The basic concept of business-to-business CRM is usually referred to as allowing the more expensive business to be as attentive to the wants of its customer as a tiny business. In the early days of CRM this became translated from “responsive” to “reactive “.Successful larger businesses recognise that they have to be pro-active to locate listening to the views, concerns, needs and degrees of satisfaction from their customers. Paper-based surveys, such as those left in hotel bedrooms, generally have a low response rate and are often completed by customers who have a grievance. Telephone-based interviews are often influenced by the Cassandra phenomenon. Face-to-face interviews are costly and may be led by the interviewer jack in the box survey .
CRM is on the basis of the premise that, by having a better comprehension of the customers’needs and desires we could keep them longer and sell more to them.
InfoQuest performed a statistical analysis of Customer Satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by InfoQuest.
The conclusions of the study were: –
A Totally Satisfied Customer contributes 2.6 times the maximum amount of revenue to a company as a Somewhat Satisfied Customer.
A Totally Satisfied Customer contributes 14 times just as much revenue as a Somewhat Dissatisfied Customer.
A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer plays a role in a business.
Consider the next situations…
A big, international hotel chain wished to attract more business travellers. They made a decision to conduct a client satisfaction survey to discover what they had a need to enhance their services for this sort of guest. A published survey was placed in each room and guests were asked to fill it out. However, once the survey period was complete, the hotel discovered that the only people who had filled in the surveys were children and their grandparents!
Business travellers don’t have the full time or the fascination with participating in this kind of survey!
A big manufacturing company conducted the initial year of what was designed to be an annual customer satisfaction survey. The initial year, the satisfaction score was 94%. The 2nd year, with exactly the same basic survey topics, but using another survey vendor, the satisfaction score dropped to 64%. Ironically, at the same time frame, their overall revenues doubled!
The questions were simpler and phrased differently. The order of the questions was different. The format of the survey was different. The targeted respondents were at an alternative management level. The Overall Satisfaction question was placed by the end of the survey.
Although all customer satisfaction surveys are employed for gathering peoples’opinions, survey designs vary dramatically in total, content and format. Analysis techniques may start using a wide selection of charts, graphs and narrative interpretations. Companies often use a survey to test their business strategies, and many base their entire business plan upon their survey’s results. BUT…troubling questions often emerge.
Are the outcomes always accurate? …Sometimes accurate? …At all accurate? Are there “hidden pockets of customer discontent” that the survey overlooks? Can the survey information be trusted enough to take major action with full confidence?
Whilst the examples above show, different survey designs, methodologies and population characteristics will dramatically alter the outcome of a survey. Therefore, it behoves an organization to produce absolutely certain that their survey process is accurate enough to generate a genuine representation of their customers’opinions. Failing to do so, there’s no way the business can utilize the results for precise action planning.
The characteristics of a survey’s design, and the data collection methodologies employed to conduct the survey, require careful forethought to make sure comprehensive, accurate, and correct results. The discussion on the following page summarizes several key “rules of thumb” that must be followed if your survey is becoming a company’s most valued strategic business tool.