The essential idea of business-to-business CRM is often called allowing the more expensive business to be as tuned in to the requirements of its customer as a tiny business. In the early days of CRM this became translated from “responsive” to “reactive “.Successful larger businesses recognise they have to be pro-active to find listening to the views, concerns, needs and degrees of satisfaction from their customers. Paper-based surveys, such as for instance those left in hotel bedrooms, generally have a low response rate and are generally completed by customers who have a grievance. Telephone-based interviews tend to be influenced by the Cassandra phenomenon. Face-to-face interviews are costly and may be led by the interviewer www.jacklistens.com.
CRM is on the basis of the premise that, having a better knowledge of the customers’needs and desires we are able to 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 the maximum amount of 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 corresponding to 1.8 times what a Totally Satisfied Customer plays a role in a business.
Consider the following situations…
A sizable, international hotel chain wanted to attract more business travellers. They chose to conduct a customer satisfaction survey to learn what they needed seriously to boost their services for this type of guest. A published survey was placed in each room and guests were asked to fill it out. However, once the survey period was complete, the hotel found that the sole people who’d filled in the surveys were children and their grandparents!
Business travellers don’t have enough time or the interest in participating in this type of survey!
A large manufacturing company conducted the first year of what was designed to be an annual client satisfaction survey. The very first year, the satisfaction score was 94%. The next year, with the same basic survey topics, but using another survey vendor, the satisfaction score dropped to 64%. Ironically, at the same time, 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 useful for gathering peoples’opinions, survey designs vary dramatically in length, content and format. Analysis techniques may utilize a wide variety of charts, graphs and narrative interpretations. Companies often work with 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? Are there “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 outcomes of a survey. Therefore, it behoves a company to create absolutely sure that their survey process is accurate enough to generate a real representation of their customers’opinions. Failing to take action, there’s no way the business can utilize the results for precise action planning.
The characteristics of a survey’s design, and the info collection methodologies employed to conduct the survey, require careful forethought to make certain comprehensive, accurate, and correct results. The discussion on the following page summarizes several key “rules of thumb” that really must be adhered to in case a survey is becoming a company’s most valued strategic business tool.