Average Usage and Service Quality

The In-Touch study shows that the better the service quality, the more often people will turn to a particular service. The meaning that people use more what they like more – and that the service quality does have an impact on operator revenues. 

Another study by Nam et al (2007) about the effects of service quality and word of mouth on customer acquisition, retention and usage found a direct effect of service quality and usage. 

Understanding Average Usage and Service Quality

Measuring Service Quality

Service quality is a critical aspect of customer satisfaction and can be measured through various dimensions. The SERVQUAL model identifies five key dimensions:

1. Tangibility: Refers to the physical appearance of facilities, equipment, and personnel.
2. Reliability: The ability to deliver promised services dependably and accurately.
3. Responsiveness: Willingness to help customers and provide prompt service.
4. Assurance: Knowledge and courtesy of employees, instilling confidence in customers.
5. Empathy: Providing caring and individualized attention to customers

To effectively measure service quality, businesses often employ customer feedback mechanisms, such as surveys that assess these dimensions. Regular measurement helps identify strengths and weaknesses in service delivery, enabling organizations to enhance customer experiences.

Average vs. Median in Service Quality Metrics

When analyzing service quality data, organizations often face the decision of using averages or medians for reporting metrics. Each method has its advantages:

• Averages are useful for fine distinctions in data where all values are relevant, such as survey results scored on a standard scale (e.g., 1-5 or 1-10). This approach can highlight overall trends but may be skewed by outliers
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• Medians provide a more stable measure when dealing with datasets that contain significant outliers, as they reflect the middle value of a dataset, minimizing the impact of extreme values. For instance, if a few service resolutions take significantly longer than others, using the median can give a clearer picture of typical service times
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Choosing between these metrics depends on the specific context and what insights are needed from the data.

Impact of Service Quality on Customer Satisfaction

Research consistently shows that higher service quality correlates with increased customer satisfaction. For example, a study at Villa Cemara Situ Gunung found that service quality accounted for 17.4% of customer satisfaction, while facilities contributed 22.4%. Together, they explained 59.4% of overall customer satisfaction

Moreover, effective service quality management not only enhances customer satisfaction but also fosters loyalty. Businesses that understand and meet customer needs through high-quality service are more likely to retain their clientele.

In summary, measuring service quality through established frameworks like SERVQUAL provides valuable insights into customer perceptions. The choice between using average or median metrics can significantly influence the interpretation of service performance data. Ultimately, improving service quality is essential for enhancing customer satisfaction and achieving business success.

Source:

(http://unite.nokiasiemensnetworks.com/adwords/article/view/id/46, retrieved May 4, 2009).