedback Process improvements were being made and customer satisfaction objectives were met
However, three years after launching the satisfaction program, aggregate national performance reached
a plateau customer satisfaction performance was stagnant because the measurement results were not being understood by the dealer network
one obstacle to higher satisfaction results became apparent: a lack of understanding of how the reports were being actualized dealer principals were calling Ford management with concerns and questions in regards to the program All levels of the dealerships were using the information from the cVP reports, however to different degrees some were well educated while others were less educated therefore, questions in regards to sampling,
monthly report comprehension, overall satisfaction score calculations, why the reports only measured customer satisfaction vs vehicle quality satisfaction, etc this issue was discussed among management and also with the dealer council
From questions from the dealer network, it was concluded that the dealerships did not understand the research results it became apparent that the results, although developed to be completely user friendly, were still unclear the dealer network did not understand how to read their package of reports in order to make process improvements Additionally, due to a lack of knowledge, distrust amongst the dealer network was starting to form and dealers began to question the study’s reliability they were unsure of the study’s methodology, sample frame, and reporting in some cases, dealers that were performing below the national objective felt there was some invalidity with the interviewing process, sample frame, and score calculations they were also unsure
of the changes throughout the program’s evolution
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they felt that the changes were opposed to them
instead of in their favor the gap of the disjoint
of the research to the end users was becoming
much greater
ThE SOLuTION: A NATION-WIDE TRAINING
1 Communicating the Research Results to One
Binding ford Community
the Ford of Mexico community needed to come
together to discuss the research results Ford Gci
and rdA Group set out to develop a customer
satisfaction training program for the entire dealer
network of Ford of Mexico dealerships from all
areas of Mexico would be required to attend the
training would explain the research objectives of the
program, how to understand the results, and the
recommended courses of action required by each
individual dealership
the first step in designing a nation-wide program
was to develop a comprehensive user manual
the original manual would provide the theoretical
background to the program, its evolution,
expectations and the cycle for process improvement
it would include explanations of the sampling,
surveys, rating scales, scoring and the reporting
process, a review over all the individual reports and
metrics, and how to use the reports in conjunction
with internal measurements (hot surveys) to
illustrate the development of the program, video clips
from the customer expectation research would be
shared this would reinforce that the entire focus of
the study is to understand the voice of the customer
the next step was to design the presentation,
communicating the use of the program manual
and reviewing the manual in an interactive manner
supported by concrete examples However, it was
a challenge to dynamically provide information of
interest to various levels and various regions Ford
Gci and rdA Group selected an outside moderator
psychologist to present the results in a motivational
format Ford Gci, along with rdA Group, met with
the Mexican psychologist, Jorge cherbosque, to enhance the presentation Motivational tools were then incorporated into each facet of the training
it was important to impart a vision of the philosophy, that individuals and organizations have much in common and that they are working in one binding Ford community, behind the motivation portion of the cVP training in this community there is a need to grow, thrive, develop, create and pursue excellence the object was to apply ideas and capture the energy and commitment of employees by enrolling them in this vision the emphasis is to communicate that they are key protagonists in ensuring that the organization achieves this potential
the psychologist not only taught the skills to review performance but also the skills to help dealerships create an environment of inclusion that fosters curiosity for learning He pointed out that there is a certain safety to acknowledge mistakes, motivation in correcting them and the sense of ownership needed
to play a key role in the vision for the future the training also focused on the principle of “uni-cability” this is the process to connect people’s unique talent and their passion Motivational processes such as dealership empowerment and leadership activities were incorporated into the manual review as well overall, the final product became a high energy, fun, training tool
Personnel from the Ford Marketing department (Global consumer insights) conducted the training in conjunction with the research supplier, rdA Group the 200 dealership training was conducted in the six major metropolitan cities of Mexico Ford of Mexico wanted to ensure dealerships from all regions
of Mexico had the opportunity to attend the training
2 Immediate results: An upward shift in the overall satisfaction trend
the evaluations of the training were extremely positive in fact, 87% of the dealer network stated they “would definitely/probably recommend” the
Trang 5course to other dealers Many of the dealers found
the question and answer session to be extremely
beneficial dealer representatives were able to openly
express many of the doubts, concerns, and questions
they had about the cVP program this was the first
time many dealers had been exposed to this level
of detail After the training the dealers were more
equipped to utilize the tools and knowledge gained
from the training to apply the cVP process since
Ford addressed all aspects of the study, it increased
the dealerships’ trust in the methodology and reports
for the program
the training was overwhelming successful, with an
apparent increase in overall dealership satisfaction
performance for sales and service After the training,
dealerships were able to effectively use the monthly
customer satisfaction results For the first time since
the initial launch of the customer Viewpoint Program,
the entire dealer network of Mexico used the
research results to enhance their internal sales and
service processes
true understanding of their customer expectations
ratings increased dealership performance customers
were more satisfied than in prior years After the
implementation of the training, there was a significant
increase in performance
fIGuRE 2
Finally, the cVP program was now being understood and used by dealer personnel in an effective manner the dealer network was reaching national objectives for both sales and service
INCREASING COMPETITION REQuIRED hIGhER LEvEL TRAINING uSING STRATEGIC TOOLS
1 Competition in the Mexican automotive market
Although a drastic shift in overall customer satisfaction performance was achieved, this was only the beginning of a comprehensive process
of customer satisfaction improvement Honda had entered the Mexican market in early 995, during the worst part of the economic crisis Honda’s entry brought a higher standard in regards to customer expectations toyota, renault and Peugeot announced their entry into Mexico in 200 the competition in the Mexican automotive market was on the rise toyota, already an
outstanding performer in the u.s market and one
of the largest vehicle manufacturers in the world, was about to enter the market Additionally, due to economic fluctuations, industry sales were down from prior years in order for the Ford dealer network to effectively compete in Mexico, further strategies needed to be designed
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2 A new training plan
Ford of Mexico and rdA Group conducted the
training from 200 on an annual basis However,
once the market changed, Ford Gci and rdA Group
knew they had to go beyond maintenance of the
dealership training to understand the program’s
basic market research measurements Future
training would need to provide the dealerships with
a strategic tool package along with the basic cVP
program knowledge
the dealership training committee met again and
brainstormed possible avenues to direct the next
training Ford Gci and rdA Group decided to
enhance the training with several new modules
First and most important was a program review
After an in-depth program review, an interactive
“best practice” module was incorporated into the
training Furthermore, a significantly more in-depth
motivational segment focusing on excellent customer
service, customer personality assessment, and John
Wooden’s Pyramid of success was included
3 An open forum: Discussions of sales and
service best practices
the “best practice” model was an interactive
review of the sales and service processes A “best
practice” was directly linked to each expectation in
the sales and service process the recommended
practices were developed from both u.s knowledge
and experience and the Mexican dealers and
management, along with past training programs
All practices were specifically customized for the
Mexican market
each sales and service process/expectation would
be presented and illustrated Afterwards, a tool would
be suggested with dealership process improvements/
enhancements For example, when discussing the
delivery process, suggestions were given on how
to make the process a celebration for the consumer
rather than just delivery of a new vehicle in the case
of service, the process of customer handling could
be better facilitated by small improvements in the waiting room to create a more guest-like feel for the customer the objective of the module was to provide suggestions to the dealerships but, more importantly, open a forum of discussion for the dealerships With this set-up, the dealerships could share suggestions among the dealerships in their area By sharing opinions and suggestions, the network could come together in order to improve overall dealer satisfaction
4 Motivational sector: A more in-depth segment
excellent customer service customer service techniques were discussed in a simple personal/ procedural quadrant dealerships were taught how
to coordinate their internal processes in order to provide quality customer service Basic principles, stressing the importance of knowing the customer, the resources available and presenting a positive attitude, were reviewed discussions, along with illustrative stories, communicated how to make the customer feel important through listening techniques, along with offering solutions to the customers
the whole brain model there was an apparent need for a psychological drill-down of customers’ needs in order to best meet their expectations Ford Gci and rdA Group realized the assessment would have to be more in depth and focused on how to understand individual consumers’ personality types in order to best serve both their individual needs along with the main customer expectations once again, the psychologist assisted us with his expertise He suggested reviewing the strengths and challenges present in the dealership
dr cherbosque utilized the latest psychological and social anthropological techniques concerning behavioral change and attitude adjustment the dealer personnel were instructed on what is critical for customers within the dealership environment and how to win the confidence of the customer A critical first step in developing the ability to deal with
Trang 7differences is an awareness of one’s personality
and personal work styles in order to understand
reactions to others Awareness precedes choice
and understanding oneself is fundamental in
communicating and resolving problems effectively
with others and in managing emotional reactions
and behavior
the Herrmann Brain dominance instrument model
was selected to be the most ideal user-friendly tool to
diagnose personality type in an on-site atmosphere
the “Whole Brain Model” of understanding work
styles was developed by Professor Herman this
model was powerful, easy to learn, remember and
most importantly, fun it had helpful applications in
understanding other people’s motivators
the Whole Brain Model is based on the brain
dominance theory.2) it is designed on four stable
discreet personality clusters of preference Much of
this theory of work is based on the right brain/left
brain theory the left brain is involved in processing
information on abstracts, time, plans, verbalizations,
and most logical and rational thinking the right brain
functions more on metaphors, visualizations and the ability to create and innovate new ideas Within each hemisphere there are two unique brain systems the outer part of the brain is more abstract and intellectual the inner part is more concrete and emotional these four parts of the brain provide a four-quadrant module, the HBdi Whole Brain Model the four parts are defined by the following clusters: logical rational, big picture creative, organized planned and interpersonal feelings over 500,000 HBdi surveys were scored to verify the theory that four stable, discrete clusters of preferences exist Participants learned about their working styles along with customers’ preferences by playing “the diversity game” the diversity game assigns a color to each quadrant Questions are placed on colored cards and the personality type can easily be assessed by the color type chosen the dealerships are then trained on how to read their customer types by asking simple questions communication strategies are then presented for each color quadrant type with discussions on how to communicate and effectively resolve conflicts with customers and coworkers
fIGuRE 3
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Afterwards, role playing was conducted in how
to identify the motivators of each of the potentially
diverse customers
Pyramid of Success the Pyramid of success was
designed by John r Wooden, the former head
basketball coach for ucLA Wooden designed
his own pyramid on what he defined as a solid
foundation for success elements such as
industriousness, friendship, loyalty, cooperation,
and enthusiasm were the foundations of success
in the training, the psychologist reviewed John
Wooden’s pyramid and assigned each group to create
a pyramid, selecting the elements in which they
as a team found to be their foundation to success
Afterwards, each dealership shared their pyramid
the activity helped unite the dealer network and
focused on their potential for future success
5 Training rollout for 2003
the training was administered in the metropolitan
cities of Mexico city and Monterrey All dealerships
were invited to attend a full-day training session
there were three individual presentations: cVP
review, sales and service Best Practices and the
motivational portion called “radiating Possibilities”
Ford Gci and rdA Group selected the best suited
presenters for each segment
the Ford Gci Manager presented the cVP review
of the updated 200 cVP training Manual in
an interactive manner dealers were able to
express questions to the study’s methodology,
sampling, or reporting the Ford sales and service
managers presented the Best Practice segments
the managers were the subject manner so they
could easily lead a very open forum Additionally,
the managers summarized the shared Best
Practices into an interactive website for the
entire dealer network to share For the radiating
Possibilities portion, Jorge cherbosque presented
his motivational materials and led the interactive
activities, including the Whole Brain Model
6 Evaluations from the dealer network
the 200 training was well received by the Ford dealership network All the Ford dealers rated the Motivational Behavioral “radiating Possibilities”
portion as “excellent/very good” Many dealers commented they enjoyed the ability to compare their own individual personality type in conjunction with their customers’ personality types in order to increase overall satisfaction the majority of the sales and service personnel found the motivational portion of the course to be very beneficial for their dealership the course helped them create customer service strategies based on understanding potential new customers they also enjoyed the interaction format of the course itself
Many dealers commented that they enjoyed the ability to participate freely during the training to express their opinions However, it was found that some dealerships did not want to share their specific “best practices” with the entire dealer network due to the competitive structure of some dealerships, there were some practices certain dealerships wanted to maintain and keep in their own business overall, the module was deemed a great addition to the training
dealerships found the cVP review very helpful
it was especially helpful to new staff to the Ford dealer network, providing an opportunity to learn hands-on all the details of the study, so they could best use the tools
After the evaluations were reviewed, Ford Gci and rdA Group had hoped they would experience
a shift in overall satisfaction ratings as they did years before However, the satisfaction trend was not as dramatic of a shift as the prior training in a continuously evolving automotive market, Ford of Mexico and rdA Group knew they needed to stay abreast and create an even more highly innovative package; a level beyond standard market research
Trang 9the sales and service “best practices” were useful
but they were difficult to measure internally outside of
the customer satisfaction program the psychological
techniques assisted customer needs and assessment
but not to the level necessary to meet customer
expectations Ford of Mexico and rdA Group went
back again to the drawing board the issue was
to take the training to a more creative, innovative,
strategic level
A hIGhER LEvEL: TRAINING WITh SIX SIGMA
AND MYERS BRIGG
1 A more strategic and internally measurable
approach
to enhance the training, a set of user-friendly six
sigma tools was incorporated into the design, as well
as the motivational segment with a Meyer-Briggs
customer assessment technique
the six sigma application was different from the
sales and service “best practices” of the prior
year as it was vastly more strategic and internally
measurable Additionally, six sigma was an applied
strategy for the Ford Motor company, with many
staff members becoming black belt and green belt
certified
it was the perfect moment to implement a six sigma
strategy to the dealer network six sigma provides
a structured approach to improve customer driven
processes it links rationally to customer service,
thus a customer focus process it provides a clearly
defined path to being customer focused the six
sigma process identifies all possible errors along
with possible variability in process
After identifying possible errors or variability a six
sigma provides a standardized step-by step process
with specific tools for conducting projects this is
called dMAic: define, Measure, Analyze, improve, and
control the process is systematic and consistent,
eliminating error and helping achieve almost perfect
quality in all procedures
fIGuRE 4
one challenge was illustrating the six sigma)
approach Many view six sigma to be highly statistical and hard to comprehend it was important to ensure that all levels of the dealer network understood the methodologies the key was to simply, simplify, simplify the certified Black Belt Ford Gci manager, along with accredited rdA Group, worked together to design a comprehensive six sigma application for the cVP Program
each sales and service process element was evaluated and presented Possible errors or variability for the process was discussed in great depth Finally,
a six sigma tool was assigned and designed for each sales and service process element/customer expectation
in order to ensure dealership comprehension, an interactive onsite activity was conducted at the training
in which each dealer group identified a potential error or variability within their dealership and then applied the recommended tool the tools which were illustrated included: the Affinity diagram, the critical
to Quality tree, the cause and effect diagram, and the Failure, Mode and, effect Analysis (FMeA)
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2 The Affinity Diagram and Critical to Quality Tree
the Affinity diagram was selected because of
its simplicity it is a tool which aids in the critical
assessment and analysis of qualitative customer
statements by:
• organizing language data into related groups;
• stressing creative or intuitive thinking;
• Helping identify patterns in the voluminous amounts
of data or statements from the customers;
• useful to organize ideas, issues, relationships
between customer needs and wants and the
dealership sales process;
• encouraging ownership of results
the best approach to train the dealerships was an
interactive one each dealership group was assigned
to brainstorm their own reception process for sales
their assignment was to write each step of the
process onto flash cards then they were to discuss
how to arrange the process steps into groups
the exercise helped the dealerships understand
the linkages between the steps and the potential
causal relationships Finally, the dealership groups
were instructed on how to incorporate the cards/
relationships into an Affinity diagram (exceL)
the critical to Quality tree (ctQ) tool was selected
because of its ability to simplify a complex process
and measure it internally the repair order review
portion of the service process is extremely complex
the ctQ helps in many of the following ways:
• translates customer language into service-based
requirements;
• transfers broad customer requirements into
specific ctQs;
• Helps the dealership move from high-level to
detailed specifications;
• ensures that all aspects of the customer needs and
wants are identified and assessed
A highly interactive training approach was again
used Blank ctQ worksheets were distributed and
the dealers worked in groups to list each general
customer need or want the dealership personnel had to develop key customer drivers from the general needs and wants they were instructed to keep the drivers and the associated general needs and wants
on separate branches of the tree Afterwards, the dealers worked in groups and discussed, debated, and reached consensus concerning the final set of derived ctQs
3 Motivational segment: Behavioral elements of CvP and leadership
the exercise to break down the behavioral elements
of cVP illustrated which elements could be improved
by attitudes and training and which elements could
be improved by process improvements each of the expectations/process elements were summarized into a personal/procedure label For example, Attitude and Level of Attention upon Arrival is a behavioral element it can only be improved by additional service training for the sales or service consultants to enhance good customer service in the area of delivery satisfaction this expectation
is much more procedural based it depends much more on logistics and the ability of the sales/service advisor to follow a specific process that is defined not only by Ford systems but also by the individual dealership
the elements of leadership were also a part of the training in this segment the dealerships were taught they are all leaders, no matter what their position the main principals of leadership were discussed:
• challenge the Process
• create/inspire a team Vision
• enabling others to Act
• Model the Way
• encourage the Heart Participants were asked to rate themselves on each leadership element this was followed by group discussions on possible avenues of improvement in each area