1. Customer Satisfaction Study June 2012

2. Customer Satisfaction Study Background Good customer service is key to customer satisfaction and retention, which impact on an organization’s returns Nation Media Group called upon Consumer Insight to carry out a customer satisfaction study to establish whether their customers are happy with service delivery and consequently seek ways to improve it This document contains the findings of the study

3. Customer Satisfaction Study Objectives To find out customer expectations from NMG To establish customer satisfaction with NMG To assess gaps, if any, in customer satisfaction

4. Customer Satisfaction Study Research Design Strategy Survey Data collection Face- to-face interviews Instrument Structured questionnaire Analysis Quantitative Study location Nairobi, Kisumu, Nyeri, Mombasa, Eldoret, Nakuru Sample size RespondentsSample Advertisers231 Ad Agencies8 Courier66 Distributors19 Subscribers40 Suppliers29 Total393

5. Customer Satisfaction Study FINDINGS Customer Satisfaction Study

6. Overall Satisfaction Base n=393 Though most NMG customers are satisfied, only 1/5 are delighted

7. Customer Satisfaction Study Overall Satisfaction by Customer Type Ad agencies is the only customer segment without a delight element

8. Customer Satisfaction Study Satisfaction Index by Customer Type

9. Customer Satisfaction Study Distributors: Satisfaction Relatively better satisfaction with order placement process, sales representatives and editorial policy Base n=19; All Distributors

10. Customer Satisfaction Study Suppliers: Satisfaction Relatively better satisfaction with procurement process and finance department Base n=29; All Suppliers

11. Customer Satisfaction Study Ad Agencies: Satisfaction Relatively better satisfaction with the contact person and Ad placement process Base n=8; Ad Agencies

12. Customer Satisfaction Study Advertisers: Satisfaction Relatively better satisfaction with the contact person and news media brands Base n=231; All Advertisers

13. Customer Satisfaction Study Courier: Satisfaction Relatively low satisfaction with geographical coverage Base n=66; All Couriers

14. Customer Satisfaction Study Print Subscribers: Satisfaction Relatively better satisfaction with subscription process Base n=40; Print Subscribers

15. Customer Satisfaction Study Top Five Attributes: Satisfaction Customer Satisfaction Study

16. NMG ScoreTop 5 Attribute Distributors Base n=19; All Distributors Relatively low satisfaction with adherence to delivery schedule albeit its importance rating

17. Customer Satisfaction Study Suppliers Top 5 AttributeNMG Score NMG’s performance on the important attributes doesn’t meet supplier expectations, particularly on timely payment and fairness of the listing process Base n=29; All Suppliers

18. Customer Satisfaction Study Ad Agencies Top 5 Attribute NMG Score Base n=8; Ad Agencies Relatively low satisfaction with agency commission

19. Customer Satisfaction Study Advertisers Top 5 Attribute NMG Score Base n=231; All Advertisers Relatively good satisfaction with the important attributes

20. Customer Satisfaction Study Courier Top 5 Attribute NMG Score Base n=66; All Couriers NMG’s performance on the important attributes doesn’t meet supplier expectations

21. Customer Satisfaction Study Print Subscribers Top 5 Attribute NMG Score Base n=40; Print Subscribers NMG failing to meet print subscribers’ expectations on all top 5 important attributes with the biggest gap in condition of delivered newspaper

22. Customer Satisfaction Study Urgent Action

23. Customer Satisfaction Study Urgent Action Base n=19 Distributors Base n=29 Suppliers

24. Customer Satisfaction Study Urgent Action Base n=8 Base n=231 Ad Agencies Advertisers

25. Customer Satisfaction Study Urgent Action Base n=66 Base n=40 Ad AgenciesAdvertisers

26. Customer Satisfaction Study Experience with NMG

27. Customer Satisfaction Study Experience with NMG How would you rate the experience of doing business with Nation Media Group compared to other organizations you deal with? Nation Media Group performing relatively poorly among Ad Agencies

28. Customer Satisfaction Study Emotive Disposition - Positive Base n=393; Total Customers

29. Customer Satisfaction Study Emotive Disposition - Negative Base n=393; Total Customers

30. Customer Satisfaction Study Complaints

31. Customer Satisfaction Study Complaints Have you had complaints? Did you register the complaint? How did you register complaints? High complaint incidence among distributors and Ad Agencies

32. Customer Satisfaction Study Complaints Did you receive a satisfactory reply or explanation following your complaint Satisfaction

33. Customer Satisfaction Study Complaints What kind of complaints? Base n=5 Base n=7

34. Customer Satisfaction Study Complaints What kind of complaints? Base n=17 Base n=32

35. Customer Satisfaction Study Insights

36. Customer Satisfaction Study Insights Though it is important to satisfy all customers, it is gratifying to note that key customers - advertisers, print subscribers and courier services clients - show a high degree of satisfaction With the exception of print subscribers, all the other customer types state a high level of satisfaction with their respective contact person at NMG. This is an indication that person-to- person contact is well appreciated and should be encouraged

37. Customer Satisfaction Study Insights Interestingly, the finance function that is often associated with supplier frustrations is deemed to deliver more satisfactory service to NMG suppliers that other departments Despite the low sample size, it is evident that advertising agencies are unhappy. As media professionals, their expectations are probably much higher than that of direct advertisers, hence may require a special approach to satisfy this group

38. Customer Satisfaction Study Thank You