2.7. Transforming Customer Satisfaction Data into Business Value

As mentioned previously, measurements and data are little more than subjective insights unless they are part of an actual business plan for action. Successful companies recognise this fact and do not survey simply to get a feel for “how we’re doing.” Rather, the customer satisfaction survey is an integral component of one or many processes that directly impact a company’s bottom line. Satisfaction survey data can establish valuable benchmarks for production, pricing, and many other critical business processes that affect profitability, performance, and a company’s brand / corporate image.

Recall the aforementioned 80/20 rule. With this in mind, a company may be able to greatly increase profits by focusing efforts on installed base marketing—cross-sells, upsells, renewals. Using customer satisfaction surveys to pinpoint the likes and dislikes of a company’s “top 20” customer base can reveal valuable insight. By having a robust database of customer analysis data, a sales organisation can, for instance, determine the best strategies for maximising marketing and sales results. For example, if a company’s “best” customers show a significant affinity for a certain product, or if they are from a certain geographic area, an organisation can ramp up marketing efforts for that product or that territory. Accordingly, this organisation can also determine which products should be discontinued or which territories should receive less advertising budgets. In either case, customer satisfaction data enables businesses to make informed decisions that can greatly increase profits.

Customer satisfaction surveys can provide extremely useful data to sales executives, who offer little more than company profile and company information when making calls and visits. When a sales organisation can effectively implement a complete customer satisfaction program, the resulting analysis can be an excellent tool for “warming” a cold call, or sending relevant sales materials and messaging to prospects. By analysing buying trends and establishing associations between different data points, a sales force can approach their leads tactically. For example, if a company discovers a significant correlation between customer satisfaction data and a specific industry vertical, a sales manager can focus more call time and lead generation resources toward that industry segment.

Customer satisfaction surveys are also invaluable to the effective budgeting for the production and development of products. It enables a business to avoid spending time and resources fixing trivial mistakes or developing unnecessary enhancements. Most product managers recognise the value of customer feedback when gathering requirements. The challenge, again, is effectively collecting accurate and sufficient response data. Using the proper methodology in managing customer satisfaction feedback is essential to provide product developers with accurate information to continuously produce quality products that customers want.

Customer Satisfaction Survey Best Practices and Tips

Here are a few customer satisfaction facts that businesses should consider:

• Increasing loyalty and customer retention by just 5% can increase profits by 75%
• Most dissatisfied customers will eventually tell 9 other people about their problem.
  • Only 4% of dissatisfied customers actually complain to the company.
• Satisfied customers, on the other hand, tell 5 to 6 other people about their positive experience.

Managing dissatisfaction, then, is a critical consideration in planning a customer satisfaction and retention marketing program.

Best Practices in Customer Satisfaction Management

• Respond in real-time. Use automated notifications to alert appropriate managers of potential problems. Triggered alerts in real-time can help prevent a problem from escalating.
• Respond personally. Maintain a robust database of customer knowledge and transactional history in order to provide personalised follow-up. No customer wants to explain his or her problem more than once.