1. 1 ACSI American Customer Satisfaction Index TM Citizen Satisfaction with the U.S. Federal Government: A Review of 2011 Results from ACSI Forrest V. Morgeson III, Ph.D. American Customer Satisfaction Index (ACSI) Washington, D.C., January 19, 2012

2. 2 © NQRC Snapshot of ACSI Established in 1994, ACSI is the only standardized measure of customer satisfaction in the U.S. economy, covering more than 225 companies in 45 industries and 10 economic sectors; companies measured account for roughly one-third of the total U.S. GDP A quarterly measure of the national economy’s health; complementary to measures such as inflation and unemployment 100+ departments, agencies, programs and websites of the U.S. Federal Government measured on an annual basis Results from all surveys are published quarterly in various media and on the ACSI website, www.theacsi.orgwww.theacsi.org

3. 3 © NQRC ACSI and Citizen Satisfaction ACSI measured portions of the Federal government as early as 1994 –Internal Revenue Service measured as part of the private sector study back to 1994 –Measurement of core Local Government services (police, waste disposal) also began in 1994 In 1999, ACSI was chosen as the “gold standard” measure of citizen satisfaction by the U.S. Federal government –ACSI measured 30 “high impact” government agencies, reflecting the vast majority of citizen interactions with government, in 1999 and 2000 Although now relying on optional agency buy-in, participation in the ACSI study has grown significantly

4. 4 © NQRC Why Measure Satisfaction with Government? More efficient budgetary and resource allocation Monitor and motivate public employees Set “baseline” for customer satisfaction, measure progress, and benchmark performance Provide critical information for annual performance reporting Identify areas for improving quality of service provided to customers Raise trust in government agencies and the government overall Enhance government transparency and accountability ACSI Develop new citizen- government “feedback loop”

5. 5 © NQRC ACSI Methodology

6. 6 © NQRC ACSI Methodology In the ACSI Model, Customer Satisfaction (ACSI) is embedded in a system of “cause-and-effect” relationships The variables in the ACSI Model are measured using multiple indicators, increasing their precision and reliability The central objective of the model is to explain what influences ACSI, and what is influenced by it

7. 7 © NQRC ● A component score is a weighted average of a set of attributes, or survey questions, comprising a component or activity. Responses to survey questions are given on a 1-10 scale, which are then converted to a 0-100 scale for score reporting. ● An impact, on the other hand, predicts the increase in satisfaction that would result from a 5-point increase in a component score. ● Areas for improvement are those components or activities with a relatively low score and a relatively high impact on satisfaction. In the simplified example shown here, Activity 2 would be a key action area due to its relatively low score and high impact. ACSI 65 Activity 2 65 Activity 1 76 1.5.8 Impact Score EXAMPLE ACSI Methodology

8. 8 © NQRC 2011 ACSI Overall Results U.S. Federal Government

9. 9 © NQRC *A methodology change in 2007 limits comparability to prior years. Year-to-year trending is recommended. Aggregate Federal Satisfaction, 1999-2011*

10. 10 © NQRC ● Year-on-year, the Federal Government ACSI score increased significantly, up 1.5 points from 2010, a gain of 2.3% ● This gain erases almost half of the large 3.3-point decline between 2009 and 2010 Satisfaction Gain 2010 to 2011

11. 11 © NQRC 2011 Federal Government ACSI Model N = 1381; 90% Confidence Interval = 1.2 Customer Complaints Customer Complaints Agency Trust Customer Satisfaction (ACSI) Customer Satisfaction (ACSI) Perceived Quality Perceived Quality Customer Expectations Customer Expectations Customer Service Customer Service Information Process Confidence Recommend Courtesy Professional Clarity Accessibility Ease Timeliness 71 72 79 70 74 67 69 10% 2.1 0.6 1.8 0.4 4.0 0.7 -1.7 4.8 0.1 69 68 Website Ease Usefulness 74 80 78 72 71 77 69 3.1

12. 12 © NQRC Citizen Satisfaction by Federal Department

13. 13 © NQRC Public and Private Sector Comparisons

14. 14 © NQRC Complaint Behavior and Citizen Satisfaction

15. 15 © NQRC Few Citizens Complain, but…

16. 16 © NQRC Complaints are Handled Poorly, and… Complaint Handling Score (0-100)

17. 17 © NQRC Complaint Handling Impacts Satisfaction

18. 18 © NQRC Contact Channel, Satisfaction and Agency Trust

19. 19 © NQRC Satisfaction by Most Frequent Contact Channel

20. 20 © NQRC Agency Trust by Most-Popular Contact Channels (Offline vs. Online)

21. 21 © NQRC Demographics and Citizen Satisfaction

22. 22 © NQRC Citizen Satisfaction and Gender

23. 23 © NQRC Satisfaction with Federal Agencies among Citizens in the 10 Most Populous States

24. 24 © NQRC Satisfaction, Trust and Ideology Agency Trust Satisfaction

25. 25 © NQRC Agency Trust and Diffuse Trust with the Federal Government

26. 26 © NQRC ● ACSI measures both agency trust (confidence in the agency experienced), and generalized trust (trust in the Federal government as a whole) ● Similar to the results found in other studies, trust in Washington D.C. scores far lower than trust in individual agencies experienced ● This year, trust in Washington D.C. has dropped significantly, while trust in the performance of particular agencies has increased slightly Agency and Diffuse Trust

27. 27 © NQRC Agency and General Trust

28. 28 © NQRC Agency and Diffuse Trust Agency Trust Customer Satisfaction (ACSI) Customer Satisfaction (ACSI) 1.2 4.8 Overall Trust in Federal Government Overall Trust in Federal Government 69 67 0.6 36 ● These results show that while satisfaction with an agency experience drives overall trust in the government directly, it also has a strong effect through agency trust -In other words, agencies that offer a more satisfying experience will build trust in their agency, but also help build (or rebuild) general trust in the entire Federal government among American citizens

29. 29 © NQRC ACSI For more information, visit the ACSI website at: www.theacsi.org www.theacsi.org