Industry rhetoric surrounding customer satisfaction surveys is increasingly negative – focusing on irritating, irrelevant surveys which are too long and sent out too frequently. After all, we are all consumers and from a consumer perspective the narrative is that “we are all sick of surveys”.
So why would a company decide to invest time and money into a customer satisfaction investigation?
We have the answers. This hostility surrounding surveys refers only to results of BAD customer surveys. Too often, companies focus on the negatives surrounding customer satisfaction measurement and forget (or simply don’t realise) the extensive benefits that a well executed survey can bring to their organisation.
At Customer Satisfaction UK, our entire process revolves around providing commercial, concrete benefits for our clients.
Here are the 5 main benefits we provide to ALL of our clients as a result of our customer satisfaction investigations… and if you’re still not convinced after reading this blog post, check out these case studies.
1. Increase Customer Retention
By carrying out a customer satisfaction investigation, you are investing in a procedure which helps you to keep your existing customers – by understanding your customers’ needs, you can serve these needs more effectively and efficiently
Gaining a new customer is 6-7 times more expensive than simply retaining an existing customer. Read all about customer churn and retaining customers here.
By retaining your customers, you are in effect, creating more loyal customers which comes with a myriad of benefits such as: customers buying more frequently from you and customers recommending you to others.
2. Reduce Costs
By investigating your customers’ opinions and experiences, you gain the benefit of them telling you which products, services and processes they really value and which they do not. This is a crucial benefit, particularly for smaller, growing companies – it allows you to streamline your processes, pinpoint your business investments and make the most cost-effective decisions.
Additionally, you will have fewer marketing and new customer acquisition costs due to increasing retention of your existing, loyal customers
3. Increase your Reputation
By carrying out a customer satisfaction investigation, you are sending a message to your customers that:
- You take their feedback seriously
- You value their opinion
- You are committed to being a customer-orientated company
These three things will all increase your reputation in your customers’ minds. Thus, they are much more likely to spread positive word of mouth about your company. These customers are also more likely to act as “promoters” for your company, recommending you to others; increasing your revenue and bringing in new business.
View your customer satisfaction initiative as an opportunity to open up lines of communication between you and your customers – they are much more likely to be more honest and frank if they perceive that you will be receptive to their feedback.
4. Increase your Revenue
Investigating your customers’ satisfaction allows you to identify new areas for business and increase your share of your customer’s wallet.
We structure our customer satisfaction surveys to represent the main stages of your company’s service life-cycle, complemented with supportive sections such as opinions on specific products or services. This allows customers space to provide constructive criticism as to whether your existing products need improving and give suggestions for new ideas and new ways of doing things. These are often extremely specific and actionable suggestions, and our bespoke questionnaire design process allows you to hone in on certain areas you would like to know more about.
You are then able to provide your customers with improved, more relevant products that they will want to buy more of – increasing your revenue.
5. Improve your Market Knowledge.
As well as gaining extensive insight into your customers’ opinions regarding your own company, customer satisfaction investigations also allow you to get a broad view and deeper understanding of your competitive environment and the market that your company is operating in.
We almost always include a section in our surveys about competitors. Here, you have the space to ask your customers which companies they perceive to be your competition and if they see you as better or worse. This provides you with invaluable understanding of your competitors e.g. new emerging threats, new product offers etc.
More importantly, we always ask supplementary questions to deeply probe into WHY customers perceive your competitors are better or worse than you. This offers practical improvement actions to increase your competitive advantage.
We will also ask questions surrounding the industry you and your customers operate within; your customers’ future needs and the way the market is developing around your company. Examining answers to these questions will help you to shape your products and services to support your customers’ evolving needs and build a future together.
This ultimately increases the lifetime value of each of your customers.
Customer satisfaction improvement is a journey which gradually paints you a clear picture of your customer experience touch points. At Customer Satisfaction UK, we aim to provide you with yet another tangible benefit in the form of our reports.
Our summary report of your customer satisfaction investigations acts as a practical management tool. Use the action plans and proposed Key Performance Indicators to gain all the 5 main benefits – as well as countless others.
Ultimately, investing in building better relationships with your current customers through a customer satisfaction investigation is a domino effect – with many sequential benefits.