Manage What You Can Measure
In the last post you learned about the influence your customers can have on your business. Now that you know about influence, today you will learn how to begin measuring how your customers feel about your business.
It turns out there is a pretty low cost way to measure your customers – Customer Surveys. In this post, you’ll learn a strategey for surveying your customers.
Three Customers Types
You can measure your customers by grouping them into three categories.
Your Champions are your most loyal customers. These are the people you can count on through thick and thin. You’ve earned their loyalty through great customer service. They pay you back by continuing to give you business.
Do you know your best customers by face? Name? If not you should.
Getting new customers costs money. When you market your business, that money is typically spent on radio ads, coupon clippers, newspapers ads and maybe a few other places. The money you spend in order to bring in new business is called your customer acquisition cost.
If you spend ten dollars to bring in one customer your customer acquisition cost is ten dollars. If your service is so spectactular that the one customer tells a friend, who also comes, in then your net customer acquisition cost is five dollars.
Your Champions are going to be a source of referrals. These referrals represent new business for your company that you didn’t have to pay for.
Well, it’s not exactly free. You’ll need to continue to provide outstanding customer service in order to maintain that loyalty but you need to do that anyway.
Critics are the people who had a bad experience at your business and will likely not come back. You’ve probably lost them and in-fact you really shouldn’t worry about it too much.
It’s not very important to know who they are. In fact, focusing on them could actually hurt your growth.
Suppose your marketing budget allows you to spend ten dollars on a customer. Would you rather spend it on people who love your business and might tell their friends? Or, would you rather spend it on someone who had a bad experience in the hopes of bringing them back?
You still want to learn why they had a bad experience in order to make sure they aren’t any over arching problems with your business.
People who are conflicted hold an ambivalent opinion of you. Maybe you are the only dry cleaner in town. They don’t love you but they don’t hate you enough to drive five miles to the next dry cleaner. Save your money, you don’t need to market to them either.
Finding Your Champions
Now that you know about the importance of Champions to your business the next question is “How do I find them?” The simplest way to go about finding your Champions is to ask them and there is no easier way to do this than to conduct a survey.
I’ve never conducted a survey before!
If you’ve ever taken a survey you know they can be complicated and long. Responses are collected from thousands of people and the results are poured over by analysts from market research firms.
You do not have time for this and that’s ok.
I’m going to show you step by step how to create a simple survey that is super quick for your customer and easy for you to analyize.
Identify Your Goals
Your survey is going to accomplish a few goals:
1. Identify how your customers feel about your company
2. Identify areas that your customers think you do well with
3. Identify areas that your customers think you should improve
4. Identify your Champions.
This seems like a lot but we can accomplish this with only a few questions.
How do your customers feel about your company?
Asking your customers if they will recommend you to their friends or colleagues is a great way to find out if they like your company. Our entire survey is going to be based around this question. The additional questions will just zero in on specific areas.
Question #1 How likely are you to recommend us to a friend or a relative?
You’re going to ask your customers to give you a response from 0 to 10, with 0 meaning not likely and 10 meaning very likely.
This question will establish how your customers feel about your company.
Follow up questions
For questions two and three you need to think of some key areas of your business that you want to ask your customers about.
A restaurant may want to look at the following areas:
* Quality of the service
* Quality of the food
* Atmosphere in the restaurant
While a contractor has an entirely different set of goals:
* Quality of the work
Think about areas of your business that you think you do great with and areas of your business that you might want to improve. You might be surprised how your perception of your strengths and weaknesses differ from your customers.
You should try to limit this list to five items.
Question #2 – From the list below, please tell us which area where we did exceptionally well.
The answers to this question are the areas that you just identified.
Question #3 – From the list below, please tell us which area should have the highest priority for us to improve
Again, you will use the answers that you just identified.
Question #4 – Do you have any other comments about us?
This will give your customers an opportunity to tell you exactly why they answered the questions the way they did.
As you can see, you don’t need to ask your customers dozens of questions in order to gain some insight into why they like your business.
By asking a few simple questions you can build an understanding of who your best and worst customers are.
In the next post, I’m going to show you exactly the tools you need to get started. Don’t worry, it won’t break the bank.
If you don’t have time to build the survey yourself or one some one-on-one help, contact me by clicking here.