The essential notion of business-to-business CRM is often referred to as allowing the bigger business to be as responsive 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 need to be pro-active in finding listening to the views, concerns, needs and levels of satisfaction from their customers. Paper-based surveys, such as those left in hotel bedrooms, are apt to have a low response rate and are generally completed by customers who have a grievance. Telephone-based interviews are often influenced by the Cassandra phenomenon. Face-to-face interviews are very pricey and may be led by the interviewer
CRM is on the basis of the premise that, having a better understanding 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 analysis were: –
A Totally Satisfied Customer contributes 2.6 times just as much revenue to a company as a Somewhat Satisfied Customer.
A Totally Satisfied Customer contributes 14 times as much revenue as a Somewhat Dissatisfied Customer.
A Totally Dissatisfied Customer decreases revenue at a rate add up to 1.8 times what a Totally Satisfied Customer plays a role in a business.
Consider the following situations…
A big, international hotel chain wanted to attract more business travellers. They made a decision to conduct a client satisfaction survey to find out what they needed to improve their services for this type of guest. A written survey was placed in each room and guests were asked to fill it out. However, once the survey period was complete, the hotel unearthed that the sole people who’d filled in the surveys were children and their grandparents!
Business travellers don’t have the full time or the interest in participating in this kind of survey!
A sizable manufacturing company conducted the very first year of what was designed to be an annual customer satisfaction survey. The initial year, the satisfaction score was 94%. The second year, with the exact 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 a different management level. The Overall Satisfaction question was placed at the conclusion of the survey.
Although all client satisfaction surveys are employed for gathering peoples’opinions, survey designs vary dramatically long, content and format. Analysis techniques may start using a wide selection of charts, graphs and narrative interpretations. Companies often use a survey to check their business strategies, and many base their entire business plan upon their survey’s results. BUT…troubling questions often emerge.
Are the outcome always accurate? …Sometimes accurate? …At all accurate? Exist “hidden pockets of customer discontent” a 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 results of a survey. Therefore, it behoves a company to produce absolutely sure that their survey process is accurate enough to generate a real representation of these customers’opinions. Failing to do so, there is no way the organization can use the results for precise action planning.
The characteristics of a survey’s design, and the information collection methodologies employed to conduct the survey, require careful forethought to make sure comprehensive, accurate, and correct results. The discussion on the next page summarizes several key “rules of thumb” that really must be honored if a survey is to become company’s most valued strategic business tool.