Speech at Launch of The Customer Satisfaction Index of Singapore (CSISG)
Mr Gan Kim Yong, Acting Minister for Manpower, Singapore Management University Conference Hall 1
Professor Tan Chin Tiong, Deputy President and Provost of the Singapore Management University
Members of the Governing Council of the Institute of Service Excellence at SMU (ISES)
Ladies and Gentlemen
Introduction
It is my pleasure to join you this morning to witness a groundbreaking development for the service industry – the introduction of the Customer Satisfaction Index of Singapore (or CSI-SG, in short).
Singapore Economy and Labour Force
2. Singapore's economy has performed well in 2007. 234,900 new jobs were created, a phenomenal 9.4% employment growth. While uncertainties in the global economy have increased in recent months, Asia continues to be a region with good growth potential. Singapore is also poised to benefit from a strong pipeline of investments, in both manufacturing and services. The opening of Integrated Resorts, staging of Formula One and the hosting of the Youth Olympics, will further entrench Singapore's position as a vibrant, global city.
3. Against this backdrop, we expect continued job creation and demand for skilled manpower. The Ministry of Manpower will continue to work closely with our tripartite partners to ensure that the labour market remains agile and flexible to meet the demands of our expanding economy. We will continue to welcome foreign manpower that supports our economic growth which in turn creates good paying jobs for Singaporeans. We will also push ahead with efforts to help older workers and low-wage workers so that they too can benefit from our economic progress.
4. To enable our people to take advantage of new opportunities, obtain better jobs and increase their productivity, we must continue to invest in the skills and capabilities of our labour force. The Continuing Education and Training (CET) Masterplan launched by the Prime Minister in February this year exemplifies this effort to help our workers stay ahead of the competition by improving their skills.
Importance of Service Skills and CSI-SG
5. The service industry has grown strongly and should continue to do so for quite some time. In 2007, there was an increase of 143,100 jobs in the service sector or about 60% of total number of jobs created. With the increasing importance of services in our economy, good service skills will become a critical asset and a competitive advantage for the country, for businesses and for the individual workers.
6. First, good service is vital to the competitiveness of the service industry. Without good service, the industry will not thrive as both global and even local customers will be turned away. They will be attracted to alternative providers which offer better service. Many countries such as Hong Kong and South Korea have recognized this. They have been working hard at improving their service quality and they have been quite successful. If we want to develop a competitive service industry in Singapore, good service must be our priority.
7. Second, good service works for business. It is often what keeps the customer returning. Many of you are aware of the Customer Centric Initiative (CCI) launched in 2005 to improve service quality. Agencies such as SPRING, NTUC and WDA along with champions from the various sectors work together on initiatives to strive towards service excellence. NUS conducted a study on the CCI recently in September 2007. It showed that with improved service orientation, retailers registered an average increase of 52% in the customer compliments to complaints ratio after participating in the CCI. More importantly, with improved service orientation, they experienced an average improvement of 71% sales growth compared to other retailers.
8. Third, the ability to deliver good service is a key competitive edge for our service workers, to help them become service professionals and improve their employability in a wide range of service-related jobs.
9. Hence, we must continue to strengthen the service mindset of workers and groom them to be service professionals. Towards this objective, the Certified Service Professionals (CSP) programme under the CET Masterplan was developed to provide foundational service skills training. WDA has also launched a WSQ in Service Excellence to train and accredit service skills. Over 11,000 workers were trained in 2007 under this initiative.
Measuring Service Excellence
10. To complement ongoing efforts by WDA, SPRING, STB and NTUC to improve service excellence, it is timely to have a robust and credible yardstick to measure the level of service in Singapore and track our progress. This will help us assess the service level in Singapore beyond anecdotal and personal experiences. Hence, WDA and ISES have developed the CSI-SG.
11. The CSI-SG is the first definitive, nation-wide measure of customer satisfaction in Singapore. Besides measuring customer satisfaction across sectors, it also look at how elements such as customer expectations and the quality of products or services, influence customer satisfaction. Hence, the CSI-SC is not just a barometer of customer satisfaction. It is a diagnostic tool that allows companies to understand, compare, improve and monitor their customer service over time.
12. National customer satisfaction indices are used widely in countries such as the US, Korea, and Sweden. Companies in these countries use the index to benchmark themselves against their competitors and market leaders. Many companies, such as Hewlett Packard and Bank of America, also use this tool to analyze the drivers behind customer satisfaction so as to improve their business. To be at the top on the customer satisfaction index has become a much desired position among many companies.
CSI-SG Scores for 2007
13. Our national CSI-SG score for Singapore in 2007 is 68.7 out of 100. Compared with countries like South Korea and US which scored 72 and 75 respectively on the same scale, we are not too far behind. But there is still room for improvement. I challenge all service companies and workers to continually improve our CSI-SG each year and to move our score above 70 points within the next three years.
Continuing our efforts towards Service Excellence
14. To achieve this, everyone must play their part. Employers, especially CEOs, must place greater emphasis on good service, and institute systems and practices that support good service. Service excellence is a skill that can be taught and CEOs should invest in service training. They should also ensure that the service jobs in their companies provide good career prospects and attract good service workers to the industry.
15. Workers in turn must adopt a positive service mindset. They must be prepared to undergo training to improve their service skills. It calls for discipline, problem solving, teamwork, and creative thinking skills, similar to qualities you would need in many other professions. Service work is a profession. Service workers can command respect by showing pride and passion in their work.
16. The Government will on its part continue to emphasize the importance of service excellence, and provide the resources necessary to push this national agenda forward.
17. Finally, as customers, we can all show our appreciation and respect towards service workers. This will help to cultivate the service DNA in our society.
Role of ISES@SMU
18. The ISES Governing Council, chaired by Mr Tan Suee Chueh and Ms Jennie Chua, and represented by various leaders in the service sector, will play a key role in driving service excellence in Singapore. They will have the support of agencies such as the WDA, SPRING and STB. They will also leverage on the Institute of Service Excellence at SMU (ISES@SMU), to reach out to business leaders and use the CSI-SG to analyze customer satisfaction levels and improve service quality across the economy. I would like to encourage all business leaders and industry associations to work in close collaboration with ISES as we work towards our CSI-SG target.
19. I am confident that ISES will develop effective programmes to help companies implement service initiatives that reap long-lasting gains in customer satisfaction. I congratulate WDA and ISES for their work in establishing this major national index. I also want to thank the ISES Governing Council for their professional guidance and support. Let us work together towards service excellence. Thank you.