Sustainability Report 2009 - The Co-operative

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Public policy Customers Employees Economic impact Membership and co-operation Delivering value Customers Indicators Customer satisfaction: Food, Pharmacy, Travel, Financial Services and Legal Services Corporate reputation Complaints: Food, Pharmacy, Travel, Financial Services and Legal Services D Targets 2009 Review processes for generating competitor customer satisfaction scores, with a view to ensuring that benchmarks and measurable targets are in place for Food, Pharmacy and Travel businesses (page 108). Ensure that at least 3,700 outlets have been rebranded by the end of 2009 (page 110). target achieved on track Targets 2010 close to target behind schedule • Maintain a CFS advocacy score that is 6% ahead of the top five in peer group. • Ensure that at least 4,500 outlets have been rebranded by the end of 2010. Materiality and strategy Customers are key stakeholders of The Co-operative, and both the Trading Group and CFS share common strategic priorities that focus on corporate reputation and customer satisfaction. The Trading Group’s vision is ‘to be the best co-operative business in the world’. ‘Growing customer loyalty’ is one of six objectives that support attainment of this vision, as set out in the business’ balanced scorecard (page 8). It is underpinned by two performance measures: overall customer satisfaction (based on a survey of Food, Travel, Pharmacy and Legal Services customers) and the number of customers who cross-trade within the family of businesses. CFS’ vision is to be the UK’s most admired financial services business and ‘putting members and customers first’ has been identified as one of five values that should characterise the way CFS does business. The pursuit of ‘market-leading customer satisfaction’ was a key objective supporting attainment of this vision during 2009, and a KPI and target for customer satisfaction was linked to the performance criteria in all remuneration incentive schemes. In 2010, a new CFS balanced scorecard was introduced, with new customer KPIs that have a specific focus on customer advocacy. D target not achieved target dropped Accounting Customer Satisfaction Tracker The Trading Group uses a Customer Satisfaction Tracker to measure customer satisfaction for the Food, Pharmacy, Travel and Legal Services businesses. Between 500 and 600 customers are surveyed on a monthly basis 1 , and asked to register satisfaction levels with The Co-operative using a 10-point scale. The generation of customer satisfaction scores for competitors has been explored, with a view to benchmarking performance. The creation of meaningful and measurable targets against a benchmark has not yet proved possible, but it is hoped that targets will be set in 2011. For personal customers, CFS utilised a rolling monthly Customer Satisfaction Tracker during 2009 2 to identify the proportion of customers who were either ‘satisfied’ or ‘very satisfied’ at a product level. Product scores were weighted by CFS customer numbers to generate overall and sector-level customer satisfaction scores for CFS, along with industry benchmarks. Satisfaction surveys were also conducted amongst CFS corporate and business customers 3 ; survey results were weighted according to materiality. CFS customer satisfaction scores exclude Britannia, where a different measure was used during 2009. From 2010, a new customer advocacy measure for CFS and Britannia will be generated 4 , and benchmarked against a ‘Top five in Peer Group’ score 5 . Corporate Reputation Index A Corporate Reputation Index (CRI) model 6 measures how brand perception drives sales across The Co-operative 7 . During September and October 2009, more than 1,000 face-to-face interviews were carried out with members of the public who had heard of ‘The Co-op’ or ‘The Co-operative’. Respondents were asked questions exploring the issues of leadership and reliability, caring company and public responsibility. Each of these three areas is weighted according to its importance in driving sales 8 . Customer satisfaction Trading Group Customer Satisfaction Tracker 9 Percentage of very satisfied customers 2006 2007 2008 2009 The Co-operative Food 31% 33% 44% 30% The Co-operative Pharmacy 72% 66% 77% 72% The Co-operative Travel 75% 73% 75% 69% The Co-operative Legal Services n/a n/a 72% 74% Whilst 2008 saw particularly high customer satisfaction across the business, scores in 2009 returned broadly to the levels achieved during 2007. The satisfaction scores between the different businesses reflect, to a large degree, variance in the very different market sectors within which each operates. 108 The Co-operative Group Sustainability Report 2009
A range of drivers impact on customer satisfaction scores, the most significant of which are detailed in the table (below). Drivers of customer satisfaction CFS Business The Co-operative Food The Co-operative Pharmacy The Co-operative Travel The Co-operative Legal Services Customer Satisfaction Tracker Percentage of customers ‘extremely’ or ‘very’ satisfied 11 2006 2007 2008 2009 Customer satisfaction measures fell slightly in each of the business areas in 2009. This is largely a reflection of external market conditions, and the fall was in line with the market. A range of drivers impact on customers’ satisfaction with the service they receive, as detailed in the table (below). Drivers of customer satisfaction Performance benchmark 2009 market General Insurance 71% 75% 79% 75% 66% Retail Bank 73% 79% 77% 74% 61% Life and Savings n/a n/a 70% 66% n/a Overall CFS n/a n/a 74% 71% n/a Channel Branch 0000 300000 400000 500000 Telephone Online Financial Adviser Top three drivers of customer satisfaction 10 Clean store; friendly and helpful staff; well-stocked shelves. Friendly and helpful staff; experienced and knowledgeable staff; well-stocked prescription medicines. Friendly staff; made to feel welcome; customer needs understood. Clear, concise explanations; reassuring, supportive case handler; duration of call. Top three drivers of customer satisfaction Staff able to solve problems; customer needs understood; staff helpful throughout branch. Helpful advisers; customer needs understood; knowledgeable advisers. Easy to do what user wanted; site works quickly and efficiently; information easy to understand. Consistent point of contact; good-quality advice; could trust the adviser. Performance benchmark • The Co-operative Insurance won a platinum award for Motor Claims customer satisfaction from Consumer Intelligence in 2009. • The Co-operative Insurance and Co-operative Investments are members of the Association of British Insurers’ (ABI) Customer Impact Scheme, which aims to improve service to Life and Savings customers. Progress is monitored through an annual customer satisfaction survey and, in 2009, customers rated CFS higher than, or equal to, the industry average on all top-line measures 19 . CFS Corporate and Business Banking Satisfaction Index The Co-operative Group: Corporate Reputation Index Performance benchmark 2008 2009 Corporate banking 83.7% 84.0% Business banking 84.2% 82.7% 12 Drivers of customer satisfaction: corporate and business banking Corporate banking Business banking Corporate reputation and brand Corporate Reputation Index 2006 2007 2008 2009 Corporate reputation 13 +4 14 +14 +17 +27 15 Competitor performance: Corporate Reputation Index 16 Asda Tesco Boots Morrisons Thomas Cook The Co-operative Nationwide Somerfield Britannia Accuracy of data and transactions; relationship managers keeping promises and commitments; reliability of software. Keeping promises and commitments; accuracy of customer details processing and day-to-day banking operations; helpfulness of staff Corporate Responsibility Index score 2009 -100 -50 0 50 100 150 200 250 (+10) (+20) (n/a) (+37) (+10) (-34) (-29) (+10) (+79) Delivering value Membership and co-operation Economic impact Employees Customers Public policy Performance benchmark smile and The Co-operative Bank emerged in first and third places respectively in a Which survey of 15,000 customers’ satisfaction with their banks, published in January 2009. They 50 achieved 100scores 150 of 87% and 200 83%, compared 250 with an average score of 63% recorded by the 20 banks involved in the survey. The figures in brackets at the end of the bars represent the change from 2008 to 2009. The Co-operative scored particularly well in comparison with competitors in the public responsibility 17 (rank: 3rd of nine) and caring company 18 (rank: 3rd of nine) elements of the Corporate Reputation Index (CRI). Significantly, Member responses were over twice as high as non-Member responses in relation to ‘caring The Co-operative Group Sustainability Report 2009 109
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Sustainability Report 2009 Focus on
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The Co-operative Group Sustainabili
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prioritising community investment a
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“There is a tide in the affairs o
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About this Report Target attainment
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Mechanisms that influence materiali
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distinct team within The Co-operati
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• the organisation includes the p
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Community investment Indicators Com
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Employee volunteering 14 Number of
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International development and human
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000 400000 500000 The Co-operative
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Completion of improvement actions i
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One Big Idea competition In Novembe
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employed from the local population.
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Read more in this Report • The Co
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Independent third-party auditors ar
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Beef production All own-brand fresh
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The Co-operative Asset Management o
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Achievements 1986 In the absence of
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Community involvement Food educatio
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to be considered in the provision o
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Ethical and sustainability engageme
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Ethics and sustainability overseas
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Social inclusion Indicators Access
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intended to enable UK consumers to
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Diversity Indicators Gender Ethnici
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The Trading Group and CFS are holde
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The Co-operative Asset Management -
Page 59 and 60: Climate change Indicators Energy: c
Page 61 and 62: Total net CO 2 emissions from energ
Page 63 and 64: Decrease 2006-2009: 40% Decrease Th
Page 65 and 66: Carbon footprinting In 2007/08, The
Page 67 and 68: Bank finance for renewable energy I
Page 69 and 70: Oil sands consist of oil trapped in
Page 71 and 72: Waste and packaging Indicators Wast
Page 73 and 74: 2007 2008 2009 140,766 r 134,798 r
Page 75 and 76: • 212 tonnes of tyres, oil and pa
Page 77 and 78: Biodiversity Indicators MSC-certifi
Page 79 and 80: Total percentage of own-brand fores
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Page 83 and 84: Yes 88% No 12% InSight customer fee
Page 85 and 86: Examples of decisions taken on chem
Page 87 and 88: The Co-operative Farms’ use of ch
Page 89 and 90: Focus on delivering value Contents
Page 91 and 92: Member economic involvement Share o
Page 93 and 94: Activism Democratically active memb
Page 95 and 96: The Co-operative Enterprise Hub: fi
Page 97 and 98: 2,057.3 2,057.3 1,271.5 1,271.5 57.
Page 99 and 100: British sourced, traditional Hampsh
Page 101 and 102: Employees Indicators Employee engag
Page 103 and 104: were in perceptions that: colleague
Page 105 and 106: CFS has developed, delivered or sup
Page 107 and 108: esult of greater awareness of the e
Page 109: 8 2006 figure comprises The Co-oper
Page 113 and 114: Complaints received by other custom
Page 115 and 116: Public policy ‘influence and acti
Page 117 and 118: Trade and business association memb
Page 119 and 120: Independent assurance statement Sco
Page 121 and 122: Reporting in accordance with the GR
Page 123 and 124: Recognition Social responsibility
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Sustainability Report 2009 - The Co-operative

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