new thinking on benchmarking customer experience€¦ · • the demand for benchmarking data...
TRANSCRIPT
New thinking on
benchmarking customer experience
Vicki Howe, Head of
Product Development
April 2015
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© HouseMark 2017
Contents
1 Key points............................................................................................................................ 3
2 Introduction ........................................................................................................................ 4
2a Satisfaction benchmarking from HouseMark ............................................................... 4
3 Star benchmarking and its benefits ............................................................................. 5
3a Latest sector-wide results from HouseMark’s Star benchmarking ...................... 5
3b Key drivers of satisfaction ................................................................................................... 6
4 Star, tracking and transactional surveys and the need to review ........................ 7
4a The consultation ..................................................................................................................... 8
4b What the sector said ............................................................................................................. 8
5 StarT: Our way forward for transactional surveys ................................................. 10
5a Star developments in response to the consultation ................................................ 11
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1 Key points
HouseMark owns and manages the Star satisfaction framework for the social housing
sector. Using this framework, over 350 UK social housing landlords regularly collect and
benchmark perception satisfaction survey data.
Landlords use satisfaction data, of which Star is a part of, for their own performance
monitoring and to inform business decisions.
Taken as a whole, the HouseMark Star satisfaction dataset reveals overall sector trends
and typical drivers of satisfaction. Our latest data shows overall satisfaction levels have
remained constant on average for general needs and housing for older people tenants.
Since Star’s launch in 2011, a wider range of survey methods have become popular with
landlords than is covered by the Star framework.
Transactional surveys, such as repairs, lettings or ASB surveys, are not covered directly
by the Star framework. However, some HouseMark members wanted to explore the
appetite for guidance and a benchmarking framework specifically for transactional
surveys.
HouseMark, in association with market research company Acuity, conducted a major
consultation exercise with HouseMark members in late 2014 / early 2015 to find out
more about the extent to which transactional surveys are utilised, current expectations
for customer satisfaction benchmarks and the continuing role of Star.
We found that Star remains popular and continues to have an important role to play, with
91% telling us that Star still has a place.
The evidence base arising from this consultation exercise has led to the development of
StarT by HouseMark – a transactional satisfaction survey framework that is
complementary to, but separate from, Star.
HouseMark is delivering new and refreshed guidance and benchmarking services to help
our member compare satisfaction for both perception (Star) and transactional (StarT)
surveys.
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2 Introduction
2a Satisfaction benchmarking from HouseMark
In 2011, HouseMark launched the Star (Survey of Tenants and Residents)
framework - a periodic perception-based survey that provides social housing
landlords with the means to compare satisfaction results with each other. Today,
nearly four years later, around 350 landlords regularly collect and benchmark this
information using HouseMark services.
Landlords say they continue to find Star an invaluable resource for understanding
how tenants and residents feel about the services they provide and they use this
information to inform business planning and resource allocation. As a wider range
of survey methods has become available for measuring and understanding
satisfaction, there has been a growing appetite to combine this over-time
perception survey data with real-time customer feedback. Many landlords are now
carrying out transactional surveys triggered by specific events or interactions with
customers; for example following a responsive repair, complaint, or letting.
The purpose of this report is three-fold. Firstly, it provides a recap on the benefits
of Star, and what HouseMark’s Star dataset tells us about the latest trends in
satisfaction.
Secondly, it outlines the results of our research into:
• The extent to which transactional surveys are being used, and are evolving,
in the sector
• The demand for benchmarking data gathered from transactional surveys
• What guidance the sector might need on transactional surveys and
understanding their relationship to perception customer satisfaction
surveys (such as Star surveys).
And, thirdly, to introduce StarT; our new framework for benchmarking transactional
survey data.
Used together, the Star and StarT frameworks will provide a fuller picture of
comparable customer satisfaction than has ever before been available.
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3 Star benchmarking and its benefits
HouseMark developed Star for the social housing sector. Our website1 contains
details about how to run a Star survey together with a full set of questions covering
the core areas of activity; as well as several optional and model questions for
specific landlord services.
This standardised approach to satisfaction measurement enables landlords to
make meaningful performance comparisons with other landlords working in the
social housing sector and monitor trends over time.
Satisfaction measurement provides a valuable source of data for measuring and
reporting tenant and resident-focused outcomes and engaging tenants and
residents in what their landlord does. Most landlords will carry out a variety of
surveys to capture satisfaction data. Star is not designed to meet all the surveying
needs of a typical landlord; however, it will deliver a robust, central foundation for
capturing tenants’ and residents’ general perceptions about their landlord.
The framework is designed with sufficient built-in flexibility to ensure that landlords
are able to measure what they need for Star compliance in ways that best suit their
organisational requirements and those of their tenants and residents.
Satisfaction measurement is also about gathering robust, actionable data to inform
business decisions on changes to service delivery. Without subsequent action,
satisfaction measurement has no purpose; without robustness any action may be
misdirected.
For landlords in Scotland, HouseMark teamed up with SHBVN (Scottish Housing
Best Value Network) to produced Star in Scotland which combines the regulatory
requirements under the Scottish Social Housing Charter with Star's established
framework for comparing satisfaction.
Once a Star (or Star in Scotland) survey has been conducted and collated, the
results can be entered into HouseMark’s Star module. Star data, when combined
with cost and performance data in HouseMark’s core benchmarking service,
provides the basis upon which to judge value for money and identify the best
opportunities for improving performance.
3a Latest sector-wide results from HouseMark’s Star
benchmarking
HouseMark’s annual report on Star benchmarking data based on surveys carried
out in 2013/14 found that overall satisfaction has remained constant for
leaseholders, general needs and housing for older people tenants between
2012/13 and 2013/14. There has been a small increase (1% point) in overall
satisfaction for supported housing tenants and a larger increase (8% points) for
shared owners.2
1 https://www.housemark.co.uk/subscriber-tools/benchmarking/survey-of-tenants-and-residents 2 Comparisons used a balanced panel of landlords that submitted performance data for both years, and excluded
those which submitted data from the same survey two years running.
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As in previous years, this year’s annual report found that tenants are more satisfied
with the service provided by their landlord than home owners (leaseholders and
shared owners). In 2013/14, general needs tenants were less satisfied than those
living in housing for older people, and shared owners are more satisfied overall
than leaseholders.
When the results are broken down by region, they show that satisfaction for
London-based organisations is around 10 percentage points lower than other
regions across all quartiles. Outside London, the scores are remarkably consistent,
with only a few points separating the regions at each quartile threshold.
Although less up-to-date than the data captured by HouseMark’s Star
benchmarking3, the CLG’s English Housing Survey publications4 also offer some
supplementary insight into recent trends in satisfaction. The 2012/13 survey
findings show that the general trend in satisfaction with accommodation,
neighbourhood and repairs among social housing tenants over the five years
between, 2008/09 and 2012/13, is very slightly upwards.
3b Key drivers of satisfaction
HouseMark’s annual Star benchmarking report uses correlation and regression
analysis to assess how much each benchmarked Star question influences overall
satisfaction. This demonstrates that every core measure5 is significantly correlated
with overall satisfaction, and that this correlation is positive i.e. as one core
measure increases in value, so does overall satisfaction.
Repairs and maintenance has the biggest influence on overall satisfaction, as it did
in in 2012/13 and 2011/12. Landlords whose residents are satisfied in this area
tend to have the highest rates of overall satisfaction too. The next biggest
influencer is listening and acting to views, closely followed by the Value for Money
(VFM) of rent and the quality of home. This implies that getting resident
involvement right is an important factor in achieving good overall satisfaction
3 The English Housing Survey’s breakdowns by tenure (including social housing tenants) for its 2013/14 survey are
not published until July 2015. 4 https://www.gov.uk/government/collections/english-housing-survey 5 The seven core Star satisfaction measures cover overall satisfaction, the home, neighbourhood, VFM rent, VFM
service charge, repairs and listens/acts on views
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scores, as well as VFM and the quality of home, as lower ratings in these areas will
have a negative impact on overall satisfaction.
4 Star, tracking and transactional surveys and the
need to review
Since the launch of Star, a much wider range of survey methods has become
popular with landlords for measuring and understanding customer satisfaction.
Notwithstanding this broader range of survey options, 91% of our consultation
respondents are clear that they want to continue deploying Star as part of their mix
of approaches.
A Star survey is a perception survey aimed at measuring all6 customers’ views,
impressions and opinions about their landlord and the services it delivers.
Historically, perception surveys were carried out at specific points in time, typically
every two or three years. Today, however, many landlords carry out their Star
perception surveys as tracking surveys which means running the same survey at
set intervals throughout the year, such as weekly, monthly or quarterly.
We define transactional surveys as those that collect customer feedback about an
interaction or event, gathering data linked to a recent service while the interaction
is still fresh in customers’ minds. The distribution of a transactional survey to a
respondent (e.g. by way of posting a survey or making a phone call) is triggered by
an event such as a responsive repair, a complaint or a letting. These surveys are an
invaluable way of measuring the customer experience and views on service quality
at the operational level, obtaining feedback very quickly after the event.
The distinction between the two survey types of perception and transactional is
not the actual questions asked, but the trigger for distributing the survey. For one
type, the survey distribution follows an interaction or an event (transactional)
whereas the other type (perception) does not.
HouseMark recognises the need to be even clearer in our benchmarking guidance
about what is and is not a Star survey, and specifically how transactional surveys
relate (or not) to STAR.
The purpose of our review was therefore, to understand the extent to which
transactional surveys are used in the sector and to assess the demand for the
benchmarking of customer satisfaction data from transactional surveys. The
review also sought to understand what guidance the sector might require on
transactional surveys and their relationship to perception customer satisfaction
surveys (such as Star surveys), and to develop a new framework for the use of both
surveys to successfully capture robust and representative data.
6 To capture ‘all’ views, the landlord will either conduct a census survey or a carefully constructed sample survey to
ensure statistically valid representation
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4a The consultation
The consultation set out to understand the extent to which transactional surveys
are used in the sector and to assess the demand for the benchmarking of
customer satisfaction data from transactional surveys. It also sought to understand
what guidance the sector might require on transactional surveys and their
relationship to perception customer satisfaction surveys. We also took the
opportunity to seek feedback on the current Star survey framework.
HouseMark began the project in October 2014 with a roundtable discussion to set
the scope of the review. Participants were invited from a cross-section of
HouseMark members, some of whom were critics of Star. Following the event, two
online member surveys and ten in-depth telephone interviews were carried out in
December 2014 and January 2015. HouseMark members were also asked to
submit examples of their Star and transactional surveys.
The online survey was aimed at research and policy staff, directors and managers
of specific service areas. It was split into two parts: Part A focused on
benchmarking and the role of transactional and Star surveys; Part B asked further
in-depth questions about the particular transactional surveys conducted by the
landlord. Part A of the survey was completed by 178 staff from 166 landlords, with
a further 73 landlords continuing to complete the more in-depth Part B. A charitable
donation was made for each survey response received. In addition to the online
consultation responses, a total of 341 examples of transactional and Star
questionnaires were sent to HouseMark.
In-depth structured telephone interviews were conducted with senior executives in
the social housing sector. These interviews captured their opinions on the use
made of customer satisfaction information in improving, developing and tailoring
services to meet customer requirements, monitoring operational performance and
contract management and establishing a sector-wide approach to benchmarking
transactional surveys.
Detailed findings from the review are available for HouseMark members on our
website.
4b What the sector said
The review confirmed the popularity of Star surveys with 91% of respondents
confirming that they use the framework and plan to keep on doing so.
Virtually all landlords carry out transactional surveys (99%). Almost all of the
landlords conduct responsive repairs surveys (94%), with a high percentage
carrying out ASB complaints (84%), new lettings (76%), and complaints (77%)
surveys.
Telephone (85%) and postal surveys (83%) are the most popular research method
used by social landlords to survey residents; but many landlords also use online
(56%), face-to-face (51%), mystery shoppers (48%) and focus groups (47%). Two
of the challenges facing many landlords are falling response rates for postal
surveys and the often disappointing levels of take up for online surveys. Although
many landlords use social media to communicate with customers, few are
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conducting customer research over these newer platforms.
Of the landlords who conduct Star surveys, the majority continue to carry out one-
off surveys (66%), but a third now use tracking surveys (33%). Postal surveys
remain the most popular survey method for Star surveys (68% compared to 25%
telephone), but a third of those carrying out postal surveys are considering
changing survey methods. This desire to investigate alternatives could be related
to the concern about falling response rates for postal surveys. Those adopting the
second most popular method of telephone surveys are much more likely to retain
this method in future – only 4% would consider a change.
We asked about the extent to which landlords include the seven core questions in
their Star surveys. Six of the seven core Star questions are included by well over
90% of landlords (94% to 100% depending on the question); only the question on
whether service charges provide value for money, which is not applicable for all
landlords, is less frequently used (81%).
In our discussions with HouseMark members prior to the consultation, we had
picked up a limited amount of concern about two specific core Star questions and
we sought opinions on their future in this consultation. We found the majority of
landlords favour keeping the question on whether rent provides value for money
(66% find it useful). Just over half of the landlords who responded wanted to keep
the question about landlords listening and acting on residents’ views (53%).
In order to compare satisfaction results, the requirement for all participants in a
benchmarking exercise to work to the same answer scale for a particular question
is as important as the wording of that question being the same. For all core Star
questions, a five-point descriptive text scale of very satisfied, fairly satisfied,
neither, fairly dissatisfied, very dissatisfied was adopted when the framework was
set up in 2011. We asked about response scales again in our latest consultation. A
majority of respondents (53%) favoured retaining a five-point scale (which includes
the middle ground option ‘neither satisfied nor dissatisfied’). The use of descriptive
text for the answer scale (rather than a numeric scale) remains the most popular
option (78%).
Two-thirds of landlords would like to see a set of survey questions developed for
transactional surveys by HouseMark (65%), with a higher number wanting to see
guidance and advice from HouseMark (as ‘thought leaders’) on survey methods and
sample sizes for transactional surveys (87%).
Landlords want to see more customer satisfaction measures added or included in
HouseMark’s benchmarking modules and a link to comparable data sets available
outside the sector. The consultation found a strong demand for guidance, sharing
of good practice and learning events for the sector.
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5 StarT: Our way forward for transactional surveys
In response to the feedback from the
consultation, we are developing StarT
(Survey for Tenants and Residents
Transactions), our new benchmarking
service for transactional surveys.
Just as Star provides a comparable
framework for a landlord’s main tenant
and resident perception satisfaction
survey, StarT will provide a framework for
comparable transactional surveys.
The Star and StarT frameworks are
distinct and separate, but together they
provide a fuller picture of landlords’
customer satisfaction than Star was able
to deliver alone.
The feedback from our consultation confirms our belief that when it comes to
comparing satisfaction results, Star (perception) data and StarT (transactional) data
are also distinct and separate. We will not be mixing data from the two different
types of survey in our benchmarking services.
Our new StarT guidance on the use of transactional surveys is available to
HouseMark members. It includes a set of questions for transactional surveys as
well as providing advice on survey methods, sample sizes and other areas
highlighted in the review.
Through the introduction of StarT, we are expanding our benchmarking services to
include clearly defined transactional customer satisfaction measures, starting with
the most popular surveys identified in the review – repairs, lettings, ASB and
complaints.
During 2015/16, landlords who wish to take up this offer of new transactional
satisfaction benchmarking services for repairs, lettings, ASB and complaints will be
able to adapt their survey methods and questions to meet our new StarT
framework. From April 2016, the new online benchmarking systems will be available
to HouseMark subscribers to input their survey data and see how they compare.
We have developed standard StarT questions for each of these four transactional
survey areas. There is built-in flexibility and landlords do not have to ask all of the
questions in each service area in order to participate in our benchmarking.
Question sets may be expanded from other sources such as optional StarT
questions and your own questions to tailor the survey to meet your exact needs.
The choice of StarT questions was strongly influenced by the information obtained
during our consultation from the on-line questionnaire respondents, in-depth
interviews and hundreds of examples of customer survey
questionnaires/telephone scripts.
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StarT will enable more landlords to take part in comparable survey measurement
appropriate to the survey type, and a wider range of measures to be included in
HouseMark satisfaction benchmarking.
5a Star developments in response to the consultation
Our priority has been to respond to the consultation feedback in relation to
providing StarT guidance and benchmarking solutions for transactional
satisfaction surveys for those HouseMark members who want this.
We also learned from the consultation that, while there is very widespread (91%)
support for the Star framework, there are a number of areas where landlords would
like further guidance and there were various suggestions for development of the
Star framework.
During the spring and summer of 2015, we will be considering and consulting
further on:
• The future form of the ‘listens and act’ core question in Star
• The introduction of social value and/or ONS well-being measures into the
Star optional question set
• How to address some concerns about whether the ‘neither’ responses are
included or excluded in the calculation of satisfaction results
• Expanding the range of filters available in on-line benchmarking of both Star
and StarT for those landlords who want to narrow their peer group of
comparison to surveys and organisations that are most like their own.
The overall timeline for HouseMark delivery on both a refreshed Star and a new
StarT framework to our members is:
This ‘new thinking’ report on benchmarking
customer experience 30 April 2015
Detailed findings from our consultation 30 April 2015
StarT – a guide to running transactional
surveys, including StarT questions 30 April 2015
Upgrade of the key Star documents:
• Star features
• A guide to running Star
• Star questions
July 2015
Introduction of on-line StarT benchmarking
services April 2016
Upgrade of on-line Star benchmarking
services, including more filter options 2018
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