Corporate Cultures
Measuring Up
by Ray Knight and Rob Sanders
A
customer-focused casino culture doesn't happen in a vacuum. By definition,
in the gaming industry an internal corporate culture is interdependent
with the external "customer culture." This symbiotic relationship
is a dance where the partners hold each other close, where movement by
one should be matched by complementary response from the other.
In concrete terms, this means that the investment a casino makes in
creating a corporate culture that emphasizes customer service should be
reflected in a corresponding improvement in customer satisfaction.
Yet, in the authors' experience, it's surprising how few gaming companies
really know what their customers' perceptions are, let alone the changing
dynamics of these perceptions over time. For that matter, only some
of the more progressive casino companies bother to find out for certain
what their employees think and feel, either.
Few casinos have any systematic process in place for regularly monitoring
what their customers are happy or unhappy about. For the most part,
casino managements rely on hearsay, general impressions, and instinct.
In the fickle gaming marketplace, trusting to gut feelings about what's
on the customer's mind is a good way to be fooled or misled.
Yes, there are those customer comment cards. Every casino has
them. Yet surprisingly few casinos have systems in place to aggregate,
monitor, and analyze them regularly to identify and isolate specific issues
and their causes. In any event, customer comment cards tend
to be filled out by people at the extremes, either gushing with elation
over their experience or bitingly angry about perceived shoddy treatment.
The great mass of customers in between rarely bothers to fill them out.
Customer comment cards are useful only to the extent that this extremism
is taken into account. The information extracted from them can be
useful as an anecdotal thermometer recording the highs and lows of customer
experience, but reveals little about the true overall temperature at a
given moment.
Moreover, what if analysis of the cards yields low customer satisfaction
ratings? How do you interpret the cause? The "why" is usually
revealed in employee research. Many service and hospitality companies
say that if they had to forego either consumer or employee attitude research,
they would always go with the employee surveys. They reason that,
in a service business, employee attitudes (and behavior) drive customer
satisfaction — cause and effect.
A strategically planned service culture initiative should include systematic
measurement of both employee perceptions and customer perceptions.
By comparing and correlating the two, reliable insights as to cause and
effect become apparent. If there is a statistically significant rise
in employee morale and pride that is reflected in a corresponding rise
in customer satisfaction with service, for example, the conclusion can
be drawn that investment in that aspect of building the service culture
is measuring up to customer expectations.
"Systematic measurement" means repetition over time. A single
market research event only provides a snapshot of attitudes and perceptions
at one moment in time. By repeating the research at intervals of
six months or a year over a period of several years, the data begins to
reveal trends and patterns. Conducting ongoing research is especially
important with regard to building a service-based culture because the results
don't necessarily show up in one quarter. Furthermore, with
the volatile and continually changing gaming market, the environment in
which one market survey is made may be radically changed only a few months
later.
Changing employee behavior patterns takes time, more in some places
than others. Changes in customer perceptions also take time, generally
lagging the employee trends slightly. It takes awhile for them to
become aware of improvements in service.
Ongoing monitoring need not be expensive. A well-designed survey
instrument can be a one-time investment that is reusable over and over.
The questionnaire can be self-administered. Ongoing costs are limited
to tabulation and trends analysis.
By analyzing the market research over time, management can see what
parts of a corporate culture initiative are resonating with the employees
and customers, and which ones aren't. Though it's no substitute
for experience and judgment, market research gives casino executives a
realistic basis for making informed decisions rather than educated guesses.
Holding a wet finger in the air to judge which way the wind is blowing
gives a broadly general idea of the direction. However, scientific
data measures not only the precise direction at the moment but the exact
speed, range of variance, rate of change, and probable future direction
and speed.
Marketers in other industries routinely use consumer market research
to get accurate and continual feedback on what customers like and dislike,
what they want and don't want, what they know and don't know about a product
or service. They have long understood the direct link between customer
attitudes and the company's bottom line. Gaming, in general, has
yet to embrace this fundamental discipline on anything like a broad scale.
There are exceptions, of course. Some forward-thinking casino
executives have embraced the idea of regular consumer attitudinal measurement
and implemented ongoing research processes. Though such information
is usually kept a well-guarded secret, it's a safe bet that these enlightened
managers sleep easier at night knowing that whatever decisions they've
made were based on fact rather than hunches.
The long term nature of this systematic measurement discipline makes
it a hard sell to casino executives more dazzled by the sexiness of stunning
new facades and gee-whiz entertainment attractions. Market research
isn't sexy, but it's a basic necessity to guide the development of an effective
customer-focused corporate culture that pays off in real customer approval.
The important first step is to make the commitment to obtaining real market
intelligence. It gives the decisionmaker the power of knowledge,
of truly knowing what the situation is.
(This article appeared in the August 1998 issue.)
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