Customer Surveys That Work

Just like a well-designed P&L statement, a customer survey should provide managers with decision-making information. In today’s world of consolidations, roll-ups, beachheads and tuck-ins, it makes good business sense to use every tool at your disposal to secure customer relationships. A survey can provide you with valuable customer information if you create it based on three fundamentals of effective surveys: survey design, survey analysis and survey uses. However, each of these has two major pitfalls to avoid.

Survey Design

Pitfall 1:

The survey “asks” the wrong questions. Too many surveys are written from the vendor’s point of view. Solution: Write the survey from the customer’s perspective. Use focus groups or telephone interviews to ask the customer, 1) how they experience the delivery of the service from their point of view and 2) what factor do they consider when making a purchase decision for your service. Customer responses can then be incorporated into the survey design. Include several open-ended questions: What are your pet peeves with our service? What other services do you need? If you like our work, would you provide us with three referrals?

Pitfall 2: The survey is designed to rate satisfaction. Satisfaction levels are notoriously poor indicators of loyalty. Solution: On the other hand, value measurements show a strong relationship to loyalty. The survey should rate perceived value instead of satisfaction. In order to accomplish this objective, the survey must include importance rankings as well as the more traditional performance (satisfaction) ratings. Use a 1-to-5 scale to rate performance satisfaction with each of the survey statements. Then add a second level of response by asking the customer to rank the survey statements using a 100-point scale. Include a price statement like, “Services are worth what we paid for” to get at the trade-off between price and quality.

Survey Analysis

Pitfall 1:

The surveyor can over-rely on qualitative information – the verbal feedback provided by customers – and under-emphasize the numeric, quantitative responses. The reason often given is that verbal responses are more meaningful than numeric. More meaningful? Maybe. More representative? Probably not. Verbal commentary is rarely representative of the majority of customer opinions. Solution: Use both kinds of feedback – qualitative (open-ended verbal questions) and quantitative (numerically rated statements). Use an Excel spreadsheet to capture numeric responses. Use the data functions to analyze averages, ranges, variations and value index. This kind of analysis enables managers to isolate areas of critical weakness (loyalty leakage) by comparing performance ratings with importance rankings. Work on areas where performance is 4 or below and importance is 20 points or above. Use verbal feedback as a reason to call individual customers.

Pitfall 2: Sample size is a problem in any kind of research. Small samples provide unreliable data. This is especially true in customer surveys. This can be a problem because overall survey return rates can be low – less than 2%. Secondly, the returns are often skewed to the high and low ends of the bell curve thereby omitting data about the majority of customers in the middle. Solution: There are three ways to increase survey returns thereby improving the quality of the sample. 1) Keep the survey short – no multiple-page surveys. Write “Seven Minute Survey” in bold across the top of the survey. 2) Provide a gift, like a piece of candy with a message: In the time it takes to finish this chocolate you can finish and fax this important survey back to us.” 3) Place a follow-up phone call within three days of your mailing. Take responses over the phone if possible. Finally, stagger your survey mailings.

Survey one quarter of your customers every three months. Using this approach, you will be able to survey all your customers in 12 months getting a more complete and valid sample.

Survey Uses

The ultimate objectives are to 1) eliminate customer defections, 2) develop new products and services, 3) identify referral opportunities and 4) improve overall job quality.

Pitfall 1: Many companies provide the customer nothing in the way of feedback regarding the results of the survey. This hurts future survey returns and doesn’t take advantage of public relations opportunities. Solution: Pen a one-page letter from the president to all customers – regardless of whether they responded. Customers appreciate feedback from any survey they complete. Direct your account mangers to hand deliver the results, when possible. This often leads to better relationships, add-on sales and referrals.

Pitfall 2: Employees in many companies never see the survey results. In effect, the company misses an excellent opportunity to train and reward work crews while helping to improve their performance. Solution: Chart the results and post them on the bulletin board. Put the results on a flip chart and discuss at monthly management meetings. The most efficient customer service company I ever observed reviewed survey results every month. They handed out cash rewards or held a pizza party when crews achieved gains or exceeded goals.

If you don’t provide your customers with value, someone else might. You can avoid defections by measuring value and making constant improvements in your services and operations. Remember, what gets measured gets looked at. What gets looked at gets talked about. What gets talked about gets acted upon.

This information is brought to you as an ALCA service by the Education Committee. If you would like additional information on the educational opportunities offered through ALCA,  please contact Elise Lindsey, Education Committee Liaison at 800-395-2522 or by e-mail at [email protected].