Reports to Parliament

Listen And Learn - Using customer surveys to report performance inthe Western Australian public sector

Report No 5 - June 1998

Background...

The Western Australian public sector is increasingly using the results of customer satisfaction surveys as one of the ways to report on its performance. Customer surveys are also being used as the basis for resource allocation and can be linked to staff performance pay.

This examination assessed the rigour with which seven public sector agencies have conducted selected customer satisfaction surveys.

What the examination found...

Survey costs ranged from an estimated $3 000 to $74 000, the more costly being larger and of better quality. Agencies have to make a trade-off between survey cost and obtaining quality data - for some agencies containing costs was the primary consideration.

Many agencies have made considerable effort to tackle this new and difficult area of customer satisfaction surveying. However all of the surveys examined had some technical weaknesses, and several had many. Common problems included:

low response rates;
high levels of sampling error;
errors in the analysis and/or interpretation of survey findings; and
reported performance indicators presented without notes to describe the survey's technical limitations.

The seven agencies were able to demonstrate, to varying degrees, action they had taken as a result of surveys. The level of CEO support, and integration with other service improvement strategies, contributed to the level of utilisation of survey findings.

Agencies, especially those with small budgets and large numbers of customers, need to consider the cost-effectiveness of undertaking reliable annual customer surveys. There is also a risk that certain groups of customers may become 'overloaded' with many surveys from different government agencies.

What the examination recommended...

Agencies should:

ensure that their surveys are conducted in a scientifically rigorous manner so as to minimise all types of survey error;
assess the cost-effectiveness of undertaking customer surveys and liaise with other agencies that share common customers; and
use their survey findings as a tool to assist in service improvement and as a means of demonstrating accountability.

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