Quarterly Network Meeting AUGUST 2014

1. MEASUREMENT & IMPROVEMENT IN LOCAL GOVERNMENT CUSTOMER SERVICE Mystery Shopping Program for Network Members Quarterly Network MeetingAUGUST 2014

2. TODAYS AGENDA • Background • Who is CSBA • Mystery Shopping Benchmarking for Network members • Program Approach & Methodology • Critical Success Factors • Questions

3. BACKGROUND As part of its ongoing commitment to provide members with access to valuable resources, the Network is looking to partner with a supplier of mystery shopping and benchmarking services. Previous partnership with another supplier ceased in recent years and now the Network seeks a supplier who can conduct robust assessments of the current customer experience provided by members and benchmark this against the sector and best in sector performers. Customer Service Benchmarking Australia (CSBA) was asked to develop a program that would meet the needs of Network members now and into the future. CSBA successfully helps many Local Government organisations across Australia to understand, measure and improve Customer Service on an ongoing basis.

4. ABOUT CSBA We are a research-based consulting group, began operations in 1997. CSBA is recognised in Australia as a leading provider of customer service benchmarking. We are committed to helping our clients: • understand their customers’ expectations and experiences • measure and track their customer service • improve their customers’ experience. We conduct a range of customer service measurement programs across private and public sector organisations. Experience in integrating strategic and tactical solutions for a variety of organisations, including those in the Local Government sector. We understand how to use information to help the Local Government sector develop a customer focused culture. Mystery Shopping Service Improvement Customer Research • Telephone • Email • Web • Face to Face • External Quality Assurance • Customer Service Strategy • Industry Benchmarking • Service Standards • Customer Service Team: • Evaluations • Training • Post-training assessment • Customer Satisfaction • Satisfaction Driver Analysis • Common Measurement Tool • Industry Index Indicator • Range of other data capture methods

5. AIM OF THE NETWORK BENCHMARKING PROGRAM The objectives of the Network mystery shopping benchmarking program are to: • Provide members with a cost-effective means by which to develop an understanding of the current level of customer service provided • Establish an independent measure of the consistency of customer service provided across channels including telephone, email, face to face and via the web. • Provide a benchmark of performance against the Local Government Sector and Best in Sector performers • Provide a baseline measurementfor members of the customer service currently provided • Provide members with meaningful feedback and reporting

6. BENEFITS OF THE NETWORK BENCHMARKING PROGRAM A program that meets these objectives will deliver real benefits to Network members: • Provide members with a cost-effective means by which to develop an understanding of the current level of customer service provided • Establish an independent measure of the consistency of customer service provided across channels including telephone, email, face to face and via the web. • Provide a benchmark of performance against the Local Government Sector and Best in Sector performers • Provide a baseline measurement for members of the customer service currently provided • Provide members with meaningful feedback and reporting  identifying strengths and opportunities for improvement  identifying service gaps and inconsistencies enabling members to understand & improve KPI’s, reducing costs through greater efficiency in enquiry handling  establish meaningful performance standards, identify training & development needs – provide personnel with tools to deliver consistently high customer service   User-friendly information that can be disseminated to staff and used to drive service improvement

7. CSBA’S METHODOLOGY Quarterly telephone mystery shopping benchmarking program for all participating members as standard. Measurement of customer service via other key channels such as face to face, email and website, is optional. CSBA mystery shoppers will pose as genuine customers with general enquiries and conduct a minimum of: • Telephone mystery shopping (standard): • n=30 calls to one line (Council’s main customer service enquiries line) • Face to face visits (optional): • n=10 visits to one site • Email (optional): • n=10 email assessments to one address • Website (optional): • n=10 assessments of Council’s main site

8. CSBA’S METHODOLOGY Approach • Experienced CSBA mystery shoppers contact Council requesting information or assistance with general enquiries according to pre-defined scenarios • Assessments conducted during weekdays (within normal business hours) • All assessments conducted in accordance with Australian Market & Social Research Society Guidelines • CSBA will provide each participating Council with a dedicated Research Manager to oversee program and ensure scenarios provide required outcomes • CSBA recommends participants run the program at least once/ year to allow us to track performance and provide meaningful and timely feedback • This information is then used, in direct discussion with each Council, to develop and implement steps toward achieving consistency and customer service excellence.

9. CSBA’S METHODOLOGY Mystery Shopping Scenarios • CSBA has developed standard mystery shopping scenarios for the Local Government sector • Scenarios are general in nature and reflect typical nature of enquiries received by Councils • Scenario consistency is key for benchmarking purposes. Measurement Criteria • CSBA’s measurement criteria are well-established and comprehensively cover the metrics most critical to delivering customer service excellence and achieving customer satisfaction • Criterion is objective based, frequent calibration is conducted to ensure objectivity and consistency • In benchmarking the service quality of interactions, CSBA uses up to 40 different measurement criteria which are standardised and specific to each channel. Wait Time Greeting Skills Agent Manner Enquiry Resolution Communication Skills Service Delivery Getting Through

10. PROGRAM DELIVERABLES Benchmarking Report All participating members receive a concise report including: • An executive summary • Analysis of all criteria for each channel/ department • Benchmark results against LG Sector & Best in Sector for telephone and comparative LG provider for other channels • Ranked performance within Local Government Sector • Specific recommendations for customer service improvement that will lead to an enhanced customer experience Reporting extras incl. verbatim reports, CCR, call recordings. Workshop – COMPLIMENTARY INTRODUCTORY OFFER Half or full day workshop event managed by CSBA to; • Discuss participating members results and hear about trends & best practice case studies from customer service experts from the council sector.

11. SAMPLE REPORTING SAMPLE DATA

12. SAMPLE REPORTING SAMPLE DATA

13. SAMPLE REPORTING SAMPLE DATA

14. SAMPLE REPORTING SAMPLE DATA ONLY

15. PROGRAM TIMINGS CSBA conducts mystery shopping programs on an ongoing quarterly basis. Fieldwork covers a 10-week period, however participants have ability to join at later intervals. Members have the option of participating on an ongoing quarterly basis or opting in for single or multiple quarters at various intervals throughout the year.

16. PROGRAM FEES CSBA is offering discounted rates to Network members participating in the standard quarterly telephone mystery shopping program Range of investment options; incentive increases with no. Participants, or member participation in multiple quarters during the same year. Investment Assumptions • n=30 calls per Council to one line • Standard CSBA measurement criteria • Standard CSBA local government scenarios • Multi- channel/ department programs available as part of standard approach; • Face to face visits (n=10) – from $3,000* • Email assessments (n=10) – from $1,200* • Website assessments (n=10) – from $1,200* * Prices quoted exclude GST

17. CRITICAL SUCCESS FACTORS • Communication from committee to network members • Active marketing via the NLGCSN website • Regular CSBA feature in network newsletters providing relevant Local Government case studies, sample reports, news & trends, and information on other valuable customer service improvement tools • Opportunity for CSBA to present at quarterly meetings • Tools and fliers to provide network members with key information and an easy way to get involved • CSBA to run workshops throughout year specifically for network members covering relevant topics including; • Customer service training for frontline staff • Complaints handling • Topics can also be based on member feedback • Sponsorship of NLGCSN 20th anniversary awards in 2015.

18. BENEFITS OF THE PROGRAM • Clear picture of the current service experience and how this varies across channels • Understanding of what best in class service looks like and what is required to achieve it • Reduced number of repeat enquiries and complaints received • A resource to inform other parts of the organisation; demonstrating current performance on critical metrics from an independent source & illustrating where resources or support is required • A document to effectively discuss Council’s performance with peer organisations and help in understanding how others are progressing on the ‘customer service improvement’ journey • Improvement in customer satisfaction and employee satisfaction through independent feedback • Synergy within the organisation as departments work together to develop a “culture of customer service.”

19. NEXT STEPS CSBA to seek network member feedback & modify program approach as appropriate Mid-August 2014 Committee to communicate to members & activate marketing program Late-August 2014 Mystery Shopping Benchmarking program member participation confirmed Quarter Two 29th August 2014 Quarter Three 28th November 2014

20. THANK YOU CUSTOMER SERVICE BENCHMARKING AUSTRALIA Level 5, 10-16 Queen Street Melbourne VIC 3000 t +61 3 9605 4900 | f +61 3 9620 7672 www.csba.com.au Sam Monteath Senior Account Manager sam.monteath@csba.com.au