Title
Contract for Customer Satisfaction Research Services (NB)
Staff recommends award of a contract with RKS Research and Consulting for customer satisfaction research services.
Explanation
On May 13, 2002, the City Commission approved award of a contract for customer satisfaction research services to RKS Research and Consulting as a result of a Request for Proposal. The services include measuring residential and business customer satisfaction and value as well as tracking a number of statistical measures related to customer service, operational functions and marketing efforts. RKS Research and Consulting was awarded the contract as the best evaluated proposer based on established award criteria.
Statistical results obtained by RKS Research and Consulting are used by the Utility to develop strategies to improve its performance. Benchmarks for customer satisfaction and value have been established and changes are measured on an ongoing basis. One example of how this data is used is with the "customer wait time" survey. Customers are asked how long they believe they remain on hold on the telephone waiting to speak to a customer service representative. Based on this feedback, new telephone features are being added which will enable customers to obtain their account information using an automated system, thereby reducing customer wait time and improving customers' perception of the Utility.
A unique advantage that RKS Research and Consulting offers its clients is quarterly surveys with utilities nationwide. While other renowned national firms such as JD Power and Associates conduct annual customer satisfaction surveys for large municipal and investor-owned utilities, these firms only benchmark against similar clients rather than conducting independent research for all U.S. utilities. A client-only benchmark is more costly and does not represent a true depiction of utility customer satisfaction on a national level. GRU believes that the research RKS Research and Consulting performs provides a more accurate benchmark for customer satisfaction.
In addition, RKS Research and Consulting provides best practice information about successful utility programs nationwide. Staff recently obtained information about initiatives that other utilities have implemented to reach targeted customers for the DEED grant low income energy use study which will be useful as GRU launches its own program.
RKS Research and Consulting has over one hundred utility clients including Austin Energy, Colorado Springs, Portland GE, and Sacramento Municipal Utility District. RKS has maintained the same rates for GRU throughout the contract and is extending a continuation of the same pricing under a new contract. The pricing offered by RKS is lower than a contract it recently was awarded by a large utility and, with its corporate office in Florida, travel costs are minimal.
Recommendations
The City Commission: 1) authorize the Interim General Manager, or her designee, to negotiate a one-year contract with RKS Research and Consulting, a specified source, for customer satisfaction research services with up to three one-year extensions in an amount not-to-exceed $140,000 per year, subject to approval of the City Attorney as to form and legality, and 2) approve the issuance of purchase orders to RKS Research and Consulting in a not-to-exceed amount of $140,000 per year, subject to the final appropriation of funds.
Fiscal Note
Funds are available in the FY 2006 Marketing and Communications budget and will be requested in subsequent year budgets.
Drafter
Prepared by: Kathy E. Viehe, Director Marketing and Communications
Submitted by: Karen Johnson, Interim General Manager