Date: 28/07/2003
Source: Department of Trade and Industry
Title: Hendricks: Results of the South African Satisfaction Index
RESULTS OF THE SOUTH AFRICAN SATISFACTION INDEX (SAS INDEX): ADDRESS BY MRS LINDIWE HENDRICKS, DEPUTY MINISTER OF TRADE AND INDUSTRY, Johannesburg, 28 July 2003
CUSTOMER SATISFACTION WITH INDUSTRY PLAYERS IN THE TELECOMMUNICATIONS AND BANKING SECTORS
Good morning, ladies and gentlemen, members of the media, the business community and consumer advocates. In particular, I would like to welcome the Regional Director for Consumers International: Africa Region, Mr Amadou Kanoute.
I have great pleasure in launching the results of the South African Satisfaction Index in two important industries, namely telecommunications and banking. Both of these sectors are important for investor, business and consumer confidence in South African markets.
The South African Satisfaction Index embodies two measures, which are integral to the objectives of the dti, namely, in the first instance, the welfare of consumers and, in the second instance, the competitiveness of industry, both nationally and internationally.
The SAS Index measures the level of satisfaction that consumers have with the products provided and the level of service provision. As an index, it allows different players in an industry to be benchmarked against each other, against other industries and internationally. It therefore provides a measure of the competitiveness of our industry against their equivalents in other countries such as the USA, Hong Kong, Malaysia and European countries in the areas of customer responsiveness and service provision.
The SAS Index also provides information about the expectations of South African consumers. What has been striking about the results of the surveys is that South African consumers rate the level of service provision by South African banks and telecommunications providers more highly than US consumers rate their equivalents. Several conclusions can be deduced from this, one of which would be that South African Service Providers are better, and another one could be that South African consumers has lower expectations, and the latter could be the correct conclusion. In which event the dti, civil society and business need to do more to promote consumer activism, given the relationship between vocal and demanding consumers and the competitiveness of our businesses. Over time, as consumers see the results of research, such as the SAS Index surveys, they will become more demanding.
Although indirect, the survey results also give us a snap shot of the sector and some of the main issues. For example, the introduction of a new player in the telecommunications sector, namely Cell C, has had an important impact on consumer expectations of price competition.
When the historical information is presented to you later during this launch, it will become clear that in a market with few players, as in many sectors of the South African economy, price competition is not a strong distinguishing factor between different firms and consumers therefore focus on product quality instead. However, the introduction of a new competitor can have a powerful impact on consumer expectations.
The dti believes that the SAS Index is a valuable tool for business and government. Business can use the data collected to analyse areas in which customer expectations are not satisfied. The research will also encourage business to improve the quality of their services to the benefit of consumers and the economy. This exercise will also raise awareness in business, of the relationship between good competitive business practices and corporate governance.
It is also a vehicle for consumers to express their level of satisfaction. We are currently exploring expanding the scope of our involvement with the SAS Index and would other parties to also lend support. In other countries, the Satisfaction Index received support from government and industry until it was firmly established. We hope that a similar partnership can be developed in South Africa.
In that context, I am proud to announce the best performers in two categories:
* In the category of banking, First National Bank (FNB) was rated the best overall performer by consumers. FNB scored highest in reliability, in value for money and customer satisfaction. The results have shown that Standard Bank has become a serious competitor and has achieved significant improvements over previous results
* In the category of telecommunications, Vodacom emerged as the best overall performer, followed closely by MTN. The introduction of a new competitor in the form of Cell C has had a significant impact on the sector.
Congratulations to FNB and Vodacom!
In order to stay at the top you will have to work much harder, as your competitors are close and as consumers will no doubt become more demanding.
Source: Department of Trade and Industry (http://www.dti.gov.za)
Source: Department of Trade and Industry
Title: Hendricks: Results of the South African Satisfaction Index
RESULTS OF THE SOUTH AFRICAN SATISFACTION INDEX (SAS INDEX): ADDRESS BY MRS LINDIWE HENDRICKS, DEPUTY MINISTER OF TRADE AND INDUSTRY, Johannesburg, 28 July 2003
CUSTOMER SATISFACTION WITH INDUSTRY PLAYERS IN THE TELECOMMUNICATIONS AND BANKING SECTORS
Good morning, ladies and gentlemen, members of the media, the business community and consumer advocates. In particular, I would like to welcome the Regional Director for Consumers International: Africa Region, Mr Amadou Kanoute.
I have great pleasure in launching the results of the South African Satisfaction Index in two important industries, namely telecommunications and banking. Both of these sectors are important for investor, business and consumer confidence in South African markets.
The South African Satisfaction Index embodies two measures, which are integral to the objectives of the dti, namely, in the first instance, the welfare of consumers and, in the second instance, the competitiveness of industry, both nationally and internationally.
The SAS Index measures the level of satisfaction that consumers have with the products provided and the level of service provision. As an index, it allows different players in an industry to be benchmarked against each other, against other industries and internationally. It therefore provides a measure of the competitiveness of our industry against their equivalents in other countries such as the USA, Hong Kong, Malaysia and European countries in the areas of customer responsiveness and service provision.
The SAS Index also provides information about the expectations of South African consumers. What has been striking about the results of the surveys is that South African consumers rate the level of service provision by South African banks and telecommunications providers more highly than US consumers rate their equivalents. Several conclusions can be deduced from this, one of which would be that South African Service Providers are better, and another one could be that South African consumers has lower expectations, and the latter could be the correct conclusion. In which event the dti, civil society and business need to do more to promote consumer activism, given the relationship between vocal and demanding consumers and the competitiveness of our businesses. Over time, as consumers see the results of research, such as the SAS Index surveys, they will become more demanding.
Although indirect, the survey results also give us a snap shot of the sector and some of the main issues. For example, the introduction of a new player in the telecommunications sector, namely Cell C, has had an important impact on consumer expectations of price competition.
When the historical information is presented to you later during this launch, it will become clear that in a market with few players, as in many sectors of the South African economy, price competition is not a strong distinguishing factor between different firms and consumers therefore focus on product quality instead. However, the introduction of a new competitor can have a powerful impact on consumer expectations.
The dti believes that the SAS Index is a valuable tool for business and government. Business can use the data collected to analyse areas in which customer expectations are not satisfied. The research will also encourage business to improve the quality of their services to the benefit of consumers and the economy. This exercise will also raise awareness in business, of the relationship between good competitive business practices and corporate governance.
It is also a vehicle for consumers to express their level of satisfaction. We are currently exploring expanding the scope of our involvement with the SAS Index and would other parties to also lend support. In other countries, the Satisfaction Index received support from government and industry until it was firmly established. We hope that a similar partnership can be developed in South Africa.
In that context, I am proud to announce the best performers in two categories:
* In the category of banking, First National Bank (FNB) was rated the best overall performer by consumers. FNB scored highest in reliability, in value for money and customer satisfaction. The results have shown that Standard Bank has become a serious competitor and has achieved significant improvements over previous results
* In the category of telecommunications, Vodacom emerged as the best overall performer, followed closely by MTN. The introduction of a new competitor in the form of Cell C has had a significant impact on the sector.
Congratulations to FNB and Vodacom!
In order to stay at the top you will have to work much harder, as your competitors are close and as consumers will no doubt become more demanding.
Source: Department of Trade and Industry (http://www.dti.gov.za)
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