November 2018
Effective Customer Centricity: A Toolkit for Digital Financial Service Providers
ABOUT THE PARTNERSHIP FOR RESPONSIBLE FINANCIAL INCLUSION (PRFI) The Partnership for Responsible Financial Inclusion (PRFI), formerly the Microfinance CEO Working Group, is a collaborative effort by ten leading international organizations supporting the responsible delivery of financial services to low-income populations around the world. Harnessing the power of the CEOs and their senior managers, PRFI commits to accelerating financial inclusion by leveraging their joint expertise in the advocacy and delivery of innovative, scalable, and responsible financial services for poor and low-income clients. Today, the members include Accion, Aga Khan Agency for Microfinance, BRAC, CARE, FINCA, Grameen Foundation, Opportunity International, Pro Mujer, VisionFund International, and Women’s World Banking. These organizations, through more than 260 local partners, offer a diverse set of products and services that accelerate the inclusion of excluded populations and underserved clients into the financial services ecosystem.
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ACKNOWLEDGEMENTS Project Director Sharlene Brown, Executive Director, PRFI Research Team AmĂŠlie Desrosiers, PRFI Digital Financial Services Fellow Gayna Williams, Bankers without Borders Consultant
We also want to acknowledge the contributions of the following colleagues who participated in interviews and shared their experiences around understanding and measuring customer satisfaction with digital financial services.
Alexandra Rizzi, Smart Campaign Iain Brougham, Accion Nitish Narain, Microsave Prateek Shrivastava, Accion Rosa Wang, Opportunity International Scott Graham, FINCA Sitara Merchant, AKAM
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TABLE OF CONTENTS EXECUTIVE SUMMARY
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INTRODUCTION 7 OUR RESEARCH APPROACH: UPDATING THE SERVICE QUALITY APPROACH FOR DFS
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PROPOSED CUSTOMER SATISFACTION RESEARCH TOOLKIT
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RESEARCH METHODS, QUESTION FORMATS & PILOT STUDIES
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RESEARCH METHODS
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QUESTION FORMAT
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CONSIDERATIONS FOR PILOT STUDIES
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ADDITIONAL RESOURCES
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REFERENCES & SOURCES
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EXECUTIVE SUMMARY Over the past 40 years, the financial inclusion suite of services has grown to include transactions, payments, savings, and insurance offerings. The financial inclusion landscape is continuing to evolve with a rapid increase in financial services offered through digital platforms and agent networks that leverage the widespread availability of mobile phones. According to the GSMA’s The Mobile Economy 2018, there were more than 5 billion people connected to mobile services in 2017. It is projected that by 2025, 71% of the world’s population will have subscribed to mobile services. For practitioners in the financial inclusion space, growth in mobile phone access has the potential for financial services to expand to the world’s unserved and under-served populations. Due to the increase in access to mobile services and the growth of digital platforms, the World Bank’s FINDEX Report 2017 reported that 76% of financial services account owners made at least one digital transaction in 2017. This figure highlights the significant role of technology in achieving the goal of delivering access to and increased adoption of financial services for excluded populations and underserved clients. However, data from the FINDEX Report 2017 also reveals a significant decline in savings levels and the plateauing of borrowing activity in developing countries between 2011 and 2017. This statistic encapsulates the challenge practitioners face: while overall account ownership has increased, inciting low-income populations to regularly use savings and loan products has proven to be difficult. This research suggests that the slower-than-expected adoption of digital financial products and services is largely due to the industry’s failure to understand the values and needs of financial services consumers in developing countries. We found that effective financial service providers (FSPs) generally compete in the marketplace by prioritizing the achievement of key business objectives and improving the product or suite of services by adding new features and capabilities. However, without actively soliciting feedback from existing clients, practitioners cannot definitively determine whether or not they are providing services that satisfy existing clients and appeal to unreached populations. In order to better understand the significance of client feedback in achieving business success, we conducted a literature review analyzing how FSPs that offer digital financial services use client satisfaction data to inform product delivery and improvements. The research team looked at popular customer satisfaction approaches that are currently used in the financial industry, including the SERVQUAL framework (abbreviated for service quality), which enumerated common factors of customer satisfaction. We then interviewed members of the DFS community to understand recent research efforts and initiatives being undertaken to understand customer satisfaction. Our interviews and research also included several industry stakeholders including staff at the Smart Campaign, which is responsible for creating the industry’s standards for Client Protection Principles. This work
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was a valuable contribution to the DFS client satisfaction body of research because it incorporates a client-centric orientation and encourages organizations to be accountable to their clients by providing a safe and trustworthy experience. Our literature review findings coupled by conversations with industry leaders revealed a variety of best practice approaches used by FSPs to measure satisfaction, as well as the difficulty institutions have in finding explicit and meaningful ways to measure satisfaction of digital financial services. Leveraging the work done by previous researchers and drawing insights from conversations with practitioners, the research team has modified adapted versions of the SERVQUAL framework with the goal of providing a tool that FSPs can use to better understand and measure customer feedback regarding DFS. To that end, we have updated the SERVQUAL tool for DFS, incorporating 12 factors of satisfaction. The final component of this paper is a toolkit incorporating the modified SERVQUAL Customer Satisfaction Factors for Digital Financial Inclusion, alongside information providing a holistic view of client satisfaction research considerations. The toolkit provides a comprehensive set of factors that influence DFS customer approval, and identifies three important high-level indicators: Overall Satisfaction, Quality of Life, and Loyalty. At a minimum, financial inclusion researchers responsible for monitoring DFS uptake should ask questions related to these three concepts, as they are strong indicators of how well the service is meeting client needs and expectations. In addition, when tracked alongside other business KPIs, these indicators will provide insight into how satisfaction impacts other KPIs.
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INTRODUCTION According to CGAP (2018), “Digital financial inclusion can be defined broadly as digital access to and use of formal financial services by excluded and underserved populations. Such services should be suited to customers’ needs, and delivered responsibly, at a cost both affordable to customers and sustainable for providers. There are three key components of any such digital financial services: a digital transactional platform, retail agents, and the use by customers and agents of a device – most commonly a mobile phone – to transact via the platform.” Around the globe, many FSPs are working toward this objective, and have incorporated DFS into their portfolio of product and service offerings. Although FSPs are attentive to technical and financial sustainability requirements, occasionally the clients’ expectations and perceptions of service quality are overlooked or under-emphasized in the haste to bring DFS offerings to market. In 2017, the Partnership for Responsible Financial Inclusion undertook a survey of DFS projects being undertaken by its 10- member organizations. This report, The Digital Landscape of the Partnership for Responsible Financial Inclusion, highlighted significant gaps in the areas of digital financial literacy, consumer protection, and the use of data analysis to better serve clients. Additionally, the report stressed that the successful increase of DFS among lower-income clients will require personal relationships with company representatives, at least in the short term, as they work to bring first-time users struggling with numeracy and literacy into the financial economy. The under-utilization of DFS is also echoed in the 2017 FINDEX Results released by the World Bank. While 44% of adults in the developing world utilize digital payment platforms, up from about 32% in 2014, the overall use of savings and lending services has declined broadly—including through digital platforms. Anecdotal stories from PRFI’s member organizations reaffirm the need to pay greater attention to the perceived “value” clients receive by accessing services through digital channels. Thus, it is important that practitioners continuously survey clients to determine how to improve products and services that would most benefit them, and how to better facilitate their adoption. The purpose of this project is twofold. The first is to help motivate practitioners to seek feedback from their clients regarding the products and services they use. The second is to offer a modified service quality framework that may be useful to DFS practitioners.
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OUR RESEARCH APPROACH: UPDATING THE SERVICE QUALITY METHOD FOR DFS This research project began with a review of customer satisfaction and service quality methods currently used in the financial services industry, which led to the discovery of a popular method referred to as SERVQUAL. We determined it was also modifiable for digital financial services. SERVQUAL was developed in the late 1980s to measure service quality (Parasuraman, Zeithami, and Berry, 1988). Over time the SERVQUAL model has become a standard for several industries, including the finance sector. The framework identifies five primary drivers of service quality: Reliability, Assurance, Tangibles, Empathy and Responsiveness. Researchers modify and update the survey questions to suit their respective industry. More recently, this survey has been adapted to accommodate online banking (Poyry, 2012) and mobile banking in Bangladesh (Sagib and Zapan, 2014). While the core drivers remain constant, the weight of each driver may vary across industry and countries (Sangeetha and Mahalingam, 2011). For example, in mobile banking, Sagib and Zapan found that the most influential drivers of service are Reliability, Efficiency, and Convenience (2014).
Table 1: The Five Selected Drivers for Mobile Banking (Sagib & Zapan, 2014) Drivers
Definition
Reliability*
The probability that services will perform as intended and consistently produce the same results. The customers’ perception of getting help when needed.
Assurance and security*
The customers’ perception of the confidence and trust towards the mobile banking services. The degree to which the mobile banking service is safe and protects customer information.
Convenience in banking*
The ability to use the service anytime, anywhere, and without delay.
Mobile banking efficiency
The service is simple to use and requires minimum effort.
Easiness to operate
Reflects the customers’ perception of the degree of user-friendliness.
*Identified by Sagib and Zapan as the most influential dimensions of service quality as identified by mobile banking customers.
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To measure DFS customer satisfaction, we adapted the SERVQUAL instrument, incorporating existing research completed by PRFI members and local partners, and observations from other industry stakeholders. This process also allowed us to gain a better understanding of the research instruments and techniques used by practitioners in the field. Further, the research team reviewed the Smart Campaign’s Client Protection Principles (CPP), a set of best practices and policies FSPs should adopt to minimize harm to clients as a result of poor business and product design decisions. The nine Drivers of Satisfaction are the individual levers that influence overall client satisfaction. However, with respect to digital financial inclusion, we also consider whether access translates to a positive difference in clients’ lives, alongside a high level of satisfaction with a product. Therefore, three High-Level Indicators focused on outcomes of access to DFS are included: Overall satisfaction, Quality of Life, and Loyalty. In addition to adding three High-Level Indicators to the modified SERVQUAL framework, definitions of some of the original drivers were updated to better represent the DFS experience.
Table 2: DFS Customer Satisfaction Factors
High-Level Indicators
Drivers of Satisfaction
Overall Satisfaction
Overall experience with the service is positive.
Quality of Life
Engaging with the service provides positive benefits compared to the previous way of dealing with finances.
Loyalty
The client wants to continue to stay with the service and recommend it to others.
Reliability
The service is dependable and accurate and will perform as expected.
Responsiveness
The service responds to clients’ needs in a timely manner.
Respect
The service providers show respect to clients.
Trustworthiness
The service is trustworthy, and clients are confident in the integrity of the service.
Security
The service is considered safe and protects customer information.
Convenience
The service is readily available anytime and anywhere for all engagements and transactions.
Ease of Use
The service is easy and understandable to engage with.
Value
The client has a clear understanding of the financial benefits and costs of using the service and believes the service to be of good value.
Financial Literacy
The service provides information that empowers the client to make better financial decisions.
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Among the nine Drivers of Satisfaction, three are critically relevant for digital financial inclusion: Respect, Value, and Financial Literacy. In the discovery process, several studies and field anecdotes revealed that clients would disengage with DFS products and services when they felt representatives were aggressive, rude, unprofessional, or dishonest. The consensus seems to be that delivering services with respect is paramount for adoption. The other factors (value and financial literacy) have been included as our research revealed that understanding the cost (e.g. fees, or the price of long-distance travel to pay bills or deliver money) or benefits (e.g. convenience of using the products and services) is important to clients. However, understanding the value of a product is sometimes limited by the client’s financial literacy. Field stories underscored this point as clients often have difficulty understanding the terms of certain loan products, and felt cheated as a result. Improving financial literacy will enable clients to make better financial decisions, which can lead to improved overall satisfaction. In the section that follows, Proposed Customer Satisfaction Research Toolkit, we provide the modified SERVQUAL Customer Satisfaction Factors for Digital Financial Inclusion with example statements to include in research and a planning guide that offers advice on different research methods and approaches. For FSPs with existing tools, we recommend adding research questions related to the High-Level Indicators of Satisfaction to understand whether clients believe they are benefitting from the services they are offering.
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PROPOSED CUSTOMER SATISFACTION RESEARCH TOOLKIT There are two parts to the proposed Customer Satisfaction Research Toolkit. The first section provides the modified SERVQUAL Customer Satisfaction Factors for Digital Financial Inclusion, a comprehensive set of factors that contribute to satisfaction. The second section provides a Research Planning Guide on the practicalities of conducting satisfaction research.
PART ONE: SERVQUAL CUSTOMER SATISFACTION FACTORS FOR DIGITAL FINANCIAL INCLUSION Overall Satisfaction High-Level Indicators
Quality of Life Loyalty Reliability Responsiveness Respect Trustworthiness
Drivers of Satisfaction
Security Convenience Ease of Use Value Financial Literacy
We have identified nine drivers of satisfaction and three high-level indicators that aim to understand the benefit of products and services to clients. Since the significance of satisfaction factors can vary based on the country-context and the stage in a product’s lifecycle, we recommend that FSPs adapt the content of surveys appropriately. In addition, other factors that may impact the content of a survey include the FSP’s available financial and human capital resources to deploy, collect, and analyze survey data. In this section each factor is listed with a definition, a description, a sample set of statements for rating questions, and one dichotomous (e.g. yes/no) question that would be suitable if a survey were being deployed using Interactive Voice Recognition (IVR) technology. To implement a satisfaction survey or similar research, it might be necessary to reduce and refine the number of factors and questions that are included in a survey to reduce response burden. Our recommendation is to include at least one question for each of the high-level indicators and two or three questions for each driver of satisfaction.
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HIGH-LEVEL INDICATORS OF CUSTOMER SATISFACTION As digital financial inclusion aims to increase the use of formal financial services by excluded and underserved populations leveraging digital means, the most important factors should provide insight into how well DFS services and products are serving clients. We highly recommend that statements tied to the three the High-Level Indicators are included in DFS research. This will increase visibility into overall customer satisfaction and outcomes of satisfaction which will help make client satisfaction a more prominent part of the future of DFS conversation.
OVERALL SATISFACTION Overall experience with the service.
Example survey statements to rate:
The level to which a client feels their needs or wants are fulfilled by this service.
»» »» »»
Overall, I am pleased with my provider’s services. Using the services of my provider is usually a satisfying experience. My feelings toward my provider’s services can best be characterized as very satisfied. Example question for IVR survey:
»»
Overall, are you satisfied with your service? Yes / No
QUALITY OF LIFE
Engaging with the service provides positive benefits compared to the previous way of dealing with finances. Example survey statements to rate: Overall the clients perceived the quality of life has improved because they are using the service. In this case, QoL relates to overall benefits to life, and, benefits of using the system compared to how they previously managed their money. It also considers that the client has not experienced issues of overindebtedness.
»» »» »» »»
Using this service is so much better than how I used to manage my finances. There have only been positive benefits from using this service. The amount of unexpected financial problems has decreased since using this service. My day-to-day life experience is better because I use these services. Example question for IVR survey:
»»
Is your day-to-day life better than before you used this service? Yes / No
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LOYALTY
The client wants to continue to stay with the service and recommend it to others. Example survey statements to rate: Building trust with new clients often requires someone they know recommending a product or showing approval for their service.
»» »» »»
This service is my first choice. The next time my friend needs a financial service, I will recommend this service. I intend to continue using this service in the future. Example question for IVR survey:
»»
Would you recommend this service to a friend or someone in your family? Yes / No
DRIVERS OF CUSTOMER SATISFACTION For research that is focused primarily on customer satisfaction, we recommend using two to three statements from each driver in your survey design. If your research has multiple goals, then we recommend choosing statements from drivers that will best address your organization’s concerns regarding client perspective.
RELIABILITY
The service is dependable and accurate and will perform as expected. Example survey statements to rate: The client can trust the service to deliver on expectations which mean transactions are recorded accurately, the rules of the business are consistent, and mistakes are corrected. Reliable also relates to the technology working accurately and consistently. The client can count on the service.
»»
»» »» »» »»
My service provider lets me know right away if my transaction is not processed, or if there are errors and downtimes. If there is a mistake, my provider fixes it quickly and effectively and lets me know it was corrected. I know exactly when my transaction will be performed. My service provides the services exactly as they are described. I can always access the records of my transactions. Example question for IVR survey:
»»
Are the services provided reliable? Yes / No
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RESPONSIVENESS
The service responds to clients’ needs in a timely manner. The speed with which the service reacts and resolves questions and issues that the client may have is timely. They don’t have to experience poor calls with customer service or need to go to a bank to get their answers. Their first point of contact with the service to solve a problem should be supportive to resolve the problem.
Example survey statements to rate: »» »» »»
The service quickly resolves banking related problems. If I have a question I can get it answered quickly. If I have a question, I can talk to someone face to face or call someone Example question for IVR survey:
»»
Is it easy to get a response from the service when you have a problem or a question? Yes / No
RESPECT
The service providers show respect to clients.
Clients feel valued and respected by staff, agents, call centers, and all communications with the service. Clients do not experience discrimination or aggressive or abusive treatment during loan sales or debt collection processes.
Example survey statements to rate: »» »»
The people who work for the service treat me with respect. The people who work for the service make me feel valued as a client. Example question for IVR survey:
»»
Do the employees treat you with respect and make you feel valued as a client? Yes / No
TRUSTWORTHINESS
The service is trustworthy, and clients are confident in the integrity of the service. Clients have trust and confidence in the reputation of the service. There is no opportunity for corruption or dishonesty in the system, such as whether an agent has ever bribed a client. There is the minimum to no opportunity for misunderstanding between the client and the service.
Example survey statements to rate: »» »» »»
I feel safe in my transactions. I believe the representatives are honest. I trust the technologies used by this service. Example question for IVR survey:
»»
Do you have confidence and trust in the service and the staff? Yes / No
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SECURITY
The service is considered safe and protects customer information. Example survey statements to rate: It is impossible for anyone to take the clients’ money from their account, or personal information from their account details. The service will only use information that the client has made available to them, in ways they have agreed to.
»» »» »»
I am confident that the service keeps my money and information safe and secure. My personal information and account details are safe. I feel safe giving sensitive information during mobile banking transactions. Example question for IVR survey:
»»
Does the service keep your money and information safe and secure? Yes / No
CONVENIENCE
The service is readily available anytime and anywhere for all engagements and transactions
Services are available to a client whenever is convenient for them. Such as banking using mobile phones, agents, and ATMs rather than just going to a bank. Convenience also relates to being able to talk to someone, resolve an issue, and learn about products.
Example survey statements to rate: »» »» »» »»
This service is readily accessible when I need it. This service is accessible, so I save time because I no longer need to go to the bank. I no longer need to take cash with me when I go out. I can access my money at any time. Example question for IVR survey:
»»
Are the services you want accessible whenever you want them and with the minimum delay? Yes / No
EASE OF USE
The service is easy and understandable to engage with. There is usually a learning curve associated with starting to use new technologies, but once the client has learned how to use something it gets easier with each use. Infrequent tasks or tasks to resolve problems or issues may feel different from everyday tasks. Products and channels will ensure that clients cannot make a mistake that could be harmful to them.
Example survey statements to rate: »» »» »» »» »»
The interaction with this service is clear and easy to understand. It is easy to make a payment. It is easy to transfer money. It is easy to withdraw money It is easy to make a balance inquiry. Example question for IVR survey:
»»
Are the services provided easy to use and understand? Yes / No
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VALUE
The service provides value to the client Example survey statements to rate: The client understands the benefits and costs of the service, such as interest rates, costs for transactions, etc. Clients find the pricing, terms and conditions affordable and in line with the service provided.
»» »» »»
I find the pricing, terms and conditions of the service affordable. The terms and conditions for the services are easy to find and easy to understand. I believe this provider offers fair and reasonable fees for the services provided.
Example question for IVR survey: »»
Are the benefits of using the service worth the cost of using the service?
FINANCIAL LITERACY
The service provides information that empowers the client to make better financial decisions. Example survey statements to rate: The service provides the client with ongoing financial information to help them understand and take advantage of what the service has to offer and provides information to empower them to make better financial decisions for their day-to-day lives.
»» »» »»
Since engaging with this service, I have been able to make better financial choices. I feel more informed about how to manage my finances since using this service. I am confident I know what this service has to offer me.
Example question for IVR survey: »»
Does the service give you information to make better financial decisions?
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PART TWO: RESEARCH PLANNING GUIDE There are a variety of approaches to doing satisfaction research. Whether you plan to do the research yourself or work with a vendor this planning guide will help you get familiar with different options and also raise your awareness of considerations and questions to ask yourself before you commit to a particular approach.
RESEARCH OBJECTIVE Is this a new research project or part of another project? New research project
Part of another research project
What do you want to learn?
If you are integrating customer satisfaction research into a piece of research that has another object you should integrate questions related to the three high-impact satisfaction factors into the research protocol (Overall Satisfaction, Quality of Life, Loyalty). As space allows for additional questions you can incorporate questions related to the drivers of most interest to you.
»»
How many people experience a problem or situation? Consider quantitative methods.
»»
What is the cause of a problem or opportunity, and why does it happen? Consider qualitative methods.
RESEARCH PREPARATION What do you need to know before you get started? Budget
Timeframe
Access to research participants
Approximately how much money do you have for the research? This is important to know when discussing research technologies and methods.
When would you like the research to be completed? A timeline may influence the budget and research approach.
Who are the research participants? What are the participants’ literacy level and access to technology if a research method depends on it? This is crucial to know for the research and can impact the budget and timeframe of a project.
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RESEARCH METHODS, QUESTION FORMATS & PILOT STUDIES When you’re ready to design the survey, you need to decide which method to use and how to design the questions to fit the method. Your research questions will inform you as to the data type you need to answer the question. Quantitative approaches are valuable to provide insight through statistics and quantifying the size of a response to a question, or for tracking changes over time. Qualitative approaches meanwhile provide deeper insights into underlying reasons, motivations, and personal experience. Generally, customer satisfaction research starts with qualitative methods and will follow up with quantitative research methods to get a deeper understanding of particular areas.
Data type
Research methods
Question formats
Quantitative
IVR SMS
Qualitative
Face-to-face Customer Service Support Calls
Rating questions Yes/No questions Minimum length Open ended-questions
Focus Groups
Open ended-questions Discussion & rankings Rating questions Yes/No questions
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RESEARCH METHODS There are a wide variety of methods and tools to conduct customer satisfaction research. Logistic considerations such as cost and time are prime considerations when choosing a method, however, the research team must ensure that the approach chosen allows them to reach and engage with the target audience. Some methods, particularly cheaper technology survey options, are more dependent on the literacy level of the client, and their access to and familiarity with mobile technology. To get good quality data, you need to be confident there are no barriers that prevent survey participants from understanding the questions and being able to give honest and accurate responses. Tools
Pros »» Cost effective »» The client can decide when to call into the service to answer the questions »» The client doesn’t need to read questions »» Different languages and dialects can be recorded »» Clients can be reached in remote areas provided they have cell phone service
Interactive Voice Recognition (IVR) Systems
»» Easy to deploy regularly as part of a larger customer feedback system »» If clients are invited to call into the survey, there is a much higher completion rate than cold-calling »» Some respondents are franker when talking to a system than when talking to a person
Cons »» IVR is a new method. Researchers are still experimenting with it to understand how to best utilize this technology. We interviewed two researchers with IVR experience and they provided contrasting insights. »» I VR surveys were conducted in India, the Philippines, and Peru, where up to 18 questions were answered in around 7 or 8 minutes. Most questions had two choice responses. »» I VR has been used for nudge behavioral intervention in Sub-Saharan Africa but the input format of pressing numbers for responses is unfamiliar to many people.
»» Can reach clients in all locations
»» Requires literate clients
»» Cost effective
»» The question format is limited, depends on the skills of clients
»» Can ask simple quantitative questions »» Can ask simple qualitative questions »» The client can complete on their own schedule
SMS
»» The drop-off rate can be high for long (4-6 question) surveys »» If the survey is administered over 2-3 sessions, the drop off rate for responses is very high »» The quality of free-form text responses is very variable
»» Completion rates are higher
»» Can be costly
»» Easier to clarify questions and engage with »» Can take longer to complete the required number of surveys the participants
Face-to-face Interview
»» Easier to gather experience insights with open-ended questions »» Easier to gather the context for openended responses
Note: This method can be used a variety of research purposes, ranging from purely quantitative (asking survey questions) to highly qualitative exploratory research.
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Tools
Pros »» Someone from a call center can hold the participant’s attention while asking survey questions
Cons »» Call center employees require training to conduct and complete an interview
»» A survey can be longer
Phone Calls/ Customer Call Center
Net Promoter (A standardized metric for customer engagement, frequently used for online services)
Focus Groups
»» A call center employee can provide clarification and record open-ended responses »» Clients can independently choose to respond to a question at the time of completing an action with the service. They then have the option of providing an explanation for the rating they chose.
»» I nsight is limited as it is only one question. Additional research will be required to understand changes in client experience »» L imited to a web-browsing survey experience
»» Can be cost effective once implemented »» Usually implemented as part of an ongoing measurement plan »» S everal clients interpret and respond to questions as a group
»» A limited number of participants in focus groups
»» O btain experience-based insights on the dimensions
»» Can be costly
»» Excellent qualitative insights
(Not a survey method)
QUESTION FORMAT There are a few common question formats that are regularly used in satisfaction surveys. In the SERVQUAL Customer Satisfaction Factors for Digital Financial Inclusion section above, we have provided examples of statements. Using the rated question format for satisfaction surveys is ideal, and open-ended questions should be included depending on the research method used. Format
Rating Questions
Description
Example
Rating questions provide respondents with statements to rate. Often the rating scale is between five to seven-points—which is preferred for statistics. However, sometimes it is easier for people not familiar with surveys to respond to a 3-point scale. However, as the number of points on the scale is reduced it limits the sensitivity of the response and provides less insight.
Please rate the following statements where 1 means strongly agree, 2 means somewhat agree, 3 means neither agree nor disagree, 4 means somewhat disagree, and 5 means strongly disagree. Please rate the following questions on a scale of 1 to 5, where 1 is poor service and 5 is excellent service.
Furthermore, this type of question may not work well if using an IVR survey format when a dichotomous question would be preferable.
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Format
Description
Example I feel that my service agent always treats me with respect. True or False.
Dichotomous Questions
Dichotomous questions provide respondents with a simple two-choice response, which is usually true of false or alternatively yes or no. Responses to these questions provide very little sensitivity or differentiation in their answers but are easy to understand if a survey is given through voice services. Ranking questions provide respondents with the option to rank factors relative to one another to determine the contrasting degree of importance. To use this technique, participants must clearly understand what they are ranking so they can make thoughtful choices. For that reason, simplistic language should be used to meet the needs of all literacy levels.
Rank these items in order of importance.
Ranking Questions
Open-ended Questions
Do you feel respected by your service agent? Yes or No.
A. The convenience of accessing my money anytime I want. B. The ability to talk with someone face-toface when I have a problem. C. When there is a problem with my account I am notified immediately.
Respondents sometimes have difficulty ranking Review this list and select the item you consider most important to you. items because they believe the items are equally important. A variation of the ranking question is to ask two questions requiring the respondent to select the most important item and the least important item in a list. Open-ended questions allow deep insights to be collected about a participant’s experiences and expectations, in their own words. The information provides rich contextual insights. Responses to open-ended questions help provide explanations to quantitative data and are valuable in assisting in generating what to do to improve experiences.
Is there anything else you would like to share with us that will make using our service better?
It is usually easier for respondents to give openended responses verbally than in a written format, so be cautious about using open-ended questions in written types of surveys. However, it is good practice to provide an open-ended question in all surveys for a respondent to share what is on their mind related to the topic.
CONSIDERATIONS FOR PILOT STUDIES The importance of running pilot studies cannot be sufficiently emphasized. Piloting a survey with a small group of clients will make the research more reliable and therefore more valuable. A good pilot study cycle will improve the consistency of how people will interpret the questions which are critical in a quantitative study and will also improve the likelihood people will participate in and complete the survey. It is important to pay attention to the issue of localizing the survey during the pilot phase, as localization of a survey is not simply translating the survey to a local language but also making sure local terminology and colloquial language are considered. Pilot studies do not have to be expensive or add much time to the research schedule, but they should be thoughtfully completed, and the feedback should be incorporated before the next pilot. The pilot stage of research allows the research team to work out all the major kinks before undertaking the full project. Failure to do so may result in poor outcomes and waste institutional resources. 21 responsiblefinancialinclusion.org
PILOT STUDY How many times to pilot your research? Review questions with one to two colleagues with and without DFS expertise. Have each colleague read the survey aloud and provide feedback on any components they don’t understand.
Run a sample pilot survey in a face-to-face situation so you can provide guidance to the respondent and receive real-time feedback.
Without providing inperson guidance, run a LIVE pilot survey with a small sample size of your intended target audience prior to deploying your survey across your entire targeted customer base.
Questions to ask yourself when conducting a pilot study... 1. Does the participant understand the purpose of the survey? Do they feel comfortable answering the questions honestly? 2. Does the participant understand the instructions for the format of the questions? 3. Do all participants interpret the questions in the same way? Do they require additional explanation to understand the questions? 4. Do participants understand the terminology used? 5. Are participants completing the survey within a reasonable timeframe? 22 responsiblefinancialinclusion.org
ADDITIONAL RESOURCES Useful resources for designing customer satisfaction research: Wright, G., Report on Client Protection Research in India Philippines and Bangladesh – Clients on Client Protection. April 2012. http://www.microsave.net/library. Pierantozzi, A., and Pistelli, M., Voice of the Client: An analysis of client satisfaction and consumer protection across four microfinance institutions in India Report 2015 theMIX.org Acumen, The Lean Data Field Guide: Tips for collecting customer data to build more impactful businesses. Nov 2015. https://acumen.org/lean-data/. Wardel, L., Collecting and Using Exit Survey Data: A Tool for Financial Institutions. Dec 2014 Smart Campaign. http://smartcampaign.org.
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REFERENCES & SOURCES Acumen, The Lean Data Field Guide: Tips for collecting customer data to build more impactful businesses. Nov 2015. Retrieved from https://acumen.org/lean-data Mastercard Foundation and International Finance Corporation. Digital Access: The Future of Financial Inclusion in Africa. May 2018. Retrieved from https://globalfindex.worldbank.org Foelster, J., and Ilginisova, V., Voice of the Client: An analysis of client satisfaction and consumer protection across four microfinance institutions in Cambodia. Report 2017 Retrieved from http://www.theMIX.org Foelster, J., and Martinex, R. Voice of the Client: An analysis of client satisfaction and consumer protection across four financial service providers in Peru Report 2017. Retrieved from http://www.theMIX.org Demirgüç-Kunt, Asli, Leora Klapper, Dorothe Singer, Saniya Ansar, and Jake Hess. 2018. The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution. World Bank: Washington, DC. Giri, A., Agrawal, S., and Ledesma, J., M. Developing a Tool to Assess Client Protection. July 2012. MicroSave Briefing Note #125. Retrieved from http://www.microsave.net/library Grameen Foundation “Research on Women and Usability of Mobile Financial Services in Uganda” 2014. Report from Grameen Foundation GSMA. (March 2018). The Mobile Economy 2018. Retrieved from https://www.gsma.com/mobileeconomy Ledesma, J. M., and Obedoza-Pangan, A., Developing a Tool to Measure Client Satisfaction and Protection July 2015. MicroSave Briefing Note #161. Retrieved from http://www.microsave.net/library Meka, S., and Sanford, C., My Turn to Speak: Voices of Microfinance Clients in Benin, Pakistan, Peru and Georgia Report 2016 Smart Campaign Retrieved from http://www.smartcampaign.org Partnership for Responsible Financial Inclusion. (April 2018). The Digital Landscape of the Partnership for Responsible Financial Inclusion. Retrieved from https://responsiblefinancialinclusion.org Parasuraman, A, Ziethaml, V. and Berry, L.L., “SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality” Journal of Retailing, Vo. 62, no. 1, 1988, pp 12-40 Pierantozzi, A., and Pistelli, M., Voice of the Client: An analysis of client satisfaction and consumer protection across four microfinance institutions in India Report 2015 theMIX.org Poyry, Maija. Next Steps in SERVQUAL - Adjusting to Digitalization of Services. 2012. Marketing Master’s Thesis, Aalto University School of Economics Rhaman, S. M. Client Satisfaction in Microfinance Program Report. 2006. Increasing Capacities of Organizations in Microfinance (INCOME)-III Report, Income III Project, CARE Bangladesh Sagib, Ghosh Kumar, and Barua Zapan. “Bangladeshi Mobile Banking Service Quality and Customer Satisfaction and Loyalty.” Management & Marketing Challenges for the Knowledge Society, vol. 9, no. 3, 2014 pp. 331–346. Sangeetha, J., & Mahalingam, S., “Service Quality Models in Banking: A Review.” International Journal of Islamic and Middle Eastern Finance and Management, vol. 4, Apr. 2011, pp. 83–103. Wardel, L., Collecting and Using Exit Survey Data: A Tool for Financial Institutions. Dec 2014 Smart Campaign. Retrieved from http://smartcampaign.org Wright, G., Report on Client Protection Research in India Philippines and Bangladesh – Clients on Client Protection. April 2012. http://www.microsave.net/library Yamini, V., Srivastava, R., and Chakraborty, S., What Makes SERVQUAL Distinctive Tool for Client Protection? July 2012. MicroSave Briefing Note #126. Retrieved from http://www.microsave.net/library
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The Center for Financial Inclusion acts as the Secretariat for the Partnership for Responsible Financial Inclusion Center for Financial Inclusion at Accion 1101 15th Street NW, Suite 400 Washington, DC 20005 USA responsiblefinancialinclusion.org