North American shale continues to rewrite the books, and its potential seems destined to spread globally. Simultaneously, new horizons are being forged offshore — from the ultra-deepwater of the world’s great oceans, to the lower-tertiary depths of the Gulf of Mexico, to the vast unknown of the Arctic. And operators are always looking to squeeze more from existing assets everywhere. All the while, the industry’s ingenuity and resolve is being both tested and showcased.
Given the clamorous state of the industry, maybe it’s not surprising EnergyPoint’s customer satisfaction ratings of oilfield service suppliers are, as they say, “all over the board”. After all, no one contends the demands of this brave new world are easily met. They are not. Everything from the far-flung and nomadic nature of today’s operations to the “big-crew change” lurking in the background suggests plenty of challenges.
Nevertheless, EnergyPoint’s data indicate that service suppliers, who tend to get whipsawed earlier and to greater degree by industry forces than their manufacturing brethren, may be gaining footing as customer satisfaction levels show signs of bottoming. We note that most of the stronger customer satisfaction ratings and ratings improvement come from service suppliers focused primarily on North American markets. We also note that of the “Big Four” integrated providers, none currently show ratings above Average. Two actually show deteriorating marks.
So, how might service suppliers maintain or improve customer satisfaction given what looks to be a dynamic environment for the industry for years to come? A focus on service and professionalism would be a good place to start.
In our analysis of factors that drive customers’ overall sense of satisfaction, none has shown itself to be more important than service and professionalism — essentially customers’ satisfaction with a supplier’s personnel and service culture. EnergyPoint measures service and professionalism as a function of three distinct sub-attributes: flexibility and responsiveness; accountability, and; ethical behavior and integrity.
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Not surprisingly, research shows that service suppliers rating well in service and professionalism tend to invest in their people and organizations at higher-than-average rates. Communication and interpersonal skills are emphasized and rewarded in the field as well as in the office. A drive to develop and maintain strong customer relationships is pervasive at all levels of the organization.
There are multiple reasons why service and professionalism ratings tend to be higher among service suppliers that operate predominantly in North America. For one, notions of accountability and flexibility do not always translate across boarders. What one part of the world sees as appropriate and effective service, another might see as over involved.
Nonetheless, it’s clear that operating standards, including the way suppliers interface with customers in markets outside of North America, could stand some attention. Our advice to suppliers is to hire good people, train them properly and frequently, retain them via longer-term contracts with customers, and commit to regions, customers and employees long term. Most of all, don’t put growth before quality — it’s an absolute customer satisfaction killer.
