SOURCE: Orange Tree Employment Screening

Orange Tree Employment Screening

January 19, 2016 12:05 ET

The Impact of Industry Consolidation on Client Satisfaction

Customer Satisfaction Scores Often Suffer Long After the Ink on M&A Deals has Dried

MINNEAPOLIS, MN--(Marketwired - January 19, 2016) - Mergers and acquisitions often create lingering dissatisfaction among customers. Why? More often than not, it seems, these deals are motivated by the desire to boost shareholder return -- frequently to the detriment of the customer experience.

Consider a BusinessWeek analysis of American Customer Satisfaction Index data, which reported on customers' perceptions of 28 companies across industries that were involved in major mergers. It showed customers were significantly less satisfied on average even two years after the deals closed than they were before.

Customer satisfaction scores were based on perceptions of companies' prices, quality and ability to meet expectations. In a jaw-dropping 50% of the deals, customers rated companies lower in at least one of the three categories. What's more, customers believed they benefited from better service or prices from less than one-third of mergers. According to Claes Fornell, an expert on customer satisfaction measurement, "Customers are increasingly frustrated because they perceive they have a lack of choice [post-merger]."

Like other industries, the employment background screening space has not escaped the allure of merger mania. As large investment banks and private equity funds have taken an interest in the space, M&A activity has ticked up.

Late last year, for instance, SterlingBackCheck, a global background screening company, announced its planned mergers with cloud-based HR solutions provider TalentWise as well as the background check screening firm EmployeeScreenIQ.

"You can talk about technology enhancements and business scalability to justify these consolidations, but at the end of the day the priority must be your clients and how you can best partner with them to ensure you're delivering meaningful value," says Craig Vinje, CEO of Orange Tree Employment Screening, a Minneapolis-based global provider of employment background screening solutions.

"Employment background screening is not a plug-and-play proposition," notes Orange Tree President & Chief Operating Officer Renee Ernste. "Every client is different with its own unique requirements. It takes expert guidance to build best practice screening programs that are responsive to continually shifting employment laws."

"For over 25 years now, our clients have come to trust our hands-on expertise and consultative approach to meeting their employment screening needs," adds Vinje.

About Orange Tree Employment Screening

Orange Tree Employment Screening, based in Minneapolis, MN, helps employers Hire With Confidence™. Orange Tree specializes in providing a full range of technology-based screening solutions with a commitment to excellent customer care and compliance best practices. Founded in 1990, Orange Tree celebrated its 25th anniversary in 2015. To learn more, please visit: http://www.orangetreescreening.com.

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