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Understanding Customer Service and Customer Satisfaction Scores

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Dissatisfied customers tell an average of 10-20 people about their bad experience. Once it’s posted on social media, that number explodes!

Up to 90% of dissatisfied customers will not return and never tell the truth about why.

Up to 95% of dissatisfied customers do not complain to the company, they simply go to a competitor!

Did You Know?

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1. A willingness to build a relationship with you. 2. The overall satisfaction our customer’s

experience. 3. A willingness to recommend you to others. 4. A resistance to switch to a competitor.

What is Customer Loyalty?

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78 weeks @ Infant rate of $199/week x 2 children = $31,044.00

78 weeks @ Toddler rate of $186/week x 2 children = $29,016.00

156 weeks @ Preschool rate of $161/week x 2 children = $50,232.00

Grand Total of $ 110, 292.00

**78 weeks = 15 months, 156 weeks = 30 months. This calculation does not include after school care.

Add one child enrollment as a result of the families’ referral:

Total becomes $165,438.00

Customer Loyalty and LTV

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These are the most important interactions from the parent’s perspective; they make a

difference to satisfaction and retention.

What do you think someof these might be?

Identify Moments of Truth

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Use a current tuition sheet to complete the LTV worksheet provided.

Identify moments of truth that would be universal for all schools. Consider:

Parent Orientations Transitions to the next classroom When a staff member leaves the school Annual tuition increases

What are some of the best practices that we should be implementing during these times or transitions to ensure we retain parents?

For Discussion

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How Do We Measure Customer Service?

Happy

FamiliesHappy Employees

Increase in

occupancy

Increase in family retentionIncrease in

employee

retention

Increase parent referrals

Satisfied Parents and Staff

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Net Promoter Philosophy

Net Promoter System is a commitment to keep Cadence Education focused on earning the loyalty of both families and employees.

Loyal, passionate families = tenure families, contributing suggestions and sing praises about our schools to friends and colleagues. Loyal, passionate employees = dedicated, innovative, and enjoy going the extra mile to delight families.

Satisfaction Loyalty Advocacy

Net Promoter Score (NPS)

NPS is a simple, powerful metric that is intuitive at all levels of the organization. Improvements are achieved through an organizational focus on improving the Family experience,

creating Promoters and reducing Detractors.

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Net Promoter Score

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PromotersDetractors

Reduce the Detractors:• Closing the loop

• Fix the broken parts

Reduce the Detractors:• Closing the loop

• Fix the broken parts

Promoters

Detractors

• Promoters = Loyal and passionate customers

• Promoters = Loyal and passionate customers

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Parent Satisfaction Surveys

Eight questions: 1. How likely are you to recommend us to a friend or colleague?2. What is the primary reason for the recommendation score?3. Overall, how satisfied are you with your child care experience

from the following? - Director, Assistant Director and Primary Teacher

4. Is there any feedback you would like to provide regarding your school’s management team or school staff?

5. Please rate physical condition of your school.6. Is there any feedback you would like to provide regarding the

physical condition of your school?7. What is the most important improvement our school can

make that will make you more likely to recommend us?8. Would you like the Regional Director of your school to contact

you?

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The Company average for retaining our families is as follows:

◦ Do these averages surprise you? ◦ What steps can we take to improve retention?

Retention Facts

Age at Enrollment

Average Enrollment Time (Weeks)

0 102.81 79.32 67.63 57.9

4-5 45.16-12 33.7

63.9

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The “People” aspect of the child care business is really what it is all about. Think of parents as individuals. Once we think that way, we realize our business is our parents and the relationships we form. Putting ALL the focus on how great the building LOOKS leaves out the most important component: each individual parent. It’s all about relationships!

Absolute Excellent Service is the lifeblood of the child care business. You can offer promotions and slash tuition prices to bring in as many new parents as you want, but unless you can get the families to stay, your business won’t be profitable for long.

Where Do We Begin?

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If you are passionate about your school and the service you provide, you can generally enroll anyone. The essence of Absolute Excellent Service is forming a relationship with parents – a relationship that the individual parent feels she would like to pursue. The passion starts with you!

What component of our Brand Promise do you need to build a strategic plan for improvement?

Implementing our Brand Promise

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Know your school’s BCA’s and share them with your staff. Recognize the school’s areas of opportunities and work with

your RD to create a strategic plan for improvement while continuing to excel at what you do well.

Make those Good News Calls! Continue to work with staff and build that culture where

staff want to come to work everyday.

What does that look like for your

school?

Improving Customer Service

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Always “close the loop” with detractors. Make an action plan to respond to the satisfaction surveys

and FOLLOW THROUGH. Ensure ongoing and PROACTIVE communication. Manage those online reviews – partner with Marketing! Share the scores and involve staff in discussions!

Keep our Brand Promise at the forefront of your mind!

Improving NPS Scores

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The Ultimate Question 2.0 by Fred Reichheld

The Simple Truths of Service by Ken Blanchard and Barbara Glan

50 Powerful Ideas You Can Use to Keep Your Customers by Paul R. Timm

Resources