Korean companies showed higher customer satisfaction last year, according to the Korea Productivity Center, with Korea Post and Severance Hospital topping the list for their respective industries.

The overall National Consumer Satisfaction Index for 2016 rose 0.6 point from the previous year to reach 74.4 points, the highest since the index was first compiled in 1998. 

Sponsored by the Ministry of Commerce, Industry and Energy, the annual report surveyed 73 industries and 314 companies using an index model jointly created by the KPC and the University of Michigan.

Each product is evaluated, with the final results categorized by company, industry, economic sector and on the national level.

In terms of economic sector, nine out of 14 sectors showed increases in the customer satisfaction index compared to 2015. When categorized by industry, 39 out of 73 industries showed increases, while 45 industries showed declines.

In 2016, the largest increase in the NCSI on the economic level was recorded by public administration with a 2.5 percent (1.8 points) increase. The construction industry and the electricity, gas, steam and waterworks industry followed with a 1.5 percent (1.1 points) increase each.

By industry, tablet PCs showed the highest increase rate of 5.5 percent compared to the previous year, followed by Internet Protocol TV, airlines, electric rice cookers and the open market.

By company, Hotel Shilla received the highest assessment score with 85 points, the same score as the previous year. LG Electronics was also included in the top ranks for the 11th consecutive year with 77 points for its air conditioner.

When further broken down by type of industry, a 2016 NCSI study on the delivery industry revealed that Korea Post’s Post Office Parcel Service ranked No. 1 with 76 points. Compared to the previous year, there was an increase of two points. Korea Post has been able to maintain this reputation for the past 10 consecutive years since 2007. For the entire delivery industry, the customer satisfaction score was 74 points, with a 1.4 percent (one point) increase from last year.

Korea Post has accumulated various know-how in the distribution industry through its 120 years of history. The Korea Post’s Post Office Parcel Service has the nation’s largest infrastructure and information systems. It provides a nationwide service that covers even islands and remote areas through its network of approximately 3,600 post offices.

It also operates a Post Office Academy that focuses on on-the-spot consulting. Investments are being made to improve the education center’s customer service education programs, which facilitates the professional education of Post Office customer service instructors and service consultants.

Korea Post is also trying to provide a differentiated service through its integrated management system. This aims to improve the quality of customer service through enhancements in business handling and response attitude, as well as promote rapid and accurate delivery to improve the quality of the service, ultimately reducing complaints.

The team in charge of enterprise distribution also provides a “happy call” service as part of customer-oriented service and to increase the stability of deliveries through a parcel service compensation system.

Among general hospitals, Severance Hospital ranked No. 1 in customer satisfaction for the past six years, with its score remaining at 80 points, the same as 2015.

In analyzing the leading variables that influence the customer satisfaction index, customer expectation was 84 points, lower by four points (4.5 percent) compared to the previous year, and customers’ quality recognition was 83 points, a fall of two points (2.4 percent). Despite the fall in customer expectations and quality recognition, customer value recognition increased by 1 point (1.4 percent) this year, which led to the same score in the overall customer satisfaction index.

Severance Hospital was the first to adopt the “Naver ID Login” service among national general hospitals here. Furthermore, several actions are being taken to reduce major causes of customer complaints.

To reduce inconvenience from the long waiting time, stronger control over non-consultation days and substituted consultations is being made, and campaigns that involve apologizing within the doctor’s office are also being held for patients who have to go through delayed consultations.

In addition, happy calls are being made the next day to patients who had to wait over 30 minutes due to delayed consultations. During such calls, the hospital listens to the complaints made by the patients.

“Explanation Nurse Policies” are also being implemented under the concept of “Warm-hearted Severance Hospital, Explanation Nurse will assist you.”

In 2016, Severance Hospital entered the Chinese market and is in the process of establishing the Qingdao Hospital, which will open in 2020. It will play the role of promoting the superiority of domestic medical services to foreigners.

The KPC said that for 2017, despite the prolonged long-term economic slump worldwide, there are signs of recovery in household consumption and it is imperative for companies to figure out how to manage external risks.

It highlighted the importance of having a customer-oriented business that focuses on improving the quality of service, leading to a higher rate of customer loyalty. 

By Yim Ji-min (jiminy@heraldcorp.com)