Home
About Us
Services
Philosophy
Market
Segments
Research
Ramblings
Research
Resources
Management
Contact Us
|
Customer Satisfaction Surveys and Reporting
While we have previously reported on the topic of Customer Satisfaction, we felt it warranted another "once over" since it is so critical in establishing the repeat business which is key to the long-term success for all organizations. In fact, a full 30% of the weighting of the criteria used for the Malcolm Baldridge National Quality Award is on Customer Satisfaction. Studies have also shown that it is 5 times more costly to replace a customer than to retain one.
Market/customer research plays an important role in the measurement of customer satisfaction. Organizations are increasingly instituting regular customer satisfaction measurement programs and establishing benchmarks for comparison over time. While the mechanics of the process may involve both qualitative and quantitative aspects, measurement topics typically include:
- Expectations - based on previous experience or statements by company personnel.
- Importance - of particular measurement criteria.
- Performance - on selected measurement criteria.
- Satisfaction - comparison of performance to expectations.
- Consequences - incidence of repeat usage or recommendation of products/services.
There are several considerations to keep in mind when planning a satisfaction measurement program:
- Probably the most fundamental issue that affects the design and implementation of a survey is determining how the information will be used. This involves a series of related questions:
- How quantitative does the information need to be?
- Is this a one-time measurement or will it be part of an on-going program?
- Will the results of such measurements be used in any way to review an employee=s performance?
- Are competitive ratings desired?
- Thought needs to be given to what factors affect customer satisfaction. What aspects of company activities should be measured? What are the key buying decision criteria that should be evaluated? For product companies, this undoubtedly involves product quality, delivery, service, sales/support personnel, price, etc. Service organizations are quite different and, by their very nature, would require more intangible measurements.
Satisfaction ratings can be affected by a number of other factors which also should be considered: segmenting variables (demographics, level of usage, length of time as a customer, etc.) and level of expectation. Dissatisfaction may be the result of unrealistic expectations set by company personnel, for example.
- Each satisfaction measurement should be interpreted in the context of the relative importance of that specific criteria. The objective, of course, is to rate high on those aspects which are most important to the customer. This added dimension of information is useful in optimizing allocation of resources.
- Satisfaction surveys also are a good vehicle to ask about "unmet" needs. Perhaps there is satisfaction with existing products or services, but there may be additional requirements and opportunities. This information will be useful for future planning purposes.
What is the value of a customer satisfaction measurement program? Remember, it is the customer's perception (not yours) which really counts. Asking for customer feedback suggests that the company is in a position to do something about it and raises expectations that things will change. One could argue, however, that unless managers are receptive to change and prepared to act upon the information received, there is little value in conducting satisfaction research. Similarly, follow-up with customers is very important - letting them know "here's what we heard you say and here's what we're going to do about it". If there is commitment to the process, there will be "goodwill" established.
Are there other measurable benefits or pay backs? Ideally customer satisfaction measurements should be linked to financial performance over time. Being able to demonstrate that there is a direct relationship between satisfaction and customer retention as well as employee turnover is important. Identification of satisfaction issues should also lead to more productive employees and increased revenue generation.
|
