What Do Your Customers Think?

Listen to What the Customer Says

Offering quality service to customers isn’t a mysterious process. Customers who interact with your organization every day are the ideal source for the feedback you need to stay in business.

That’s the verdict of Vistage customer retention experts JoAnna Brandi , Howard Hyden and Chuck Reaves . They say there are numerous ways to learn what your customers want; it’s important, first and foremost, that you take the time to listen.

“Teaching employees to ask insightful questions helps you form a vivid picture of your customers’ needs,” Brandi says. “It’s easier to be compassionate and empathetic when you know the whole picture.”

In the same respect, it pays to go out and observe customers in their “natural habitat.” Says Hyden: “Spend time with your customers. Get to know their business and ask them: ‘Is my product serving your needs? If not, how would you design it differently?’”

A surprising number of businesses initiate wide-ranging customer service programs without ever talking to their customers. According to Reaves, “Your internal records may suggest you’re doing a great job, but the only voices worth listening to belong to your customers. Find out what they want, provide it on a consistent basis and ask them how well you’re doing.”

“Listen and learn” sources include:

Customers. For many businesses, the person who purchases your product or service isn’t necessarily the one who uses it. To get a clear picture, always talk to the end-user.
Sales representatives. Often, sales reps are the organization’s eyes and ears. Based on their firsthand contact with customers, they are certain to have valuable insights for the business.
Ex-customers. Track down former customers and find out why they no longer do business with you. This can be a valuable source of information. (A tip: Send a box of chocolates or a basket of fruit along with your survey!)

“Customer service is all about exceeding customer expectations as defined by the customer,” Reaves says. “To know what customers want and expect, you have to ask them!”

To Survey or Not to Survey?

Surveys are an effective way to gauge customer satisfaction about your products or services. They also can measure the importance customers place on specific characteristics of these goods — which in turn offers additional information on where to focus your customer-retention efforts.

“Surveys are relatively simple and inexpensive to use, but to be truly effective they must have clear and precise goals,” Hyden says. “Vaguely worded or broadly categorized surveys may generate a great deal of information, but very little of it will be useful.”

Certain factors influence customers’ responses to surveys:

Phrasing. A question phrased in positive terms (“How satisfied are you?” vs. “How dissatisfied are you?”) usually provokes more favorable responses. The majority of customer satisfaction survey questions are phrased in positive terms.
Timing. It’s often as important when you survey customers as what you survey them about. Studies indicate that surveys conducted immediately after a purchase evoke more favorable responses than surveys administered at a later time.
Refusal to admit a mistake. Many customers believe that giving a low satisfaction rating reflects badly on their own buying habits. They don’t care to admit they’ve made a bad decision about a recent purchase. As a result, they often compensate by giving higher-than-average responses.

Because of their give-and-take format, focus groups can generate better information about customer satisfaction. They allow businesses to probe beneath the surface and get a clearer understanding of why customers perceive their organization the way they do. However, focus groups are time-consuming and more expensive than surveys to administer.

“Ideally, a combination of surveys and focus groups produces the best results,” Brandi says. “Remember, the information you gain helps direct your future customer retention efforts. Having satisfied customers is a good first step, but more effort is needed. Don’t equate satisfaction with loyalty.”

Feedback Is All Around You

Building a loyal customer base is like building a family or partnership. Like family members and business partners everywhere, customers want a say in what’s going on. When they are invited to “participate” in your business, customers commit themselves to a sense of ownership and loyalty.

Encourage management and front-line staff to take a comprehensive approach to gathering customer feedback. Instances include:

Point of purchase. There’s no time like the present — the moment when the transaction is taking place. Ask the customer, “Was everything to your satisfaction?” Better yet, ask: “Was everything perfect?”
Order forms. Include a “comments” section on your order forms, making it easy for customers to provide feedback. Try this on your invoices as well.
Newsletters. Solicit letters from your customers and print them in your organizational newsletters. This demonstrates your interest in their attitudes and your desire to share their thoughts with employees and others.
Toll free. For customers who live and work beyond local area codes, install a toll-free telephone number they can call with their comments and complaints. Encourage use of this toll-free phone option in your mailings and handouts.
Report cards. Simple, easy-to-use “report cards” (like those used by hotels and restaurants) offer instant feedback from customers doing business with you. Be sure to offer the additional option of having them mail the reports back in a prepaid envelope.
Voice mail. With today’s technology, there’s no excuse for not having a dedicated “customer feedback hotline.” Let your customers know that all messages on this hotline will be heard or read by senior management and by all employees with direct customer contact.

“Gathering feedback from a variety of sources results in an objective, comprehensive picture of who your customers are, what they want and how you can better serve them,” Reaves says.

Hyden adds, however, that collecting customer feedback is only half the battle. “All this data should be closely analyzed and shared with the staff in an organized, accessible manner. Otherwise, it’s useless.”