Minister Lim Hng Kiang's written reply to Parliament Questions on customer satisfaction levels in the retail and food and beverage sectors

Question No 251 of Notice Paper No 261 of 2009

Name and Constituency of Member of Parliament
Mr Teo Siong Seng, Nominated Member of Parliament.

Question
To ask the Minister for Trade and Industry (a) what is his Ministry's response to the recent findings of falling customer satisfaction levels in the retail and food and beverage sectors; and (b) whether there are measures put in place to ensure that our tourism industry delivers the best customer service and maintains its competitiveness in the region.

Answer
In today’s competitive environment, it is important for businesses to understand the link between service excellence and customer satisfaction. Recognising the importance of this, STB, WDA and SPRING have developed the

Customer Satisfaction Index of Singapore (CSISG)

together with SMU, so as to help businesses better understand their customers.

According to the CSISG framework, firms should pay attention to factors such as the changing expectations of customers, product quality, service delivery and pricing, as these are all important factors that influence overall customer satisfaction. Based on this methodology, it is possible that while our firms improve on service delivery level, customer satisfaction may still drop because of changes in the other factors.

Findings from the most recent CSISG survey released in October showed that despite improvements in service delivery and product quality levels, customer satisfaction levels in the surveyed sectors had fallen by a margin of up to 2.3 points in 2009 compared with 2008.This is a timely reminder for companies to pay more attention to the spectrum of factors that govern customer satisfaction, and our agencies will be sharing the CSISG survey findings with companies to help them understand the issues that drive customer satisfaction and possible measures to address the gaps.

I wish to assure the House that the Government takes the issue of improving customer satisfaction seriously. We recognize its importance in maintaining Singapore’s competitiveness in the region, particularly in our tourism sectors, and we have taken active steps to support businesses in their drive towards customer satisfaction and service excellence.

Members will recall that we launched the “Go the Extra Mile for Service” (GEMS) movement in 2005, to encourage all Singaporeans to play their part and take the initiative to improve service levels, to work towards achieving an excellent service culture in Singapore. We recently launched Phase 2 of the GEMS national movement. Called “GEMS Up”, Phase 2 aims to take customer satisfaction and service excellence in Singapore to the next level over the next 3 years.

There are three areas worth noting in Singapore’s national pursuit of customer satisfaction and service excellence.

First, we will promote the importance of good service and recognize good service providers as role models. STB launched the Singapore Service Star accreditation scheme in 2008, and more recently, the Singapore Experience Awards to recognize the efforts of individuals and organizations that have contributed to making Singapore a distinctive and compelling experience to visitors.

Second, we will develop and upgrade the service capabilities and skills in key service sectors. For instance, the Customer-Centric Initiative (CCI) launched in 2005, has assisted about 214 companies (representing 6,200 establishments and 172,000 workers) in their service excellence journeys through co-funding service improvement projects. SPRING is also developing a customer service toolkit to help companies develop new service systems and revamp their current processes.

Third, we will continue to invest in human capital development across all levels. WDA will expand the Workforce Skills Qualifications (WSQ) programmes, develop more managerial level training programmes and introduce seminars and forums on service effectiveness management for business leaders.

Customers also play an important part in our overall pursuit of service excellence. A culture of service excellence requires active feedback and timely recognition. GEMS Up will encourage customers to play their part by showing their appreciation of service providers who have delivered good service.

Collectively, with government in partnership with the businesses and customers, our tourism industry will made a concerted drive towards increased customer satisfaction.