So you want to be a superior service provider? Start by answering your mail

Business Horizons, Nov-Dec, 1994 by William E. Fulmer, Jack S. Goodwin

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Who Writes the Response?

Managers, with a total of 18 replies, responded most frequently to customer letters. Nonmanagerial employees, usually a customer service representative, ranked second with 17 replies. Presidents and general managers followed closely with 12 responses each, showing a much higher level of response than anticipated.

The rank of the respondent to the letters of complaint and praise was evaluated using the following scale:

CEO                              1
President                        2
Vice president                   3
Director                         4
General manager                  5
Manager                          6
Supervisor                       7
Nonmanagerial employee           8

The rank of the respondent was compared to a ranking of the correspondence severity, which was defined in terms of the number of service quality dimensions (positive or negative) covered in each letter. In addition, each letter was evaluated as either positive or negative given the over-all categorization of the letter. For example, if a letter contained three negative comments and one compliment, it was categorized as a negative letter with a score of 3.

There appears to be a strong statistical relationship between the severity of negative correspondence and the rank of the respondent. On the other hand, statistical significance was not found in the analysis of positive correspondence.

How Did They Respond?

To investigate the organizations' responses further, we used content analysis, a systematic technique for analyzing message content by fitting the content of messages, or communications, to predetermined, mutually exclusive categories. Inferences were then drawn from objective and systematic identification of the specified characteristics of the communications. In this case, the communications were the customer letters and the company responses.

Coding categories, representing the specified characteristics of the communications, were established to reflect the service quality dimensions and company response dimensions. Specifically, we used the results of a study of consumer confidence by Martin and Smart (1989) in which they surveyed customer relations directors and identified five key company response dimensions. They are, in order of importance: (1) speed of response; (2) making customers happy; (3) addressing specific issue; (4) caring/understanding; and (5) assuring customer of product quality. Separate coding sheets were used for evaluating the customer letters and the company responses.

Table 2 displays the frequency using Martin and Smart's categories (letters of praise and complaint were examined). Expressions of caring and understanding were found in every letter sampled. Conversely, the category "making customer happy" was not mentioned in a single letter. Approximately 91 percent of the response letters addressed the customer's issue directly. Amazingly, 9 percent took the time and effort to respond yet did not directly address the customer's concerns. Perhaps of greater significance, only about 60 percent attempted to assure the customer of service quality. An examination of company respnses reveals that airlines led hotels and banks in terms of addressing the customer's issues directly and assuring the customer of service quality (see Figure 2).