2008 Q4 Ten Ways to Use Customer Survey Results
1. Establish a CSI (Customer Satisfaction Index) baseline.
Measuring performance growth from year to year serves as a baseline for continuously improving your business. Many companies have found that improvements in a CSI serve as a leading indicator in signaling the future profitability of a company. Subjective issues are redefined into objective and quantifiable results.
2. Prioritize processes and procedures.
For most managers there are usually dozens of projects that need to be completed over the course of a year. Each manager has his or her own agenda when it comes to pet projects. Using the results of a customer survey can focus management attention on improving the areas that are most important to customers rather than on things that may be of little value to customers.
3. Understand value from customer’s perspective.
Through customer surveys, clients gain an in-depth understanding of what their customers value most about a company’s products and services. There is usually a difference between what you think you are selling and what your customers are buying. Eliminate things of little value and create value in the areas of most importance to them.
4. Improve customer loyalty by tracking Net Promoter Score (NPS).
The NPS is an index that links survey responses with actual customer behavior – purchasing patterns and referrals – and ultimately with company growth. The NPS provides a strong correlation between a company’s growth rate and the percentage of its customers who are promoters – that is, those who say they are extremely likely to recommend the company to a friend or colleague.
5. Develop a customer profile to target new customers.
Although many companies know their customers by name, they may not have an in-depth understanding of why their customers are buying from them. Important questions that can be answered through a customer survey are who and why and can also provide you with great insight about your customers. Once you thoroughly understand your current customers the profile becomes invaluable in prospecting for new customers having similar characteristics.
6. Benchmarking – How you stack-up against competitors.
Understanding how your company compares to other companies in manufacturing or service industries can give you insights on your overall performance relative to competitors. Results from customer surveys can be used to benchmark your performance in such quality indicators as responsiveness, reliability, professionalism, etc.
7. Increase employee productivity.
Companies have used the findings of their customer surveys as one of the criteria used to compensate employees. Using a percentage of compensation as a variable, companies have linked customer satisfaction to departmental CSI resulting in a more objective method of rewarding performance.
8. Increase current customer sales.
Many times we have observed that customers are unaware of all the products and/or services offered by a company. Surveys can be designed in a way to increase the likelihood of additional purchases by focusing efforts on your core competencies and emerging trends. 9. Planning effectiveness.
Some companies spend more time on the’ plan rather than gathering information considered critical to developing effective strategies. Obtaining objective feedback from external sources supplements your internal assessments. Seeking input from a variety of sources ensures that you are allocating your resources where it will generate the greatest returns.
10. Marketing to new customers.
The results of a customer survey are often times used as a marketing tool. A brochure can be developed and used as part of the sales literature for trade shows, mailers, prospecting, etc. Having many highly satisfied customers serves as a testimonial for aiding the marketing effort and gaining new customers.