Have you ever received a customer survey from a company after you have purchased a product or service? Odds are that you have received a feedback survey in some shape or form.
Surveys could be formal or informal. Formal surveys ask you give a rating of sorts. While informal surveys are usually verbal. Most large companies offer formal surveys, while many small businesses take informal surveys. Obviously there may be exceptions to this, but generally this is the case.
Surveys are a great way for a company to find ways to improve there delivery of products and services. However, many companies do not know how to read the scores and what actions to take based on the results.
In this blog I will show how to read the scores and what actions to take with both existing customers and prospects in order to directly affect company growth.
A company's growth is directly tied to the satisfaction of its customers. There are three basic customer satisfaction scores: High, Medium, and Low.
High Score:
Receiving a high score in customer satisfaction means that your customers are likely to buy from you again; recommend your products and services; and you are very likely to close sales with prospects with little effort.
What this means to your company is that your company needs to continue to provide a high level of service to existing customers. Your existing customers are not only generating repeat business but also acting as your marketing arm. The company would also see the costs for closing new prospects decline. The difference would directly impact to your bottom line in a positive way.
Medium Score:
A medium score is no reason to rejoice. However, you should be grateful that is was not a low score. A medium score can be interrupted in a way that your existing customers are undecided on whether to award you repeat business; they are also not sure that they would recommend your product or service to others.
At this level a company should focus on its post sales support process. Just because a sales has been made and a product or service has been delivered, it does not mean that service stops. Determine from customers what corrective actions could be taken to move your score higher. Then follow through and implement those corrective measures. Inform prospects of the new measures in place to gain their confidence.
Low Score:
A this level your existing customers wished that they never signed on with you; not only will they not be a source of repeat business but will voice their dissatisfaction to prospects as well. Your
A this stage the company needs to take drastic measure to improve its products and services. A simultaneous approach will need to be implemented, i.e. improve services with current and active customers, increase post sales support by using incentives based methods, and the company will need to improve its image in the market place to attract new prospects.
In conclusion know the score; track the score; and adopt an appropriate strategy based on the score.
Till next time
Sal
http://www.salmankkhan.com/
Wednesday, March 19, 2008
Growth startegies based on customer feedback
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3 comments:
Yet again a very interesting post to which I have a question.
What if the company has a monopoly? I have come across a company which used to be the only TV cable and dsl internet provider in the city. initially there were other small vendors but they captured the market niche very quickly since they had quite a few perks, such as hubs, ftp servers, and good channels. In short they had a really good product and if u looked at their survey, I'd say they are in the medium category. but their customer service sucks and I still see customers being loyal and opting for their product inspite of other competitive vendors coming into the picture now.
Why is this the case? and what do you think will happen to such a company eventually ?
As you mentioned their competitors do not offer the same quality of products. What will happen to the company is perhpes if their competitor does happen offer the same quality of products and the service is better, then the company will lose their customers to the competitor.
As long as the products are good and being consumed then the company will continue to grow.
Direct competition will force them to change their customer service, i.e. if they know and acknowledge the problem. If not and with competition; they will lose.
I would encourage you to let the company management know of this problem. Perhaps they will address it before it is too late.
Will do so thanks
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