CUSTOMER ASSESSMENT
The Challenge: Developing a Customer-Driven Strategy
In the late 1990's, the IRS received intense scrutiny over the reported treatment of taxpayers, resulting in Congressional legislation in 1998 that required the IRS to include customer satisfaction measures in its performance evaluation program. The IRS contracted with PCG to create a system that would provide information on taxpayer satisfaction in a way that was meaningful to taxpayers and actionable for the IRS.
PCG's Approach
Using our Net Impression® process, PCG developed a comprehensive customer satisfaction assessment strategy for the IRS. We conducted qualitative research to determine customer segments and design customer questionnaires that would deliver meaningful, actionable information. As a result, PCG has been the lead consultant to the IRS since 1998 on both the market measurement and implementation aspects of its customer-driven strategy. We conduct survey analysis, investment-decision modeling, and performance improvement tasks for all major divisions of the IRS under multiple task order awards. In 2002, we surveyed more than 310,000 business and organizational taxpayers by mail, telephone, interactive voice response, and the Web. We provide quarterly reports for each functional division surveyed. In 2005, the IRS re-awarded a second five-year contract to PCG for customer satisfaction and consulting services. In 2006, the IRS nominated PCG as their Small Business Partner of the Year.
Results
- The IRS has realized consistent increases in taxpayer satisfaction since the implementation of the customer satisfaction assessment program.
- Better IRS insights into their customer segments have led to improved service. For example, the IRS has developed a better understanding of the needs of tax practitioners that has improved compliance and efficiency, as well as practitioner satisfaction.
- The IRS has conducted action planning using PCG’s Net Impression® Innovation approach to implement a significant improvement project that has resulted in a 25% gain in efficiency in the Adjustments Group, as well as increased taxpayer satisfaction. Learn more about this study.
- Integrating customer satisfaction and employee research for the Large and Mid-Size Business (LMSB) Division identified ways the IRS can improve service to customers through enhanced support to employees. Read the IRS LMSB Employee case study.
- IRS executives have learned through training and action the benefits of managing the customer experience and how to use customer satisfaction data to drive improvement.
- The IRS is migrating to new techniques for measuring customer preferences in partnership with PCG and using the research to model the results of different levels of expenditures for service channels.